Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Please help me understand these problems.
1. You bought a painting 10 years ago for $100,000. If you sold it for $310,600, what was your annual return on investment?
a) 8%
b) 10%
c) 12%
d) 14%

2. In an amortization schedule for a six-year loan with equal annual principal repayments
a) less than half of the loan would be repaid at the end of year three
b) the annual payment stays the same
c) amount of principal repaid decreases each year
d) the annual payments are higher in the earlier years

3. If Air Atlantic enters a 12-year lease with annual (end of year) payments of $500,000, what is the present value of the lease payments if the interest rate is 14%.
a) $ 2,830,000
b) $13,635,500
c) $ 6,000,000
d) $ 3,226,200

4. A preferred stock with a $100 par value pays an annual dividend at a rate of 2.6%. What is a share of this stock worth today if preferred stock with the same risk profile yields 11.75%?
a) $8.51
b) $20.00
c) $22.13
d) $28.80
e) $100.00

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M923976

Have any Question? 


Related Questions in Basic Finance

Explain the advantages and disadvantages of implementing

Explain the advantages and disadvantages of implementing portfolio insurance using stock and puts in comparison to using stock and futures in a dynamic hedge strategy ? Explain how a portfolio manager might justify the p ...

List two advantages from the investor point of view of an

List two advantages, from the investor point of view, of an exchange traded fund, vis-a-vis a closed-end fund? Distinguish between a defined benefit pension plan and a defined contribution plan? List at least three funct ...

What is an efficient market why do efficient markets

What is an efficient market? Why do efficient markets benefit society? Define arbitrage and the law of one price. What role do they play in our market system? What do we call the "one price" of an asset? Suppose you are ...

1 what is meant by a real option2 what is meant by the term

1. What is meant by a "real option"? 2. What is meant by the term overage for retail space? 3. How does the use of scenarios differ from sensitivity analysis?

An investment costs 875000 today and is expected to produce

An investment costs $875,000 today and is expected to produce a one-time inflow at the end of year 8 of $1,430,000. What is the IRR of this project?

1 what is the price of an 7 bond with 10 years to maturity

1) What is the price of an 7% bond with 10 years to maturity that is trading at a yield of 7%? Assume the face value is $1000 and coupon is paid semi-annually.(Keep your answer to 2 decimal places.) 2) What is the modifi ...

A neutron causes 83211bi to change according to the

A neutron causes 83 211 Bi to change according to the following reaction: 0 1 n + 83 211 Bi → Z A X + γ The Z A X nucleus subsequently undergoes β - decay, and its daughter does too. What is the atomic number of the fina ...

A five-year project has an initial fixed asset investment

A five-year project has an initial fixed asset investment of $260,000, an initial NWC investment of $20,000, and an annual OCF of -$19,000. The fixed asset is fully depreciated over the life of the project and has no sal ...

1 is it true that most of the findings of behavioral

1. Is it true that most of the findings of behavioral research are just common sense? 2. Why is the philosophy of science important to behavioral researchers? 3. Why must hypotheses be falsifiable?

Punxsutawney taxidermy inc pti operates a chain of

Punxsutawney Taxidermy Inc. (PTI) operates a chain of taxidermy shops across the Midwest, with a handful of locations in the South. A rival firm, Heads Up Corp., has a few Midwestern locations, but most of its shops are ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro