03 May Finance
· required to show your working process and discuss your findings in details.
· work in Excel. #3 report should be well-organized and typed in a Word file. I need both Word report and Excel files
You plan to buy a house in Houston in May 2018. The sale price is $380,000. You need to pay 20% down payments and borrow additional 80% from bank of America with a traditional 30-year, 3.6% fixed-rate mortgage loan. You are expected to pay an equal MONTHLY payment starting from June 2018 for a total of 30 years.
(A) Calculate your expected monthly mortgage payment.
(B) Develop the 2018~2038 amortization table for your mortgage loan.
(C) When you prepare your 2018 tax filing, what is the total mortgage interest payment that you can consider for the tax deduction?
2: Capital Budgeting Analysis (60 points):
A firm is planning a new project that is projected to yield cash flows of – $395,000 in Year 1, $386,000 per year in Years 2 through 5, and $378,000 in Years 6 through 11. This investment will cost the company $1,580,000 today (initial outlay). We assume that the firm’s cost of capital is 12.8%.
(A) Draw a time line to show the cash flows of the project.
(B) Compute the project’s payback period, net present value (NPV), profitability index (PI), internal rate of return (IRR), and modified internal rate of return (MIRR).
(C) Discuss whether the project should be taken.
3: Weighted Average Cost of Capital (80 points)
Find 2017 financial statements for Costco (Ticker COST) from UHV Mergent Online database, Yahoo! Finance, Google Finance, or other financial data sources.
(A) Evaluate the company’s financial situation (e.g., liquidity, leverage, profitability).
(A)Estimate the weights of capital (debt, preferred stock, and common stock) for the company.
(B) Estimate the before-tax and after-tax component cost of debt for the firm.
(C) Estimate the component cost of preferred stock (if applicable) for the firm.
(D) Estimate the component cost of common equity using CAPM for the firm.
(E) Compute the firm’s weighted average cost of capital (WACC). Discuss your findings.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.