6. When Alice and Mark's first child was one month old, and at the end of every month thereafter, they invested S80 in a Registered Education Savings Plan (RESP) that paid 6% per year, compounded monthly. Determine the amount in the RESP on the child's 18th birthday. c. $30 988.26 d. $27 051.48 a. $23 114.70 b. $19 177.92

Q: Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is…

A: Portfolio beta (PB) = 0.88 Stock A beta (AB) = 0.50 New stock beta (NB) = 1.45 Weight of stock A or…

Q: um of Year's Digit is established in which funds will accumulate for replacemen

A: There are many methods of determining the depreciation and each and every method has own advantages…

Q: Р450 Р370 Р290 Р210 Р130 Р50 Р50 3. i = 10% F

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Consider an index fund that contains the following four stocks:   American Campus Communities,…

A: To Find: NAV on 30th march Number of shares of MRK purchased

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: an investor, Erik, is offered the investment opportunities described in the table below. Each…

A: Risk averse means a person who takes risk for additional return. Risk loving means a person who…

Q: dient series cash flow having ₱3000 on year 3, ₱4000 on year 4, ₱5000 on year 5 and ₱6000 on…

A: Present value is the discounted value of future cashflows.

Q: The primary goal of a publicly-owned firm interested in serving its stockholders should be to:…

A: Solution:- Publicly-owned firms are those firms in which majority of the stocks are held by the…

Q: The Mitchem Marble Company has a target current ratio of 2.1 but has experienced some difficulties…

A: The current ratio is calculated as ratio of current assets and current liabilities. Any increase in…

Q: Coupon payments are fixed, but the percentage return that investors receive varies based on market…

A: Given: Coupon rate 9%   Number of years to maturity 18 Years Par value 1000   Current…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: CALCULATING WEIGHTED AVERAGE COST OF CAPITAL (WACC) Cost of equity = D1P+ g where D1 is the expected…

Q: You need a quick loan and decide to use the local "payday" loan office. The loan is for $800 and you…

A: FV = PV*(1+r)^n, Where, Given that Loan obtained (PV) = $ 800 Loan amount paid (FV) = $ 1025…

Q: Please only solve part C A manager buys three shares of stock today, and then sells one of those…

A: Dollar weighted average return=IRR=? Since  Cash flow for year 0=-3×130=390(CF0) Cash flow for year…

Q: 4. Calculating OCF Consider the following income statement! $537,200 346,800 Sales Costs…

A: EBIT is calculated as sales less costs and depreciation. Taxes are calculated on EBIT and net income…

Q: Which of the following statements is false? A.   The sovereign credit rating is a risk of a…

A: A bond is an fixed market instrument that carries less risk than equity.  To check creditworthiness…

Q: tfolio P has a beta of 1.0.

A: The beta of the portfolio refers to the weighted sum of the assets of the company according to the…

Q: Market prices and credit spreads change much faster than credit ratings.   Select one: True False

A: Credit ratings refer to quantified indicators of the credibility of borrowers. Higher the rating,…

Q: Bianca decides to stop going to the coffee shops in the morning and figures she saves about $30 per…

A: The amount of money after 5 years can be calculated with the help of future value of annuity…

Q: 6. An elective project is currently under review. One alternative requires an initial investment of…

A: We will first calculate the IRR of the project and we will select the alternative which provides…

Q: discuss the entire Philippine financial system, specifically the banking and non-banking financial…

A: Financial institutions, also known as banking institutions, are business entities that act as…

Q: net cash flows for years 1 and 10 for this project.

A: Cash flows represent the inflow and outflow of cash from the company in a particular period of time.

Q: A 5-year project will require an investment of $100 million. This comprises of plant and  machinery…

A: Here, Increase in Revenue is $120 million Expenses is $80 million per year Tax Rate is 30%…

Q: This question is based on the following information: Each of the three independent investments below…

A: Present worth (NPV) is one of the techniques of capital budgeting analysis. NPV will be the…

Q: (a) A savings and loan association has offered her a 10-year small business loan at an annual…

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

Q: Auto Inputs Pty Ltd (Auto) offers to sell a quantity of mechanical component parts to Blue Hills Pty…

A: Given  The seller   = Auto Inputs Pty Ltd (Auto) The buyer= Blue Hills Pty Ltd (Blue Hills) The…

Q: 1. You are the new hired Manager of a Multi-National CorporationMNC in charge of the foreign…

A: Interest rate parity is a no-arbitrage condition that describes an equilibrium state in which…

Q: ardial GreenLights, a manufacturer of energy-efficient lighting solutions, has had such success with…

A: In finance external equity refers to the funds that a company has to obtain from outside the company…

Q: You already have $54,700 in your savings account that earns 3.50% compounded annually. You will…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Suppose you invest $2000 into a mutual fund that is expected to earn a rate of return of 11%. The…

A: Investment (PV) = $2000 Rate of return (r) = 11%

Q: QUESTION 4: RISK & RETURN Aisyah, a new investor cannot decide whether to invest in Stock Media…

A: Solution : We should selected that option of investment of portfolio which provide the highest…

Q: As an analyst, how do you go about choosing a peer group of companies for an individual company?

A: Peer groups form the basis of payroll exercises for many companies. The CEO's salary benchmark…

Q: Milhouse, 22, is about to begin his career as a rocket scientist for a NASA contractor. Being a…

A: Amount required to buy boat on retirement is $300,000 time till retirement is 43 years Annual amount…

Q: An industrial plant bought a generator set for P120, 000. Other expenses including installation…

A: Here the amount to be depreciated will include the installation cost. This is because without the…

Q: Harper takes out a loan of $126,500,000, which is to be repaid by annual payments for 25 years. The…

A: Loan (L) = $126,500,000 n = 25 years Growth rate (g) = 20% r = 11% First payment = P

Q: Paul and Marie Weir moved from a community property state to a common law property state last year.…

A: Property acquired by one member of a married couple is owned entirely and alone by that individual…

Q: Yegurt Ine has issued a 30-year par value bond that is callable in 5 years. If the coupon rate in…

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type])…

Q: Which of the following statements accurately describes the relationship between earnings and…

A: Growth rate in earnings and dividend = ROE*Retention ratio or ROE*(1-Payout ratio) Growth rate…

Q: If the coupon rate of a bond is 3.05% and the yield to maturity is 6.48%, and if a bondholder has a…

A: After-tax yield = Yield to maturity(1 - Tax rate) where, Yield to maturity = 6.48% Tax rate = 21%

Q: The Sarbanes-Oxley Act was a market response to accounting fraud, and the Dodd-Frank act was a…

A: The Above Statement "The Sarbanes-Oxley Act was a market response to accounting fraud, and the…

Q: Compute the projected after-tax operating cash flow for Steber during the coming year. E

A: Operating Cash Flows: Operating cash flows represent the cash generated by the firm from its normal…

Q: The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: Here and After Corporation plans a new issue of preferred stock. Similar risk stock currently offers…

A: Solution:- Preferred stock is the stock issued by the corporate which get preference over the common…

Q: 1. Relevant Cash Flows Kenny, Inc., is looking at setting up a new manufacturing plant in South…

A: Whenever a project is evaluated for investment all the current and future cash flows are considered.…

Q: . A stock has an initial value of $7, and can go up by 1.2 or down by 0.7, the risk free rate is…

A: PInitial Value is $7 UP move is 1.2 Down move is of 0.7 Total periods 3 Exercise price is 0.13% Risk…

Q: The citizens of a geographic area of the National City authorized a special assessment to be imposed…

A: Given is the information regarding the people of an area of the National city.

Q: ast year Triangular Resources earned $5.4 million in net operating income and had an operating…

A: The total investment in sales can be calculated by combining the formulas of operating profit margin…

Q: A stock currently is being sold for $95, with a dividend yield of 6.2% and a dividend growth rate of…

A: SOLUTION : GIVEN, Dividend yield = 6.2% Growth rate = 4.2% Share price = $95   Now, Firstly we have…

Q: Suppose you play a game of chance in which five numbers are chosen from 0, 1, 2, 3, 4, 5, 6, 7, 8,…

A: Given ,  Five numbers which are to be chosen from 0, 1, 2, 3, 4, 5, 6, 7, 8, 9

Q: To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 2.4%…

A: Formula  Annual payment = FV/((1+i)n-1)/i Where FV - Future value i.e. $98000 i - Interest rate i.e.…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.