
3) Kelly has bought a laptop with 15% discount. The after price tax was $1150. Find...
2. A laptop computer that costs $1150 new has a book value of $550 after 2 years. (a) Find the exponential model V = aekt (b) What is value of the laptop after 3 years? 3. Suppose you deposit $4000 in an account paying 3.1% interest per year. (a) How much money is in the account after 7 years if the compounded Continuously? A = Pere (b) How long will it take to double your money?
3) Karen has bought a TV with 20% discount (20% sale event). She ended up paying $400. Ignoring the tax, what is the original price of the TV? (1.5 marks)
2. You just bought a newly issued bond which has a face value of S1,000 and pays its coupon once annually. Its coupon rate is 5%, maturity is 20 years and the yield to maturity for the bond is currently 8%. a. Do you expect the bond price to change in the future when the yield stays at 8%? Why or why not? Explain. (No calculation is necessary.) (2 marks) b. Calculate what the bond price would be in one...
A project has the following after-tax cashflows. The tax rate is 30% and the appropriate discount rate is 10%. Year 0: -2,000 Year 1: 600 Year 2: 600 Year 3: 600 Year 4: 600 Year 5: 600 What is the project Payback Period?IMPORTANT. Format your answer in years with two decimal places. For example 2 and a half years would be 2.50, not 2 years 6 months. Do not write in the word "Years". Just write in a number with...
John has bought a residential flat in Mong Kok at a price of $6 million. He has applied for a fully-amortizing mortgage loan from a bank for 25 years, and the interest rate for the loan was based on a composite: “Prime rate minus 2.5%”. Suppose the current prime rate and the maximum loan-to-value ratio are 5.5% and 60% respectively. How much does John borrow from the bank and what is his monthly payment. (3 marks) If the prime rate...
Question 4 (13 marks) You just bought 10,000 shares of a given stock at the price of x dollars per share. Some researches showed that the rate of loss f (in %) on the stock in one year after bought at price x is given as follows: Ax-3 if x < 2 f(x) = 13-x+ 2x2 if x 22 a) What value(s) of A can make the function (x) continuous for all x. (9 marks) b) For the above-determined A,...
The graph shows the market for pillows in which the government has imposed a sales tax of $4 per pillow on buyers. Draw a point to show the price of a pillow and the quantity of pillows bought and sold with no tax. Label it 1. Draw a point to show the price paid by buyers and the quantity of pillows bought with the tax. Label it 2. Draw a point to show the price received by sellers and the quantity of pillows...
Figure 1. Price $ Supply (after tax) Supply (before tax) Demand 75 100 Quantity of Cigarettes 12. In Figure 1, the tax is being levied to the a. Third party b. Buyer c. Government d. None of the above curve is unchanged. 13. The curve shifts to the left after tax but a. Demand; supply b. Supply; demand c. Supply, supply d. Demand; demand 14. The amount of tax is a. $1 b. $3 c. $2 d. $4 15. The...
1. A company has determined that if the price of an item is $ 40, then 150 will be demanded by consumers. When the price is $ 45, then 100 items are demanded by consumers(a) Find the price-demand equation, assuming that it is linear. ( 2 marks)(b) Find the revenue function. (1 mark)(c) Find the number of items sold that will give the maximum revenue. What is the maximum revenue? (4 marks)(d) What is the price of each item when...
Sandhurst Enterprises has a target debt/equity ratio of 1/3. It has internally generated after tax cash flows of $118,000,000. Which can be paid out in whole or in part as dividend? It has a corporate tax rate of 40% and cost of capital of 12%. It is considering the following projects. Project U a perpetual project requires investment of $30,000,000. It will provide before tax cash flow of $6,000,000 one year from today and $6,300,000 two years from today. After...