6. Hart Corp is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Cash Flows 1000 425 425 425 Year 1 2 3 A. 12,55% B. 13.21% C. 13.87% D. 14.56

Q: What is the price of a Treasury STRIPS with a face value of $100 that matures in 15 years and has a ...

A: Formula Price = FV/(1+R)N Where FV - Face value i.e. $100 R - Yield rate i.e. 7.0% N - Period i.e. 1...

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A: Data given:: Debt securities Description W Rated AAA X Rated BBB Y Rated AAA  with shorter ...

Q: Twelve months ago, you purchased the shares of a no-load mutual fund for $22.25 per share. The fund ...

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Q: The Northern Mart’s balance sheet at the close of 2021 appeared as follows. They are a very successf...

A: Weighted average cost of capital is the average cost of capital which is calculated by multiplying t...

Q: Marvin industries Inc. operates as a diversified software company worldwide. Its Digital Media segme...

A: AFN equation Additional fund needed (AFN) equation is mentioned below. AFN=A0S0×∆S-L0S0×∆S-M×S1×RRHe...

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Q: down payment.

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A: Installment payment has two components as first interest amount and second principal amount utilized...

Q: 4. Mr. Torres borrows P 150,000 and agrees to pay it with interest at 16 % compounded quarterly inst...

A: Loan amount (PV) = P150,000 Interest rate = 16% Quarterly interest rate (r) = 16%/4 = 4% Quarterly p...

Q: The scenario is designed to help you determine and evaluate the payment amount of a car loan and a m...

A: Household income = $36,000 per year or Monthly Income = $3,000   

Q: Identify methods for using and analysing working capital cycles ( max. 300 words )

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A: Present value of growth opportunities (PVGO) is calculated as per the formula. 

Q: Tran has $225.43 left in his FSA. If he does not use the money within the next two months, he will l...

A: FSA (Flexible spending account): A Flexible spending Account could be a special account you place ca...

Q: FedEx Corp. stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend l...

A: Since the dollar return is over all income and capital return in a given period. Dollar Return= (End...

Q: A Montana state bond can be converted to $1,000 within 5 years of purchase. If the Montana bonds are...

A: Value of the bonds can be calculated as: = Maturity Value / (1+i)^n Where, i = interest rate per per...

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A: Step 1 Risk assets are calculated by adding the amount of risk to the appropriate risk weight of the...

Q: ery month. What is the APR?

A: APR is annual percentage rate of credit card which is charged based on monthly basis interest rate.

Q: Find the monthly house payments nessary to amortize the following loan. Find total payments and tota...

A: Loan amount (PV) = 198000 Interest rate = 6.94% Monthly interest rate (i) = 6.94%/12 = 0.57833333333...

Q: g. Find the coupon dollar value and coupon rate of a bond that has face value of S1,000, YTM of 6.55...

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Q: future value of the bond (the amount the bond pays in one year) is

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: One of the best examples of a zero-coupon bond is?

A: In finance zero coupon bonds are an important debt instrument used by companies as well as by govern...

Q: A sum of Rs 390200 is to be paid back in three equal annual instalments. How much is each instalment...

A: The installment amount can be calculated with the help of present value of annuity function.

Q: Consider the following four debt securities, which are identical in every characteristic except as n...

A: Here, W is  a corporate bond rated AAAX is a corporate bond rate BBBY is a corporate bond rated AAA ...

Q: Mr. Velasquez invests P 2,500 at the end of each 6 months to a fun Paying 8 % % compounded semiannua...

A: Semiannual deposit (S) = P 2500 r = 8.75% per annum = 4.375% semiannually  

Q: Consider a fixed-payment security that pays P100 at the end of every year for the three years. If th...

A: Per year payment = P = P100 Number of payments = N = 3  Discount rate = I = 10%

Q: nnual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000. Evide...

A: Corporate valuation is a process of evaluating the worth of a company entity in the realm of finance...

Q: Consider the following information and then calculate the required rate of return for the Global Equ...

A: since: Where: Ra = Expected return on an investment Rrf = Risk-free rate Ba = Beta of the investme...

Q: a single bank faces a required reserve ratio of 20 percent, has total reserves of $500,000, and chec...

A: The maximum amount of money that this bank can increase is the amount of its excess reserves.  Amoun...

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

Q: You win a structured settlement in a lawsuit. Assume that the settlement pays $30,000 per year for ...

A: Periodic Payment = $30,000 Time Period = 25 Years Discount Rate = 7%

Q: Requirement: Fill in the blanks and compute the following a. Present Value of the Investment b. Net ...

A: Net present value (NPV) of an alternative refers to the variance between the initial investment or p...

Q: What is the standard deviation of the following portfolio? |Weight Correlation(A,B) Growth Rate 3 .2...

A: Standard deviation of a portfolio = WA2σA2+WB2σB2+2*WA*WB*σA*σB*r Where, WA = Weight of stock AWB = ...

Q: The display cases above were purchased at the beginning of the month and are being depreciated at a ...

A: A financial plan is a forecast of a company's cash flows over a set period of time  that is weekly, ...

Q: Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Sales Period/ Aver...

A: Ratios are calculated to determine the financial position of the company so that it would be easy to...

Q: Kala wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 4.8% int...

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Q: A financial analyst is in the process of estimating the cost of capital of Gewicht GmbH. The followi...

A: Target Capital structure A target capital structure can be a capital structure, resulted from the av...

Q: 18. Consider projects S and L. Both have normal cash flows and the projects have the same risk, henc...

A: Capital budgeting: Capital budgeting is the technique used for analyzing the investment in long term...

Q: •Assume that you have saved money for a down payment on your dream house, but you still need to borr...

A: a) Given that: Loan Amount=Php500000= PV of annuity Year of mortgage=5 Year= 60 months Annual Rate (...

Q: To help buy his new townhome, Bill is taking out a s163,000 mortgage loan for 30 years at 3.4% annua...

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Q: Keisha is taking out an amortized loan for s85,000 to open a small business and is deciding between ...

A: Amortization is an accounting technique accustomed to sporadically lowering the book value of a loan...

Q: Perkins, Inc., is considering an investment of $383,000 in an asset with an economic life of 5 years...

A: Cash Flows: Cash flows eliminate the impact of non-cash charges and give the true picture of the cas...

Q: Student E saves his allowance worth of P 25,000 and promised to use it only when it reaches the amou...

A: Present value (PV) = P 25,000 Future value (FV) = P 45,000 Interest rate = 8% Quarterly interest rat...

Q: Two partners agree to invest equal amounts in their business One wil contitute $10.000 imedately The...

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper...

Q: a. Expected PW of Alt. 1 b. Expected PW of Alt. 2 c. The preferred alternative: Type either 'Alt. 1'...

A: Expected PW is the PW that will most likely materialize given the different situations for an altern...

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A: Required rate of return of stock can be found from the CAPM model using risk free rate and market ri...

Q: elow is the information about three RM1000 par value bonds that pay coupons every six months. The re...

A: Value of a bond  = sum of present value of all its future cash flows. Future cash flows from a bond ...

Q: Manly Company issued $400,000 of 9%, 10-year bonds at 102. Interest is paid annually, and the straig...

A: Bonds are defined as financial instruments used by companies to raise additional funds from the mark...

Q: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an av...

A: Risk can be compared on the basis of coefficient of variation. Higher the coefficient of variation, ...

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A: Cost of equity with constant growth rate in dividends forever With next year dividend (D1), current ...

Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...

A: Year 2020 2021 Net income 200000 225000 Net sales 5050000 7000000