You want to purchase a house that is priced at $85,000. You can get a loan for 80 percent of the bank’s appraised value at 15.25% for 30 years with monthl y amortization. The bank’s appraiser has a theory that the value of a house is 95% of the askin..
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Evil Pop, Inc., has an average collection period of 27 days. Its average daily investment in receivables is $43,300. Assume 365 days per year. What is the receivables turnover?
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Based on the after-tax returns, at what federal tax rate (as shown in Chapter 4 on page 95 Personal Finance 7th edition) is an investor better off choosing a tax-exempt 1.78 percent municipal bond over a taxable 3.03 percent corporate bond
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A machine costs $60 and requires $35 in maintenance for each year of its three year life. After three years, this machine will be replaced. If the machine belongs in a 30% CCA class and has no salvage value, what is the EAC? Assume a tax rate of 34% ..
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A stock has returns of 3 percent, 18 percent, -24 percent, and 17 percent for the past 4 years. Based on this information, what is the 95 percent probability range for any one given year?
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Kendall borrows $100,000 on Jan 1, 1993 to be repaid in 12 annual installments at an effective annual rate of interest of 8%. The first payment is due on Jan 1, 1994. Instead of annual payments she decides to make monthly payments equal to one-twelft..
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Harry Davis is interested in establishing a new division that will focus primarily on developing new Internet-based projects. what would your estimate be for the new division’s cost of capital?
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Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.3 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..
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Consider a bond paying a coupon rate of 7.75% per year semiannually when the market interest rate is only 3.1% per half-year. The bond has six years until maturity. Find the bond's price today and twelve months from now after the next coupon is paid...
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Allison's wants to raise 12.4 million to expand its business. to accomplish this, it plans to sell 25 year $1,000 face value zero coupon bonds. The bonds will be priced to yield 6.5% with semiannual compounding. what is the minimum number of bonds al..
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You are evaluating two different silicon wafer milling machines. The Techron I costs $215,000, has a three-year life, and has pretax operating costs of $35,000 per year. The Techron II costs $270,000, has a five-year life, and has pretax operating co..
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Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,500,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
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