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Financial Math
Current shares outstanding $7 million
No debt
Sticks sells for $65 per share
Book value per share $20
Net income $11.5 million
Wish to expand facilities and amount of cost $30 million
And it will increase net income by $675000
The per value of the stock is $1
Under constant price-earnings ratio what will be the effect be of issuing new equity to finance the investment?
No debt
Sticks sells for $65 per share
Book value per share $20
Net income $11.5 million
Wish to expand facilities and amount of cost $30 million
And it will increase net income by $675000
The per value of the stock is $1
Under constant price-earnings ratio what will be the effect be of issuing new equity to finance the investment?
Financial Math
Kate has $63,180 in a savings account.The interest rate is 5% per year and is not compounded.How much interest will she earn in 1year?
Financial Math
1. You have two options in accumulating your wealth:-
Option 1: depositing amounts of RM P at the end of every month for 25 years at an annual effective rate of dividend of 10%.
Option 2: Purchasing a house by loan amounting RM 200,000 for 25 years with a nominal rate of interest 4.5% compounded monthly. The loan is paid in monthly level payments. The house value is increasing at yield of 5% per year. Immediately after purchasing the house, you are making money by renting your house at RM550 per month earning at the beginning of the month until the housing loan has been paid. Your level monthly renting house are to be reinvested at dividend rate of 9% per annual. At the end of 25 years, you wish to sell back your house based on the yield rate of your house.
Based on the above information, evaluate which of the investment method above is better. Explain.
Option 1: depositing amounts of RM P at the end of every month for 25 years at an annual effective rate of dividend of 10%.
Option 2: Purchasing a house by loan amounting RM 200,000 for 25 years with a nominal rate of interest 4.5% compounded monthly. The loan is paid in monthly level payments. The house value is increasing at yield of 5% per year. Immediately after purchasing the house, you are making money by renting your house at RM550 per month earning at the beginning of the month until the housing loan has been paid. Your level monthly renting house are to be reinvested at dividend rate of 9% per annual. At the end of 25 years, you wish to sell back your house based on the yield rate of your house.
Based on the above information, evaluate which of the investment method above is better. Explain.
Financial Math
Mr. Deneau accumulated $105, 000 in an RRSP. He converted the RRSP into a RRIF and started to withdraw $1000 at the end of every month from the fund. If interest is 5.1% compounded semi-annually, for how long can Mr. Deneau make withdrawals? State your answer in years and months (from 0 to 11 months).
Financial Math
If a basket of goods and services used to calculate CPI contains 2 pairs of socks at $2 each and 1 pair of shoes at $50, what will the CPI for year 2 be if the 2 pairs of socks cost $2.05 and 1 pair of shoes cost $51?
Financial Math
Suppose you borrowed $14, 000 at the rate of 10% and must repay in five equal annual installment at the end of each of the next five years. How much interest would you to have pay in the years 1-5?
Financial Math
Since interest rates have dropped, you consider refinancing your mortgage at a lower 6% rate.
If you took out a new 30-year mortgage at 6% for your remaining loan balance, what would your new monthly payments be?
If you took out a new 30-year mortgage at 6% for your remaining loan balance, what would your new monthly payments be?
Financial Math
This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $88,536 left to pay on your loan. Your house is now valued at $140,000.
Financial Math
Price 185.00 markup% 125% markup answer
Financial Math
Q4) Describe the six major risks of financial institutions? And also the methods that can be used in order to reduce interest rate risk and credit risk?
