Answer any two of the three questions below (10 points each;…
Answer any two of the three questions below (10 points each; 20 points total). For the questions you pick you must answer all parts. Type in your answers in the space below. Clearly mark the question and the part you are answering. You need to show your work to receive credit. If you use your financial calculator, clearly state your inputs. For e.g., if you are calculating future value: I/Y = 10%, PV = $1000, PMT = $50, N = 5 years, CPT FV =
Read DetailsNU YU announced today that it will begin paying annual divid…
NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year (i.e., at t = 1) in the amount of $0.33 a share. The dividends will be $0.38, $0.53, and $0.83 a share annually for the following three years respectively. After that, dividends are projected to increase by 2.6 percent per year forever. How much are you willing to pay today to buy one share of this stock if your desired rate of return is 9 percent?
Read DetailsExplain what classification is in the corrections context an…
Explain what classification is in the corrections context and describe the factors that determine an inmate’s classification level. How does classification affect the inmate’s day-to-day experience? Using Donnie as an example, describe what his likely classification would be and what that would mean for his time in CDCR.
Read DetailsToday, the mortgage on your house is five years old. It requ…
Today, the mortgage on your house is five years old. It required monthly payments of $1562, had an original term of 30 years, and had an interest rate of 12% APR (compounded monthly). In the intervening five years, interest rates have fallen and so you have decided to refinance—that is, you will roll over the outstanding balance into a new mortgage. (2 points) What is the principal of the loan outstanding today? (Hint: You may need the answer of this part to answer parts B-D of this question below. If you do not know the answer to this part, say so in the space below, and use a made-up number of $150,000 to solve the remaining parts of this question. This can allow you to receive partial credit for the remaining parts, assuming you solve them correctly.) (2 points) What monthly repayments will be required with the new loan? The new mortgage has a 30-year term, requires monthly payments, and has an interest rate of 6% APR (compounded monthly). (2 points) If you still want to pay off the mortgage in 25 years under the new rate, what monthly payment should you make after you refinance? (2 points) Suppose you are willing to continue making monthly payments of $1562 under the new rate. How long will it take you to pay off the mortgage after refinancing? Answer the four parts in the space below. Clearly mark the part you are answering (A, B, C, or D). You need to show your work to receive credit. If you use your financial calculator, clearly state your inputs. For e.g., if you are calculating future value: I/Y = 10%, PV = $1000, PMT = $50, N = 5 years, CPT FV =
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