Effective annual return friendly earns on lending business

Assignment Help Financial Management
Reference no: EM131844311

Friendly’s Quick Loans, Inc., offers you $5.25 today but you must repay $6.45 when you get your paycheck in one week (or else).

What is the effective annual return Friendly’s earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Effective annual return? %

If you were brave enough to ask, what APR would Friendly’s say you were paying?

Annual percentage rate? %

Reference no: EM131844311

Questions Cloud

Identify two specific legal obligations : Choose one topic and identify two specific legal obligations that a specific health service organization has to its patients and then write a paper discussing
Evaluate current compensation plans for your chosen business : Evaluate current compensation plans for your chosen business. Summarize your data in narrative and table format showing diverse levels of responsibility.
Calculate the franking credits generated for the fund : Calculate the franking credits generated for the fund as well as the post-tax yield of the holding for BIT. The characteristics of a growth company
Difference between primary orality and secondary orality : 1. What is the difference between primary orality and secondary orality? 2. What is Plato's critique of writing and was he right? Why or why not?
Effective annual return friendly earns on lending business : What is the effective annual return Friendly’s earns on this lending business?
Coworkers on effective presentation techniques : 10- to 15-slide Microsoft® PowerPoint®presentation with speaker notes that you would use to train coworkers on effective presentation techniques.
Demonstrate your understanding of the material : Discuss why a business should or should not be involved in political discussions or take a political stand. Demonstrate your understanding of the material.
Yield to maturity on bond greater or less than current yield : What was the coupon payment on this bond? Is the yield to maturity on this bond greater or less than current yield? Why? Explain
What are some tips you found most useful : Studies have shown that the #1 fear of most Americans is public speaking. What can you do to cope with and manage your anxiety before and during an important.

Reviews

Write a Review

Financial Management Questions & Answers

  How much are liabilities

If assets are $ 40,000 and stockholders’ equity is $ 10,000, how much are liabilities?

  What would the cost of equity be if the debt-equity ratio

Twice Shy Industries has a debt−equity ratio of 1.3. Its WACC is 7.1 percent, and its cost of debt is 6.6 percent. The corporate tax rate is 35 percent. What is the company’s cost of equity capital? What is the company’s unlevered cost of equity capi..

  What would the market value of your bond be

There is an inverse relationship between bond prices and yields. What would the market value of your bond be?

  Distinguish between conventional eoq and jit inventory model

JIT has gained in popularity throughout the business world. Yet we also see companies such as Amazon.com building huge warehouses. Conduct on the topic of JIT and EOQ and write a 1–2-page paper arguing for or against adopting JIT for a company such a..

  Efficiency analysis

(Efficiency analysis) Baryla Inc. manufactures high quality decorator lamps in a plant located in eastern Tennessee. Last year the firm had sales of $93 million and a gross profit margin of 45 percent. How much inventory can Baryla hold and still mai..

  Determine percent change in annual expenses for alternative

Determine the percent change in the annual expenses for Alternative I that would make the two investments equally attractive.

  Risk characteristics similar to the firms average project

they have risk characteristics similar to the firm's average project.

  What is the expected return on the investment with a beta

The expected return on the S&P 500 is 10% and the risk-free rate is 3%. What is the expected return on the investment with a beta of (a) 0.2, (b) 0.5, and (c) 1.4?

  External equity financing

Coastal Carolina Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system.

  What is the risk premium for the large stock portfolio

The mean annual return on the large stock portfolio is 11%. The mean annual return on T-bills if 2%. What is the risk premium for the large stock portfolio?

  Calculate social security taxes

Calculate Social Security taxes, Calculate FIT by the percentage method. What is the FIT? Social Security Taxes? Medicare Taxes?

  Discount rate used to determine net present value of project

If a project's NPV is greater than zero, then the. The discount rate used to determine the net present value of a project is the. if a project's NPV is less than zero, then its IRR must be less than the WACC. The NPV of a relatively low-risk project ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd