Find average cash gain or loss during a typical month


Problem:

The last dividend paid by xyz company was 1.00. XYZ growth rate is expected to be a constant 5%. XYZ's required rate of return on equity(ks) is 10%. What is the current price of XYZ's Common Stock?

XYZ Corp. budgeted mnthly sales are 4500. 40% of it customers pay in the first month and take 1% discount. the remaining 60% pay in month following the sale and do not receive and discount. XYZ's bad debt are very small and are excluded from this analysis. Purchases for the next months sales are constant each month at 1200. other payments for wages, rent and taxes are constant at 800 per month. what is the average cash gain or (loss) during a typical month?

Your family recently obtained a 30 (360 month) 100,000 fixed rate mortgage. which of the following statements is most correct and why?

A. The remaining balance is after 3 yrs will be 100000 les the total amount paid during the first 36 months.

B. The propartions of the monthly payments that goes towards repayment of principal will be highter ten yrs from now tha it wil be this yr.

C. the monthly payments on the mortgage will steadily decline over time.

D. All the statments above are correct.

E. None of the statements above is correct.

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Finance Basics: Find average cash gain or loss during a typical month
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