Answer:
The solution to the given problem is given below.
Explanation:
1. Do you believe that the company needs outside financing?
Yes, Company needs outside finance total $ 40,000 as $25,000 in month of Feb and $15,000 in month of Apr
il.
2. What is the minimum line of credit to request from a lender?
Minimum line of credit needed is $40,000
3. Do you think you are a good candidate for the line of credit? Why?
Yes, we are good candidate for line of credit because we can start repayment by May and repay by July and after repayment we will have ending March Cash balance $100,000
.
Detailed calculations are attached with the image.
Answer:
Stock Price is $98.70
Explanation:
given data
exercise price = $100 per share
call price = $25 per share
put price = $17 per share
mature time = 2 years
annual rate of interest = 5%
to find out
What is the stock price today
solution
we will use here Put Call Parity for find out Stock Price that is express as
C + 
= S + P .....................1
here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1
C + = S + P
25 + 
= S + 17
solve it we get
P = $98.70
so Stock Price is $98.70
Presto will record the acquisition cost of the equipment as $22,250 (21,500+430+320) which is the total cost for making the fixed asset ready for operation. The Generally accepted accounting principle requires a company to record all of the acquisition cost of a fixed asset. Thus, Presto company must capitalize all cost related to the fixed asset.
Answer: Minimum 62 years
Explanation: As per the rules, the youngest borrower must have attained the age of 62 years to qualify for reverse mortgage loan. There are several other requirements as well.
HUD financial criteria also needs to be fulfilled by the borrower. The home in which borrowers be living must be their prime residence and the required home equity will also be required.
