Q: 4. You are evaluating a project that will cost $534,000, but is expected to produce cash flows of…
A: Payback period is an investment appraisal tool. It represents the time required for a project to…
Q: Baron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…
A: Solution: Weighted Average Cost of Capital (WACC) is the minimum rate of return required by the…
Q: Write a two to three sentence description of: a)Vanguard Total (US) Stock Market ETF b)Vanguard…
A: ETFs are exchange traded funds. They tend to replicate a particular index.
Q: Consider a small cap value portfolio where the investment manager generates 0.26% of Carhart alpha.…
A: Jensen's alpha is a formula for calculating the risk-adjusted value of an investment. Jensen's alpha…
Q: How much money be invested today in order to withdraw P1500 per year at the end of each year for 8…
A: Annual withdrawal (P) = P1500 Interest rate (r) = 8% Number of withdrawals (n) = 8
Q: Security Sinle-index Model Estimates X Y 2 3 1 Bi 1.5 1.3 0.8 o(e.) 3% 1% 2% Given the data for…
A: Expected Return on each security: E_X = alpha_i + Beta_i*E(r_m) = 2 + 1.5*0.08 = 2.12% Similarly,…
Q: $10,000 zero coupon bonds is redeemed at par in 4 years. The average annual discount rate is 7%.…
A: Par value of the bond = $10,000 Discount rate (r) = 0.07 Maturity period (p) = 4 Years Maturity…
Q: The activity date, company, and amount for a credit card bill are shown below. The due date of the…
A: Here, Interest rate = 1.7% per month To Find: Finance charge =?
Q: The ABD Hotel's guest-days of occupancy and custodial supplies expense over the last seven months…
A: From a given limited amount of data, fixed and variable cost can be separated using high low method.…
Q: Your company issues debt in yen that has a YTM in yen of 7.5%. The 1-year LIBOR rate in ye is 1% and…
A:
Q: 8. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the…
A: A bond is a debt instrument floated by a company for raising debt funds. It carries a fixed interest…
Q: (b) Calculate the working capital cycle for both years. Year ended 31st December 2019 2018 Inventory…
A: Working capital cycle - It is defined as the time taken by a firm to convert its current…
Q: You put $200 per month in an investment plan that pays an APR of 4.5%. How much money will you have…
A: Monthly deposit (D) = $200 Monthly APR (r) = 0.00375 (i.e. 0.045 / 12) Monthly period (p) = 336…
Q: What is the expected rate of return for the Philippine Stock Index Portfolio? STOCK MARKET VALUE…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: Which of the following functions of the Commercial Bank's primary functions is influence by the…
A: Solution:- Reserve Requirement Ratio (RRR) means the minimum amount of deposit a bank has to keep…
Q: Apple’s market capitalization in mid-2016 was $484 billion, and its beta was 1.03. At that same…
A: Data given: Market capitalization = $484 billion Equity beta (BE) =1.03 Cash =$25 billion Debt= $69…
Q: Five years ago, you invested in the Future Investco Mutual Fund by purchasing 1,300shares of the…
A: Purchase amount = 1300*17.05 = 22165 Purchase amount after load = 22165*(1+1%) = 22386.65 Sale…
Q: 6. Determine the equivalent present worth in year 0 (PT) of all of the cash flows at i = 12% per…
A: Data given: i= 12% Initial cash flow in year 0 = $30000 Annual cash flow from year 1 to 3 = $5000…
Q: A P5000 par value bond bearing a coupon rate of 8 percent will mature after 7 years. What is the…
A: Par value of the bond = P5000 Coupon rate (P) = 0.08 Annual coupon amount = P400 (i.e. P5000 * 0.08)…
Q: V Corporation has debt with market value of $97 million, common equity with a book value of $97…
A: For Calculation of WACC, the market value of each source of finance is considered Market Value of…
Q: B. Patrimonial loss for loss of financial support.
A: Insurance refers to a contract between the insurance company and insurer in which a fixed amount of…
Q: (#12) (#14)
A: In the double declining balance method, we have to put the residual balance upto extent of salvage…
Q: post-back profitability inde
A: Pay back period refers to a period taken by an investment to cover the initial outlay.
Q: 11. Suppose that a young couple has just had their first baby and they wish to ensure that enough…
A: In order to find the cost of the tuition after a certain period we are required to calculate the…
Q: Gabriel put 6000 in a 2 year CD paying 4% interest, compounded monthly. After 2 years he withdrew…
A: Investment amount (P) = 6000 Interest rate = 4% Monthly interest rate (r) = 0.33333333333333% Period…
Q: Black Corporation has forecasted sales in 2020 as follows: Jan-P120,000 Feb-P160,000 Mar-P180,000…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
Q: FedEx Corporation (FDX) has a current share price of $157.83 and is expected to have earnings per…
A: Price of FDX stock = $157.83 EPS of FDX stock = $12.58 PE ratio of FDX stock = Price of FDX stock…
Q: A annuity pays $200 at the end of each month for 5 years and $300 at the end of each month for the…
A: PV of annuity with continuous compounding is to be determined. Here, PMT1 = $200 Number of periods…
Q: Listed below are terms associated with the Commercial bank V[Choose] Congress Finding the discount…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: TSW Inc. had the following data for last year: Net income = $800; Net operating profit after taxes…
A: Free cash flow shows the cash flow through its operations deducting the cost of expenditures on…
Q: what is the price of this debt by general floating equation (long cut formula)?
A: Bond or debenture valuation refers to a method which is used to compute the current value or present…
Q: 6. You are hoping to put down $3000 on a car in 2 years. If the bank pays 4% interest, compounded…
A: Future value required (FV) = $3000 Period = 2 Years Number of monthly deposits (n) = 2*12 = 24…
Q: A buyer earns $48,000 salary per year. In order to qualify for an 85 percent loan, his monthly PITI…
A: Introduction = Every person needs loan to buy his house, to run his business, education loan etc.…
Q: Use the following information: Stock A B Good state 10% 14% Bad state 2% -2% Assume there is 60%…
A: The probabilities of expected standard deviation for various scenarios can be used to compute the…
Q: 8. Suppose a certain bond sold a volume of 2, 375, 000. If the bonds sold for $824.99, calculate the…
A: Given, Meaning of a bond:- It is an instrument which is floated by the company which helps in the…
Q: The buyers paid $6,125 for a 1 point origination fee and a 1.5 discount point fee, what is the…
A: Origination fee is the amount paid on processing and approving of loan while discount point fee is…
Q: ABC Company is issuing an issue of bonds with a 10-year m aturity, a RM1,000 par value, a 12 percent…
A: Par value of the bond = RM1,000 Coupon rate = 0.12 Semiannual coupon amount (D) = RM1,000 * 0.12 / 2…
Q: The present value of a sum of money is the amount that must be invested now, at a given rate of…
A: Solution: Every person invests his/her money to earn something called interest. People invests so…
Q: he CAPM implies that heterogeneous agents hold the same risky portfolio a) even if they differ in…
A: CAPM: The Capital Asset Pricing Model (CAPM) is a mathematical model that describes the link between…
Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…
A: Principal amount (P) = $43,000 Interest rate (r) = 9 3/4% = 9.75% Period (t) = 9 Years Compounding…
Q: Compute the following financial ratios for this year: 1. Times interest earned ratio. 2.…
A: In finance we use several financial ratios. These ratios helps us to determine the financial health…
Q: According to the information above, which company is undervalued? Why?
A: Since the market price of Dunkin;s conuts should be $48.96 but actual price is $48.85,so the…
Q: For the below Cash Flow, find the total PW value using 10% interest rate years cost $ 3,065 1…
A: Present worth is sum of all cash flows discounted at certain discount rate.
Q: a. Denive F= where unde symbols have their usual meanings
A:
Q: computing the Loan repayment table. a) Draw up the repayment table for a loan of $500,000 at a rate…
A: Loan Amount = $500,000 Interest Rate = 7% Total annual installments = 4
Q: 20.42 19.20 17.78
A: On each bond there are periodic coupon payments and face value is paid on the MATURITY of bond also.
Q: The present value of a sum of money is the amount that must be invested now, at a given rate of…
A: Solution: Present value is the amount in today’s terms and amount with interest at maturity is…
Q: Find the book value of machine purchased 2 years ago for P20,000 if it is depreciated using sum of…
A: Depreciation is the systematic allocation of cost of an asset to its life. The book value at any…
Q: Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.)…
A: Annuity refers to the fixed periodic payments made for the specified period of time. Present value…
Q: Tony is now 65 years old, and has no property. He has $6 million in a saving account, and is now…
A: Annuity plan/Guaranteed Income Plan - An annuity plan means that the person after putting the…
Step by step
Solved in 3 steps
- Use the compound-interest formula to find the account balance A, where P is principal, r is interest rate, n is number of compounding periods per year, t is time, in years, and A is account balance. P r compounded t 1 1 $53,530 Quarterly 22 C The account balance is approximately $. (Simplify your answer. Type an integer or decimal rounded to two decimal places as needed.)ok D Int = Print Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) 0 ferences # Short-term investments Accounts receivable Notes payable Percent Change = Short-term investments Accounts receivable Notes payable Type here to search Esc fo F1 1 X F2 $ Current Year $ 378,252 100,583 @ 2 0 Horizontal Analysis - Calculation of Percent Change Numerator: 1 Current Year F3 20 #m Prior Year $ 236,897 104,503 91,702 3 378,252 $ 100,583 F4 0 S4 Prior Year $ 236,897 104,503 91,702 F5 $ % 5 Denominator: Dollar Change F6 111,355 (3,920) (91,702) DELL F7 A Percent Change 29.4 % (26.7) % (100.0) % 6 F8 & 7 0 F9 * a 8 F10 9Suppose you deposit $1,016.00 into an account 4.00 years from today. Exactly 13.00 years from today the account is worth $1,741.00. What was the account's interest rate? Submit Answer format: Percentage Round to 3 decimal places (Example: 9.243%, % sign required. Will accept decimal format rounded to 5 decimal places (ex. 0.09243))
- The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total amount due at time t. P=$4000, r= 7.5%, t= 9 months The future value is $ (Simplify your answer. Type an integer or a decimal.)Suppose you deposit $1,030.00 into an account 4.00 years from today. Exactly 13.00 years from today the account is worth $1,677.00. What was the account's interest rate? Submit Answer format: Percentage Round to: 3 decimal places (Example: 9.243%, % sign required. Will accept decimal format rounded to 5 decimal places (ex: 0.09243)) Show Hint1) Let y be the balance in an account if you deposit $5000 for x years at 4% APR compounded monthly. USE ALL DECIMALS except in e and fand h! a) Write the formula for y = f(x) b) Then rewrite the formula as an annual compounding (APY) formula as shown in the Lecture 16 notes. y = (rewritten). c) The APY (clear from part b) is: d) Then use the 2âd version of y to write y ' - e) How much is the investment worth after 7 years? f) How fast is the investment growing after 7 years? g) What is the percentage rate of growth (PROC) after 7 years as a percent? USE ALL DECIMALS! h) Write a sentence translating into English your answer for f' (7) : i) Show the second way to find the derivative of your formula in a) using the chain rule (as found in the chain rule lecture): j) Find y'(7) from your answer in j and confirm it is the same (at least to 7 decimals) as using the formula in d.
- When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 O C. $586 OD. $622 ICompute the present values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Present Value Present Value Interest Rate (Payment made on last day of period) (Payment made on first day of period) Payment Years (Annual) 748.09 8. 14 % 8,668.26 14 7 21,022.93 24 70,412.54 32Calculate AD Line from the following (Photo) (Note: Take only upto 2 decimals as it appears on calculator example: 0.52 20126)1. What is the money flow volume for 06 May?2. What does the AD Line for 06th and 07th May indicate?3. What is the AD Line for 06 May?
- For each case, provide the missing information. Assume payments occur at the end of each period. (Use the present value and future value tables, the formula method, financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places X.XXXXX. Round all final answers to the nearest cent, $X.XX, and round the loan maturity date to the nearest whole year.) (Click the icon to view the cases.) Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Cases Amount borrowed Interest rate Number of periodic payments per year Maturity (in years) Periodic payment (1) (a) 4% 4 10 $ 10,354.90 (2) $ 675,000 $ 4% 2 10 (b) S CO (3) 456,000 6 % 1 (c) 81.685.59 (4) $ 750.000 12 % T (d) I XWhen $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can be obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to and including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 OC. $586 OD. $622The following is a partial balance table for a simple interest account that deposits the interest every year in the image. Find B(18). Round your answer to the nearest penny. Do not input the dollar sign. Input just the number. For example: 1524.32