3a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $45,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $36,000. There is no loan period for the $45,000 car that would be under our $500
In addition, the company’s B+ credit rating prohibited the company from obtaining loans with low interest rates. In order to strengthen the company’s cash balance, large capital expenditures were not done during years 11 and 12. Instead, the company focused on paying down its existing debt in years 11 and 12 in order to improving its credit rating. The improved credit rating would allow the company to refinance existing debt to lower interest rates, which would lower interest payments and conserve cash. In year 11, the outstanding principal of $19.2 million from a 5-year loan at 7.5% annual interest was paid off early resulting in a savings of $1.8 million in interest payments.
A higher EPS will increase the stock price in most of the cases . THE WALT DISNEY COMPANY !2 Book value per share, or BVPS, is calculated by total stock holder equity subtract preferred equity, then divided by total outstanding share, is a measure in a firm to determine the level of safety associated with each individual share after all debts are paid. Cash flow per share, or CFPS, is calculated by operating cash flow subtract preferred dividends divided by
Moreover, Mr. Pollock noted that over the last several years, borrowers with adjustable-rate loans paid less as interest rates fell, while those with fixed rates kept paying the same amount for devalued homes. ''One of the reasons that American housing finance is in such bad shape right now is the 30-year mortgage,'' he said, noting that such loans are not available in most countries. ''For many people, it's not at all clear that that's the best product.'' Fannie and Freddie also allow a wide swath of the American public to borrow money at the same interest rates and on the same terms. Borrowers who did not meet their standards were forced to pay higher interest rates to subprime lenders, but the companies essentially persuaded investors to treat a vast number American families as if they were interchangeable.
Write a minimum of two complete sentences to support your answer. (4 pts.) The areas that cannot be adjusted are housing, healthcare, insurance/pension, and education. These are areas where the cost is exactly what the cost is. You cannot tell your landlord that you are only going to pay 70% of rent this month because housing cost is not negotiable.
2. I utilized an “Acid Test Ratio” which shows us whether the entity could pay all its current liabilities if they became due now or sooner than expected. In 2011, the acid test ratio was 0.64. By 2012, it decreased to 0.43. Even though the acid-test ratio is less than 1 which rates in the lower third quartile in the industry of 1.6, 0.9 to 0.6, it indicates a concern with repaying current liabilities.
Although the customers only needed the shipment the following year, this would be a way to exceed the targeted budget. Instead of offering the customers an early discount for receiving the merchandise earlier, Campbell sent the merchandise and reported the sales to be included in the financial reports. As a result of this procedure, the reported sales for the fourth quarter exceeded the budgeted amount with $80,000.00. The actual sales revenue for the year was over with $14,000.00. The internal auditors questioned why the two shipments were done before December 31, since the requested dates were in the following year.
45-11, the debt of Jettison Manufacturing became callable at the beginning of 2d year “because the debtor's violation of a provision of the debt agreement at the balance sheet date”. Nevertheless, as Jettison Manufacturing “has cured the violation after the balance sheet date and the obligation is not callable at the time the financial statements are issued or are available to be issued” , the National “has waived or subsequently lost the right to demand repayment for more than one year from the balance sheet date”. Thus par.45-11a gives the company the right to reclassify the current liability into a long-term debt before preparing year 2s financial
In this case YTM differs from the coupon rate because the issued price is not the same as the Face value of the unsecured notes. YTM could be compared with the return on bonds. * MSFT issued four papers instead of one because: * Each of the papers has different maturities and thus MFST would be able to take advantage of the changing market dynamics (interest rate) over the years of its debt maturity. * No, I do not expect the notes to be called or redeemed, as the notes were issued at a record lowest yield, and certainly the company in hardly a situation would be able to raise debt at that rate in future. 2.
In a more extended look at it over the next 20 years, the oil refuge would only be able to meet 7.5 percent of the United States consumption of oil and as well as reduce the dependence of foreign oil by 15 percent. The Arctic National Wildlife Refuge has said that it would only be 0.4 to 1.2 percent of the world’s oil production. With the oil in the refuge only making a small impact it makes it hard to justify why drilling would be worth the harm for such a small gain of oil that may only last up to a couple of months or years. There could be more oil saved than there would be produced by drilling for oil in the arctic refuge. Environmentalists purpose that there may be a better way for money to be spent by putting it into more of