Finance Questions

If the present value of a cash flow generated by an initial investment of $200,000 is $210,000, what is the NPV of the project?

Current assets =142.35; Current liabilities=27.37; Inventory=27>; Accounts receivable =83.53; calculate the quick ratio

Earnings per share = $441; Dividends per share = $245; Share price = $4494. Calculate the payout ratio.

Given a book value per share of $54.52 and a market value of $42.52, what is the market capitalization of a firm with 2969740 outstanding shares?

Effect on supply curve: profitability of investment increases

Effect on demand curve: Expected IR increases

Discount (Zero-Coupon) Bond with n years maturity (Price and IR formula)

What happens to 1-year discount bonds with holding period of 1 year if expected IR increases?

Effect on demand curve: expected inflation increases

Formula for IR of 1-yr discount (zero-coupon) bond

PV (perpetuity) that doesn't start to make payments for several years

In a fully amortizing, fixed-rate loan, the amount of each periodic payment attributable to principal is

Bill and nine of his friends each contributed $10,000 to form a real investment group. The group then purchased a small retail center for $350,000 using an interest-only loan for $250,000 at 10% annual interest. At the end of one year, the building was sold for $410,000. What is the rate of return on Bill's investment

As an alternative to the fixed-rate mortgage, borrowers can often obtain an adjustable rate mortgage which has an initial interest rate below that of fixed-rate loans. Which of the following statements best explains the rate difference

When a mortgage loan with level periodic payments has been completely repaid by the maturity date, it is said to be

Bob is considering fixed-rate loans from two different lenders who are willing to finance the purchase of a home. The loan amount is $90,000. Lender A is offering a 30-year, monthly payment loan at 7% interest with 2.5 points. Lender B is offering a 30-year, monthly payment loan at 7.5% interest with no points. Which of the following bits of advice would be best for Bob assuming he does not plan to prepay either loan

You are buying a $162,000 house with a 20% down payment and a fixed-rate mortgage for the remainder at 8.75% for 30 years with monthly payments. How much interest is paid over the course of the first 12 months

A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges two discount points. What is the effective interest rate

A buyer can afford no more than $500 per month in payments. The most favorable loan available in the market is a 30 year loan at 10%. What is the maximum affordable house with a 10% down payment

If payments are made monthly instead of annually on a fully amortizing fixed-rate loan, the total amount of interest paid over the full term of the loan will be