Reference no: EM13956297
a) Dubois Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $824,400. The purchase agreement specifies an immediate down payment of $227,800 and semiannual payments of $69,940 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?
b) Dubois Inc. loans money to John Kruk Corporation in the amount of $838,800. Dubois accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Dubois needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Dubois will receive on the sale of the note?
c) Dubois Inc. wishes to accumulate $1,350,000 by December 31, 2024, to retire bonds outstanding. The company deposits $227,800 on December 31, 2014, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,350,000 is available at the end of 2024. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly.)
|
Process strategies of ebay and mcdonald
: How do the process strategies of eBay and McDonald's differ, and how do their choices relate to customer-introduced variability?
|
|
What is the probability to pick out 1 blue , 1 white ,1 blak
: What is the probability you will pick out a white pair or a blue pair?
|
|
National, and international national agencies
: Create list of 3-5 contacts of local, national, and international national agencies where individuals and organizations can report computer and cybercrimes
|
|
Compute the net benefit to the company of manufacturing
: Compute the net benefit to the company of manufacturing (rather than purchasing) a unit of C15. Repeat the calculation for a unit of C19.
|
|
Used in discounting this purchase transaction
: Dubois Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $824,400. The purchase agreement specifies an immediate down payment of $227,800 and semiannual payments of $69,940 beginning at the end of 6 months for ..
|
|
Individual or component costs of capital
: (Individual or component costs of capital) Compute the cost of capital for the firm for the following: A bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11 percent. Interest payments are $55.00 and are paid semi..
|
|
Multiprotocol operational network using eigrp
: The above network has RIPv2, OSPF, and EIGRP protocols in Intranet and is connected to two ISPs thru BGP protocol. As a consultant write a technical proposal to implement the following solutions.
|
|
Planning to make monthly deposits
: You are planning to make monthly deposits of $410 into a retirement account that pays 9 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 35 years? What is the fut..
|
|
Financial options and weighted average cost of capital
: Determine two to three (2-3) methods of using stocks and options to create a risk-free hedge portfolio. Support your answer with examples of these methods being used to create a risk-free hedge portfolio. Create a unique hypothetical weighted average..
|