Ashford bus 401 principles of finance week 2 complete latest

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Dreams Do Come True. Imagine that you have decided you need a new car, but not any car will do; you have decided to purchase the car of your dreams. Conduct some research as to the cost of this car. You have determined in this imagined scenario that you could afford to make a 10% down payment. You can borrow the balance either from your local bank using a four-year loan or from the dealership’s finance company. If you purchase from your dealership’s finance company, the APR will be 10% with your 10% down and monthly payments over three years. However, the dealership will give you a rebate of 5% of the car price after the three year term is complete. You want the best deal possible, so you consider the following questions:

§ What type of car have you selected, and what will it cost?

§ What is the interest rate from your local bank for a car loan for four years?

§ What will your payment be to your local bank, assuming your 10% down payment? Be sure to use the formula provided in Chapter 4 and show your work. How much will that car have cost in four years?

§ What will your payment be to the dealership finance company assuming your 10% down payment? Be sure to use the formula provided in Chapter 4 and show your work. How much will that car have cost in 3 years?

§ Which is the better deal and why?

Investing in Bonds. Go to the Yahoo Finance Bonds Center.

Under: Features / BOND LOOKUP / Find Bonds by Name:

Type in the first letter of your last name.

Under “Type” Choose one of the “Corp” Bonds.

Assume interest rates for bonds today is 5% for an AAA rated bond. Calculate the price of the bond you have selected relative to the 5%. Is the bond selling at a premium or a discount? Why? Be sure to show how you arrived at your answer. What other factors may influence the value of a bond?

Present and Future Values, and Expected Returns. We examined two important topics in finance this week: (a) present and future values and (b) security valuation.

Critically reflect on the importance of present and future values. What factors must be considered when calculating present and future values? What other qualitative factors play into present and future value decisions? Perhaps you have opportunities in your professional life to use present and future values. What are some real or potential applications of these concepts?

We also looked at expected returns. Why do bond values go down when interest rates go up? Is this true in the opposite direction?

Teaching Net Present Value (NPV) & Future Value (FV). Assignment Instructions: You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock.

Upon completing your Net Present Value (NPV) & Future Value (FV) Training Program, employees should be able to:

Explain NPV and FV.

Describe the factors that are used in the NPV and the FV formulas.

Give an example of how to use the formulas for NPV and FV for a stock purchase.

Summarize the differences between the two formulas and the purpose of using each.

Develop a PowerPoint presentation that is 10 to 12 slides long (excluding title and reference slides) and covers each of the above topics. In the slide notes, include your explanations for each topic. If you need assistance, please refer to the Notes pane in PowerPoint 2010 article. Format the presentation according to APA style guidelines as outlined in the Ashford Writing Center. Be sure to properly cite your sources using APA style.

Weekly Quiz 10 MCQ’s

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July 1, 2023

1. According to The Yankee Group, 53% of all cable households rate cable companies as good or excellent in quality transmission. Sixty percent of all cable households rate cable companies as good or excellent in having professional personnel. Suppose 300 cable households are randomly contacted.

(a) What is the probability that more than 175 cable households rate cable companies as good or excellent in quality transmission?

(b) What is the probability that between 164 and 168 (inclusive) cable households rate cable companies as good or excellent in quality transmission?

(c) What is the probability that between 153 and 170 (inclusive) cable households rate cable companies as good or excellent in having professional personnel?

(d) What is the probability that fewer than 201 cable households rate cable companies as good or excellent in having professional personnel?

2. According to the government of Manitoba, the average hourly wages are as follows: Alberta: $22.02, Ontario: $20.18, British Columbia: $20.05.

a. Suppose 36 workers are selected randomly from across Alberta and asked what their hourly wage is. What is the probability that the sample average will be between $21 and $22?

b. Suppose 34 manufacturing workers are selected randomly from across Ontario. What is the probability that the sample average will exceed $23?

c. Suppose 47 manufacturing workers are selected randomly from across British Columbia. What is the probability that the sample average will be less than $18.60? Assume that in all three provinces, the standard deviation of hourly wages is $3.

3. A study about strategies for competing in the global marketplace states that 52% of the respondents agreed that companies need to make direct investments in foreign countries. It also states that about 70% of those responding agree that it is attractive to have a joint venture to increase global competitiveness. Suppose CEOs of 95 manufacturing companies are randomly contacted about global strategies.

(a) What is the probability that between 45 and 51 (inclusive) CEOs agree that companies should make direct investments in foreign countries?

(b) What is the probability that more than 57 CEOs agree with that assertion?

(c) What is the probability that fewer than 59 CEOs agree that it is attractive to have a joint venture to increase global competitiveness?

(d) What is the probability that between 53 and 61 (inclusive) CEOs agree with that assertion?