A startup company has developed a new mobile app tha thas the potential to disrupt the market. The company is seeking funding to launch and market the app. The company is considering two financing options: equity financy wiht a venture capital firm that offers a valuaiton of $10m an debt financing with a bank at an interest rate of 10% over a five year term. What is the total interest expense for the bank loan over the five year term if the copany borrows $2m $100,000 $200,000 $300,000 $400,000
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A startup company has developed a new mobile app tha thas the potential to disrupt the market. The company is seeking funding to launch and market the app. The company is considering two financing options: equity financy wiht a venture capital firm that offers a valuaiton of $10m an debt financing with a bank at an interest rate of 10% over a five year term. What is the total interest expense for the bank loan over the five year term if the copany borrows $2m
$100,000
$200,000
$300,000
$400,000
Please provide detail regaridng answer. I believe it is $200,000 but answer key shows $300,000 and I am not seeing how possible
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- What is the excel function and formula for this question? Off-The-Books Investment Firm, LLC, has offered you an investment it says will return to you $20,000 in 2 years. To get in, you'll need to make a $10,000 deposit to their receivables account and promise not to tell anyone about it. What is the annual return on this investment?Please show how to solve this using excel and please show all formulas to answer questions A. B. and C. The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each. All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via MPT security. Suppose that they issue 150,000 shares of MPT security and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the MPT security? B. What is the price of each share of the MPT if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the MPT if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment?Using Excel Please show how to solve this step by step to answer questions A. B. C. and D. The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each. All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via IO/PO Strips. Suppose that they issue 150,000 shares of IO/PO Strips and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the IO/PO Strips? B. What is the price of each share of the IO/PO Strips if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the IO/PO Strips if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment? D. Please explain your findings.
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