Credit Card Debt

1. My Introduction with a credit card balance of $5,270.00 and an (APR) of 15.53 percent based upon my own conclusions and assuming there are no other fees are applied. In my report I took my balance of $5,270 x 15.53%= $818.431. The Maximum monthly payment would be $5,270.00+818.43= $6,088.43. Took get this I take the balance + total interest = Total balance. So to get the minimum monthly payment take $6,088.43/12=$508.00 minimum monthly payment. 1. The amount of interest $818.43 the amount of interest less the amount applied to reduce the principal which is $5,270.00. So you take the amount of interest $818.43 -$508.00 = 310.43 the amount to reduce the principal. I have inserted a pie chart to…

Philippine National Bank (PNB)

Facts: The petitioners, Spouses Esmeraldo and Elizabeth Suico, obtained a loan from the Philippine National Bank (PNB) secured by a real estate mortgage on real properties in the name of the former. The petitioners were unable to pay their obligation prompting the PNB to extrajudicially foreclose the mortgage over the subject properties. Subsequently, the petitioners file a Complaint against the PNB before the RTC for Declaration of Nullity of Extrajudicial Foreclosure of Mortgage. The Complaint alleged that PNB filed a petition with the Office of Manadaue City Sheriff for extrajudicial foreclosure on the petitioner’s properties for an outstanding loan obligation amounting to P 1,991,770.38. During the foreclosure sale, the petitioners claimed that PNB, as the lone bidder offered a bid…

Cnbc House of Cards

Who the players are? Stakeholders? Technical and ethical issues are? What was the relationship about prices and personal incomes? People started to buy houses that they couldn’t afford and then they were left behind leaving. The economy is falling and so are the communities. Insects, graffiti, dirty pools are left behind since people are evicted and people don’t have were to go. The lenders are not responsive to customers who want to cooperate to pay for their debts. Wall street only cares about the money they can generate from this foreclosure. During the crisis thousands of people were relieved from their jobs MORTGAGE RATES Housing prices were rising faster than incomes making it impossible to keep with payments. The demand…

Interest in Rainwater

The article entitled “Interest in Rainwater Harvesting Grows in Colorado” written by Paul Day was about a proposal of Brad Lancaster, a rainwater virtuoso and initiator. His entire idea according to the news was that he wanted to use the rainwater for needs of the people and environment just like in Arizona and New Mexico. But the Executive Director of Colorado Waterwise, Paul Lander, prohibited his willingness to pursue this project because according to him it might result in breaking the rights of the people to that water. Lancaster insisted and he even showed two concrete project proposals for this. First, it would legalize the conception in countrysides that were not served by municipal water supplies. Lastly, it would instruct…

Interest Group Report

John Muir made the incomparable Yosemite Valley the center of his experience. Soon his words reached the larger audience of the New York Tribune and other influential publications, and he was writing that the Sierra should be explored by everyone, and permanently protected as a recreational resource accessible to all. In 1889 Muir embarked on an excursion in northern Yosemite with Robert Underwood Johnson. The two planned a campaign for a Yosemite National Park, a campaign that succeeded the following year when Congress established the park. Sierra Club was founded on May 28 with 182 charter members in 1892 The Sierra Club’s charter members elected Muir president, an office he held until his death in 1914. In the first decade…

Worldwide Paper Company

Executive Summary: Blue Ridge Mill is a wood mill owned by Worldwide Paper Company and supplies wood pulp for the company for use in paper production. Blue Ridge Mill bought its wood supply from Shenandoah Mill’s excess production of shortwood that was processed from its longwood supplies. In 2006, Bob Prescott, the controller for Blue Ridge Mill, was considering a project that would give Blue Ridge Mill the capability to process longwood into shortwood, which would eliminate the need to purchase from Shenandoah Mill, as well as compete with Shenandoah Mill in the shortwood market. Project Overview: The project would provide Blue Ridge Mill with a new longwood yard, giving the mill the ability to produce shortwood, a required input…

Brigham and Houston

1. Whenever we are interested in buying a bond from the bond market, the bond’s issuer promises to pay back the principal (or par value) when the bond matures (Brigham and Houston, 2001). During this time, the issuer is obliged to pay interest in order to compensate the use of money. The interest payment is made on coupon rate which is fixed. There is an inverse relationship between the coupon rate and the bond prices, when: • Interest rate increase, leads to rise in income, whereas the price of the bond declines. • Interest rate decrease, leads to decline in income, whereas the price of the bond rises. Also we need to consider that the coupon rate is inversely related…

Time Value of Money Paper

Time value of money (“TVM”) is defined as the idea that money available at the present time is worth more than the same amount in the future, due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth more the sooner it is received. TVM is also often referred to as “present discounted value” (Answers Corporation, 2006). TVM concepts help people like managers or investors understand the benefits and the future cash flow to help them determine if the future benefits will justify the initial cost of the project or investment. To recognize how annuities (a set of fixed payments over a specified length of time) affect…

Time Value of Money

In financial management, one of the most important concepts is the Time Value of Money (TVM). Time Value of Money concepts helps a manager or investors understand the benefits and the future cash flow to help justify the initial cost of the project or investment. Many of the assets businesses and individuals own are financed with money borrowed from others, so the understanding of TVM is crucial to making good buying decisions. To recognize how annuities affect the time value of money, managers need to consider the factors of interest rate, opportunity costs, future and present values of money, and compounding. Interest Rates and Compounding In most business cases, borrowing money is not necessarily a free enterprise. It costs companies…

Merrill Finch Inc. Case Study

Merrill Finch Incorporated is a large financial services corporation. As a newly hired financial planner for the company, I have been assigned the task of investing $100,000 for a client. The investment alternatives have been restricted to five options: T-Bills, High Tech, Collections, U.S. Rubber, Market portfolio, and a 2-Stock portfolio. The economic forecasting staff for Merrill Finch developed probability estimates for the state of the economy, and the security analysts have developed software to estimate the rate of return on each of these alternatives under each state of the economy. A chart showing the results of the analysis is in Appendix A of this report. Section 1 of this report begins with a discussion on the concept of Return….

RJR Nabisco Case Study

Executive Summary The RJR Nabisco case study was used to implement concepts that I have learned in class during the semester and apply it to the real world. The Nabisco case allowed me to develop my skills by using an Excel Worksheet, understanding how to calculate the fair value price per share, and determining the fair value price per share by changing the tax rate and growth rate. First, I was expected to construct an Excel Worksheet. Using the given data and analyzing the case, I was able to find all of the fixed variables needed in the Excel Worksheet. Using these fixed variables, I was able to use my prior skills in Excel to construct equations to find the…

The years of me

Calculate the amount of your compound interest investment after 10 years. Remember that you are starting with $7,500. $10,642.83 work: A=7500(1+3.5%/365)^365×10 = 7500(1+0.00009589)^365×10 = 7500(1.00009589)^3650 = 7500(1.419041609) = 10,642.83 2)Calculate the amount of your simple interest investment after 10 years. Remember to use the same rate and compounding as in #1. $2,625 Create a graph that shows the growth of your compound interest and simple interest investment investment over time. The graph did not work online Part IV: Analysis 1)What is the difference between the graph of a simple interest investment and the graph of a compound interest investment? The difference between the graph of a simple interest and a compound is that simple would go by one original principle…

Comparing and contrasting lease versus purchase options

It is important to know the difference between lease purchase and lease option. The use of leases can also have an impact on a company’s liquidity profitability ratios (Schroeder, Clark, & Cathey, 2005). First the organization should study the expenses of what it would cost to lease as to what it cost to purchase this can be done with a reduced cash flow evaluation. The study would compare the expense of the alternatives by taking into account the scheduling of payments, tax benefits, and interest rates on any loans, and other financial arrangements. To make an evaluation, the company has to be sure about the financially viable lifespan of equipment, this would also include the salvage value and depreciation of…

Solution of investment

1. The Fisher equation tells us that the real interest rate approximately equals the nominal rate minus the inflation rate. Suppose the (expected or realized) inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain. The Fisher equation relates nominal rates required by investors to real rates required by investors and inflation. You can think about this from two perspectives: i. Ex-ante (before) required Nominal Return as a function of required Real Return and Expected Inflation: (1 + rNominal) = (1 + rReal)(1 + E(i)) ii. Ex-post (afterward) realized Real Return as a function of Nominal Return and Realized Inflation: (1 + rReal)…

Ameritrade’s Cost of Capital

Executive Summary After careful analysis of Ameritrade and comparable companies, I have estimated a 14.784% cost of capital that should be used to evaluate Ameritrade’s upcoming investments in technology and advertising. After analyzing the historical return on Ameritrade’s investments, I have concluded that if the firm manages this project at least as well as its previous investments, the return on the proposed project will exceed the cost of capital resulting in a positive NPV project. Based on the estimated cost of capital, relative to the company’s historical returns on investment, I recommend that Ameritrade undertakes this investment project. I believe that the estimated cost of capital is appropriate because it is partly based on a set of companies where the…