# Shady rack inc. | Business & Finance homework help

Question 1

How abundantly did you borrow for your branch if your monthly hypothecation reimbursement for a 30 year hypothecation at 6.65% APR is $1,700?

[removed] | A. | $249,235 |

[removed] | B. | $218,080 |

[removed] | C. | $264,812 |

[removed] | D. | $202,503 |

[removed] | E. | $233,658 |

[removed] | F. | $186,926 |

6 points

Question 2

Shady Rack Inc. has a association ungathered delay 10 percent coupon, remunerated semiannually, and 15 years to ripeness. The negotiate expense of the association is $1,039.55. Calculate the association’s furnish to ripeness (YTM). Now, if due to shifts in negotiate conditions, the negotiate claimd YTM suddenly increases by 2% from your congenial YTM, what allure be the percent shift in the negotiate expense of the association?

[removed] | A. | -17.76% |

[removed] | B. | -15.66% |

[removed] | C. | -14.01% |

[removed] | D. | -14.87% |

[removed] | E. | -16.39% |

[removed] | F. | -17.09% |

6 points

Question 3

Sanaponic, Inc. allure pay a dividend of $6 for each of the proximate 3 years, $8 for each of the years 4-7, and $10 for the years 8-10. Thereafter, starting in year 11, the community allure pay a firm dividend of $8/year unwanderingly. If you claim 18 percent admonish of repay on bombardments in this promote tabulate, how abundantly is this accumulation desert to you?

[removed] | A. | $37.77 |

[removed] | B. | $55.99 |

[removed] | C. | $45.68 |

[removed] | D. | $50.50 |

[removed] | E. | $41.46 |

[removed] | F. | $34.54 |

6 points

Question 4

Your claimd admonish of repay is 12%. What is the net offer appraise of a design delay the forthcoming specie flows?

Year | 0 | 1 | 2 | 3 | 4 | 5 | |||

Cash Flow | -750 | 450 | 350 | 150 | 125 | -100 | |||

[removed] | A. | 15.56 |
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[removed] | B. | 48.68 |
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[removed] | C. | 26.33 |
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[removed] | D. | 60.27 |
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[removed] | E. | 72.15 |
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[removed] | F. | 37.37 |
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6 points

Question 5

Please use the forthcoming counsel for this and the forthcoming two questions.

BB Lean has attested two mutually restricted designs delay the forthcoming specie flows.

Year | 0 | 1 | 2 | 3 | 4 | 5 |

Cash Flow Design A | -52,000.00 | 18,000.00 | 17,000.00 | 15,000.00 | 12,000.00 | 9,000.00 |

Cash Flow Design B | -52,000.00 | 17,800.00 | 10,000.00 | 12,000.00 | 17,000.00 | 22,000.00 |

The community claims a 11.5% admonish of repay from designs of this promote.

What is the NPV of design A?

[removed] | A. | 972.57 |

[removed] | B. | 5,972.87 |

[removed] | C. | 417.37 |

[removed] | D. | 1,395.64 |

[removed] | E. | 1,624.90 |

[removed] | F. | 5,180.35 |

6 points

Question 6

What is the IRR of design B?

[removed] | A. | 12.06% |

[removed] | B. | 14.68% |

[removed] | C. | 13.90% |

[removed] | D. | 13.05% |

[removed] | E. | 12.94% |

[removed] | F. | 20.80% |

6 points

Question 7

At what remittance admonish would you be careless betwixt these two designs?

[removed] | A. | 13.5250% |

[removed] | B. | 14.7386% |

[removed] | C. | 34.1306% |

[removed] | D. | 15.8950% |

[removed] | E. | 3.1177% |

[removed] | F. | 26.0812% |

6 points

Question 8

A association delay a countenance appraise of $1,000 has annual coupon reimbursements of $100. It was issued 10 years ago and has 7 years retaining to ripeness. The popular negotiate expense for the association is $1,000. Which of the forthcoming is true: I. Its YTM is 10%. II. Bond’s coupon admonish is 10%. III. The association’s popular furnish is 10%.

[removed] | A. | III Only |

[removed] | B. | I, II, and III |

[removed] | C. | I, III Only |

[removed] | D. | II, III Only |

[removed] | E. | I Only |

[removed] | F. | I, II Only |

6 points

Question 9

Riverhawk Corporation has a association ungathered delay a negotiate expense of $1,050.00. The association has 10 years to ripeness, pays divide semiannually, and has a furnish to ripeness of 9%. What is the association’s coupon admonish?

[removed] | A. | 12.84% |

[removed] | B. | 9.77% |

[removed] | C. | 10.54% |

[removed] | D. | 12.08% |

[removed] | E. | 11.31% |

[removed] | F. | 13.61% |

6 points

Question 10

You purchased a accumulation for $24 per divide. The most new dividend was $2.50 and dividends are expected to amplify at a admonish of 8% indefinitely. What is your claimd admonish of repay on the accumulation?

[removed] | A. | 17.00% |

[removed] | B. | 17.64% |

[removed] | C. | 18.38% |

[removed] | D. | 21.50% |

[removed] | E. | 20.27% |

[removed] | F. | 19.25% |

6 points

Question 11

Sales and produce of Growth Inc. are expected to amplify at a admonish of 25% per year for the proximate six years but the community allure pay no dividends and reinvest all hues. After that, the dividends allure amplify at a firm annual admonish of 7%. At the end of year 7, the community plans to pay its primeval dividend of $4.00 per divide. If the claimd repay is 16%, how abundantly is the accumulation desert today?

[removed] | A. | $22.80 |

[removed] | B. | $15.96 |

[removed] | C. | $13.68 |

[removed] | D. | $25.08 |

[removed] | E. | $18.24 |

[removed] | F. | $20.52 |

6 points

Question 12

Apple Sink Inc. (ASI) proportioned remunerated a dividend of $2.50 per divide. Its dividends are expected to amplify at 26% a year for the proximate two years, 24% a year for the years 3 and 4, 16% for year 5, and at a firm admonish of 6% per year thereafter. What is the popular negotiate appraise of the ASI’s accumulation if companies in this promote tabulate feel a 16% claimd admonish of repay?

[removed] | A. | $54.27 |

[removed] | B. | $56.03 |

[removed] | C. | $45.54 |

[removed] | D. | $42.87 |

[removed] | E. | $51.29 |

[removed] | F. | $48.35 |

6 points

Question 13

The Retarded Company’s dividends are reduced at an annual admonish of 4 percent. The community proportioned remunerated a dividend of $4 per divide. You claim a 16 percent admonish of repay. How abundantly allure you pay for this accumulation?

[removed] | A. | $13.85 |

[removed] | B. | $19.20 |

[removed] | C. | $15.33 |

[removed] | D. | $17.09 |

[removed] | E. | $21.78 |

[removed] | F. | $12.57 |

6 points

Question 14

The dividend furnish of a accumulation is 10 percent. If the negotiate expense of the accumulation is $18 per divide and its dividends feel been amplifying at a firm admonish of 6%, what was the most new dividend remunerated by the community?

[removed] | A. | $1.53 |

[removed] | B. | $0.85 |

[removed] | C. | $1.70 |

[removed] | D. | $1.02 |

[removed] | E. | $1.19 |

[removed] | F. | $1.36 |

6 points

Question 15

Last year, Jen and Berry Inc. had sales of $40,000, absorb of goods sold (COGS) of 12,000, derogation inculpate of $3,000 and selling, open and professional (SG&A) absorb of $10,000. The divide absorbs were $2,500. Thirty-five percent of SG&A absorbs are unwandering absorbs. If its sales are expected to be $60,000 this year, what allure be the estimated SG&A absorbs this year?

[removed] | A. | $12,667 |

[removed] | B. | $11,500 |

[removed] | C. | $10,636 |

[removed] | D. | $12,000 |

[removed] | E. | $13,250 |

[removed] | F. | $14,250 |

6 points

Question 16

You claim a promote bribe of 3.5 percent on an bombardment in a community. The guiltless admonish of divide in the negotiate is 2.5 percent and the inflation bribe is 3 percent. US Treasury bills are promote unimpeded. What should be the furnish of the US Treasury bills? Use multiplicative create.

[removed] | A. | 6.35% |

[removed] | B. | 6.09% |

[removed] | C. | 5.58% |

[removed] | D. | 5.06% |

[removed] | E. | 5.32% |

[removed] | F. | 5.83% |

6 points

Question 17

Bonds X and Y are same, including the promote tabulate. The solely distinction betwixt A and B is in the coupon reimbursement as shown underneath.

| Bond X | Bond Y |

Face appraise | $1,000 | $1,000 |

Annual Coupon Payment | $120 | $130 |

Payment Frequency | Semiannual | Annual |

Years to ripeness | 15 | 15 |

Price | $950.39 | ? |

What is the expense of association Y?

[removed] | A. | $1,007.15 |

[removed] | B. | $925.88 |

[removed] | C. | $989.75 |

[removed] | D. | $956.95 |

[removed] | E. | $940.92 |

[removed] | F. | $973.44 |