4. Determine the following alternatives using the NEUA method. Rate 3.5% per year. 7 17 5 3 3 3 2 3 willions 2

Q: You can retire at age 62 and receive $8,000 per year or retire at age 65 and receive $10,000 per yea...

A: Choice 1: Annual receipt is $8,000. Discount rate is 2%. Maturity is (70 - 62) 8 years.   Choice 2: ...

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is 500,...

A: Sales volume = 500,000 pieces Selling price = P0.50 Annual fixed expense = P80,000  

Q: During the year, Al's Tools decreased its accounts receivable by $200, increased its inventory by $1...

A: Increase in current assets & decrease in current liabilities results in decrease in cash while d...

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A: We will have to use the concept of time value of money here to find the amount withdrawn.  

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A: Ratio is a tool which is used to measure the growth or performance of the company by establishing th...

Q: What is the accumulated value of periodic deposits of $60 at the beginning of every month for 17 yea...

A: Monthly deposit (P) = $60 Period = 17 Years Number of monthly deposits (n) = 17*12= 204 Interest rat...

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A: Data given: Investment = $5000,000 Debt to asset ratio = 40% Dividend payout = 25% Net income = $ 30...

Q: Mary is considering opening a hobby and craft store. She plans to operate the business for six years...

A: Here, Cost of equipment $335,000 Working capital needed $185,000 Annual cash inflow from sale...

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A: Financial Reform  Act 2010- After the 2008 financial crisis , Financial Reform  Act 2010 was passed ...

Q: PART II - Below are 2019 FMT Company Cash flow accounts. Increase in bonds 170.0 Net income 117.5 In...

A: Cash flows from operating activities is cash inflows and outflows from day to day operations of enti...

Q: Gabriela wants to withdraw $5,000 from her account at the end of 5 years, and $7,000 at the end of 6...

A: Since Gabriela wants to withdraw a specific amount after a certain period of time, thus, it is neces...

Q: Determine the present value of a debt of $7000 due in nine months if interest at 2,% is allowed. The...

A: Maturity value (S) = $7000 Interest rate (r) = 2 2/3% = 2.666666666666667% Period (t) = 9 months = 9...

Q: Suppose a bank has $1,000 in deposits and $100 in reserves. If the desired reserve ratio is 5 percen...

A: Reserve ratio is the percentage of bank's deposits that must be kept in cash  as a reserve to meet e...

Q: A high-precision programmable router for shaping furniture components is purchased by Henredon for $...

A: Present worth is the difference between the present value of cash inflows and the present value of c...

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A: We will use the dividend growth model to find the prices of stock A, Stock B, and Stock C. We will t...

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A: Inventory Inventory can be described as a good or material that a company holds for the purpose of r...

Q: n an environment with risk-free rate of zero, if Stock A has return of 10% and Beta of 1.0 and stock...

A: Return on stock A = 10% Beta of stock A = 1 Return on stock B = 8% Beta of stock B = 0.5 

Q: Suppose I would like to buy a new oven for my bakery so that I can make pretzels. Based on my expert...

A:           1. Depreciation per year = 90000 ÷ 3 = 30000  

Q: Identify the types and formats of financial forecasts and provide an example of each.

A: Financial forecasts are the forecasts which helps in the analysis of the financial information. Thes...

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is 500,...

A: Sales volume = 500000 units Selling price per unit = P 0.50 Annual expenses = P 80000

Q: Crisp Cookware's common stock is expected to pay a dividend of $2.5 a share at the end of this year ...

A: Dividend per share (D1) = $2.5 Beta = 0.6 Risk-free rate = 2.8% Market risk premium = 6% Current sto...

Q: El Capitan Foods has a capital structure of 40% debt and 60% equity, its tax rate is 35%,  and its b...

A: Unlevered beta can be calculated by using this equation Unlevered beta =Levered beta1+(1-tax)*debteq...

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A: Debtors turnover ratio is the measure of finding out the efficiency of the company in collecting the...

Q: A certain annuity pays $108 at the end of every 3 months. If the present value of the annuity is $1,...

A: Annuity means a set of finite number of payments which are made in equal time intervals and same in ...

Q: A start up business iIS I TYPE A TYPE B First Cost P200,000.00 P300,000.00 Annual operating cost 32,...

A: The present worth analysis is an analysis in which all the future costs and the benefits related to ...

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A: Working Notes 1. Net cash provided by (used in) operating activities: Particular   Amount Net I...

Q: Assume you have an optimal risky portfolio with an expected return of 17% and a standard deviation o...

A: Expected return (Re) = 17% Risk free rate (Rf) = 5% Risk aversion measure (A) = 2 Standard deviation...

Q: Given that im) = 0.1488144 and dm) 0.1417814, find m. %3D

A: i(m) = 0.1488144 d(m) = 0.1417814

Q: 8. Calculating Annuity Values For each of the following annuities, calculate the future value. Annua...

A: a) Annual payment (A) = $2100 r = 8% n = 10 years

Q: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.3 percent, a YT...

A: The price of bond will be sum of the present value future coupon payments and the present value of f...

Q: You have a loan outstanding. It requires making 7 annual payments of $1000 each at the end of the ne...

A:

Q: Beginning Balances for Quentin's Four Credit Cards Card A Card B Card C Card D Balance $4,134.00 $2,...

A: Amount of Interest paid can be calculated as the difference between the total amount paid through in...

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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Q: ppreciate

A: Introduction : In simple words, the given question relates to the process of lease.

Q: If the YTM on a bond is 11.1 %, what will be the periodic rate assuming the bond is paying coupons s...

A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes th...

Q: Suppose that Jerry's 401(k) will have an average APR of 8% for 40 years. Assume both he and his empl...

A: Investments made by investors earn returns in the form of interest. The accumulated value of the inv...

Q: Lawn Care, Inc., has sales of $367,400, costs of $183,600, depreciation of $48,600, interest of $39,...

A: Return on equity measures the return generated by common or equity shareholders from their sharehold...

Q: Tom and Sue plan to get married soon. Because they hope to have a large wedding, they are going to d...

A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a prese...

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A: The 6 months note issued on September 1, 2021. The interest will be earned for 4 months in 2021 (Sep...

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A: Price ratio analysis helps in ascertaining the price of the stock in relation to various other facto...

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Q: Explain Financial Flexibility

A: financial flexibility means a firm or organization ability to react to and investment opportunities ...

Q: explain in etail the penalty for failure in furnish a return or statement (section 182) and penalty ...

A: Financial statement fraud is the intentional manipulation of a company's financial statements to dec...

Q: Suppose you are a speculator from France. You observe the following 1-year interest rates, spot exch...

A: Theoretical forward rate = 0.6563 Actual forward rate =0.6731 Theoretical forward rate < actual f...

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A: The financial institution plays a vital in an economy. They are the business entities that are respo...

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Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.