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Can you please show me formula tips for solving the attached. You place $25,000 in a savings account paying an annual compound interest of 8

Can you please show me formula tips for solving the attached.

image text in transcribed You place $25,000 in a savings account paying an annual compound interest of 8 percent for 3 years a What is the original balance worth at the end of six years? Note: format is $xx,xxx.xx est of 8 percent for 3 years and then move it into a savings account that pays 10 percent interest compounded annually. pounded annually. You purchase a boat for $35,000 and pay $5,000 down. You also agree to pay the rest over the next 10 What is the amount of each payment? Note: format is $x,xxx.xx he rest over the next 10 years in 10 equal end-of-the-year payments plus 13% compound interest on the unpaid balance. W the unpaid balance. What is the amount of each payment? Using the CAPM, estimate the appropriate required rate of return for the three stocks listed here (beta Stock A Beta: 0.75 Stock B Beta: 0.90 Stock C Beta: 1.40 Note: format is xx.x% stocks listed here (betas provided), given the risk free rate is 5 percent, and the expected return for the market is 17 percen the market is 17 percent. Vangaurd Health System bonds have an annual coupon rate of 8 percent and a par value of $1,000 and If you require a 7 percent return, what price would you be willing to pay for a Vangaurd bond? Note: format is $x,xxx.xx par value of $1,000 and will mature in 20 years. A HCA's bond, maturing in 7 years, pays 8 percent interest on a $1,000 face value. However, inter What is the value if the interest were paid annually? Note: format is $xxx.xx e value. However, interest is paid semi-annually. If your required rate of return is 10 percent, what is the value of the bond is the value of the bond? Providence Health bonds are selling in the market for $1,045. These 15 year bonds pay 7 percent Note: format is x.xx% ar bonds pay 7 percent annually on a $1,000 par value. If the bond is purchased at market price, what is the expected rate hat is the expected rate of return? Assume that HCA is evaluating the feasibility of building a new hospital in an area not currently served by th If the risk-free rate, RF, is 2.5 percent and the required rate of return on the market, R(Rm), is 11 percent, is The company's analysts estimate a market beta for the hospital project of 1.3, which is somewhat higher th Financial forecasts for the new hospital indicate an expected rate of return on the equity portion of the inve With a market beta of 1.3, the required rate of return on the equity investment in the new hospital is: Note: Format is xx.x% Is this project in the best interest of the HCA shareholders? Note: format is "Yes" or "No:". No quotes are required. ot currently served by the company. R(Rm), is 11 percent, is the new hospital in the best interest of HCA's shareholders? h is somewhat higher than the 0.8 market beta of the company's average project. quity portion of the investment of 12 percent. he new hospital is: Suppose one of the suppliers to Trinity Health System offers terms of 3/15, net 45. When does the system have to pay its bills from this supplier in order to get the d Note: Format is "Day XX". No quotes are required. What is the approximate cost of the costly trade credit offered by this supplier? Note: Format is xx.x%. upplier in order to get the discount? offered by this supplier? (Assume 360 days per year) The capital structure for the Black Hills Surgery Center is provided below. The company plans to maintain 18 percent cost of common stock, what is the firm's weighted average cost of capital (WACC)? Hint: consid Note: format is xx.xx% Capital Structure (all $ in k's) Bonds $1,083 Preferred Stock 268 Common Stock 3,681 Total: $5,032 ompany plans to maintain its debt structure in the future. If the firm has a 5.5 percent afer tax cost of debt, a 13.5% cost of preferred s pital (WACC)? Hint: consider the percent weight of total capital structure and what each component requires with respect to return. a 13.5% cost of preferred stock and an with respect to return. You are considering buying new PACS hardware & sofware that will require an initial outlay of $54,200. T of each year over its 5 year life. In addition, the salvage value of the system is expected to be $13,200 bas a. Payback period Note: format is x.xx years b. NPV Note: format is $xx,xxx if positive; ($xx,xxx) if negative d. IRR Note: format is xx.xxxx e. Should this project be accepted? Note: format is Yes or No e an initial outlay of $54,200. The system has an expected useful life of 5 years and will generate free cash fows to the hospital as a wh m is expected to be $13,200 based on current market conditions. Given a required rate of return of 15 percent, calculate the following ows to the hospital as a whole of $20,608 at the end nt, calculate the following: Consider the following inventory information and relationships for Brooke Army Medical Center: 1. Orders can be placed only in multiples of 100 units. 2. Annual usage is 250,000 (assume a 360 day year in your calculations) 3. The carrying cost is 30 percent of the purchase price of goods. 4. The purchase price is $10 per unit. 5. The ordering cost is $175 per order. 6. The desired safety stock is 1,000 units (this does not include delivery time stock). Given this information: A. What is the optimal EOQ level? Note: format is "x,xxx units". Hint: round UP as specified in the problem. B. How many orders will be placed annually? Note: Round UP to a whole order. Response format is "xx orders per year". No quotes ke Army Medical Center: y time stock). n the problem. orders per year". No quotes are required. Northeast Baptist buys $500,000 of a particular item a year (at gross prices) from its major supplier Cardinal Health, Currently, the hospital is paying the supplier the full amount due on Day 60, but it is considering taking the discount, a. What is the amount of free trade credit that Baptist obtains from Cardinal Health? (Assume 360 days per year thro Note: format is $xx,xxx.xx b. What is the amount of costly trade credit? Note: format is $xx,xxx.xx c. What is the approximate annual cost of the costly trade credit? Note: format is xx.x% d. Should Baptist replace its costly trade credit with the bank loan? Note: Format is "Yes" or "No" or supplier Cardinal Health, which offers NE Baptist terms of 3/20, net 60. idering taking the discount, paying on Day 20 replacing the trade credit with a bank loan that has a 12 percent annual cost. ume 360 days per year throughout this problem) t annual cost. The Mayo Clinic is evaluating two different housekeeping contracts. Mayo's corporate cost of capi Year 0 1 2 3 System X ($500) ($1,500) ($1,250) ($300) System Y ($2,500) ($300) ($300) ($300) a. Assume initially that the systems both have average risk. Which one should be chosen? Note: format is X or Y b. Assume that System X is judged to have high risk. Allied accounts for differential risk by adjusting its cor Note: format is X or Y . Mayo's corporate cost of capital is 10 percent. Here are the net cash fow estimates in thousands of dollars: hould be chosen? ifferential risk by adjusting its corporate cost of capital up or down by 2 percentage points. Which system should be chosen? uld be chosen? Kaiser Permanente must install a new $1.5 million computer to track patient records in its three service ar and patient records. The company can obtain a 10 percent bank loan to buy the computer or it can lease t - The computer falls into the three-year class for tax depreciation, so the MACRS allowances are 0.33, 0.45 - The company's marginal tax rate is 34 percent. '-Tentative lease terms call for payments of $500,000 at the end of each year. '- The best estimate for the value of the computer afer three years of wear and tear is $500,000. a. What are the NAL and IRR of the lease? NAL = IRR = Note: format for NAL = $xx,xxx or ($xx,xxx); format for IRR = x.x% b. Should the computer be bought or leased? Note: format is 'Bought' or 'Leased'. ords in its three service areas. It plans to use the computer for only three years, at which time a brand new system will be acquired that computer or it can lease the computer for three years. Assume that the following facts apply to the decision: allowances are 0.33, 0.45, 0.15, and 0.07 in Years 1 through 4, respectively. tear is $500,000. stem will be acquired that will handle both billing Trinity Surgical Supplies, Inc. sells on terms of 2/10, net 30. Net sales for the year are tenth day and take d (Assume 360 days per year.) . . What is the firm's average collection period? Note: Format is "xx.x days". What is the firm's current receivables balance? Note: Format is $xxx,xxx What would be the firm's new receivables balance if Trinity Surgical toughened up on Suppose that the firm's cost of carrying receivables was 10 percent annually. How mu (Assume that the entire amount of the receivables had to be financed.) Note: Forma he year are tenth day and take discounts; 50 percent pay on the thirtieth day; and the remaining 25 percent pay, on average, 40 days af ormat is "xx.x days". Format is $xxx,xxx Trinity Surgical toughened up on its collection policy, with the result that all nondiscount customers paid on the 30th day? Note: Form was 10 percent annually. How much would the toughened credit policy save the firm in annual receivables carrying expense? d to be financed.) Note: Format is $x,xxx ay, on average, 40 days afer the purchase. he 30th day? Note: Format is $xx,xxx rying expense

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