Introduction : Europe has met the COVID-19 pandemic with audacity and creativeness and is playing a robust however bumpy monetary healing. It now faces coverage challenges: controlling inflation and dialing lower back economic aid. While there’s grea…View the full answer

## Finance Assignment | Professional Writing homework essay help

The Loughran Corporation has issued zero-coupon corporate bonds with a five-year maturity. Investors believe there is a 30% chance that Loughran will default on these bonds. If Loughran doesdefault, investors expect to receive 25% of their promised payoff at maturity (e.g., $0.25 cents per dollar they are promised). If investors require a 6.0% expected return on their investment in these bonds, which of the following statements most accurately describes the price (per $100 face value) and current YTM of these bonds?

A. This bond is priced at $77.50 per $100 face value with a YTM of 5.2%.

B. This bond is priced at $57.91 per $100 face value with a YTM of 11.5%.

C. This bond is priced at $57.91 per $100 face value with a YTM of 6.0%.

D. This bond is priced at $52.31 per $100 face value with a YTM of 13.8%

E. This bond is priced at $74.73 per $100 face value with a YTM of 6.0%.

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## Finance Assignment | Professional Writing homework essay help

What are the challenges the Eurozone economy faces after the covid pandemics?

Firm XYZ is financed with 50% debt and 50% common equity. Its after-tax WACC is 10% and the stock beta is 1.1. Assume the risk free rate is 2% and the market return is 14%.

What is ABC’s pre-tax cost of debt assume the marginal tax rate is 20%? Enter percentage, round to 2 decimal places.

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## Finance Assignment | Professional Writing homework essay help

Sales Fees Taylor wants to invest $15,000 into a mutual fund that has a current NAVPS of $12 and is offered in both a front-end load and a deferred service charge version. The lowest that she could negotiate the front-end load fee down to was 3.5%. The deferred sales charge fee schedule, which is charged against the market value of the fund at the time of redemption, is outlined below:

PERIOD DSC % 5.50% Year 1-2 Year 3 Year 4 5.00% 4.50% Year 5 4.00% 3.00% 1.50% Year 6 Year 7 Year 8 or more 0% Assuming that the investment is expected to grow at an annually compounded rate of 4.0% and there is a chance that Taylor might need to redeem all of the shares 2 12 years after the purchase, which sales fee option would be a better choice for Taylor?

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## Finance Assignment | Professional Writing homework essay help

Which of the following statements is FALSE? Select one: a. On a coupon bond, the final interest payment is made at maturity along with the bond’s face value

b. A share of common stock that pays an annual dividend that increases every year at a constant rate forever is an example of a growing perpetuity. C. A share of preferred stock that pays the same annual dividend forever is an example of a perpetuity, d. The value of a financial asset depends on the cash flows it has generated in the past.

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## Finance Assignment | Professional Writing homework essay help

Jo borrowed $4,750 for 4 months from a bank. The bank discounted the loan at 8.5%. a. How much interest did Jo pay the bank for the use of its money?

b. How much did he receive from the bank? c. What was the actual rate of interest he paid? a. The interest is $ ! (Round to the nearest cent as needed.) . b. The amount of money Jo received is $ (Round to the nearest cent as needed.) c. The actual interest rate is %. (Type an integer or decimal rounded to the nearest hundredth as needed.) Enter your answer in each of the answer boxes.

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## Finance Assignment | Professional Writing homework essay help

You are evaluating a project with an initial investment of $15 million dollars, and expected cash flows of $9 million dollars each for years 1-3.

What is the project’s simple payback? The corporate WACC is 10%.

Express your answer in years, rounded to 2 decimals. So, if your answer is 2.7654, then just enter 2.77.

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## Finance Assignment | Professional Writing homework essay help

The present value of a single future sum as the rate of return increases.

Select one: a. decreases O b. remains the same O c. unclear O d. increases

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## Finance Assignment | Professional Writing homework essay help

This Question: 4 pts 2 UI 2016 CUMULUI $ 60 Number 4.0% 5,5% Payments Nina buys a new sport utility vehicle for $35,000. She trades in her old truck and receives $10,000, which she uses as a down payment. She finances the balance at 5% APR over 36 months. Before making her 6th payment, she decides to pay off the loan. Answer parts a) through d) below. Annual Percentage Rate 4,5% 5.0% 5.0% (Finance charge per $100 of amount financed) 5.92 6.59 7.09 10.54 7.26 5.25 6.29 8.38 7.90 8.71 11.63

a) Use the given table to determine the total interest Nina would pay if all 36 payments were made. mer Nina would pay $ in interest. (Round to the nearest cent as needed.) b) What were Nina’s monthly payments? Nina’s monthly payments were $ (Round to the nearest cent as needed.) c) How much interest will Nina save by paying off the loan early? Nina will save $ (Round to the nearest cont as needed.) d) What is the total amount due to pay off the loan? The payoff amount is $ . (Round to the nearest cent as needed.) Enter your answer in each of the answer boxes

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## Finance Assignment | Professional Writing homework essay help

Use the simple interest formula to determine the missing value. p = $958.67, +5.5%, t – 7,1 – $369.09 t= years (Do not round until the final answer.

Then round to the nearest whole number as needed.) Enter your answer in the answer box.

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## Finance Assignment | Professional Writing homework essay help

A firm should write off uncollectible accounts as soon as the firm estimates them,

because this is the way the firm can resolve all the uncertainty.

True or False?

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