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Problem 1: A professional sport athlete, just signed a nonguaranteed (meaning that she receives no salary if she is injured) contract that pays her $4 million per year for the next five years. The athlete is severely injured in a training accident and will no longer be able to play her sport and is released from the team. The athlete sues the company that made the training equipment that caused her injury. The jury determines that the equipment company is liable for her injury and awards her $20 million to cover the loss of earnings over the next five seasons. Given what we have learned in this chapter, was the jury's damage award correct? You must show your work and explain your position in detail.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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