n i PV$1 FV$1 PVA FVA 6 7% 0.66634 1.50073 4.76654 7.1533 72 0.58% 0.65785 1.52011 58.65444 89.1609 1. You want to buy a $40,000 car today and will be making monthly payments for the next six years. What is your car payment if your borrowing rate is 7% ? $ (round to nearest dollar) For 2-3 use the following: The company issues 8% 20-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 8.4%. n % PV PVA 20 8.0% 0.21455 9.8181 20 8.4% 0.19926 9.5327 40 4.0% 0.20829 19.7928 40 4.2% 0.19288 19.2171 Round to nearest dollar 2. What is the issue price of the bond? $ 3. What is the interest expense for the first interest payment? $ For 4-5 use the following Best Incorporated Balance Sheet (partial) At December 31, Year 6 Stockholders' Equity: Preferred stock (par $100) $400,000 Common stock (par $0.01) 1,000 Additional Paid in capital 4,507,000 Total paid in capital 4,908,000 Retained earnings 1,254,000 Treasury stock (3,000 common shares) (165,000) $5,997,000 Total stockholders' equity Assume that the company sold 1,000 shares of its treasury stock for $60 per share. 4. How much would additional paid in capital change? $ 5. How much would Stockholders' Equity change? $ n i PV$1 FV$1 PVA FVA 6 7% 0.66634 1.50073 4.76654 7.1533 72 0.58% 0.65785 1.52011 58.65444 89.1609 1. You want to buy a $40,000 car today and will be making monthly payments for the next six years. What is your car payment if your borrowing rate is 7% ? $ (round to nearest dollar) For 2-3 use the following: The company issues 8% 20-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 8.4%. n % PV PVA 20 8.0% 0.21455 9.8181 20 8.4% 0.19926 9.5327 40 4.0% 0.20829 19.7928 40 4.2% 0.19288 19.2171 Round to nearest dollar 2. What is the issue price of the bond? $ 3. What is the interest expense for the first interest payment? $ For 4-5 use the following Best Incorporated Balance Sheet (partial) At December 31, Year 6 Stockholders' Equity: Preferred stock (par $100) $400,000 Common stock (par $0.01) 1,000 Additional Paid in capital 4,507,000 Total paid in capital 4,908,000 Retained earnings 1,254,000 Treasury stock (3,000 common shares) (165,000) $5,997,000 Total stockholders' equity Assume that the company sold 1,000 shares of its treasury stock for $60 per share. 4. How much would additional paid in capital change? $ 5. How much would Stockholders' Equity change? $