(Answered) 1 zarita enterprises earns 8 on an investment that pays

Finance

1. Zarita Enterprises earns 8% on an investment that pays back $110,000 at the end of each of the next 4 years. What is the amount Zarita Enterprises invested to earn the 8% rate of return?

2. Hernandez Railroad Co. is about to issue $100,000 of 10-year bonds paying a 10% interest rate, with interest payable semiannually. The discount rate for such securi- ties is 8%. How much can Hernandez expect to receive from the sale of these bonds?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91538547
Price:- $20

Verified Expert

Priced at $40 Now at $20, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Basic Finance

The seaboard shipping company has a warehouse terminal in

The Seaboard Shipping Company has a warehouse terminal in Spartanburg, South Carolina. The capacity of each terminal dock is 3 trucks. As trucks enter the terminal, the drivers receive numbers, and when one of the three ...

Answer as thorough as possibledescribe in detail each of

Answer as thorough as possible. Describe in detail each of four risk factors of holding a domestic bond. Your summary should convince the reader that you fully understand each risk factor.

What is assumptions underlying single index model and why

What is assumptions underlying Single index model and why use thoes assumptions? Compare assumptions of Single Index Model with other formula?

A bond that makes payments in a certain currency contains

A bond that makes payments in a certain currency contains the risk of holding that currency and so is priced according to the yields of similar bonds in that currency. True or false?

What is the annual coupon rate of a 7-year corporate bond

What is the annual coupon rate of a 7-year corporate bond given that its current price is $930, par = 1,000, semi-annual coupon, YTM=10%?

Explain how the company newmans own brand fulfills the

Explain how the company Newman's Own brand fulfills the definition of a business for profit and a non-profit business at the same time. Consider in the response the functions of business, entrepreneurship and production ...

Felcor stock is currently selling for 4000 a share but is

Felcor stock is currently selling for $40.00 a share but is expected to either decrease to $36 or increase to $44 a share over the next year. The risk-free rate is 4 percent. What is the current value of a 1-year call op ...

If you insulate your office for 18000 you will save 1800 a

If you insulate your office for $18,000, you will save $1,800 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 4%? 10%? b. What is the IRR of ...

Time value of money problem - future valuean amount of 160

TIME VALUE OF MONEY Problem - Future Value An amount of $160, 000 was invested on Jan 1, 2011 by a relative of your colleague for 2 years at the annual rate of 9.4% compounded quarterly. But in Jan 1, 2012 the terms of t ...

You take out a 25-year 210000 mortgage loan with an apr of

You take out a 25-year $210,000 mortgage loan with an APR of 12% and monthly payments. In 16 years you decide to sell your house and pay off the mortgage. What is the principal balance on the loan?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert