1.  Determine the internal rate of return of Investment X and  Investment Y. Should X and Y be taken? 2.  Determine the net present value of Investment X and Investment Y.  Should X and Y be taken?

Q: Assume that two stocks are available. The first stock (Stock A) has an expected return of 25% and a…

A: The minimum variance portfolio refers to the mix of risky assets taken in such a proportion as to…

Q: Stockinger Corporation has provided the following information concerning a capital budgeting…

A: The cash flows of a project refer to the amount of money that moves in or out of the company because…

Q: Can you answer part 4

A: Stock beta = 1.38 Expected return = 13.6% Risk free rate = 4.7%

Q: Derby Transportation Inc. designs and builds trains for rail networks across Canada. The company,…

A: As per the given information: Contract value - $10,360,000Design component of the contract -…

Q: Larkspur Corp. has an 8% required rate of return. It's considering a project that would provide…

A: the benefits of capital budgeting include effective resource allocation, enhanced decision-making,…

Q: From the following, calculate the cost ratio and the cost of ending inventory to the nearest cent…

A: Data given:   Cost Retail Beginning inventory 22500 44500 Net Purchase 13100 18100 Cost of…

Q: Find the periodic payment R required to accumulate a sum of S dollars over t years with interest…

A: The FV of an investment refers to the cumulative value of its cash flows at a future date assuming…

Q: Dr. Doe has been contributing $5,250 to her savings account twice a year every year for 22 years.…

A: Annuity is a series of equal cash flow payment at equal interval for a specified period of time.…

Q: You take a small business (SBA) loan for $90,000. The current annual interest rate on SBA loans is…

A: Loan Amount = a = $90,000 Interest rate = 6%

Q: years to pay for his college tuition. He says that he typically earns around $300 per day, and all…

A: A pro forma statement is prepared considering the expected sales and all expected costs and expenses…

Q: nvestors choose deri tives

A: derivatives are financial instruments whose value is derived from an underlying asset such as bonds…

Q: A manager buys three shares of stock today, and then sells one of those shares each year for the…

A: The average return of an investment portfolio over a certain time period is determined using the…

Q: The following financial data for a firm is provided to you. Calculate the Operating Cash Flow and…

A: Operating cash flow (OCF) the cash flow a firm generates from its normal operations calculated as…

Q: a) At the end of its financial year 2021, an analyst made the following forecast for Next plc for…

A: Enterprise value is the value of business or firm as a whole including value of debt and equity and…

Q: Find the NPV of a project that costs $694,000 today and generates expected cash flows in each of the…

A: NPV is also known as Net Present Value. It is a capital budgeting techniques which help in decision…

Q: Schwert Corp. shows the following information on its 2019 income statement: sales = $246,000; costs…

A: Net capital spending refers to the amount that should be spend by the company for acquiring the…

Q: Sub : Finance Pls answer  very fast.I ll upvote. Thank You Smashed Pumpkins Company paid $136 in…

A: EBIT refers to earnings before interest and taxes. These are the profit earnings after cost and…

Q: The MoMi Corporation’s cash flow from operations before interest and taxes was $2.4 million in the…

A: Capitalization rate 12% TaX rate 21% EBITDA for year 0  $2,400,000 Depreciation for year 0…

Q: Currently, the term structure is as follows: One-year bonds yield 9%, two-year bonds yield 10%,…

A: Yield on one-year bond = 9% Yield on two-year bond = 10% Yield on three-year bond = 11% Coupon rate…

Q: As the CFO of Yo co., you are considering three projects with different levels of risks. You…

A: WACC is the average cost of capital of the company. the relationship between WACC and the rate of…

Q: When discounting Free Cash Flow to Firm (FCFF), should the Weighted Average Cost of Capital (WACC)…

A: Introduction: Free cash flow to firm (FCFF)-This is the amount of cash flow available to all the…

Q: Calculate the contribution to total performance from currency, country, and stock selection for the…

A:

Q: Bobbie has $6,000 that she wants to invest today to grow into $50,000. She finds an investment that…

A: Future value refers to the function of time, value, and money used for estimating the value of the…

Q: The required return on the stock is 8.87%. Given the cash flows in the summary quote, what is the…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to…

A: Data given: S0=$30  u=$36/$30 = 1.2 d=$26 /$30=0.866667 R=Risk free rate=0%   Required: Risk neutral…

Q: You have a 25-year $400,000 mortgage with a 3.5% rate of interest (compounded monthly) that you make…

A: As per instructions, the solution will be provided on TI BA II Plus calculator.  First, we need to…

Q: Compare the amounts of money that Mitch and Bill deposit into their accounts

A: Assuming an annual interest rate of 5%, we can calculate the amount of money Mitch has in his…

Q: Current stock price for XYZ Interest rate Dividend rate Option PUT PUT PUT PUT CALL CALL CALL CALL…

A: Both call-and-put options provide leverage and flexibility to investors and traders, allowing them…

Q: The ultimate authority of a fund's track record is its current profile prospectus.

A: the ultimate authority of a funds track record is not its current profile prospectus but includes…

Q: Westchester Water Works Systems is considering a project that has the following cash flow and cost…

A: The MIRR refers to the measure of a project’s profitability where the rate of financing the project…

Q: uity company decides to recapitalize. The company has an unlevered beta of 1.1, the market risk…

A: The required rate of return depends on the risk of the firm and risk of the firm depends on the…

Q: Investment A has a future value of $600.  Investment B has a future value of $500. Both have the…

A: The idea of the time value of money (TVM) holds that a quantity of money is worth sooner than it…

Q: Calculate the rate of return on a price-weighted index of the three stocks for the first period (t =…

A: A price-weighed index represents a stock index where each firm included makes up for part of the…

Q: Ruby, Inc. is considering on replacing its old machine. machine with a new, high-performing…

A: Payback period the amount of time required for a firm to recover its initial investment in a…

Q: CALCULATE THE FORWARD PER ANUM premium OR DISCOUNT. The pound sterling is quoted against the dollar…

A: Given: Spot rate = $1.8000 Forward rate = $1.78 Pound sterling is quoted against the dollar spot…

Q: You are considering two bonds. Bond A has a 9% annual coupon while Bond B has a 6% annual coupon.…

A: Yield to maturity is the total rate of return a bond will have earned after all interest and…

Q: a_(n)=8-3n

A: The common difference in a sequence refers to the constant value by which each term in the sequence…

Q: The spot asset price is $53. A call on the asset with a strike price of $54 has a premium or of…

A: Call option gives the holder of the option , the right and not obligation to buy underlying asset at…

Q: . Calculate the payback period. 2. Calculate the accounting (simple) rate of return. 3. Calculate…

A: First, we need to build the cash flow over the years using the formula below:Year 0 = Initial…

Q: Your company are offered a bank loan with an annual percentage ate (APR) of 5 percent with quarterly…

A: We need to use effective annual rate formulas below Effective annual rate = 1+rnn -1          r =…

Q: Your client has taken the following actions: Established an inter vivos trust in which she reserved…

A: The correct answer is C) Your client, the grantor, must pay income tax on all income earned by the…

Q: What is the total variance of the following portfolio including 2 assets invested in the ratio of…

A: Formula to be used: Portfolio variance=(WA2 x σ2A)+(WB2 x σ2B)+ (2 x WA x σA x WB x σB x r) Data…

Q: Which of the following statements about the impact of a company's competitive efforts in a region on…

A: The regional market share of a company refers to the portion of the industry revenue that the…

Q: Everjust, Inc., stock has an expected return of 16 percent. The risk-free rate is 3 percent and the…

A: Expected rate of return = r = 16% Risk free rate = rf = 3% Market risk premium = mrp = 12%

Q: You have $7000 to invest. The mutual fund you are considering offers two classes of shares. Class A…

A: Class A Mutual fund   Class B Mutual fund Investment Amount 7000   Investment Amount 7000…

Q: value of one share of this stock if the required rate of return is 15.5 percent?

A: To calculate the current value of one share of the stock, we can use the dividend discount model…

Q: George borrows $43,000 to buy a car. He will repay the loan through 4 years of equal monthly…

A: Loan amount = $43,000 Loan period = 4 years Interest rate = 3.90%

Q: How much does this strategy save Jeff if he pays off the loan in full with a single payment after 18…

A: To determine the savings Jeff achieves by paying off his credit card balance with a loan from a loan…

Q: Graham Potato Company has projected sales of $10,200 in September, $13,500 in October, $20.200 in…

A: Cash budget is used to estimate cash inflows (cash receipts) and cash outflows (cash payments) of a…

Q: Future Motors recently paid $3.30 a share annual dividend. Dividends are expected to increase by…

A: Dividend paid = $3.30 Growth rate = 2.75% Required rate of return = 15%