Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi, I need help with my Managerial Finance assignment please... Friedman Roses, Inc. needs $90,000 in funds for expansion. With a compensating balance requirement of

image text in transcribed

Hi, I need help with my Managerial Finance assignment please...

image text in transcribed Friedman Roses, Inc. needs $90,000 in funds for expansion. With a compensating balance requirement of 21%, how much will the firm need to borrow? (Round your answer to the nearest dollar amount.) $23,924 $113,924 $90,000 $113,974 If you invest $26,000 at 7% interest, how much will you have in 15 years? Use Appendix A. (Round "FV Factor" to 3 decimal places.) $126,506 $71,734 $35,412 $9,412 How much must you invest at 12% interest in order to see your investment grow to $14,000 in 14 years? Use Appendix B. (Round "PV Factor" to 3 decimal places.) $2,236 $2,870 $2,271 none of these To save for her newborn son's college education, Lea Wilson will invest $19,000 at the beginning of each year for the next 15 years. The interest rate is 10 percent. What is the future value? Use Appendix C. (Round "FV Factor" to 3 decimal places.) $683,050. $79,363. $664,050. $636,541. Ambrin Corp. expects to receive $10,000 per year for 15 years and $11,500 per year for the next 15 years. What is the present value of this 30 year cash flow? Use an 12% discount rate. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round your intermediate calculations to the nearest dollar value.) $82,444 $92,661 $146,437 none of these You will deposit $3,000 today. It will grow for 7 years at 8% interest compounded semiannually. You will then withdraw the funds annually over the next 5 years. The annual interest rate is 6%. Your annual withdrawal will be: Use Appendix A and Appendix D. (Round "PV Factor" and "FV Factor" to 3 decimal places.) $922 $4,481 $2,489 $1,234 A twelve-year bond, with par value equals $1,000, pays 12% annually. If similar bonds are currently yielding 10% annually, what is the market value of the bond? Use semi-annual analysis. Use Appendix B and Appendix D. (Round "PV Factors" to 3 decimal places, intermediate calculations and final answer to 2 decimal places.) $1,437.94 $1,137.94 $1,287.94 $1,087.94

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Financial Management

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

10th Canadian edition

1259261018, 1259261015, 978-1259024979

More Books

Students also viewed these Finance questions