1. What is depreciation?

Q: Jason just won the Island Luck grand prize give away of $1,200,000. He is offered $100,000 a year…

A: The value of money decreases with time because of inflation. The money received today can be…

Q: An analysis of the income statement revealed that interest expense was P60,000. Grant Company's…

A: Given: Income before income taxes =P420,000 Income tax expense =P120,000 Net income = P300,000…

Q: Michael bought a laptop and paid P12,000 down payment plus P10,000 at the end of each month for a…

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Q: Over the next year, the stock market will either be a bull market or a bear market. The probability…

A: The Sharpe ratio of a company is used by investors to measure its performance. It measures the…

Q: The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of…

A: Given, The Net income is $132 million Retained earnings beginning is $561 million Retained earnings…

Q: A car dealer advertises the sale of a car model for a cash price of P880,000.00. If purchased on…

A: Loan amount = Purchase price*(1-down payment) = P880,000*(1-0.35) = P572,000 Required monthly…

Q: you have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility…

A: In finance we keenly and closely look at portfolio volatility along with the volatility of…

Q: You are saving for retirement. To live comfortably, you decide you will need to save $3 million by…

A: Amount required at retirement (FV) = $3,000,000 Interest rate (r) = 0.07 Number of deposits (n) = 46…

Q: hanks to acquisition of a key patent, your company now has exclusive production rights for…

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Q: The area of finance address the issue of the efficiency of financial market in the allocation of…

A: Financial markets play a very important role in allocation of resources in an economy and also…

Q: kenneth just graduated from college and has started his fisrt job in sales. basedd on conversation…

A: The debt-to-income ratio refers to the comparison of the monthly debt payment and gross monthly…

Q: In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV)…

A: We will calculate the price of the bond with present value formula in excel. Just simply type =PV in…

Q: (Related to Checkpoint 9.1) (Floating-rate loans) The Bensington Glass Company entered into a loan…

A: Floating Rate is LIBOR+0.28% Maximum Annual Rate is 2.24% Minimum Annual Rate is 1.79%

Q: Mr. Kato, who has a 35 percent marginal tax rate, must decide between two investment opportunities,…

A: The NPV is used to measure a project’s profitability. It uses the concept of TVM to discount future…

Q: Katie has taxable income of $45,000. She is single and her tax rates are 10% on the first $7,000 of…

A: Given: Taxable income = $45,000 tax rates are 10% on the first $7,000 of taxable income, 15% of the…

Q: The manager of a large apartment complex knows from experience that 110 units will be occupied if…

A: The manager collected 400 dollars for 110 units. But he have remain 1 dollar from the rent then To…

Q: The COVID-19 pandemic is over, and you decide to celebrate by going on a vacation to Japan.   The…

A: Concept. 1. Buy rate is the rate at which dealers will buy the foreign currency. 2. Sell rate is the…

Q: Consider a two year put options with strike Price sh. 52 on a stick whose current price is sh.50.…

A: A European option allows the holder the right to exercise the option only at maturity. An American…

Q: Question 7 The Federal Funds Rate is O the rate charged on U.S. Treasury bonds by the Federal…

A: The Federal Funds Rate: The rate at which the banks lend funds to each other overnight from their…

Q: The Data Table function requires three variables. O True O False

A: A data table cannot accommodate more than two variables as of now there are two types of variables…

Q: For the next 7 years, you expect to receive equal payments at the beginning of each year. Today, you…

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Q: Khiel wants to buy a car that costs $10,000, plus an extra 13% HST for a total price of $11,300. The…

A: Solved using Financial Calculator  1) Monthly payment to be made Pv = 11,300 N = 8 Years * 52 weeks…

Q: Finance multiple choice question. 9. Which of the following is the primary goal of financial…

A: The primary goal of any financial management for all for-profit companies is Maximise the…

Q: NAMPAK has issued five-year bonds, with R1000 par value and a coupon interest rate of 12% paid…

A: Maturity value (Z) = R1,000 (Equal to par value) Semiannual coupon amount (C) = R1000 * 0.12 / 2 =…

Q: How much money would be accumulated in year 10 if you deposit 1000 in years, 0, 2, 4, 6, 8,  and 10…

A: Simple interest is one of the oldest and simplest forms of calculating interest. Under this method,…

Q: Britain can produce either 3 units of almonds or 1 unit of carrots with one hour of labor, while…

A: Given, Britain can produce either 3 units of almonds or 1 unit of carrot. Laos can produce either 4…

Q: Behlens Manufacturing has calculated its earnings per share as $1.25. If the corporation has 500,000…

A: Earnings per share is the earnings available for each shareholder in the company. This is calculated…

Q: • Assume each widget will cost $10.00 each to produce and the selling price will be $18.00.…

A: The Net Present Value: The net present value is a popular capital budgeting technique that attempts…

Q: As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI…

A: Given, Monthly payment is $1773.60 Annual tax is $6,513 Annual insurance is $2,186

Q: 1. What is the future equivalent of $1,000 invested at 6% simple interest per year for 2% years? 2.…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is…

A: Future value of an amount is calculated as follows:  FV = PV*(1+r)t Where,  FV = Future value of…

Q: You are using the CAPM to calculate a fair return for Stardust Inc. common stock. The market has a…

A: Beta is the measure of the systematic risk of a stock. It measures the volatility of the stock with…

Q: Your parents are considering a $75,000,30-year mortgage to purchase a new home. The bank at which…

A: To find out which option is best, Lets calculate monthly payment of each option and total amount…

Q: You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com…

A: To calculate the weight of any asset in a minimum variance portfolio we will use the below formula…

Q: 1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for…

A: Dividend is the distribution of the company’s earnings to the shareholders of the company. A…

Q: A security that increases in price from $50 to $100 during year 1 and drops back to $50 during year…

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

Q: Joe is a new investor and has been closely watching a company by the name of USA Ltd., a…

A: The return from a stock is highly volatile. There are four possible states of return with their…

Q: The prize in last week’s lottery was estimated to be worth $90 million. If you were lucky enough to…

A: Present value = Annual payment + Annual payment×1-(1+r)-(n-1)r=$3.6 million +$3.6…

Q: Mrs. Oliver is negotiating to purchase a tract of land from DC Company, a calendar year taxpayer. DC…

A: After-tax cash refers to the cash flow after deducting the amount of tax. It is used for determining…

Q: Which of the following nominal rates compounded bi-weekly is equivalent to ¡(³65) = 2.100%. O a.…

A: i365 = 0.021 Daily rate (r) = 0.0000575342465753425 (i.e. 0.021 / 365) Number of compounding in a…

Q: (Related to Checkpoint 9.2 and Checkpoint 9.3) (Bond valuation relationships) The 19-year, $1,000…

A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…

Q: Bonds are fixed income securities issued by public authorities, credit institutions, companies and…

A: 1. To calculate the price of the bond we will use the present value function in excel. Just simple…

Q: Joe is a new investor and has been closely watching a company by the name of USA Ltd., a…

A: We have the expected return and standard deviation of the returns for a particular stock. We have to…

Q: to maturity. Today, the YTM on your bond is 6%. With this information, can you calculate the current…

A: Price of bond is the present value of coupon payment and the present value of the par value of bond…

Q: Can you please do a step by step calculation on the standard deviation please? My calculation isn't…

A: In finance we use standard deviation often to determine the risk associated with an investment, risk…

Q: The following quotes are provided by a Foreign Exchange (FX) dealer at the airport.     BUY SELL…

A: 1 AUD=70/71 YEN Japanese yen to buy with 30000 AUD  Since we are selling AUD to buy YEN, we will be…

Q: Your company needs to take another capital budgeting consideration regarding expansion of seafood…

A: Given, Initial cost of $1,250,000 Annual sale of 3,500,000 units

Q: The current zero-coupon yield curve for risk-free bonds is as follows: What is the price per $100…

A: Information Provided: Face value = $100 Period of bond = 2 years YTM for 2 year = 5.47%

Q: You are considering two ways of financing a spring break vacation. You could put it on your credit…

A: Effective annual interest rate(EAR) refers to  the real rate of return that we earn on our savings…

Q: In 2016 Beth purchased a 10-year, 3.20% p.a. semi-annual paying coupon bond with a Face Value (FV)…

A: If beth decides to sell the long-term bond, then here are some advantages of short-term debt…