You ve just been appointed economic adviser to Examland. The mpe is .6; autonomous investment is $1,000; autonomous government spending is $8,000; autonomous consumption is $10,000; and autonomous net exports are $1,000. a. What is the level of income in the country of Examland? Explain...
Thank you for your assistant but, I do not need it anymore. the assignment was due on Sunday Febuary 13, 2011. before midnight, and right now it not necessary. Again thank you.
prepare a data entry report
(b) New Hampshire Services reported $2.3 million of retained earnings in 2004. In 2005, the company lost $500,000 (net income = -$500,000). Despite the loss, the company still paid a $1.00 per share dividend. The company s earnings per share in 2005 were -$2.50. How much retained earnings...
Using a one year forward 4 year vanilla (fixed for floating) interest rate swap, demonstrate the cash flows and determine the fixed rate if the 1,2,3,4,5 and 6 year spot rates are 4%, 3.8%, 3.7%, 4.5% and 18.2%
What average cost of capital can Ongko use to reduce risk?
What is the income statement intended to inform the reader of
1.A company can invest funds for five years at 6% per annum with semiannual compounding. The five-year swap rate is 6.3%. What floating rate of interest can the company earn? 2.Suppose that the yield curve is flat at 5% per annum with continuous compounding. A swap with a notional principal of...
. Upstate Water Company just sold a bond with 50 warrants attached. The bonds have a 20-year maturity and an annual coupon of 12%, and they were issued at their $1,000 par value. The current yield on similar straight bonds is 15%. What is the implied value of each warrant? (a). $3.76 (b). $3.94...
The value of a pertuity is R40,000. The required rate of return is 12% pa compounded quarterly. What are the income payments per year.
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1. Can you help me with this valuation problem?: Imagine that you are trying to evaluate the economics of purchasing an automobile. You expect the car to provide annual after-tax cash benefits of $1,200 at the end of each year and assume that you can sell the car for after-tax proceeds of $5,000 at the end of the planned 5-year ownership period. All funds for purchasing the car will be drawn from your savings, which are currently earning 6% after taxes.
- a.Identify the cash flows, their timing, and the required return applicable to valuing the car.
- b.What is the maximum price you would be willing to pay to acquire the car? Explain.
2. How do you calculate the before tax-cost of the Sony bond and the after-tax cost of the Sony bond given the following information?:
- David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security:
- Sony bond
- Par value $1,000 Coupon interest rate 6% Tax bracket 20%
- Cost $930 Years to maturity 10