You have $3,000 that you can invest today. Three investments are

You have $3,000 that you can invest today. Three investments are available that each earn a different interest rate for different investment periods. What is the future value of the lump sum of each? ,,1. The investment earns 6% per year, compounded semiannually, for 1 year.,,2. The investment earns 8% per year, compounded quarterly, for 2 years.,,3. The investment earns 10% per year, compounded annually, for 3 years.,,PLEASE SHOW YOUR WORK and post your solutions.

Please look at the question and solution below. I have the answer

Please look at the question and solution below. I have the answer but need to know how they did the mathematical step to obtain the solution. I have tried it several ways and it is still wrong. Can you please show me how they are obtaining the solution?,,Suppose a company uses trade credit with the terms of 2/10, net 50. If the company pays,their account on the 50th day, the effective borrowing cost of skipping the discount on,day 10 is closest to:,A. 14.9%.,B. 15.0%.,C. 20.2%.,,Answer is: C ,Cost = (1 + 0.02/0.98) 365/40 – 1 = 20:24%

Plagiarism is not permitted!!!!!Further our chat last night.

Plagiarism is not permitted!!!!!,,Further our chat last night. In the Smith Family (Do part A only) you are faced with a situation where the family’s finances are in a mess.,,1. First you have to put the information they have is a format that you can analyze(show these statements in your report), then you must analyze their situation to determine the options available to them to bring their finances under control (Expenses that can be eliminated or reduced for example). Then you should make recommendations and finally you should prepare a statement showing how their finances will look like after your recommendations have been made. (Using excel and its financial functions), ,2. How should Matt react to the family’s situation? What do you think of their financial goals? Are there other goals that would be more appropriate? Will you be able to help them,Consider:,The composition of the Smith Family balance sheet,the Family’s financial goals,How they can achieve their goals, implement a financial plan, and evaluate their plan., ,3. Use the information provided to prepare a family balance sheet. What is the family’s total net worth> According to the information you have, will the family be successful in achieving its lifestyle and savings goals? why or why not?, ,4. Amber believes that it is important to have $100,000 saved before Luke starts university– will they be able to meet this goal? Is this Goal realistic?, ,5. comment on the appropriate investment maturities the family should consider for;,a. savings for a different car,b.savings for their retirement (RESP),c. Savings for their sons education, ,6. Based on everything you know so far, Can the family do all of the things it plans to do? will some adjustments be necessary?, ,Comment on the Credit Card offer the family recently received in the mail., ,

19-3 Maese Industries Inc. has warrants outstanding that permit

19-3 Maese Industries Inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a price of $28.50., a. Calculate the exercise value of the firm’s warrants if the common sells at each of the following prices: (1) $20, (2) $25, (3) $30, (4) $100. (Hint: A warrant’s exercise value is the difference between the stock price and the purchase price specified by the warrant if the warrant were to be exercised.), b. Assume the firm’s stock now sells for $20 per share. The company wants to sell some 20-year, $1,000 par value bonds with interest paid annually. Each bond will have attached 50 warrants, each exercisable into 1 share of stock at an exercise price of $28.50. The firm’s straight bonds yield 11%. Assume that each warrant will have a market value of $3 when the stock sells at $20. What coupon interest rate, and dollar coupon, must the company set on the bonds with warrants if they are to clear the market? (Hint: The convertible bond should have an initial price of $1,000.),19-4 The Tsetsekos Company was planning to finance an expansion. The principal executives of the company all agreed that an industrial company such as theirs should finance growth by means of common stock rather than by debt. However, they felt that the current $42 per share price of the company’s common stock did not reflect its true worth, so they decided to sell a convertible security. They considered a convertible debenture but feared the burden of fixed interest charges if the common stock did not rise enough in price to make conversion attractive. They decided on an issue of convertible preferred stock, which would pay a dividend of $2.10 per share., a. The conversion ratio will be 1.0; that is, each share of convertible preferred can be converted into a single share of common. Therefore, the convertible’s par value (and also the issue price) will be equal to the conversion price, which in turn will be determined as a premium (i.e., the percentage by which the conversion price exceeds the stock price) over the current market price of the common stock. What will the conversion price be if it is set at a 18% premium? At a 23% premium?, b. Should the preferred stock include a call provision? Why?,19-5 Fifteen years ago, Roop Industries sold $400 million of convertible bonds. The bonds had a 40-year maturity, a 5.75% coupon rate, and paid interest annually. They were sold at their $1,000 par value. The conversion price was set at $55.00, and the common stock price was $55 per share. The bonds were subordinated debentures and were given an A rating; straight nonconvertible debentures of the same quality yielded about 8.75% at the time Roop’s bonds were issued., a. Calculate the premium on the bonds—that is, the percentage excess of the conversion price over the stock price at the time of issue., b. What is Roop’s annual before-tax interest savings on the convertible issue versus a straight-debt issue?, c. At the time the bonds were issued, what was the value per bond of the conversion feature?, d. Suppose the price of Roop’s common stock fell from $55 on the day the bonds were issued to $45.00 now, 15 years after the issue date (also assume the stock price never exceeded $55.00). Assume interest rates remained constant. What is the current price of the straight-bond portion of the convertible bond? What is the current value if a bondholder converts a bond? Do you think it is likely that the bonds will be converted?, e. The bonds originally sold for $1,000. If interest rates on A-rated bonds had remained constant at 8.75% and if the stock price had fallen to $45.00, then what do you think would have happened to the price of the convertible bonds? (Assume no change in the standard deviation of stock returns.), f. Now suppose that the price of Roop’s common stock had fallen from $55 on the day the bonds were issued to $45.00 at present, 15 years after the issue. Suppose also that the interest rate on similar straight debt had fallen from 8.75% to 7.75%. Under these conditions, what is the current price of the straight-bond portion of the convertible bond? What is the current value if a bondholder converts a bond? What do you think would have happened to the price of the bonds?,19-7 Niendorf Incorporated needs to raise $35 million to construct production facilities for a new type of USB memory device. The firm’s straight nonconvertible debentures currently yield 10%. Its stock sells for $27 per share, has an expected constant growth rate of 5%, and has an expected dividend yield of 6%, for a total expected return on equity of 12%. Investment bankers have tentatively proposed that the firm raise the $25 million by issuing convertible debentures. These convertibles would have a $1,000 par value, carry a coupon rate of 8%, have a 20-year maturity, and be convertible into 35 shares of stock. Coupon payments would be made annually. The bonds would be noncallable for 5 years, after which they would be callable at a price of $1,075; this call price would decline by $5 per year in Year 6 and each year thereafter. For simplicity, assume that the bonds may be called or converted only at the end of a year, immediately after the coupon and dividend payments. Also assume that management would call eligible bonds if the conversion value exceeded 20% of par value (not 20% of call price)., a. At what year do you expect the bonds will be forced into conversion with a call? What is the bond’s value in conversion when it is converted at this time? What is the cash flow to the bondholder when it is converted at this time? (Hint: The cash flow includes the conversion value and the coupon payment, because the conversion occurs immediately after the coupon is paid.), b. What is the expected rate of return (i.e., the before-tax component cost) on the proposed convertible issue?,

Otobai Company in Osaka, Japan is considering the introduction of

Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor scooter for city use. The scooter project requires an initial investment of ¥15 billion. The cost of capital was assumed to be 10%. The initial investment can be depreciated on a straight-line basis over the 10-year period, and profits are taxed at a rate of 50%.,,Consider the following estimates for the scooter project.,Market Size 1.1 million,Market Share 0.1,Unit Price ¥ 400,000.0 ,Unit Variable Cost ¥ 360,000.0 ,Fixed Cost ¥ 2.0 billion ,,What is the NPV of the electric scooter project? (Negative amount should be indicated by a minus sign. Enter your answer in billions. Do not round intermediate calculations. Round your answer to 2 decimal places.),, Net present value ¥ ______________ billion ,

The town of South Park is planning a bond issue in six months and

The town of South Park is planning a bond issue in six months and Kenny, the town treasurer, is worried that interest rates may rise, thereby reducing the value of the bond issue. Should Kenny buy or sell Treasury bond futures contracts to hedge the impending bond issue? Remember to complete all parts of the question and support your answers with examples from the text and other resources.