Activity: Complete the table:( /2 cw) Principel Rate Time Interst Matrity Vale CI) 20,200 9% 4yors 12, 400 3.2% 6 manthes 29,300 2% yea 19,000|100%|2yrs 8,000 2%3 months

Q: The payoffs of an investment are dependent on the state of the economy.  The economy can have two st...

A: Expected rate of return is the profit or loss on the investor that is assumed to be anticipated by t...

Q: Calculate the reciprocal latice for a1 *, a2 * and az * ā, - 48 ā, - 4ŷ and ā, = 32

A: The reciprocal lattice is defined as the set of all vectors that are wavevectors of plane waves in t...

Q: Assume that you start with a balance of $3900 on your credit card. During the first month you charge...

A: Given, Starting balance is $3900. First month charge is $400. Second month charge is $650 Rate of in...

Q: e initial

A: The present value refers to the current value of the payments made in the future. The amount which i...

Q: Plant Design is a major requirement for you to be able to graduate. Suppose you are a panelist, and ...

A: Project Feasibility: It is an assessment of the practicality of a project or system to  objectively ...

Q: The matrix below contains payoffs and their associated probabilities for four alternative investment...

A: We need to find the addition of probabilities with payoff matrix for all investments to find the exp...

Q: What should be the price of each bond if interest rate is 8 percent? Use Appendix B and Appendix D t...

A: Bonds: It represents a debt instrument issued by the company to raise debt capital from investors. ...

Q: The Aninem family has total assets of Php460,000 and total liabilities of Php186,000. Included in th...

A: Total assets = Php 460,000 Investment assets = Php 253,000

Q: A man is considering investing P500, 000 to ope n a semi-automatic auto-washing business in a city o...

A: Here,

Q: Discuss the issues encountered in Enron Scandal and how the Sarbanes Oxley Act addressed those issue...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: Portfolio Required Return Suppose you manage a $6 million fund that consists of four stocks with th...

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets ...

Q: The number of stock exchange s in the Philippines?

A: The Philippine Stock Exchange Composite Index (PSEi) is a major stock market index that tracks the p...

Q: A broker and a dealer are the same thing.

A: In the world of finance in general and in the world of investments in particular we often hear the w...

Q: Melissa is glancing at this document that shows a financial summary of Cheesy Company's operations d...

A: Every company needs to prepare the financial statements for the financial year.

Q: Big Rock is listed on the local stock exchange and its stock has had mixed performance over the last...

A: Given The value of investment over 4 years  

Q: incurred at the project’s commencement. Financing for the project has been arranged as follows: 80,0...

A: Cost of equity can be calculated by using this equation Ke =(D1/P0) +g where P0 =current market pric...

Q: During the month of January, direct labor cost totaled PhP850,000 and direct labor cost was 60% of p...

A: Labor cost = Php 850,000 Labor cost ratio in prime cost = 60% Prime cost = 850,000/0.60 = Php. 14166...

Q: Christensen & Assoc. is developing an asset financing plan. Christensen has $500,000 in current asse...

A: Given $500000 in current assets and $700000 in capital assets. Long term rate is 11% and short term ...

Q: Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest ...

A: Loan amount = $300,000 Initial interest rate = 2.75% Initial payment = $1,224.72 After 5 years, Inte...

Q: to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair ...

A: Mortgage is a value which is taken from external sources for a specific period. This amount is repai...

Q: Calculate the average rate of return for each stock during the 5-year period. Do not round intermedi...

A: Average rate of return can be defined as an average percent increase of value of an investment over ...

Q: "ou are considering a loan with an annual rate of 8%. The mortgage is $130,000 with 180 monthly paym...

A: The table above is a loan amortization table. We are given with the monthly payment amount and we ne...

Q: The financial statements for Castile Products, Incorporated, are given below: Castile Products, Inco...

A: Earning per share represent the earning made by the firm from its common equity investment. Earning ...

Q: complete the following table and indicate whether Heather should invest in each of the investments.

A: Future Value: It represents the future worth of the present sum of the amount. It is computed by th...

Q: The Dividend Discount model requires several conditions to hold in order to be valid. One such condi...

A: The dividend discount model (DDM) is a mathematical method for predicting a company's stock price ba...

Q: $3310 financed was paid off early. Find the unearned interest by using the actuarial method if the r...

A: Actuary method of calculating unearned interest is the process of distributing the payments made on ...

Q: ril 1, 2028, A Company purchased three units of baking equipment by issuing a four-year, non-interes...

A: The value of Note or bond to be carried is the present value of cash flow to be received from the bo...

Q: You buy a Westinghouse call with an exercise price of P20 paying P2.50. If Westinghouse stock closes...

A: Exercise price (X) = P 20 Call price (C) = P 2.50 Stock price ate expiration (S) = P 24.75

Q: A fund of 25000 is to be accumulated by means of deposits of 1000 at the beginning of every year as ...

A: Deposits are being done to get a lump-sum return on the periodic amount that has been invested. Equa...

Q: to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair ...

A: Here, Mortgage Amount (P) is $130,000 Compounding Period (n) is Monthly i.e 12 Details of Mortgage A...

Q: Nesrin, purchased a new car for $9,420, paying $3,000 down payment and agreeing to 12 monthly paymen...

A: Credit rate:  The amount charged for a credit loan or purchase is usually represented as a percentag...

Q: Size Premium Across Regions Year Month Global Market Developed Emerging Europe Japan Asia-Pacific Ex...

A: Time Series analysis: It is the analysis of a data set that tracks a sample over time  in order to a...

Q: You want to buy a house that has a purchase price of $190,000. You plan to make a down payment of 10...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: ates of Return You are considering an investment in ether indvidual stocka or a porfolo of stocka. T...

A: Given Years = 2015, 2016, 2017, 2018, 2019 FA = -22.00% , 34.00 , 29.00, -2.00, 30.00 FB = -4.00%, 1...

Q: Which one is the contractual equation for buying an FRA? a.) Loan with maturity t2 plus Deposit with...

A: FRA (Forward Rate Agreement) refers to personalised financial contracts that are traded Over the Cou...

Q: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market r...

A: Market return is 12% return on the SMB portfolio (rSMB) is 2.1%  return on the HML portfolio (rHML) ...

Q: The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually. Mo...

A: Given, The mortgage loan is $95000 Rate is 7.2%  Term of amortization is 25 years Prepayment is $300...

Q: The rabbit population at the city park increases by 9% per year. If there are intially 276 rabbits i...

A: Initial rabbit population is 276 rabbits Growth rate in population is 9% per year To Find: Model fo...

Q: r=0% on deposits. Consumer needs to borrow $50 loan and the consumer has uncertain income of y=50,8...

A: Expected income When there is uncertain in income and there are chances of occurring different level...

Q: This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the Phi...

A: Initial Cost = PHP 550,320,000 Other Cost = PHP 27,000,000 Time Period = 30 Years Rate of return = 2...

Q: 6. A 4-month European call option on a dividend paying stock is selling for C = $4. So $54, K = $50....

A: Time period is 4 months Expected dividend in 2 months is $0.90 Call price is $4 Spot price is $54 St...

Q: Which of the following statements is/correct regarding the Cash Budget? The cash budget is a stateme...

A: Cash budget - It is an estimate of cash inflow and cash outflow  of a company . Cash budget are usua...

Q: a. Compute the net present value of this project assuming it possesses average risk. b. Because of t...

A: Net Present Value: It is a metric applied in capital budgeting to analyze the project's or investme...

Q: to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair ...

A: Data given: Mortgage loan = $130,000 Options : Mortgage A: 15 year fixed at 7.25% with closing cost ...

Q: As part of the crude-oil refining process in a large crude-oil refinery, a certain heat exchanger mu...

A: Present value When there is a series of different future cash flows associated with two options, the...

Q: If an investment of P750,000 that matures in 15 years but with certain specification that P 500000 w...

A: Here, Present value (PV) = P500,000 Earns half of 1% paid semi-annual for 5 years Rate = 1%/2 = 0.5%...

Q: Calculate the following Ratios: g) Accounts Payable Turnover Ratio h) Debt ratio i) Return on Ass...

A: The ratios mentioned in the question are financial ratios. We can calculate them using the provided ...

Q: How did the Sarbanes–Oxley Act impact corporations’ financial reports?

A: The sarbanes Oxley act had a significant impact on the corporate governance of the us corporations, ...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Data given: Market price = $500 per share. D1= $4 per share  Growth  rate = 9% per year for an indef...

Q: • A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What i...

A: Given, Payment is $900 Interest rate is 11%.

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.