ASSIGNMENT 08
BU440 Financial Management II
Directions: Be sure to save an electronic copy of your answer before submitting it to Ashworth College for grading. Unless otherwise stated, answer in complete sentences, and be sure to use correct English, spelling, and grammar.
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 fashion: 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, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2009 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows.
|
Fourth Quarter Actual Billings |
First Quarter Anticipated Billings |
||||
|
Oct. |
Nov. |
Dec. |
Jan. |
Feb. |
Mar. |
|
$392,000 |
$323,000 |
$296,000 |
$340,000 |
$360,000 |
$408,000 |
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?
b. What is the monthly payment for the following?
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:
|
Company |
Bond Yield |
Commission |
Coupon Rate |
Maturity |
|
Gravity Belts |
8.0% |
2% of Sale Price |
8.0% |
10 years |
|
Invisible Rays |
9.0% |
3% of Sale Price |
12.0% |
10 years |
|
Solar Glasses |
7.0% |
2% of Sale Price |
5.0% |
20 years |
|
Space Ships |
12.0% |
4% of Sale Price |
0% |
20 years |
Determine the net proceeds of each bond and the cost of the bonds for each company in terms of yield. 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.
Grading Rubric
Please refer to the rubric on the next page for the grading criteria for this assignment.
CATEGORYExemplarySatisfactoryUnsatisfactoryUnacceptable
20 points 15 points 10 points 5 points
Student correctly calculates
the anticipated cash flow per
month and in total for the
quarter.
Student correctly calculates
the anticipated cash flow for
three of the following: each
month and in total for the
quarter.
Student correctly calculates
the anticipated cash flow
for two of the following:
each month and in total for
the quarter.
Student correctly
calculates the anticipated
cash flow for one of the
following: each month and
in total for the quarter.
20 points 15 points 10 points 5 points
Student correctly calculates
all of the following: the APR
and three monthly
payments.
Student correctly calculates
three of the following: the
APR and three monthly
payment amounts.
Student correctly calculates
two of the following: the
APR and three monthly
payment amounts.
Student correctly
calculates one of the
following: the APR and
three monthly payment
amounts.
10 points 8 points 5 points 2 points
Student accurately
determines the net proceeds
of the bond and the cost of
the bonds for the company in
terms of yield.
Student accurately
determines either the net
proceeds of the bond or the
cost of the bonds for the
company in terms of yield.
Student somewhat
accurately determines the
net proceeds of the bond
and the cost of the bonds
for the company in terms of
yield.
Student somewhat
accurately determines
either the net proceeds of
the bond or the cost of the
bonds for the company in
terms of yield.
10 points 8 points 5 points 2 points
Student accurately
determines the net proceeds
of the bond and the cost of
the bonds for the company in
terms of yield.
Student accurately
determines either the net
proceeds of the bond or the
cost of the bonds for the
company in terms of yield.
Student somewhat
accurately determines the
net proceeds of the bond
and the cost of the bonds
for the company in terms of
yield.
Student somewhat
accurately determines
either the net proceeds of
the bond or the cost of the
bonds for the company in
terms of yield.
10 points 8 points 5 points 2 points
Student accurately
determines the net proceeds
of the bond and the cost of
the bonds for the company in
terms of yield.
Student accurately
determines either the net
proceeds of the bond or the
cost of the bonds for the
company in terms of yield.
Student somewhat
accurately determines the
net proceeds of the bond
and the cost of the bonds
for the company in terms of
yield.
Student somewhat
accurately determines
either the net proceeds of
the bond or the cost of the
bonds for the company in
terms of yield.
10 points 8 points 5 points 2 points
Student accurately
determines the net proceeds
of the bond and the cost of
the bonds for the company in
terms of yield.
Student accurately
determines either the net
proceeds of the bond or the
cost of the bonds for the
company in terms of yield.
Student somewhat
accurately determines the
net proceeds of the bond
and the cost of the bonds
for the company in terms of
yield.
Student somewhat
accurately determines
either the net proceeds of
the bond or the cost of the
bonds for the company in
terms of yield.
10 points 8 points 5 points 2 points
Student makes no errors in
grammar or spelling that
distract the reader from the
content.
Student makes 1-2 errors in
grammar or spelling that
distract the reader from the
content.
Student makes 3-4 errors in
grammar or spelling that
distract the reader from the
content.
Student makes more than
4 errors in grammar or
spelling that distract the
reader from the content.
10 points 8 points 5 points 2 points
The paper is written in
proper format. All sources
used for quotes and facts are
credible and cited correctly.
The paper is written in
proper format with only 1-2
errors. All sources used for
quotes and facts are credible
and most are cited correctly.
The paper is written in
proper format with only 3-5
errors. Most sources used
for quotes and facts are
credible and cited correctly.
The paper is not written in
proper format. Many
sources used for quotes
and facts are less than
credible (suspect) and/or
are not cited correctly.
Part C2:Selling
Bonds - Invisible
Rays (10 points)
Part C3: Selling
Bonds - Solar
Glasses (10 points)
Format (10 Points)
Part A: Cash Flow of
A/R (20 points)
Mechanics (10
Points)
Part B: Straight Bank
Loan (20 points)
Part C4: Selling
Bonds -Space Ships
(10 points)
Part C1: Selling
Bonds - Gravity
Belts (10 points)
Topics:
INTRO
REALISM
Watch: (8:46)
Nineteenth-century art
https://www.youtube.com/watch?feature=player_embedded&v=XdYgyO0RmFI
Watch: (5:46)
Couture, Romans of the Decadence (1847)
https://www.youtube.com/watch?feature=player_embedded&v=pQJrTf_x7Wk
Read: A Beginner’s Guide to Realism
Read: Courbet, Bonjour Monsieur Courbet
Watch (3:08)
Manet, Le déjeuner sur l'herbe (1863) (Luncheon on the Grass)
https://www.youtube.com/watch?feature=player_embedded&v=Nb_4nEFyeGk
Watch (7:14)
Manet, Olympia (1865)
https://www.youtube.com/watch?feature=player_embedded&v=bihBbqzL96Y
Watch (4:34)
Manet, Émile Zola
https://www.youtube.com/watch?feature=player_embedded&v=znKX9WcowfY
Watch (3:34)
Manet, The Railway
https://www.youtube.com/watch?feature=player_embedded&v=2GD1Oz0sPzY
Watch (5:34)
Manet, A Bar at the Folies-Bergère
https://www.youtube.com/watch?feature=player_embedded&v=kMACjCg9r4E
What is your favorite artwork? Why? (The why is your thesis or argument or main point) (300 words)
-Make sure to title
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