4. Assume that Popol promised to pay Php 100,000 per year in perpetuity, how much is the PV of infinite Php 100,000 payments be worth if the interest rate is 10%? 15%? 20%?
Q: An investor makes a single deposit of 10,000 into fund A for 10 years which earns a 6% effective…
A: Here,
Q: Determine the best Alternative, if data are PROFIT Decertaine the course in diagram. Alucrative 4/₂…
A: We are provided here with a decision tree. In finance we often make use of decision trees to find…
Q: Find the monthly payment needed to amortize a typical $115,000 mortgage loan amortized over 30 years…
A: Loan amount (PV) = $115,000 Period = 30 Years Number of payments (n) = 30*12 = 360 Interest = 5.7%…
Q: to consider the so-called corporate social responsibilities in making inve
A: Investment decisions relate to how a business's funds areallocated among various assets for the…
Q: nator of the increment or of Diluted EPS is?
A: DEPS= Earnings availble for Equity shareholders + Savings in earnings or interest due to conversion…
Q: QUESTION 1 - The Bond Market NAR a) A bond portfolio manager is contemplating the purchase of a…
A: Given, Bond's current price= $98.4321Bond's face value= 100 Bond's Coupon rate = 11%( annual) and…
Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…
A: Given, The face value of the bond is $10,000 Interest rate 8% Yield is 12%
Q: Amy will need PHP 1.75M on July 4, 2015. To prepare for this, she places equal deposits at the end…
A: Future value required on July 4 2015 (FV) = PHP 1,750,000 Interest rate (r) = 8% Number of annual…
Q: AC entered into an investment fund four years ago. The investment fund has an interest rate of 3%…
A: Interest rate is 3% compounded quaterly for first 4 years Interest rate for next 5 years us 4.5…
Q: 6. A company is buying a piece of manufacturing equipment now for $45,000. They expect to have to…
A: Cost of equipment now (PV) = $45000 Inflation rate (i) = 3.8% Period (t) = 10 Years
Q: Suppose the weighted average cost of capital of the Oriole Company is 10 percent. If Oriole has a…
A: WACC = 10% Debt ratio (D) = 50% Equity ratio (E) = 50% Before tax cost of debt (Rd) = 7% Tax rate…
Q: calculate the value of the Treasury note:
A: Bond: It represents a debt instrument issued to raise capital for the business. The issuer pays…
Q: Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for…
A: Payback period refers to the period within which the sum invested by the company in a project will…
Q: Why is the required rate of return on a bond different than the copoun rate
A: Bonds are the debt securities which are issued by the corporates or the government to raise the…
Q: be included in the capital budgeting decision because it is:
A: Given the cost is used for development and time and money is expended
Q: OPEC is a(n) cartel that includes. Olegal; 17 O legal; 8 illegal; 17 O illegal; 11 national…
A: OPEC short for Organization of the Petroleum Exporting Countries was established in Baghdad, Iraq in…
Q: You have the following information: A B с Market Alpha 2% 3% 0% Beta 1.5 0.5 1 Res. 2.00% 0.90%…
A: Here,
Q: A company has a $500 000 million loan with a 7% interest rate and a $300,000 loan with an 8% rate.…
A: Loan A amount = $500,000 Interest rate on loan A = 7% Loan B amount = $300,000 Interest rate on loan…
Q: White Chocolate Co. has a current period cash flow of $1.2 million and pays no dividends. The…
A: Stock used to comprise all the shares into the ownership of the company and are divided in finance.…
Q: Please state in not less than five (5) sentences, your own insight in the importance of a negotiable…
A: Negotiable instruments are defined as the written documents, which used to promise for paying the…
Q: If the total asset turnover of ABC company is 1.2 times and the sales of the same company is 600…
A: Total asset turnover = 1.2 times Sales = 600 million
Q: What is the firm's cost of equity?
A: Cost of Equity: It represents the cost of raising capital for the issuer from the equity investors.…
Q: Pluto's has 14,000 shares of stock outstanding with a par value of $1 per share. The market value is…
A: Retained earnings account after the dividend will be retained earning balance minus stock dividend…
Q: State Probability, p(s) End-of-Year Price Annual Dividend HPR P(HPR) HPR Diviation from E(R_)…
A: The equations used are given as follows: P(HPR)=Probability×HPRHPR Deviation from…
Q: Spot price Buy at ATM call @ 12 Sell OTM call @ 13 Net payoff 8 2.75 -3.6 -0.85 9 1.75…
A: Here,
Q: Time Value Comparison of Single Amounts Assume you need to choose one of the alternatives shown…
A: Given: Particulars Amount Year Interest rate Alternative 1 $28,500 3 11% Alternative 2…
Q: 2 MalkCo is currently an all-equity firm with expected EBIT of Rs. 240,000 in perpetuity. The firm's…
A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer the three…
Q: Anjelo Jonathan a financial analyst for Blues Industries, wishes to estimate the rate of return for…
A: Rate of return is help to calculate the net gain and loss from the investment. In this we consider…
Q: The company has a 25% tax rate, and its WACC is 10%. Write out your answers completely. For example,…
A: Operating Cash Flow: It is the amount of cash generated from normal business operations. Cash from…
Q: Suppose you are a city planner. You are reviewing proposals for a new park and a new bus station.…
A: Total quality management (TQM) is defined as a management approach to long-term success based on…
Q: Below are the annual returns provided by TSCM. Calculate average annual return experienced by an…
A:
Q: 6. Your robotic automation start-up, Kela Controls, has raised capital as follows: Funding Round…
A: Given, The information regarding Kela controls is provided to us. (A) Series A = Post ($12 million)…
Q: Present Value of an Annuity Refer to each case in the table below to answer what are required in…
A: Given: Case Amount of annuity Interest rate Years A $12,000 7% 3 B $55,000 12% 15 C $700…
Q: 2. Mariano deposited P5,000 today in an account that pays 8% compounded semi-annually. Two P4,000.…
A: To calculate the final answer, it is required to calculate the maturity amount at each interval…
Q: (a) Find their regular monthly payment. (Round your answer to the nearest cent.) $125000 X (b) Find…
A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
Q: Suppose we observe the prices of 7-year zero-coupon (with a face value of $91.36) and year 6-to-7…
A: Zero coupon bond refers to the bond issued at discount. Zero coupon bond is a debt security that…
Q: risky $36,000 investment is expected to generate the following cash flows: Year 1 2 3 $ 15,750…
A: Before investing in any capital projects, a company should evaluate the profitability of the…
Q: Mariano deposited P5,000 today in an account that pays 8% compounded semi-annually. Two years later,…
A: Amount deposited today is $50,000 Interest rate “r” = 8% compounded semi-annually "m" is the…
Q: Here is Dan's credit card statement for the month of March. Transaction Date Transaction amount…
A: Note: No intermediate rounding is done in the calculation Given:
Q: (d) How much will Nolan save by paying the extra $40 with the number of payments from part (c)?…
A: Given, In this question and specially in part (d), we have to calculate the amount of savings by…
Q: Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000…
A: Basic Introduction:- Depriciation is allocation of total cost of assest over its useful life or in…
Q: What is a credit score? O The number of credit cards a person has. O The number of years a person…
A: Credit score is a 3 digit number ranging from 300 to 900 representing the creditworthiness of the…
Q: 6. How much is the present value of a perpetuity of P1,000 payable semi-annually if money is worth…
A: Given, Here, we have to calculate the perpetuity value. Amount = P1,000 Interest Rate = 5% Interest…
Q: If you are an investor or capitalist, what are the important things you should consider before…
A: Limited partnerships (LPs) are common forms of venture capital businesses, in which the partners…
Q: 11.1 Expected Return and Standard Deviation This problem will give you some practice calculating…
A: Portfolio management is the branch of finance that deals with managing multiple assets and…
Q: 76. If 60% financing is available on a certain income property at a loan constant of 11%, what…
A:
Q: A company has a choice of two alternatives to improve their production process. Each alternative…
A: Explanation : When the two Alternative was given & we can select only one of the alternative…
Q: An equally-weighted portfolio that consists of 13 stocks has a beta of 1.5. If you replace one of…
A: Beta refers to a measure of a market risk that cannot be diversified means it is a measure of…
Q: Chris invests $19,000 at 4% simple interest for 7 year. How much is in the account at the end of the…
A: Answer - Formula for Simple Interest : A = P(1 + rt) Given: First, converting R percent to r a…
Q: Consider a borrowing of $400,000, with monthly payments to be made over 15 years with a 15% add-on…
A: Annual Percentage Rate = [( 1 + r/n)n ] -1 r = 15%/12 = 1.25% n = 12
Answer no. 4
Show solution
Step by step
Solved in 2 steps
- Wildhorse Co. is considering an investment that will return a lump sum of $928,900, 8 years from now. For calculation purposes, use 5 decimal places as displayed in the factor table What amount should Wildhorse Co. pay for this investment to earn an 12% return. ( round answer to 2 decimal places, e.g. 25.25) Lincoln Company Should pay?Assume that in 2018, a copper penny struck at the Philadelphia mint in 1796 was sold for $495,000. What was the rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) what is the rate of return using the required two deimal places =Honesty Company is investing in 182-day treasury bills with a total fair market value of P2,500,000 for a purchase price of P2,475,000.What is the annualized investment rate (round off your answer to two decimal places)
- Assume that in 2018, a copper penny struck at the Philadelphia mint in 1795 was sold for $375,000. What was the rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)On January 1, a company agrees to pay $12,000 in eight years. If the annual interest rate is 4%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)Assume that in 2018, a copper penny struck at the Philadelphia mint in 1796 was sold for $495,000. What was the rate of return on this investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) rate of return =
- If Wah Seong Corporation Berhad and ENVEA both invest RM 1000K at 10% per year for 4 years, Wah Seong Corporation Berhad receives simple interest and ENVEA gets compound interest. Use a spreadsheet and cell reference formats to develop relations and that show a total of RM 64K more interest for ENVEA at the end or 4 years. Assume no withdrawals or further deposit are made during the 4 years.Brenda invested Php43,000 on March 14, 2020, to August 31, 2021 at 12% interest rate. Compute for the interest on the investment using the different conditions below and round off your answer in 2 decimal places. (2020 is leap year) 1. Exact interest at actual time ____ 2. Exact interest at approximate time ____ 3. Ordinary Interest at actual time ____ 4. Ordinary Interest at approximate time _If both Wah Seong Corporation Berhad and ENVEA invest RM 1000K at 10% per year for four years, Wah Seong Corporation Berhad will earn simple interest and ENVEA will earn compound interest. To build relationships, use a spreadsheet and cell reference formats, which reveal a total of RM 64K greater interest for ENVEA at the conclusion of four years. Assume that no withdrawals or new deposits are made during the four-year period
- Percentages need to be entered in decimal format, for instance 3% would be entered as .03. Cooley Industries needs an additional $500,000, which it plans to obtain through a factoring arrangement. The factor would purchase Cooley's accounts receivables and advance the invoice amount, minus a 2% commission, on the invoices purchased each month. Cooley sells on terms of net 30 days. In addition, the factor charges a 12% annual interest rate on the total invoice amount, to be deducted in advance. (This information is shown on the spreadsheet provided.) What amount of accounts receivable must be factored to net $500,000? If Cooley can reduce credit expenses by $3,500 per month and avoid bad debt losses of 2.5% on the factored amount as shown on the spreadsheet, what is the total dollar cost per month of the factoring arrangement? What would be the total cost of the factoring arrangement if Cooley's funding needs rose to $750,000? Would the factoring arrangement be profitable under…Percentages need to be entered in decimal format, for instance 3% would be entered as .03.) Cooley Industries needs an additional $500,000, which it plans to obtain through a factoring arrangement. The factor would purchase Cooley's accounts receivables and advance the invoice amount, minus a 2% commission, on the invoices purchased each month. Cooley sells on terms of net 30 days. In addition, the factor charges a 12% annual interest rate on the total invoice amount, to be deducted in advance. (This information is shown on the spreadsheet provided.) Would it be to Cooley's advantage to offer to pay the factor a commission of 2.5% if it would lower the interest rate to 10.5% annually? Assume the firm needs $500,000. Explain your answer. Assume a commission of 2% and an interest rate of 12%. What would be the total cost of the factoring arrangement if Cooley's funding needs rose to $650,000? Would the factoring arrangement be profitable under these circumstances? Why or…On January 1, a company agrees to pay $28,000 in nine years. If the annual interest rate is 3%, determine how much cash the company can borrow with this agreement. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)