• Q : Fixed-rate mortgage....
    Finance Basics :

    You have decided to buy a house. You can get a mortgage rate of 5 percent, and you want your payments to be $1,540 or less. How much can you borrow on a 15-year fixed-rate mortgage?

  • Q : Smallest expected gain....
    Finance Basics :

    A stock has an annual return of 11 percent and a standard deviation of 54 percent. What is the smallest expected gain over the next year with a probability of 1 percent? Please provide explanation.

  • Q : Buy a new sailboat....
    Finance Basics :

    You want to borrow $36,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $750, but no more. Assuming monthly compounding,

  • Q : What can be done to improve ethics in finance....
    Finance Basics :

    What can be done to improve ethics in finance? What can be done to improve ethics in corporate governance?

  • Q : Describing net present value....
    Finance Basics :

    Write a 500-1,000 word essay describing Net Present Value, and what Net Present Value means to your future.

  • Q : Calculate the npv of project....
    Finance Basics :

    Calculate the NPV of this project. Explain in detail and provide step by step solution.

  • Q : Floating exchange rate....
    Finance Basics :

    Does the IMF have more control over pegged exchange rate prior to 1971, than it does today over floating exchange rate?

  • Q : Amount in the sinking fund....
    Finance Basics :

    A company agrees to repay a loan over five years. Interest payments are made annually and a sinking fund is built up with five equal annual payments made at the end of the year. Interest on the sinki

  • Q : Deposit in the sinking fund each six months....
    Finance Basics :

    How much must Ron deposit in the sinking fund each six months? Explain in detail and provide step by step solution.

  • Q : Interest earned on the sinking fund....
    Finance Basics :

    Copernicus borrows $L and repays the principal by making ten annual payments at the end of the year into a sinking fund which earns an annual effective rate of 8%. The interest earned on the sinking

  • Q : Proportion of the next payment....
    Finance Basics :

    What proportion of the next payment is interest? Describe in detail and provide step by step solution.

  • Q : Find the outstanding balance....
    Finance Basics :

    Find the outstanding balance at the end of the first year. Explain comprehensively and provide full description.

  • Q : Annual effective interest rate....
    Finance Basics :

    Each of the next ten payments equals 80% of the amount of interest due. Each of the last ten payments equals the amount of interest due plus $X. The lender charges interest at an annual effective in

  • Q : Firm net capital spending....
    Finance Basics :

    Given the information above, suppose you also know that the firm's net capital spending for 2006 was $760,000, and the firm increased its net working capital investment by $135,000. What was the fir

  • Q : Present value of growth opportunities....
    Finance Basics :

    What is the present value of growth opportunities (PVGO)?

  • Q : Constant growth rate forever....
    Finance Basics :

    The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divide

  • Q : Interest rates than large-denomination negotiable bank....
    Finance Basics :

    Do US Treasury bills have lower interest rates than large-denomination negotiable bank CD? Why or why not, is the difference appropriate, and do you think that it correctly reflect the risk of the i

  • Q : What is the value of annuity today....
    Finance Basics :

    What is the value of your annuity today? What happens to the value of your investment if interest rates suddenly drop to 5 percent?

  • Q : What is the current value of the annuity....
    Finance Basics :

    If the discount rate is 8 percent compounded monthly, what is the value three years from now? If the discount rate is 8 percent compounded monthly, what is the current value of the annuity?

  • Q : Current value of the annuity....
    Finance Basics :

    If the discount rate is 8 percent compounded monthly, what is the value three years from now? If the discount rate is 8 percent compounded monthly, what is the current value of the annuity?

  • Q : Determine the unknown lump sum amount....
    Finance Basics :

    Using an interest rate of 5.50%, determine the unknown lump sum amount that would make the present value of both prizes equivalent.

  • Q : Determine the present value of the cash flow stream....
    Finance Basics :

    Using an interest rate of 5.50%, determine the present value of the cash flow stream?

  • Q : Current retirement money....
    Finance Basics :

    Assuming that all of David's current retirement money is invested to earn an interest rate of 3.90%, how long, in years and in fractions of a year, will it take David to achieve his goal?

  • Q : Joanne earn on investment....
    Finance Basics :

    Joanne has bought a stock today for $35 per share, and plans to sell the stock in 10 years for $69 per share. In this case, what interest rate, in percent, would Joanne earn on this investment?

  • Q : Bank savings account....
    Finance Basics :

    Henry places the lump sum amount of $475 in a bank savings account today that offers an annual interest rate of 7.95% compounded 12 times per year. How much will Henry have in his account 9 years fr

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