Grouper Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $675,803. The purchase agreement specifies an immediate down payment of $164,000 and semiannual payments of $63,101 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?

Answer:

The interest rate, to the nearest percent, used in discounting this purchase transaction 8%.

Explanation:

The interest rate can be calculated using the following RATE function in Excel:

Interest rate = RATE(nper,pmt,-pv,fv,type)*n .............(1)

Where;

nper = number of periods = number of years to maturity * number of semiannual in a year = 5 * 2 = 10

pmt =  semiannual payments = $63,101 = 63101

pv = present value = fair value balance = fair value - immediate down payment = $675,803 - $164,000 = $511,803 = 511803

fv = future value = desired cash balance after last payment = 0

type = when payments are due (0 = end of period. 1 = beginning of period) = 0

n = number of compounding period per year = number of semiannual in a year = 2

Substituting the values into equation (1), we have:

Interest rate = RATE(10,63101,-511803,0,0)*2 .................. (2)

Inputting =RATE(10,63101,-511803,0,0)*2 into an excel sheet (Note: as done in the attached excel file), the Interest rate is obtained as 8.00%.

Therefore, the interest rate, to the nearest percent, used in discounting this purchase transaction 8%.

The model of competitive markets relies on these three core assumptions:
1. There must be many buyers and sellers—a few players can't dominate the market.
2. Firms must produce an identical product—buyers must regard all sellers' products as equivalent.
3. Firms and resources must be fully mobile, allowing free entry into and exit from the industry.
The first two conditions imply that all consumers and firms are price takers. While the third is not necessary for price-taking behavior, assume for this problem that a market cannot maintain competition in the long run without free entry.
Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not.
The government has granted a patent to a pharmaceutical company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
a. yes,meets all assumptions
B. no,no free entry
C. no, not many sellers
D. No, not an identical product

You are given the following information on Parrothead Enterprises:
Debt: 9,300 6.5 percent coupon bonds outstanding, with 22 years to maturity and a quoted price of 104.75. These bonds pay interest semiannually and have a par value of $1,000.
Common stock: 240,000 shares of common stock selling for $64.80 per share. The stock has a beta of.93 and will pay a dividend of $3.00 next year. The dividend is expected to grow by 5.3 percent per year indefinitely.
Preferred stock: 8,300 shares of 4.65 percent preferred stock selling at $94.30 per share. The par value is $100 per share.
Market: 11.7 percent expected return, risk-free rate of 3.75 percent, and a 23 percent tax rate.
Calculate the company's WACC. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

On January 1, 2018, ABC purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. Assume the truck was totaled in an accident on December 31, 2019. What amount of gain or loss should ABC record on December 31, 2019 (If a loss, put a minus number in front)

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Boss Company reported the following results for the year ended December 31, 2019, its first year of operations: 2019 Income (per books before income taxes) $ 1,500,000 Taxable income 2,500,000 The disparity between book income and taxable income is attributable to a temporary difference which will reverse in 2019. What should Boss record as a net deferred tax asset or liability for the year ended December 31, 2019, assuming that the enacted tax rates in effect are 40% in 2019 and 35% in 2020

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Effective managers should Question 26 options: convince employees to engage in relationship conflict rather than the other forms of conflict. minimize the relationship conflicts that exist in the organization. remove all forms of conflict from the organization because it saps productivity. increase the amount of conflict among employees.

Marilee's Electronics uses a periodic inventory system and the average cost retail method to estimate ending inventory and cost of goods sold. The following data is available from the company records for the month of June 2021:
Cost Retail Beginning inventory $ 120,000 $ 146,000 Net purchases 383,000 580,000 Net markups 33,000 Net markdowns 51,000 Net sales 600,000
To the nearest thousand, estimated ending inventory is:_______.

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Project manager Claire and her team need to minimize project risks. Help them match the step to minimize risk to what each step Involves.

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The Smoot-Hawley Act, signed into law in 1930, increased U.S. tariffs to an unprecedented level of 53%, causing a sharp decline in U.S. exports. In 1934, however, changes in the U.S. trade policy enabled U.S. manufacturers to resume business with their foreign distributors. Which of the following is the most likely reason for the increase in U.S. exports after these changes?
A. The president received the authority to negotiate bilateral tariff-reduction agreements with foreign governments.
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Plan assets at fair value, January 1 $640,000,000
Expected return on plan assets 54,000,000
Actual return on plan assets 44,000,000
Contributions to the pension fund (end of year) 94,000,000
Amortization of net loss 0
Pension benefits paid (end of year) 36,000,000
Pension expense 64,000,000

Required:
Determine the balance of pension plan assets at fair value on December 31.

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Respond to this question with 5-7 meaningful sentences (or more - this one could be more)

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A) $6,000.
B) $5,000.
C) $4,000.
D) $3,000.

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Current Policy New Policy ?
Price per unit $ 93 ?
Cost per unit $ 44 $ 44
Unit sales per month 2,675 2,750
X Answer is complete but not entirely correct.
Break-even price $ 92.87 x

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i. Just right
ii. Too much
iii. Too little
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i. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P1.
ii. The industry's supply of cashews will be less than Q1 and the price of cashews will be less than P1.
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iv. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P2.

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b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.
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Normal EPS $1.39
Expansion EPS Z $1.59
a-2 Recession percentage
change in EPS -30.0
Expansion percentage
change in EPS 15.0
b-1 Recession EPS $1.09
Normal EPS 15.00
Expansion EPS
b-2 Recession percentage
change in EPSE -36.36
Expansion percentage
change in EPS 18.18

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