Fundamentals of Corporate Finance (12th Edition)

Chapter 6

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The amount which can be withdrawn annually is $198... more

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$71,477.11 ; Identify the information needed to ... more

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The interest payment in the 110th payment is $1,... more

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The total interest paid over the life of the ... more

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$24,102.80 ; Compute the future value of $5,000 at... more

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Annuity due. ; The payments which are made at the ... more

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14.4% ; Identify the information needed for the ... more

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It is a pure discount loan. ; A pure discount loan... more

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The four components are:Present Value Discount ... more

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The present value of an annuity increases with an ... more

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The future value of an annuity will increase when ... more

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It is deceptive advertising. ; The advertising ... more

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It would be feasible to accept a large sum today ... more

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The case in which the athlete gets ten equal ... more

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EAR should be used instead of APR because of the ... more

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A freshman receives a higher subsidy as compared ... more

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There is no possible objection towards any of ... more

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The value of the settlement is determined by how ... more

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An increase or decrease in interest rate will not ... more

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The payday loans may or may not be ethical because... more

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Present values:At a discount rate of 10%: $2,453.... more

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Investment X has higher present value than ... more

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At 8%: $5,632.7344At 11%: $5,868.444At 24%: $6,991... more

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For 15 years: $42,253.29For 40 years: $65,453.... more

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$3,976.78 ; Identify the information needed to ... more

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$252,415.8 ; Identify the information needed to ... more

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For 20 years: $249,119.03For 40 years: $1,835,982.... more

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$3,474.39 ; Identify the information needed to ... more

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$18,193.96 ; Identify the information needed for ... more

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$744,680.851 ; Identify the information needed to ... more

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4.375% ; Identify the information needed to ... more

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At 9%: 9.3083%At 16%: 17.2271%At 12%: 12.7475%At ... more

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The APR is 10.8% when the EAR is 11.1% compounded ... more

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The company should take the loan from Bank FU. ; ... more

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15.78% is the annual percentage required by the ... more

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$12,556.37 ; Identify the information needed to ... more

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Future value:In 5 year: $9,745.03In 10 years: $14,... more

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$32,529.1814 ; Identify the information to ... more

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APR: 324%Effective annual rate: 1,660.53% ; The ... more

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Monthly payments: $1,602.22Effective annual rate: ... more

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56.83 months ; Identify the information to ... more

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APR: 1733.33%EAR: 313,916,515.7% ; Compute the ... more

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Monthly return: 0.51%APR: 6.12%EAR: 6.30% ; ... more

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$1,073,640.15 ; Identify the information needed to... more

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$1,025,148.59 ; Compute the EAR of the investment ... more

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$38,126.53 ; Identify the information needed to ... more

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$2,638.77 ; Compute the EAR for the year to ... more

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$7,143.77 ; Identify the information needed to ... more

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5.07% ; Compute the total simple interest rate ... more

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Effective semiannual return: 5.64%Effective ... more

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$793.69 ; Compute the future value of $8,000 by ... more

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$11,383.20 ; Determine the dollar return by ... more

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In one year: $1.08 In two years: $1.17 ; Compute ... more

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When saved from today, the monthly savings will be... more

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31.61% ; Identify the information required for the... more

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First option is preferred because the present ... more

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$25,280,038.83 ; Identify the information to ... more

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$3,058,897.535 ; Compute the yearly growth in the ... more

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There is an inverse relationship between the value... more

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70 payments ; Identify the information needed to ... more

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6.50% ; Identify the information to determine the ... more

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$343,996.22 ; Determine the present value of the ... more

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$2,301.87 ; Identify the information to find out ... more

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$21,624,467.72 ; Identify the information needed ... more

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APR: 6.11%EAR: 6.28% ; Determine the amount of ... more

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Yes, the firm will make a profit on this asset.The... more

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$24,822.11 ; Compute the present value of annuity(... more

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$151,596.1917 ; Compute the present value of first... more

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$132,280.03 ; Compute the future value of annuity... more

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$84,121.2090 ; Compute the present value (PV) of ... more

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No, the interest rate on this loan is not 17.1%. ... more

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Five years from now: $34,671.2285Three years from ... more

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$1,103.03 ; Compute the monthly rate by dividing ... more

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Amortization schedule: ; In third year: $3,203.... more

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Amortization schedule: ; In third year: $3,003.... more

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$2,860.67 ; Compute the pre-retirement APR on a ... more

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As per the PVs of both leasing and buying a car, ... more

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$1,503,434.07 ; Compute the effective annual rate... more

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The interest rate quoted by the lender is wrong... more

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The amount that the plaintiff will receive is $482... more

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12.04% ; Compute the future value (FV) of the loan... more

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The EAR for the loan is 15.46%. The EAR does not ... more

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3.033 percentage points ; Compute the actual ... more

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1.589 percentage points ; Compute the value of the... more

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The APR in case of refundable application fee is 5... more

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No, the interest rate on this loan is not 17.3%.  ... more

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$3,891,407.12 ; Compute the annual percentage rate... more

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63.95 months faster when there is no transfer fee ... more

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The policy is not worth buying. ; Compute the ... more

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$2,025,202.89 ; Compute the monthly cash flows to ... more

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7.21% ; Compute the rate offered by the investment... more

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9.53% ; Make an equation for the PV of perpetuity ... more

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$144,645.85 ; Compute the effective 2-year rate as... more

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; Solve the equation for PVADue and prove that an... more

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10.77% ; Compute the present value (PV) of the ... more

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; Assume that the periodic cash flows are  C1, C2... more

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The Rule of 72 specifies that the investment can ... more

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The Rule of 69.3 is accurate when computing the ... more

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Mr. B should make an appropriate cost-benefit ... more

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Factors affecting Mr. B’s decision to do an MBA ... more

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The best option for Mr. B is to join College R. ; ... more

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Mr. B’s statement is correct. It will help him to ... more

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The initial salary at which Mr. B will be ... more

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It will not affect the decision to pursue an MBA... more

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