5. How would Fuzzy Monkey’s 2011 statement of cash flows be affected by the investment? Date Requirement Descriptions Amount in millions January 1, 2011 1 Investments in bonds (face amount) $80 Discount on bond investment (difference) $14 Cash (price of bond) $66 January 30, 2011 2 Cash (4%×$80 million) $3.20 Discount on bond investment (difference)
Repayment plans As a new business, it is safe to assume that ModernJET will be given the $81,623.53 loan at an interest rate of 7.25%. With this rate, we will be able and willing to pay a monthly payment of $745.11. Over a 15 year period, the company will pay total interest of $52,496.43. Therefore, the total amount of payments will equal $134,119.96. 4.
Balance Sheet vertical Analysis: Costco’s long-term debt was 5.1% of their original asset in 2012; it is increased to 14.5% of their total assets in 2015. During the past four years, Costco Wholesale Corporation had a 9% increase in their long-term debt as shown on the vertical analysis of the balance sheet. There are few main causes to this change. Firstly, In December 2012, Costco issued $3,500 million of Senior Notes to fund the business, these notes are payable in 2015 2017, and 2019. Secondly, the Japanese Costco Subsidiary issued approximately $102 million of promissory notes with 1.05% interest that is due in May 2023, then the same subsidiary got an approximately $102 three-year term loan in July of 2013, which bears an interest
This was done with the help of a weighted average unlevered beta, the market risk premium and the risk free rate. The risk free rate of 5.85 % has been acquired from the 30 year T bond rates. The beta was found out using the three other comparable companies and their unleveraged betas. With help of all these values the discount rate of 10.847% was calculated which contributed in discounting the cash flows and obtaining the present value of cash flows. The continuing value for Calaveras has been estimated using the key value driver formula which was found out to be $ 7019.715.
1st month is 3 people which is $300, 2nd month its 10 people which is $1000, 3rd month its 20 people which is $2000, 4th month is 14 people which is $1400, 5th month its 10 people which is $1000 and the 6th month is 8 people which is $800. If you add up the cost of each month need for extra people, then you get a total of $6500 for extra man power. So let’s add up $6500 + $750 for storage you get a total of $7250. The Hybrid strategy in my opinion would be the better solution since it combines low cost and differentiation advantages. It blends your traditional marketing with the online marketing.
The most significant component of cash outflows in case of purchase option was the cost of the replacement spare engine. Our cash flows included the tax shield on depreciation, and maintenances costs associated with the purchase and use of the engine. We determined the after tax cash flows under both options, in case of Hong Kong Air purchase option, the after-tax cash flows are, cost of the V2500 spare engine, the tax shield on depreciation and maintenances costs and the after tax discount rate was used. In case of the lease option, the after-tax cash flows are; include; monthly rental at 8% of engine price, rate per flight hour, rate per engine cycle all over the period of the lease not less than 10 years. (ref) The discount rate used was the after tax cost of debt.
In Susan’s Tire Tower’s case, the bond is expected to be a 4-year, $1,000,000 face value, 4% bond with an effective annual yield of 6%. This bond is selling as discounted bond because the stated rate (4%) is less than the market rate (6%). Interest will be payable semiannually, so the stated rate and market rate
They argue that since, no one else would takeout mortgage loans at such rates it is okay for the payday loans to be expensive. But according to industry sources, a typical customer takes out 11 or 12 payday loans a year, and nearly 40% of borrowers extend their loans past the initial two-week term. One payday loan firm even reported that it relies on repeat customers for more than 89% of its
One of the benefits of the recent tax reform passed by the legislature gives working family households an additional one thousand dollars per child through the child tax credit starting in the year 2018 (Hassett, 2018). This would equate for an average family of four, two adults and two children, an additional tax benefit of two thousand dollars annually. Health insurance costs rise every year. According to the National Conference of State Legislatures (NCSL), the average health insurance premium increase for 2018, per person under the affordable care act in Oklahoma, increased $200 per month (NCSL, 2017). The increased tax benefit does not pay for even one year of the increased health premium for one member of the family of