Managerial Finance II Assignment 8

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timer Asked: Dec 27th, 2018
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Assignment 8

answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be four (4) pages in length; refer to the "Assignment Format" page for specific format requirements.

Respond to the items below.

Part A: Cash Flow of Accounts Receivable

Myers and Associates, a famous law office in California, bills its clients on the first of each month. Clients pay in the following way:

40% pay at the end of the first month

30% pay at the end of the second month

20% pay at the end of the third month

5% pay at the end of the fourth month

5% default on their bills

The actual and anticipated billings are as follows:

Give the anticipated cash flow for the first quarter of 2018 if the past billings and anticipated billings follow this same pattern. Show your work.

Part B: Straight Bank Loan

Right Bank offers EAR loans of 9.38% and requires a monthly payment on all loans.

a. What is the APR for these monthly loans? Show your work.

b. What is the monthly payment for the following? Show your work.

1. A loan of $200,000 for six years

2. A loan of $450,000 for twelve years

3. A loan of $1,250,000 for thirty years

Part C: Selling Bonds

Astro Investment Bank has the following bond deals under way:

The bond yield in the table is the market yield before the commission is charged. Assume that all bonds are semiannual and issued at a par value of $1,000.

Determine the net proceeds of each bond and the cost of the bonds for each company in terms of yield. Show your work.

Assignment 8 answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be four (4) pages in length; refer to the "Assignment Format" page for specific format requirements. Respond to the items below. Part A: Cash Flow of Accounts Receivable Myers and Associates, a famous law office in California, bills its clients on the first of each month. Clients pay in the following way: 40% pay at the end of the first month 30% pay at the end of the second month 20% pay at the end of the third month 5% pay at the end of the fourth month 5% default on their bills The actual and anticipated billings are as follows: Give the anticipated cash flow for the first quarter of 2018 if the past billings and anticipated billings follow this same pattern. Show your work. Part B: Straight Bank Loan Right Bank offers EAR loans of 9.38% and requires a monthly payment on all loans. a. What is the APR for these monthly loans? Show your work. b. What is the monthly payment for the following? Show your work. 1. A loan of $200,000 for six years 2. A loan of $450,000 for twelve years 3. A loan of $1,250,000 for thirty years Part C: Selling Bonds Astro Investment Bank has the following bond deals under way: The bond yield in the table is the market yield before the commission is charged. Assume that all bonds are semiannual and issued at a par value of $1,000. Determine the net proceeds of each bond and the cost of the bonds for each company in terms of yield. Show your work.

Tutor Answer

Super_Teach12
School: Purdue University

Here is the assignment :). 4 pages not including cover page and reference page :). How I wish that I could still work with by the coming 2019 :).

1

Managerial Finance II Assignment 8
Name
Affiliation
Date

2

Introduction
Many corporations can raise capital by issuing bonds, which are long-term debt securities
that a company sells to raise long-term funds. A bond represents a loan from the purchaser to the
issuer of the bonds, and it must be repaid with interest by the date specified (Hayes, 2017). This
paper will discussed and calculate the cash flow receivable, the APR, loan payment monthly, and
the Selling Bonds.
I.

Cash Flow of Accounts Receivable

Anticipated billings: ($)
Month

Billings

October 2008

392,000

November 2008

323,000

December 2008

296,000

January 2009

340,000

February 2009

360,000

March 2...

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Anonymous
Thanks, good work

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