Time Value of Money why would TMCC be wiling to accept such a small amount today ($1,163)

Question:

Time Value of Money why would TMCC be wiling to accept such a small amount today ($1,163) in exchange for a promise to repay about 9 times that amount ($10,000) in the future?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

See More Books

Question Posted: Apr 28, 2011 02:29 AM

See More Questions

Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?
Why would TMCC be willing to accept such a small amount today ($1,163) in exchange for a promise to repay about 9 times that amount ($10,000) in the future?
1) The mast on the boat is held in place by the rigging, which consists of rope having a diameter of 25 mm and a total length of 50m. Assuming the rope to be cylindrical, determine the drag it exerts...
Consider the pulley-block systems shown in Conceptual Example 11-5. (a) Is the tension in the string on the left-hand rotating system (the one with the moveable masses at the ends of the rod) greater...
Two light waves E x = E 0 cos (kz - t) and E y = -E 0 cos (kz - t) overlap in space. Show that the resultant is linear light and determine its amplitude and tilt angle .
Which of the three components of Figure 1.2 might be a source of concern regarding "ethics"? Products Management Decisions Information Customer Transactions Data Analyze Measure, the + Categorize...
Suppose you manage Outward Bound, Inc., a Vermont sporting goods store that lost money during the past year. To turn the business around, you must analyze the company and industry data for the...
The following information is available for Baker Industries: Cost of goods manufactured Beginning finished goods inventory Ending finished goods inventory Required: Compute the cost of goods sold....
Part of Glo's strategic plan is to capture market segments that are traditionally underserved. Glo's management believes that the market for men's care products is underserved and would be an...
Ethical Considerations take a look back at example 5.7 is it deceptive advertising? Is it unethical to advertise a future value like this without a disclaimer? To answer the next five questions,...
Call Provisions TMCC has the right to buy back the securities on the anniversary date at a price established when the securities were issued (this feature is a term of this particular deal). What...
Could malware rename itself in order to get through a firewall? Why would this work?
Discuss the questions below Why are creativity and innovation so important in today's organizations? What is the relationship between creativity and innovation? Is it possible to innovate without...
1. Do you think that the provisions of the new contract will increase morale and decrease turnover? Why or why not?
Google developed a cross-compiler from Java to JavaScript. Why did they do this? Does this mean that JavaScript is not good enought for developing advanced web apps? What cultural phenomenon occurred...
1. Why should pretrial services be provided for defendants? 2. What are the pros and cons of a jury trial versus a bench trial? 6. Do defendants enjoy too many rights? Why or why not? 3. Discuss the...
A company provides the following account balances at year end ( except for Retained Earnings, which is the beginning balance ) . The CFO has asked you to use this information to prepare an income...
Use data from finance.yahoo.com to answer the following questions: a. Collect the following data for 25 firms of your choosing. i. Book-to-market ratio. ii. Priceearnings ratio. iii. Market...
Suppose that fraction used = / 1.0 + 0.1Mt. for some parameter 1. Write the discrete-time dynamical system and solve for the equilibrium. Sketch a graph of the equilibrium as a function of ....
A call provision permits a company to repurchase or call an entire bond issue at some price during a predetermined period. Common sense tells us that a call provision has positive value to the...
Assuming that you own only the Series A preferred stock in Problem 4 (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm...
Assuming that you own only the Series A preferred stock in Problem 4 (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm...
Roundtree Software is going public using an auction IPO. The firm has received the following bids: Price ($) Number of Shares 14.00 100,000 13.80 200,000 13.60 500,000 13.40 1,000,000 13.20 1,200,000...
The weekly salaries (in dollars) of 24 randomly selected employees of a company are shown below: 310 320 450 460 470 500 520 580 600 650 700 540 710 840 870 900 1000 1200 1250 1300 1400 1720 2500...
(a) Assume a non-dividend paying asset St, undergoes geometric Brownian motion dS = S+dt+S+dWt where W is a standard Brownian motion and and are constants. We assume also that r, the risk-free...
Eleanor is auditing a large manufacturing company. Currently, she is looking at the entire population of inventory purchases for the year, and matching the purchase order, receiving documentation,...

Time Value of Money why would TMCC be wiling to accept such a small amount today ($1,163)

Question:

Step by Step Answer:

Its a reflection of the time ...View the full answer

Fundamentals of Corporate Finance

Students also viewed these Corporate Finance questions