quarterly? Compounded monthly? Compounded daily? EAR = (1 + Nominal Interest/Number of Period) ^Number of Period -1 SEMI ANNUALLY= (1+.12/2)^2-1=12.36% QUARTERLY= (1+.12/4)^4-1=12.55% MONTHLY= (1+.12/12)^12-1=12.68% DAILY= (1+.12/365)^365-1=12.75% 5. Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463%‚ with interest added (compounded) daily. How much will you have in your account on October 1‚ or 9 months later? OCT 1ST= 100*(1+.1133463/365)
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FIN 534 Midterm Exam 1 1. Of the following investments‚ which would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. 2. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? 3. Which of the following statements regarding a 20-year monthly payment amortized mortgage with
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Tax 4001 Spring 2011 Homework Set #5 Solution PAGE 1 # 1 a) Amount Realized $37‚500 Basis (45‚000) Real Loss (7‚500) Recognized Loss $0 because personal use asset c. The real loss is $0. b) Same as (a). Like-kind exchange rules do not apply to personal-use assets c)Her recognized loss is $0. Since the form of the transaction is a theft‚ the recognized loss is the lesser of the adjusted basis or the fair market value of the asset‚ reduced by the insurance proceeds that she
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Chap 17‚ Prob B1 A. Bixton’s objective is to achieve a credit standing that falls‚ in the words of the chief financial officer‚ “comfortably within the ‘A’ range.” What target range would you recommend for each of the three credit measures? To remain within the ’A’ range the following is recommended Fixed Charge Coverage 3.00–4.30 Funds From Operations/Total Debt 45%–65% Long-Term Debt/Capitalization 22%-32% So to be comfortably within the range A the company should try to maintain
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FIN 534 Quiz 1 Week 1 Rating A To Buy the answer сopy & paste below link in your Browser: http://www.homeworkmarket.com/content/fin-534-quiz-1-week-1-4329092-2 Question 1 You recently sold 100 shares of your new company‚ XYZ Corporation‚ to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction? 1) This is an example of an exchange of physical
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. SEBASTIEN NDIKUM FIN534 HOME WORK 12 1. Which of the following statements is CORRECT? a. Perhaps the most important step when developing forecasted financial statements is to determine the breakdown of common equity between common stock and retained earnings. b. The first‚ and perhaps the most critical‚ step in forecasting financial requirements is to forecast future sales. c. Forecasted financial statements‚ as discussed in the text‚ are used primarily as a part of the managerial
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Financial Research Report: Coca-Cola Dr. Stevens FIN534 Financial Management December 3rd‚ 2014 Page 1 of 17 Financial managers have a job to provide clients with stock investments and portfolios that are diverse and successful. To provide this service financial managers must know and understand the trends‚ background of the company‚ financial statements‚ and competitors to companies. When a client hires a financial manager they are looking towards the professional to get sound advice on how
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Sherisse’ Woodley C. Williams Macroeconomics 23 July 2013 Homework Set 10 1. List the four categories of unemployment. * Fictional * Structural * Cyclical * Seasonal 2. What measurement tool constructed by the Bureau of Labor Statistics is used to measure changes in the level of prices of goods and services? Consumer Price Index (CPI) 3. Who would benefit from unanticipated inflation –lenders or borrowers? Why? Who would benefits from anticipated inflation –lenders
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Homework 5 1. A. Beer- process‚ product focused processes and repetivie process all can be used to make beer. B. Wedding invitations- mass customization will be the best way to describe wedding invitations because ususally theya re ordered in big orderes as well as a wide verity depending on the order of each customer. C. Automobiles- Is Ripetative because the set up of making automobiles is a set up as an asembly line as well as having skilled workers to oversee the machines that but the
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Harrison Holdings‚ Inc. (HHI) is publicly traded‚ with a current share price of $32 per share. HHI has 20 million shares outstanding‚ as well as $64 million in debt. The founder of HHI‚ Harry Harrison‚ made his fortune in the fast food business. He sold off part of his fast food empire‚ and purchased a professional hockey team. HHI’s only assets are the hockey team‚ together with 50% of the outstanding shares of Harry’s Hotdogs restaurant chain. Harry’s Hotdogs (HDG) has a market capitalization
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