Reference no: EM132645185

-First National Bank charges 11.05 % compounded monthly on its business loans. First United Bank charges 11.53%, compounded semiannually. Calculate the EAR for First United Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

-Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $117,735, received three years from today. Subsequent annual cash flows will grow at 3.5% in perpetuity. What is the present value of the technology if the discount rate is 8.72%? (Round answer to 2 decimal places. Do not round intermediate calculations).

-Investment X offers to pay you $1,511 per year for 15 years, whereas Investment Y offers to pay you $7,559 per year for 4 years. Both investments have a discount rate of 9.9%. Calculate the present value for Investment X. (Round answer to 2 decimal places. Do not round intermediate calculations).

-A stock is currently selling for $38 per share. A call option with an exercise price of $45 sells for $2.88 and expires in three months. If the risk-free rate of interest is 3.89 % per year, compounded continuously, what is the price of a put option with the same exercise price? (Round answer to 2 decimal places. Do not round intermediate calculations).You wrote 7 call option contracts on XYZ stock with a strike price of $40 and an option premium of $2.46.

-What is your net gain or loss on this investment if the price of XYZ is $35.57 on the option expiration date? (Round answer to 2 decimal places. Do not round intermediate calculations).

-The 2013 balance sheet of Maria's Tennis Shop, Inc., showed $576,000 in the common stock account while the 2014 balance sheet showed $705,000. If the company paid out $349,000 in cash dividends during 2014, what was the cash flow to stockholders for the year? (Round final answer to the nearest whole dollar. Do not round intermediate calculations).

-The 2013 balance sheet of Maria's Tennis Shop, Inc., showed long-term debt of $2 million, and the 2014 balance sheet showed long-term debt of $3.8 million. The 2014 income statement showed an interest expense of $720,000. What was the firm's cash flow to creditors during 2014? (Round final answer to the nearest whole dollar. Do not round intermediate calculations).

-One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $973 per month. You will charge 0.73 % per month interest on the overdue balance. If the current balance is $12,187, how many years will it take for the account to be paid off? (Round your final answer to 1 decimal place. Do not round intermediate calculations).

-A prestigious investment bank has designed a new security that pays a quarterly dividend of $3.25 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 9.4%, compounded quarterly? (Round answer to 2 decimal places. Do not round intermediate calculations).