Do an essay on the following topic The Impact of ICT on the Financial Sector Effect on business processes Effect on access to capital Effect on globalization

Q: Trashia has a mortgage of $474,000 through her bank for property purchased. The loan is repaid by…

A: Solution :  Loan Amount    = $ 474000         Loan Term = 23 Year   or 276 month       Interest…

Q: The Global Advertising Company has a tax rate of 30%. The company can raise debt at a 12% interest…

A: Cost of Equity = [(Dividend x (1 - Flotation Cost)) / (Current Stock Price x (1 - Flotation Cost))]…

Q: Consider the following information:       Rate of Return if State Occurs State of Probability of…

A: Step 1 A portfolio that has been perfectly balanced between risk and return is said to be optimal.…

Q: You are considering the purchase of a $140,000 home and making a 20% down payment. You can obtain a…

A: Data given: Purchase price of home=$140,000 Down payment=20% n=15 year r=6.50% Discount point=2%…

Q: You are an investor buying an existing office building. You determine that year 1 NOI will be…

A: The value of a real estate building has to be determined under two different approaches.…

Q: Matheson Electronics has just developed a new electronic device that it believes will have broad…

A: Net Present Value: It represents the profit generated by the firm in absolute terms after…

Q: A savings and loan charges 2.075 points for a home buyer to obtain a loan of $255,000. To calculate…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: EXERCISE 9: LEVERAGE CALCULATIONS Use the following information to calculate the company's operating…

A: Variable costs are those costs which changes along with change in activity level. Contribution…

Q: The buyer of a certain machine may pay either 200,000 cash down payment and 200,000 annually for the…

A: Here,

Q: An equitable lien is best describes by which of the following statements? Multiple Choice O It is a…

A: An equitable lien is a legal claim on property that arises from an equitable principle of fairness…

Q: Calculate the standard deviation of the following returns.  Year       Return 1             0.25…

A: Explanation : Standard deviation is measure the risk which is involved in earning of that particular…

Q: Give typing answer with explanation and conclusion  A zero-coupon bond with a market-beta of 0.1…

A: To calculate the bond price today we consider the variable of expected coupon rate on the bond and…

Q: The museum tickets are priced at $10 and $5. The number of $10-dollar tickets available is 28 that…

A: Let's start by assigning variables to the unknowns in the problem: Let x be…

Q: NOT correct and its taken two of my questions now

A: Better credit card is one that results in lower interest charges.

Q: In cell B7, enter a formula using relative cell references that multiply cell B6 from cell B5.

A: In an abridged version of an excel based model, an excel based formula needs to be identified in the…

Q: A firm currently depreciates €100 per year on its fixed assets, and will continue to do so forever.…

A: This question is asking for the present value of an infinite stream of tax shields resulting from…

Q: Find the future value of the following ordinary annuities. Payments are made and interest is…

A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…

Q: Sharon has  an account that starts at $5,800. She  add $100 to it each month. It earns 7.4%…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Caleb Fajardo is attempting to determine whether U.S./Japanese financial conditions are at parity.…

A: Interest rate parity Interest rate parity provides the arbitrage free forward exchange rate based on…

Q: Greta has risk aversion of A = 5 when applied to return on wealth over a one-year horizon. She is…

A: Capital allocation is referred as the investing as well as distribution of the financial resources…

Q: Five years ago, Teresa purchased an investment property for $189,795.  He sold it today for…

A: Annualized rate of return is calculated using following equation Annualized rate of return = Ending…

Q: QUIZ: Proportion What is the relationship between the ratios? (0.2)/(2.6) and (0.3)/(3.6) Drag and…

A: To compare the ratios (0.2)/(2.6) and (0.3)/(3.6), we can simplify each ratio by dividing the…

Q: Starplus Limited is well known for its focus on customer satisfaction and this is highlighted in the…

A: Options are Project A and Project B. An investment of R4 000 000 is required for each project and a…

Q: A part) what is the APR on a 5 year (60 month) 25,000 loan with a monthly payment of 500? B…

A: Effective Annual Rate (EAR) is the actual rate earned on an investment, it considers the effect of…

Q: On October 24, you plan to purchase a $1,200 computer by using one of your two credit cards. The…

A: (a) Let's first calculate the interest charged by the Silver Card: The…

Q: You have estimated that your vehicle will need to be replaced 10 years from now at a cost of K120,…

A: Compound = quarterly = 4 Time = t = 10 * 4 = 40 quarter Future value = fv = K120,000 Interest rate =…

Q: XYZ bank has issued a one year, $3 million deposit paying 7.75 percent to fund one year loan paying…

A: The loan amount (P) is $3,000,000. Compounded monthly. The annual interest rate (r)  is 10% and the…

Q: You have the choice of receiving $100,000 now or $43,000 now and another $70,000 three years from…

A: Present value refers to the current value of a future sum of money or cash flow, discounted at a…

Q: Carlos invested $7,000 in a money market mutual fund that pays interest on a daily basis. The…

A: Effective rate of interest earned means that rate of interest which earned by the investor on his…

Q: 6. David borrowed P^(5),000 from a bank at a rate of 7% per annum compounded annually. Which of the…

A: We need to use compound interest formula below to calculate amount to be paid after certain year. A…

Q: We buy a convertible bond for $700 when the underlying stock price is $30 and the straight value of…

A: The convertible  bond is type of hybrid instrument which combine the feature of bond and stocks…

Q: A retired couple plans to supplement their Social Security with interest earned by a $210,000…

A: Compound interest is a method of accumulating interest in which the amount earned in a period is…

Q: Suppose a stock had an initial price of $50 per share, paid a dividend of $1.05 per share during the…

A: To calculate the percentage total return we will use the below formula   Percentage total return =…

Q: The average annual cost of damages caused by floods to a certain subdivision located along Pasig…

A: Present value refers to the money received today being more valuable than the money will receive in…

Q: A 3-month zero-coupon bond is selling for $99.7 and a 10-year zero-coupon bond is selling for $55.7.…

A: Spread in the difference between the returns(yield) of the bonds. The return of a zero-coupon bond…

Q: Give typing answer with explanation and conclusion  On January 1, the listed spot and futures…

A: As per the given information: Listed spot price on January 1 - 93.8Listed spot price one month later…

Q: Elisa is covered by a $200,000 group term life insurance policy of which her daughter is the sole…

A: Annual premium = $0.75 per $1000 per month Maximum cost of the group term life insurance excluded is…

Q: How much interest is earned over the 65 year period?

A: Annuity ordinary means the payment is starting at end of the period for a specific period. Monthly…

Q: Give typing answer with explanation and conclusion  Madsen Motors's bonds have 24 years remaining…

A: Generally, the value of a financial asset represents a sum of the present value of all cash flows…

Q: On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the…

A: Annuity refers to a fixed amount taht is to be paid at every period until the rest of a person’s…

Q: Windsor Corporation is considering investing in a new facility. The estimated cost of the facility…

A: Initial Investment is $3,280,000 Annual Cash Inflows is $629,000 Annual Cash Outflows is $227,000…

Q: Which among these alternatives would you prefer, assuming the payout period is 10 years and your…

A: Present Value "PV" of each of the options needs to be determined, the option with highest will be…

Q: A stock has a beta of 1.16, the expected return on the market is 11 percent, and the risk-free rate…

A: To calculate the expected return on this stock we will use the below formula   Expected return =…

Q: Laura has self-employment income of $87,500 for the year.  How much is her self-employment tax?…

A: For a taxpayer, the income is known. The self employment taxes need to be calculated.

Q: Everything else being equal, the price of which of the following bonds is most sensitive to interest…

A: A bond is a debt security that represents a loan made by an investor to a borrower, typically a…

Q: 2. Rita has received a gift of $15 000 from her grandma and she plans to put this in a 6-year term…

A: Data given: PV=$15000 N=6 years Rate=8% compounded monthly Required: Amount after 6 years

Q: Complete solution for letters ABC please

A: A list of projects with their IRR has been provided. The sources of capital are known with their…

Q: 4. Feast Foods is interested in calculating its weighted average cost of capital. The company's CFO…

A: To calculate the WACC, we need to first determine the cost of debt, the cost of equity, and the…

Q: how come people lost their homes and became failure homeless due to the lehman failures

A: The failure of the mentioned company is one of the bases of the financial crisis of 2008-09. The…

Q: Selena would like to start a new venture after she finishes school. She projects that her fixed…

A: Information Provided: Fixed costs = $50,200 Selling price per product = $22 Variable cost per unit…