Questions from Corporate Finance

Q: What’s the interest rate of a 7-year, annual $

What’s the interest rate of a 7-year, annual $4,000 annuity with present value of $20,000?

Q: Suppose that Wind Em Corp. currently has the following balance sheet

Suppose that Wind Em Corp. currently has the following balance sheet, and that sales for the year just ended were $7 million. The firm also has a profit margin of 27 percent, a retention ratio of 20 p...

Q: What annual interest rate would you need to earn if you wanted

What annual interest rate would you need to earn if you wanted a $1,000 per month contribution to grow to $75,000 in six years?

Q: What annual interest rate would you need to earn if you wanted

What annual interest rate would you need to earn if you wanted a $600 per month contribution to grow to $45,000 in six years?

Q: To borrow $500, you are offered an add-on

To borrow $500, you are offered an add-on interest loan at 8 percent. Two loan payments are to be made, one at six months and the other at the end of the year. Compute the two equal payments.

Q: To borrow $800, you are offered an add-on

To borrow $800, you are offered an add-on interest loan at 7 percent. Three loan payments are to be made, one at four months, another at eight months, and the last one at the end of the year. Compute...

Q: Joey realizes that he has charged too much on his credit card

Joey realizes that he has charged too much on his credit card and has racked up $5,000 in debt. If he can pay $150 each month and the card charges 17 percent APR (compounded monthly), how long will it...

Q: Phoebe realizes that she has charged too much on her credit card

Phoebe realizes that she has charged too much on her credit card and has racked up $6,000 in debt. If she can pay $200 each month and the card charges 18 percent APR (compounded monthly), how long wil...

Q: Consider Gavin, a new freshman who has just received a Stafford

Consider Gavin, a new freshman who has just received a Stafford student loan and started college. He plans to obtain the maximum loan from Stafford at the beginning of each year. Although Gavin does n...

Q: You would like to sell 100 shares of Echo Global Logistics,

You would like to sell 100 shares of Echo Global Logistics, Inc. (ECHO). The current ask and bid quotes are $15.33 and $15.28, respectively. You place a limit sell-order at $15.31. If the trade execut...