Question: Coperate Finace, help needed 1. 2. 3. You've just joined the investment banking firm of Elliott & Hampshire. They've offered you two different salary arrangements.
You've just joined the investment banking firm of Elliott & Hampshire. They've offered you two different salary arrangements. You can have $7,500 per month for the next two years, or you can have $6,000 per month for the next two years along with a $35,000 signing bonus today. Assume the interest rate is 9.3 percent compounded monthly. a. If you take the first option, $7,500 per month for two years, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value of the second option? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) a. Present value b. Present value The contract signed in February 2018 by Jimmy Garoppolo that we discussed at the beginning of the chapter was actually paid as a $35 million signing bonus to be paid immediately and a $7.6 million salary for 2018. The remaining salary was $18.6 million in 2019, $25.2 million in 2020, $25.5 million in 2021, and $25.6 million in 2022. If the appropriate interest rate is 14 percent, what kind of deal did the quarterback toss? Assume all payments other than the first $35 million are paid at the end of each year. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89.) Present value Prepare an amortization schedule for a three-year loan of $75,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Leave no cells blank. You must enter 'O' for the answer to grade correctly.) Year Total Payment Interest Payment Principal Payment Beginning Balance $ 75,000.00 Ending Balance 1 2 3 Total Interest
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