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Words 1228

Pages 5

3. Calculate the future value of $2000 in

a. five years at an interest rate of 5% per year; FV5= 2,000*1.05^5=2, 552.56

b. ten years at an interest rate of 5% per year; and FV10= 2,000*1.05^10=3,257.79

c. five years at an interest rate of 10% per year. FV5=2,000*1.1^5=3,221.02

d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)?

The amount of interest is less in part a than in part b because in the last 5 years you get interest on the interest earned in the first 5 years as well as interest on the original $2,000.

4. What is the present value of $10,000 received

a. twelve years from today when the interest rate is 4% per year; PV=10,000/1^12=6,245.97

b. twenty years from today when the interest rate is 8% per year; and PV=10,000/1.08^20=2,145.48

c. six years from today when the interest rate is 2% per year? PV=10,000/1.02^6=8,879.71

5. Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? The 10,000 in ten years is worth more so it would be preferable. PV=10,000/1.07^10= 5,083.49

6. Consider the following alternatives.

i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years

a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. Amount/Years/pv

Option 1 =100/1/90.9090909

Option 2 =200/5/124.184265

Option 3 =300/10/115.662987 Ranking-option 2, option 3, and then option 1

b. What is your ranking if the interest rate is only 5% per year? Amount/years/pv

Option 1 =100/1/95.2380952

Option 2 =200/5/156.705233

Option 3 =300/10/184.173976

Ranking-option 3, option 2, and then option 1

c. What is your ranking if the interest rate is 20% per year?

Amount/years/pv

Option 1…...

...strategies and individual projects that add value to their firm; and (2) forecast the funding requirements of their company, and devise strategies for acquiring those funds. ------------------------------------------------- b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Answer: The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In addition, several hybrid forms are gaining popularity. These hybrid forms are the limited partnership, the limited liability partnership, the professional corporation, and the s corporation. The proprietorship has three important advantages: (1) it is easily and inexpensively formed, (2) it is subject to few government regulations, and (3) the business pays no corporate income taxes. The proprietorship also has three important limitations: (1) it is difficult for a proprietorship to obtain large sums of capital; (2) the proprietor has unlimited personal liability for the business’s debts, and (3) the life of a business organized as a proprietorship is limited to the life of the individual who created it. The major advantage of a partnership is its low cost and ease of formation. The disadvantages are similar to those associated with proprietorships: (1) unlimited liability, (2) limited life of the organization, (3) difficulty......

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...DeVry FIN 515 Week 2 Problem Set IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download http://www.hwspeed.com/DeVry-FIN-515-Week-2-Problem-Set-Latest-5785848944.htm?categoryId=-1 If You Face Any Problem E- Mail Us At JOHNMATE1122@Gmail.Com Answer the following questions and solve the following problems in the space provided. When you are done, save the file in the format flastname_Week_2_Problem_Set.docx, where flastname is your first initial and you last name, and submit it to the appropriate dropbox. Chapter 4 (pages 132–136): 3. Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 4.What is the present value of $10,000 received a. twelve years from today when the interest rate is 4% per year; b. twenty years from today when the interest rate is 8% per year; and c. six years from today when the interest rate is 2% per year? 5.Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? 6.Consider the following alternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate......

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...A++PAPER;http://www.homeworkproviders.com/shop/fin-515-week-4/ FIN 515 WEEK 4 FIN 515 WEEK 4, Fin 515 Week 4 Weekly Problems and Midterm Exam Prob 7-2 – Prob 7-4 – Prob 7-5 –Prob 9-2 –Prob 9-4 – Prob 9-4 – Prob 9-5 – Prob 9-6 – Prob 9-7 FIN 515 Week 4 : Business Valuation and Stock Valuation - Exam 1. (TCO A) Which of the following statements is CORRECT? (Points : 10) 2. (TCO G) Which of the following statements is CORRECT? (Points : 10) 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant? (Points : 10) 4. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the third deposit, three years from now? (Points : 10) 5. (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%? Years: 0 1 2 3 4 |-----------|--------------|--------------|--------------| CFs: $0 $1,000 $2,000 $2...

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...FIN 515 Week 2 Problem Set http://www.homeworkwarehouse.com/downloads/fin-515-week-2-problem-set/ FIN 515 Week 2 Problem Set Chapter 4 1. Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 2. What is the present value of $10,000 received a. twelve years from today when the interest rate is 4% per year; b. twenty years from today when the interest rate is 8% per year; and c. six years from today when the interest rate is 2% per year? .Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? 3. Consider the following alternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 5% per year? c. What is your ranking if the interest rate is 20% per year? 4. Your daughter is currently 8 years old. You anticipate that she will be going to college in 10 years. You would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year, how much money do you......

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...FIN 515 Week 2 Problem Set http://www.homeworkwarehouse.com/downloads/fin-515-week-2-problem-set/ FIN 515 Week 2 Problem Set Chapter 4 1. Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 2. What is the present value of $10,000 received a. twelve years from today when the interest rate is 4% per year; b. twenty years from today when the interest rate is 8% per year; and c. six years from today when the interest rate is 2% per year? .Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? 3. Consider the following alternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 5% per year? c. What is your ranking if the interest rate is 20% per year? 4. Your daughter is currently 8 years old. You anticipate that she will be going to college in 10 years. You would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year, how much money do you......

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...FIN 515 WEEK 4 A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=fin-515-week-4 Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION FIN 515 WEEK 4, Fin 515 Week 4 Weekly Problems and Midterm Exam Prob 7-2 – Prob 7-4 – Prob 7-5 –Prob 9-2 –Prob 9-4 – Prob 9-4 – Prob 9-5 – Prob 9-6 – Prob 9-7 FIN 515 Week 4 : Business Valuation and Stock Valuation – Exam 1. (TCO A) Which of the following statements is CORRECT? (Points : 10) 2. (TCO G) Which of the following statements is CORRECT? (Points : 10) 3. (TCO G) LeCompte Corp. has $312,900 of assets, and it uses only common equity capital (zero debt). Its sales for the last year were $620,000, and its net income after taxes was $24,655. Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant? (Points : 10) 4. (TCO B) You want to buy a new sports car three years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the third deposit, three years from now? (Points : 10) 5. (TCO B) You sold a car and accepted a note with the following cash flow stream as your payment. What was the effective price you received for the car assuming an interest rate of 6.0%? Years: 0......

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...FIN 515 WEEK 2 HOMEWORK ASSIGNMENT To purchase this visit following link: http://www.activitymode.com/product/fin-515-week-2-homework-assignment/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 515 WEEK 2 HOMEWORK ASSIGNMENT FIN 515 Week 2 Homework Assignment Week 2 Homework Assignment Complete the following graded homework assignment in a Word document named “FIN515_Homework2_yourname.” Show the details of your calculation/work in your answer to the problems. • Problems (p.112) o 3-1 Days Sales Outstanding o 3-2 Debt Ratio o 3-3 Market/Book Ratio o 3-4 PE Ratio o 3-5 ROE o 3-6 Du Pont Analysis o 3-7 Current and Quick Ratios • Problems (pp. 165-167) o 4-1 FV of Single Amount o 4-2 PV of Single Amount o 4-6 FV of Ordinary Annuity o 4-13 a PV of an Annuity o 4-14 PV Uneven Cash Flow Stream Activity mode aims to provide quality study notes and tutorials to the students of FIN 515 Week 2 Homework Assignment in order to ace their studies. FIN 515 WEEK 2 HOMEWORK ASSIGNMENT To purchase this visit following link: http://www.activitymode.com/product/fin-515-week-2-homework-assignment/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 515 WEEK 2 HOMEWORK ASSIGNMENT FIN 515 Week 2 Homework Assignment Week 2 Homework Assignment Complete the following graded homework assignment in a Word document named “FIN515_Homework2_yourname.” Show the details of your calculation/work in your answer to the problems. • Problems (p.112) o 3-1 Days Sales Outstanding o 3-2......

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...FIN 515 WEEK 8 FINAL EXAM VERSION 2 To purchase this visit following link: http://www.activitymode.com/product/fin-515-week-8-final-exam-version-2/ Contact us at: SUPPORT@ACTIVITYMODE.COM FIN 515 WEEK 8 FINAL EXAM VERSION 2 FIN 515 Week 8 Final Exam Version 2 1. (TCO A) Which of the following statements is NOT correct? (Points : 5) 2. (TCO F) Which of the following statements is correct? (Points : 5) (a) (TCO F) Which of the following statements is correct? (Points : 5) 3. 3 (TCO D) The Ackert Company’s last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm’s required return (rs) is 12.0%. What is the best estimate of the current stock price? (a) (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects……? 4. (TCO G) Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month……? 5. (TCO G) Clayton Industries is planning its operations for next year, and Ronnie Clayton, the CEO, wants you to forecast the firm’s additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?……. 6. (TCO H) The Dewey Corporation...

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...FIN 515 Week 8 Final Exam (Version 2) Purchase here http://chosecourses.com/FIN%20515/fin-515-week-8-final-exam-version-2 Product Description (TCO A) Which of the following statements is NOT correct? (Points : 5) (TCO F) Which of the following statements is correct? (Points : 5) (a) (TCO F) Which of the following statements is correct? (Points : 5) 3 (TCO D) The Ackert Company's last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? (a) (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects......? (TCO G) Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month......? (TCO G) Clayton Industries is planning its operations for next year, and Ronnie Clayton, the CEO, wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?....... (TCO H) The Dewey Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm's......

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...FIN 515 Week 2 Homework Assignment Purchase here http://devrycourse.com/fin-515-week-2-homework-assignment Product Description Week 2 Homework Assignment Complete the following graded homework assignment in a Word document named “FIN515_Homework2_yourname." Show the details of your calculation/work in your answer to the problems. • Problems (p.112) o 3-1 Days Sales Outstanding o 3-2 Debt Ratio o 3-3 Market/Book Ratio o 3-4 PE Ratio o 3-5 ROE o 3-6 Du Pont Analysis o 3-7 Current and Quick Ratios • Problems (pp. 165-167) o 4-1 FV of Single Amount o 4-2 PV of Single Amount o 4-6 FV of Ordinary Annuity o 4-13 a PV of an Annuity o 4-14 PV Uneven Cash Flow Stream FIN 515 Week 2 Homework Assignment Purchase here http://devrycourse.com/fin-515-week-2-homework-assignment Product Description Week 2 Homework Assignment Complete the following graded homework assignment in a Word document named “FIN515_Homework2_yourname." Show the details of your calculation/work in your answer to the problems. • Problems (p.112) o 3-1 Days Sales Outstanding o 3-2 Debt Ratio o 3-3 Market/Book Ratio o 3-4 PE Ratio o 3-5 ROE o 3-6 Du Pont Analysis o 3-7 Current and Quick Ratios • Problems (pp. 165-167) o 4-1 FV of Single Amount o 4-2 PV of Single Amount o 4-6 FV of Ordinary Annuity o 4-13 a PV of an Annuity o 4-14 PV Uneven Cash Flow Stream FIN 515 Week 2 Homework Assignment Purchase......

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...FIN 515 Week 2 Problem Set Answers http://homeworklance.com/downloads/fin-515-week-2-problem-set-answers/ Answer the following questions and solve the following problems in the space provided. When you are done, save the file in the format flastname_Week_2_Problem_Set.docx, where flastname is your first initial and you last name, and submit it to the appropriate dropbox. Chapter 4 (pages 132–136): 3. Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 4. What is the present value of $10,000 received a. twelve years from today when the interest rate is 4% per year; b. twenty years from today when the interest rate is 8% per year; and c. six years from today when the interest rate is 2% per year? 5. Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? 6. Consider the following alternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 5% per year? c. What is your ranking if the interest rate is 20% per year? 8. Your......

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...FIN 515 Week 2 Problem Set To Buy This material Click below link http://www.uoptutors.com/fin-515-devry/fin-515-week-2-problem-set Chapter 4 (pages 132–136): 3. Calculate the future value of $2000 in a. five years at an interest rate of 5% per year; b. ten years at an interest rate of 5% per year; and c. five years at an interest rate of 10% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? 4. What is the present value of $10,000 received a. twelve years from today when the interest rate is 4% per year; b. twenty years from today when the interest rate is 8% per year; and c. six years from today when the interest rate is 2% per year? 5. Your brother has offered to give you either $5,000 today or $10,000 in 10 years. If the interest rate is 7% per year, which option is preferable? 6. Consider the following alternatives. i. $100 received in 1 year ii. $200 received in 5 years iii. $300 received in 10 years a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year. b. What is your ranking if the interest rate is only 5% per year? c. What is your ranking if the interest rate is 20% per year? 8. Your daughter is currently 8 years old. You anticipate that she will be going to college in 10 years. You would like to have $100,000 in a savings account to fund her education at that time. If the account promises to pay a fixed interest rate of 3% per year,......

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...FIN 515 Week 2 Quiz To Buy This material Click below link http://www.uoptutors.com/fin-515-devry/fin-515-week-2-quiz Question 1 (TCO B) You are a trust fund baby. Your trust fund is currently worth $1,234,000. The problem is the terms of the trust don’t allow you to receive any of the money until you are 27. You are now 21. The fund is earning 7.7% per year. How much will the fund be worth when you are 27 and too old to enjoy it? Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer. Question 2 (TCO B) You have a student loan of $75,000. The interest rate is 8.6% per year. You have been out of school for 6 months and are ready to start making payments. You want to use the maximum allowed of 10 years to pay off the loan by making equal monthly payments. How much are the monthly payments? Ignore taxes. Show your work. If you use Excel, show the formula with the parameters, and the answer. If you use a formula, provide the standard formula, the formula with terms substituted, and the answer. If you use a calculator, show the inputs and the answer. Question 3 (TCO B) You want to have $1,000,000 in 30 years. You already have $50,000. You think you can get a 7% annual return on your money. How much per year will you have to save to get to $1,000,000? Ignore taxes.......

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...sales outstanding AR/20000 = 20 AR = 20,000 x 20 = 400,000 3-2 Multiplier equity/Asset = 2.5; 1+x = 2.5 X = 2.5 -1.00 = 1.5 Debt Ratio = TL/TA 1.5/2.5 = 0.60 which is 60% D/A = 1-0.40 = 0.60 or 60% 3-3 Book value per share = Common equity/ Shares outstanding Book Value = 6,000,000,000/800,000,000 = 7.50 Market/book ratio = Market price per share/Book value per share =75/7.50 = 10 3-4 Price /cash flow per share = price cash flow ratio P/$3.00 = 8 x 3 = $ 24.00 P/E = $24.00/$1.50 =16.00 3-5 Profit margin x Total assets turn over x Equity multiplier = ROE =3% x 100,000,000/$50,000,000 x 2 = 12%. ROE = 12% 3-6 ROA = 10% Profit Margin = 2% Return on Equity = 15% Net income/Assets = Net income/Sales x Sales/Total assets 2%x S/TA =10% S/TA = 5. Net income/Equity = Net Income/Sales x Sales/Total Assets x Total Assets/Equity 2% x 5 x Total Assets/equity= 15% 10% x TA/E = 15% TA/E = 1.5. 3-7 Current asset/Current liability =Current Ratio 3,000,000/CL = 1.5 3,000,000 = 1.5CL CL = 2,000,000 CA – Inv /CL = 1.0 Therefore Current Assets – Inventory/Current Liability = Quick Ratio 3,000,000 - Inv / 2,000,000 = 1.0 3,000,000 – Inv = 2,000,000 Inventory = 1,000,000 For these questions I used a financial calculator http://www.arachnoid.com/lutusp/finance.html 4-1 = 10,000(1.10) to the power 5 = 10,000(1.61051) FV= 16,105.10. 4-2 N = 20, I/YR = 7, PMT = 0, and FV = 5000. PV =......

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