Question 1
Need finance case resolved about amortization This extra credit assignment looks at a real world amortization problem. Assume that your neighbor took a loan of $300,000 five years ago. At that time, she took a 30- year loan for 5.8%. She now wants to consider re-financing her loan. She went to a bank and was told that re-financing her loan for 30 years would cost her $6,500 upfront and re-financing her loan for 15 years would cost her $5,000 upfront. Your neighbor is low on cash and would prefer to add the upfront fees into her new loan. Your neighbor comes to seek your help with her mortgage dilemma. Can you use your Time Value of Money skills to help guide your neighbor if she should go for re-financing? You can guide her in terms of helping her understand her current interest expense versus future interest expense, current PMT versus future PMT, how a 15-year loan versus a 30- year loan would affect her finances, etc. Help her understand by giving her different scenarios so she can make a good decision that suits her best. You can get the current rates from any bank website by searching under Mortgage Rates. Provide your work using tables/graphs/explanations. Also, attach a PDF of the website you used to obtain the mortgage rates. Note: Some hints: 1. You need to prepare your own excel amortization tables to support your explanation and decision. Entering the numbers in the boxes in different websites and using those to get your answers cannot be accepted and does not serve the purpose of this extra credit assignment. 2. You would prepare the 3 amortization tables (current loan, new 15-year loan, and new 30-year loan) using monthly compounding just like how we solve using Chapter 4 Amortization Notes. 3. Also, when calculating the PV for the new 15-year and 30-year loans, note that it will not be $300,000 because the neighbor has already paid off some part of the loan amount in the previous 5 years. The PV for the new 15-year and 30-year loans will be balance still remaining on the current loan after 5 years (obtained from Balance Remaining at the end of Year 5) plus the upfront fees. 4. You also need to provide a clear explanation of your excel work and provide an analysis for your findings. Your neighbor may not understand what the different amortization tables mean and how to read, analyze, and apply them. You need to give your recommendation under different scenarios for your neighbor in terms of when 15-year would be preferred or when 30-year would be preferred, etc. For example, compare the PMT under each option as it will directly affect the liquidity of your neighbor, compare the total interest amounts under each option. Based on what is important for the neighbor, she can make the correct decision that suits her situation
Question 2
This is a continuation of your first assignment. Imagine your company does not currently have an ethics program and you believe an effective program is necessary. The Federal Sentencing Guidelines for Organizations encourages firm to set up ethics programs. Review this Website, located here , prior to doing the assignment. Write a 4-6 page paper in which you: Briefly describe your company and then benchmark the codes of conduct used by similar companies in the industry. Critique the codes of conduct of at least three (3) similar companies in order to write codes for your company. Analyze ways ethical challenges affect your business and create a code of conduct for your company. Provide a rationale on how these specific codes enhance your company?s ethics program. After reviewing the Federal Sentencing Guidelines for Organizations, explain how these guidelines influence the ethics program you created. Anticipate where the challenges or setbacks may be in the adoption and enforcement of the codes of conduct for your company. Explain how you will address these challenges and anticipated setbacks. Given the influences of changing economic, political, social, cultural, and technological forces on business and society, explain how you can ensure that your codes of conduct will remain relevant in the years ahead. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student?s name, the professor?s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
Question 3
Ann Page Co. ? fixed costs $30,000 per year. Variable costs per unit are $17. Sales price per unit is $30. Calculate the breakeven point in unit sales and dollars. Breakeven in units is Breakeven in dollars = I believe the breakeven in dollars is 69,240.00, but need to know how it's calculated. Thanks,Ann Page Co. ? fixed costs $30,000 per year. Variable costs per unit are $17. Sales price per unit is $30. Calculate the breakeven point in unit sales and dollars. Breakeven in units is Breakeven in dollars = I think the dollars is $69,240.00, but not sure how this answer was calculated please provide the actual solution to this question. Thanks.,Hi, Thanks for your response to my question. I think the answer you may have provided had the decimals out too many places for the units. If the units provided in your answer is 2308 * $30, then the answer would be $69,240.00, not the answer that was provided. When I originally provided the answer of $69,240.00 (it was already provided, I just wanted to see how it was calculated. The answer that you provided in your analysis is what I came out to, but it was just a matter of $30 x 2308 to get $69,240.00. Just wanted to provide as an FYI. Thanks,
Question 4
When a company issues a stock dividend which of the following would be affected? a. Earnings per share. b. Total assets. c. Total liabilities. d. Total stockholders' equity. P 18-1 Various stock transactions; correction of journal entries LO4 Part A During its first year of operations, the McCollum Corporation entered into the following transactions relating to shareholders' equity. The corporation was authorized to issue 100 million common shares, $1 par per share. Required: Prepare the appropriate journal entries to record each transaction. p. 1055 Jan. 9 Issued 40 million common shares for $20 per share. Mar. 11 Issued 5,000 shares in exchange for custom-made equipment. McCollum's shares have traded recently on the stock exchange at $20 per share. Part B A new staff accountant for the McCollum Corporation recorded the following journal entries during the second year of operations. McCollum retires shares that it reacquires (restores their status to that of authorized but unissued shares). In millions Jan. 12 Land 2 Paid-In capital 2 Sept. 1 Common Stock 2 Retained Earnings 48 Cash 50 Dec. 1 Cash 26 Common Stock 1 Gain on Sale of prev. 25 Prepare the journal entries that should have been recorded for each of the transactions.
Question 5
Alex (age 36) and Maria (age 38) have been married for 12 years, and they have three children, Jose (age 10), Anna, (age 12) and Caridad (age 14). The Smiths live at 5389 East Red Hawk Drive, Jacksonville, Florida. Alex currently works as an assistant manager at a department store, where his salary last year was $65,300. Maria?s substitute teaching only added $2,000 last year to their income. Last year, Alex did 15 tax returns for others and made $1,500. They own a house with a 30-year, $302,000 mortgage at 6%. Their monthly principal and interest payment is $1,810. The house was appraised at $350,000 and they currently owe $300,000. Alex and Maria have $3,000 in a jointly held savings account at a local bank. They have jointly owned personal property?clothing, jewelry, furniture, etc.?valued at $45,000. Maria just inherited antiques worth $23,000. Alex has a car with a 5-year loan at 9%, and his monthly payment is $560. The car is currently valued at $8,000 and the balance on the note is $15,000. Maria has a minivan financed over five years at 9%. Her monthly payment is $622. The van is valued at $13,000 and the balance on the note is $20,000. Maria has a rollover IRA worth $25,000. The IRA holds: $10,000 in an S&P 500 Index Fund and $15,000 in an Intermediate Term Bond Fund. They have another $20,000 on their credit cards. Annual household expenses include: Property Tax $2,785 Homeowner?s Insurance $350 Utilities $1,200 Telephone $745 Auto Insurance $925 Credit Card Payments $3,872 Cancer Insurance Policy $600 Income Taxes $11,850 Food $3,620 Medical/Dental $3,800 Clothing/Personal Care $980 Gas / Oil / Maintenance $1,097 Entertainment/Vacation $1,072 Click to view case: ALEX and MARIA DEGALAs Prepare an Income (Cash Flow) Statement based on the data provided above and enter total amounts in the boxes below. (Round your answer to the nearest whole number. Omit the comma and "$" sign in your response) TOTAL Cash Inflows: TOTAL Fixed Outflows: Total Variable Outflows: Save Question 2 (5 points) Question 2 options: Click to view case: ALEX and MARIA DEGALAs Prepare a Statement of Financial Position based on the data provided and enter total amounts in the boxes below. (Round your answers to the nearest whole number. Omit the comma and "$" sign in your response) Total Assets: Total Liabilities: Net Worth:
