1. The major disadvantages of long-term debt include: (Points : 3.71) owners are able to maintain controlrelatively high‚ explicit after-tax costdecreased earnings per share through using financial leveragenone of the aboveall of the above 2. The ____ the investor’s required rate of return on a bond‚ the ____ will be the value of the bond to the investor. (Points : 3.71) higher‚ lowerhigher‚ highernone of the above 3. George is 45 years old today and is beginning to plan for his retirement
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Sample Problems—Time Value of Money 1. Gomez Electronics needs to arrange financing for its expansion program. Bank A offers to lend Gomez the required funds on a loan where interest must be paid monthly‚ and the quoted annual rate is 8 percent. Bank B will charge 9 percent‚ with interest due at the end of the year. What is the difference in the effective annual rates charges by the two banks? 2. In 1889‚ Vincent Van Gogh’s painting‚ “Sunflowers”‚ sold for $125. In 1987 it sold for $36 million
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Symbiotic Period: The First 8 weeks of Life “The first weeks after birth have a special significance for the child’s development and are referred to as “symbiotic life”. The word symbiosis means “a life together” and it describes the special situation of two living beings who need each other because each of them gives and receives something absolutely necessary for the continuation and the quality of each of their lives.” – Understanding the Human Being ch. 3 The symbiotic period is a period
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THE SEVENTY WEEKS PROPHESY OF DANIEL __________ A Research Paper Submitted to XXXXXXXXX University __________ In Partial Fulfillment Of the Requirements for BIBL 450 By xxxxxxxx Table of Contents Introduction 3 The beginning of the Christian 3 Coming of Messiah 5 Counting of Weeks and Messiah 7 Why Daniel’s Prophecy is Disregarded 8 Conclusion 9 Bibliography 10 THE SEVENTY WEEKS PROPHESY
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What annually compounded rate of interest has the bank been paying? a. 8.65% b. 26.00% c. 8.00% d. 6.87% 3. A project has a life of ten years starting today. What is the present value today of a $1‚000 annuity that begins at the end of the third year and continues until the end of the tenth year‚ given a 12% discount rate. a. $4‚811 b. $3‚248 c. $4‚734 d. $5‚650 e. $3‚960 4. Which of the following statements is most correct? a. An investment which compounds interest semiannually‚ and has a nominal
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1. James plans to fund his individual retirement account‚ beginning today‚ with 20 annual deposits of $2‚000‚ which he will continue for the next 20 years. If he can earn an annual compound rate of 8 percent on his deposits‚ the amount in the account upon retirement will be 98845.84(since it is a retirement plan so‚ assumed to be annuity due) correct 91‚523.93 – ordinary annuity in this accumulation phase. 2. $100 is received at the beginning of year 1‚ $200 is received at the beginning of year
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6.29 Simple Interest versus Compound Interest [LO4] First Simple Bank pays 9 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accounts compounded annually‚ what rate should the bank set if it wants to match First Simple Bank over an investment of 10 years? 6.32 Calculating Annuities [LO1] You are planning to save for retirement over the next 30 years. To do this‚ you will invest $800 a month in a stock account and $400 a month in a bond account.
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A. Compound Interest Formula:FV = P (1 + r) nFuture Value = FV‚ P = Principal‚ r = interest rate and n = number of years. = $500(1 + 0.06) 10a) An initial $500 compounded for 10 years at 6 percent. A = $ 895b) An initial $500 compounded for 10 years at 12 percent. 500(1 + 0.12) 10B = $1553Present Value Calculation:PV = present Value‚ Principal = $ 500‚ r = interest rate and n = number of yearsFormula:PV = FV/(1 + r) nThe present value of $500 due in 10 years at a 6 percent discount rate.
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processes of new word formation. 1. Creating words 2. Combing words: compounding Combing word parts: affixing 3. Shortening words 4. Blending words 5. Shifting words to new uses 6. What is a compound word? Please give 5 examples of any modern compound words you know. A compound is made by putting two or more words together to form a new word with a meaning in some way different from that of its elements. -air kiss - baby boomer - date rape - downsize - drive-by shooting
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provide her with the largest future value? B. 7 percent interest‚ compounded monthly 5. Hilltop‚ Inc. earns $.12 in profit on every $1 of sales. The firm pays out 55 percent of its profits to its shareholders. The firm has $.75 in assets for every $1 of sales. What is the internal growth rate? B. 7.76 percent 6. Your firm has been told that it needs $100‚000 today to fund a $150‚000 expansion project 8 years from now. What rate of interest was used in the present value computation? B. 5.20 percent
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