Why do banks and other financial institutions require collateral for loans?

Determine the amount of money in a savings account at the end of 3 years, given an initial deposit of $9,000 and an annual interest rate of 4 percent when interest is compounded: Use Appendix Afor an approximate answer, but calculate your final

Lightning Cycles, Inc., makes Lightning-brand motorcycles and accessories, which are distributed to authorized dealers, including Macho Motors, Inc. Macho operates dealerships in several locations.

Consider an investment with the returns over 4 years as shown here: Year. 1 2 3 4 16% 11% 10% 10% a. What is the compound annual growth rate (CAGR) for this investment over the 4 years? b.

Which of the following is not a factor that could limit the entry of firms into a market? A. Social pressures. B. The fixed costs of building plants. C. A law requiring six months notice to employees before laying them off. D.

N 2016, marvin, a cash basis taxpayer, took a $2,000 itemized deduction for state income taxes paid. this increased his itemized deductions to a total that was $800 more than the standard deduction.

Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,000 tenant-days, but its actual level of activity was 2,040 tenant-days.

Lesa drives her car approximately 18,000 miles per year. During the most recent year, she drove 7,000 miles commuting to and from work, 4,500 miles for business-related conferences and client visits, and 6,500 miles for personal trips.

Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 42%. The T-bill rate is 6%. Your client chooses to invest 85% of a portfolio in your fund and 15% in a T-bill money market fund. a.

A firm has zero debt in its capital structure and has an overall cost of capital of 10 percent. The firm is considering a new capital structure with 60 percent debt at an interest rate of 8 percent.

Thomsen Computer Company produces three products: Earth, Wind, and Fire. Earth requires 80 machine setups, Wind requires 60 setups, and Fire requires 180 setups.