Give example/illustration of reciprocal obligation. Explain why it is a reciprocal obligation.

Q: Which of the following statements is NOT an explanation of Efficient Market Hypothesis violations?…

A: A market is regarded is inefficient only if: The current price of a security fully reflects all…

Q: Problem 1 An adjustable interest loan was taken by David Walker for a sum of $20,000 for 10 years.…

A: An adjustable interest rate loan is a loan where based on the financial index, the interest rate of…

Q: Compute the price of a 5.0 percent coupon bond with 10 years left to maturity and a market interest…

A: Bond Current Price  = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount  Mv = Maturity…

Q: How much will be in the account when the individual retires at age 65 if the savings program starts…

A: Future Value of Annuity: It represents the future worth of the present stream of annuity cash…

Q: Company GoodHouse Inc. currently focuses on real estate business. As the CEO you plan to develop the…

A: Yield is a change in the price of an asset, investment, or project over time and can be expressed as…

Q: iii) How much would an investor pay now (beginning of the month) for an annuity, which pays £1,500…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: Find the exact interest on ₱16,800 for 105 days at 8.15% simple interest

A: Answer -    Simple Interest - ( P × R × T ) / 100 Given, P = Principal Amount = 16,800 R = Interest…

Q: Here are the four answer options provided for this question

A: Profitability Index: It is used in capital budgeting to measure the investment's or project's…

Q: i.  If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of…

A: i)The Share splits is for every 3 Shares the Shareholders will get 5 Shares. If Sebonia Berhad has…

Q: 30. Gina has 250/500/50 liability insurance and $50,000 PIP insurance. She changes lanes too…

A: Insurance: It is a protection from financial loss and  a form of risk management, that is  primarily…

Q: D. Consider risky assets A & B where E (RA) = 20% a portfolio of 2 rish A = 10% CAB = 0.4 E (RB) =…

A: A minimum variance portfolio is a portfolio that will have such weights which minimise the variance…

Q: Suppose that a bond has a face value of Php300,000 and its maturity date is 20 years from now. The…

A: Market value of a bond is the present value of all future cash flows that comes from a bond. The…

Q: You want to invest in a company that guarantees your money's interest payments and returns at the…

A: The best option would be Treasury Bonds.

Q: (Ignore income taxes in this problem.) The management of an amusement park is considering purchasing…

A: To assess the annual revenue, NPV should be zero @ 12%.

Q: Nash Company has five employees participating in its defined benefit pension plan. Expected years of…

A: The increase in projected benefit obligation is $81,360. The total number of years to be worked by…

Q: As part of your retirement plan, you have decided to deposit $9,000 at the beginning of each year…

A: Since you have asked a question with multiple sub-parts, we will solve the first three questions for…

Q: You borrow $22947 to buy a car. You will have to repay this loan by making equal monthly payments…

A: In an annuity payment, the present value of all future annuity payments is calculated using the…

Q: All the following constitute unfair methods of competition under California law EXCEPT providing…

A: Unfair commercial practices are frequently observed in consumer purchases of products and services,…

Q: 6. Contracting company plans to update its equipment so that its trucks are replaced after five…

A: Total cost required = $200,000 Directly payment required (P) = $40,000 (i.e. $200,000 * 0.20)…

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: If a car depreciates exponentially at a rate of 8.7% per year, what was the original price if 5…

A: In exponentially depreciation there is more depreciation during initial years but this goes on…

Q: The life cycle theory of dividend payment posits that a. Mature companies tend to adopt the residual…

A: The life cycle theory of dividend payment - It is based on the fact that when a firm matures, its…

Q: The process by which a loan, or more commonly a group, or pool, of loans, is packaged into a deal…

A: The question is related to Financing.

Q: Q6/ A project engineering is assigned to start up a new project in a city where a 5-year contract…

A: Given two investment options, one at location A and another one at location B. We have to find the…

Q: James Clark is a foreign exchange trader with Citibank. He notices the following quotes. (12’) Spot…

A:

Q: iii) Supera Ltd has a set hurdle rate of 7.5% for projects. Assess whether or not it should accept…

A: Internal Rate of Return: It is the rate at which the net present value of an investment or project…

Q: Which of the following statements best describes controlled business? Insurance agencies that are…

A: Insurance is an agreement between the two parties under which one party agrees to provide financial…

Q: Question 2 The following interest rate structures are on offer by three independent banks: Tree…

A: For a borrower, the most preferable would be the bank that they have to pay the least interest to as…

Q: m has a retirement plan that matches all employee contributions with employer contributions on a…

A: There is need of proper planning for retirement benefits and if you do timely proper planning you…

Q: You purchased a machine for $1.17 million three years ago and have been applying straight-line…

A: The majority of individuals pay a higher percentage on their income than just about any long-term…

Q: You manage an ice cream business and want to buy a new store from which to operate. The sales price…

A: Net Present Value: It is the tool used  in capital budgeting  to  analyze the profitability of a…

Q: How much would be in your savings account in 9 years after depositing $190 today if the bank pays 9…

A: Deposit amount (P) = $190 Interest rate (r) = 9% Period (n) = 9 Years

Q: 6. Contracting company plans to update its equipment so that its trucks are replaced after five…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: Find the internal rates of return on a cash flow with deposit amounts of Ao = 40, A₁ = 120, A₂ 290,…

A: Net Cash Inflow at (t = 0) (N_1) = A_0  - B_0 = 40 - 240 = -200 Net Cash Inflow at (t = 1) (N_2) =…

Q: QUESTION 8 You observe that the cap rate for Central Business District (CBD) office buildings in…

A: Data given:: Cap rate=4.25% Return on these building=8.25%   Required:: Expected NOI growth rate of…

Q: Calculate the value of a bond that matures in

A: Bond: It is a debt instrument issued by the firm to raise debt capital and is valued by discounting…

Q: Z Plc announced this morning that its profit from last quarter has dropped 15 per cent compared to…

A: Equities always move at their fair market value on exchanges, according to the EMH, making it…

Q: A 20,000, 1 ½% bonds with annually coupons are priced to yield 4 ½% converted annually. If it is…

A: Face value = 20,000 Coupon rate = 1.50% Yield rate = 4.50% Redemption to face value ratio = 104%…

Q: list and explain three internal and at least three external sources of finance that are available to…

A: Sources of Finance: It refers to the places from where a firm or business can obtain money to fund…

Q: You planned to borrow $575,000 for a house at 2.9% interest for 30 years.  You find a house that you…

A: A loan is a sum of money obtained from outside sources such as banks and repaid over time in fixed…

Q: what is the Novavax, Inc.'s cost of equity capital?

A: Cost of equity refers to the cost incurred by the company for issuing new equity. When a company use…

Q: American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on…

A: Let i denote EFF and r denote APR i = (1 + r/12)^12 - 1 = (1 + 0.1150/12)^12 - 1 = 1.1212593281 - 1…

Q: Manuel takes a 5-year loan that has 60 end of the month payments of L under the nominal annual…

A: Calculation are done in excel, so there is no intermediate rounding up. nominal rate compounded…

Q: For the Years 1,2,3,4, and 5, the index numbers are 108, 112, 116, 124, and 131 respectively. Based…

A: Index for Year 1 rebased on year 3 = Index of Year 1 / Index of Year 3 * 100

Q: Engineer A puts PhP 500,000 and Engineer B puts PhP 0,000 into a savings account at different banks.…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: les are expected to increase each month by 15%. Prepare a budgeted income statement.

A: Opening Inventory = 330,000 x 15% = 49,500 Closing Inventory = 330,000 x 1.15 x 15% = 56,925…

Q: Strategic Systems Inc. expects to have net income of P800,000 during the next year. Its target, and…

A: Answer -   If Strategic Systems Inc wants to maintain its current structure, 60% of investments…

Q: Goldie clothes are planning to expand their clothing business by opening a factory overseas. The…

A: After calculating all working in excel, the Net Present Value (NPV) is £4,35,640. NPV Calculation:…

Q: What is the outstanding balance in the 5th period? Period Regular Payment Interest Repayment of the…

A: Outstanding balance  of 5th period: = Opening Balance of 5th period + Interest - Repayment

Q: If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the…

A: Let i(12) denote monthly interest rate Discount Factor = 1/(1+i(12)) 0.62026 = 1/(1+i(12)) i(12) =…