Grab Co. has a normal operating cycle of 60 days. The average age of inventory is 30 days. The annual credit sales of the company amounted to P1,800,000. What is the company’s average accounts receivable balance? (Use 360 day-year)

Q: A man purchases a lot worth 5M if paid in cash. On installment basis, he paid P800,000 down payment,...

A: Data given: Lot worth = P 5M = P 5000000 Down payment = P800,000 Loan amount = P 5000000 - P 800,000...

Q: ABC Industries is considering a 3-year project that will cost $200 today followed by free cash flows...

A: Adjusted Present Value (APV) is the capital budgeting technique that provide Net Present Value of a ...

Q: The aqua liquid money market mutual fund has nav $1 per share. During the year asset held by the fun...

A: Mutual Fund NAV is $1 per share Invested amount is $30,000 (start of the year) Fund appreciation rat...

Q: Find the maturity date, maturity value and proceeds of the below promissory note: Face Date Term Int...

A: A promissory note is a legal promise by one party to another party to pay a specific amount after a ...

Q: The entity has several high-cost.non-profitgenerating assets. It also has:avcost of debt and equity ...

A: Role of a financial manager: The role of a financial manager is to create and execute a financial po...

Q: to the company is 40%. Determine the cost of capital after tax assuming the debt is issued (i) at pa...

A: Cost of Capital: It represents the cost of raising capital from the investors by the firm. The firm ...

Q: A regional municipality is studying a water supply plan for its tri-city and surrounding area to the...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: A firm's bond has a maturity of 10 years with a $1,000 face value, have a 8% coupon rate paid semi-a...

A: Bonds are the debt securities which are issued by the corporations or the governments to arrange the...

Q: Buy house using a 15-year fixed mortgage. Willing to pay up to $3,000 per month in monthly mortgage ...

A: The loan amount: The loan amount can be computed as the present value of all the loan payments to be...

Q: Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the foll...

A: Payback period is the time taken by the investment to recover the cost of the investment. The paybac...

Q: Sam deposited $900 at the end of every month into an RRSP for 7 years. The interest rate earned was ...

A: Here, Monthly Deposit is $900 Interest Rate for first 4 years is 4.50% compounding Semi Annually Int...

Q: An analyst is evaluating securities in a developing nation where the inflation rate is very high. As...

A: Yield is a percentage measure of the return on an investment over a specific period of time. Yield i...

Q: What is the fair value of the biological assets on December 31, 2021?

A: Biological assets means all type of living assets of the business. It includes livestock such as goa...

Q: Mariam borrows RM67,000 from you today and agrees to repay RM183,229 with a 9 percent annual interes...

A: Loan amount (PV) = RM67000 Repayment (FV) = RM183229 Interest rate (r) = 9%

Q: For the next five years, the annual dividends of a stock are expected to be P2, P2.10, P2.20, P3.50 ...

A: Year Particulars Amount 1 Dividend 2.00 2 Dividend 2.10 3 Dividend 2.20 4 Dividend 3.50 5 ...

Q: f you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate disco...

A: Compouding is a method by which interest amount increases with every compouding period. Compouding c...

Q: Find the present value of an annui P6,000 a year for 8 years that is def or 2 years, if the money is...

A: Deferred annuity means that it will start later that means so will be having slightly less value tha...

Q: in 1983 the average tuition for one year at an ivy league schoolwas $11,800.thirty years later,in 20...

A: The Growth rate is calculated by subtracting the past value from the current value. Then, divide tha...

Q: f you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual cash...

A: Present value (PV) = $41000 Interest rate (r) = 5.1% Number of annual payments (n) = 15

Q: Warren Buffet, a novel financial expert has provided different investment principles and theories. H...

A: Investing is the process of allocating resources, usually money, in the expectation of profit or rev...

Q: The monthly rent for the first house is $1, 190, and the Bainters can expect it to increase 1.7% eve...

A:

Q: The Big Star company sells its products for $100,000; that it pays $30,000 for materials purchased f...

A:

Q: When Alfred Nobel died, he left the majority of his estate to fund five prizes, each to be awarded a...

A: Cash Reward is $30,000 Interest Rate is 9% Rewards remain for perpetuity one year after he died. No....

Q: 2. Jim Johnson, the CEO of Acme Imports Company, is focused on his next growth market. After extens...

A: The Expected monetary value analysis (EMV) is an important concept in project risk management which ...

Q: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and ...

A: Perpetuity means a series of infinite numbers of payments forever. A person will receive periodical ...

Q: The present worth of this project is $ (Round to two decimal places as needed.) million.

A: Present Worth: It represents the present value of all future annuity payments or a future amount. It...

Q: ebruary 18, 2026, Anna will need P 40,000. Assume that the annual effective interest is 7%. How much...

A: The more is effective interest more is compounding less is effective rate there is less compounding.

Q: a. What are the major regulatory objectives that must be satisfied in insurance rate making? b. What...

A: Rate making in insurance is the determination of premium that is to be charged  for insurance.    

Q: 5. A bond with a par value of P 100,000 and with a bond rate of 10% payable annually is sold now for...

A:

Q: Instruction: Solve the following problems on a piece of paper. Show your solution. 1. A businessman ...

A: To determine the present amount of Investment to be made, it is required to do the reverse discounti...

Q: Explain how securities markets provide a link between the corporation and investors.

A: Investment means engaging the funds to generate income for the future. Those who invest their funds ...

Q: Illustrate the flow of funds between primary investors and ultimate borrowers in a modern economy. G...

A: Primary investors are the individuals that provide finances by investing in different sources. The i...

Q: What are the expected return and the standard deviation of return on in the optimal risky portfolio ...

A: Optimal risky portfolio is the portfolio that earns maximum returns at a minimum level of risk. It i...

Q: Wau Sdn. Bhd, is evaluating two (2) mutually exclusive projects. The cash flows are as follows Year ...

A: Year Project AA Project BB 0 -500000 -600000 1 50000 200000 2 150000 200000 3 250000 200000 ...

Q: (b) Derive the risk neutral expectation formula for the price of a derivative in the three-step bino...

A: Three Step bi-nominal Model: It was created in 1979, the binomial option pricing model, which is a w...

Q: A bond with a face value of ​$5,000 pays quarterly interest of 4 percent each period. Twenty interes...

A: Quarterly coupon (C) = 4% of $5000 = $200 First coupon payment is due now, hence n = 19 r = 8% per a...

Q: Exercise 1 Masipag has an investment opportunity costing P300,000 that is expected to yield the foll...

A: Here we are provided with an investment opportunity which has an initial cash outflow and then cash ...

Q: A P 10,000 bond, redeemable at par in 20 years, pays bond interest annually at 9.5%. If it is callab...

A: Here, Face Value of Bond (FV) is P10,000 Coupon Rate is 9.5% Yield is 9% semi annually Callable Valu...

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of r...

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?  

Q: You have a portfolio with the following: Expected Return Stock Number of Shares Price 825 $ 50 12% 7...

A: Expected Return: The expected return is the minimum required rate of return which an investor requir...

Q: You must choose between the two projects below. What is the EMV for each? Looking at your own person...

A: EMV of project is expected value of the project considering the probability situation of each projec...

Q: of risk diversification as a motivation for companies engaging in merger and acquisition activity?

A: Introduction : In simple words, when two companies join their operations to work together it is call...

Q: What is portfolio Management? Describe the steps involved in portfolio management?

A: Portfolio means a bunch of different assets or investments. To reduce the risk, investors invest the...

Q: Financial managers should consider this when.improving the financials of the firm

A: Financial managers function within the domian of financial management and here financial managers ma...

Q: uivalent annual cost is determined to be -$

A: Equivalent annual cost (EAC) is a method used to calculate the yearly cost of several options, compa...

Q: The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and yo...

A: Annual payment = $35000 Interest rate = 4.7%

Q: An individual is purchasing a $15,000 automobile, which is to be paid for in 48 monthly installments...

A:

Q: Henry Josstick has just started his first accounting course and has prepared the following balance s...

A: Given: Balance sheet Payables $35 Inventories $50 Accumulated depreciation $120 Receivables $...

Q: A regional municipality is studying a water supply plan for its​ tri-city and surrounding area to th...

A: Cost = $30 million per year for 5 years Interest Rate = 9% maintenance and repairs cost = $3 ​millio...

Q: If you have $5500 to invest now, and will need a total of $25,000 -- 10 years from now, determine ho...

A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at ti...

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.