Assume that you sell $100,000 of a 10 percent shareholding with a payment of the future one year from now is $1.5 million. A. Explain what is meant by implied return for the owner of 10 percent?
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Q: Assume that you sell $100,000 of a 10 percent shareholding with a payment of the future one year…
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- Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive NegativeLet us assume that an investor can obtain an 80% LTV loan for a property valued at 500,000 at a 10% interest rate to be amortized over 25 years with monthly payments. If the property generates $70,000 net operating income per year, answer the following. What is the equity dividend rate? 26.38% 15.48% 25.93% 28.56%
- Calculate the EUAC of a company If present worth is 5000$ for 6 years at interest rate of 11%. Select one: a. 1182$ b. 1150$ c. 1142$An investor purchased a 91-day, $10,000.00 T-bill on its issue date for $9915.98. After holding it for 66 days, she sold the T-bill for a yield of 3.01% (a) What was the original yield of the T-bill? (b) For what price was the T-bill sold? (c) What rate of return (per annum) did the investor realize while holding this T-bill? GOOOD (a) The original yield of the T-bill was% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed) (b) The T-bill sold for $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The investor realized a rate of return of% (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed)An investor purchased a 91-day, $25,000.00 T-bill on its issue date for $24,851.61. After holding it for 54 days, she sold the T-bill for a yield of 1.55%. (a) What was the original yield of the T-bill? (b) For what price was the T-bill sold? (c) What rate of return (per annum) did the investor realize while holding this T-bill? (a) The original yield of the T-bill was%. (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.) (b) The T-bill sold for $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The investor realized a rate of return of (Round the final answer to two decimal places as needed. Round all intermediate values to six decimal places as needed.)
- Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative1. Assume an investor purchased a six-month T-bill with a $10,000 par value for $9,800 and sold it Aninety days later for $9,850. What is the yield?Suppose initially that two assets, A and B, will each make a single guaranteed payment of $400 in 1 year. But asset A has a current price of $280 while asset B has a current price of $320. Instructions: Round your answers to 2 decimal places. a. What are the rates of return of assets A and B at their current prices? Return on assetA =| |percent Return on asset B = percent Given these rates of return, which asset should investors buy and which asset should they sell? Buy asset (Click to solect) v and sell asset (Click to select) b. Assume that arbitrage continues until A and B have the same expected rate of return. When arbitrage ends, will A and B have the same price? (Click to select) Next, consider another pair of assets, C and D. Asset C will make a single payment of $600 in 1 year, while D will make a single payment of $800 in 1 year. Assume that the current price of C is $440 and that the current price of D is $680. c. What are the rates of return of assets C and D at their…
- An investor purchased a 182-day, $10,000.00 T - bill on its issue date for $ 9910.29. After holding it for 136 days, she sold the T - bill for a yield of 1.67%. (a) What was the original yield of the T - bill? (b) For what price was the T - bill sold? (c) What rate of return (per annum) did the investor realize while holding this T - bill?If you invest $25,000 today and eight years later receive $34,010.59, what annually compounded return have you earned? (answer in percentage, but without the % sign, e.g. 6.51% is entered as 6.51 - not 0.0651)Tom Thompson expects to invest $18,000 at 9% and, at the end of a certain period, receive $92,551. How many years will it be before Thompson receives the payment? (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value $ 92,551 Present Value $ 18,000 = Table Factor Years years