A 6-year Circular File bond

Q: Firms in Japan often employ both high operating and financial leverage because of the use of modern ...

A: The degree of combined leverage is calculated as the contribution divided by earnings before taxes.

Q: An economy has an ICOR of 4.5. What would be its average annual growth rate if its Domestic Savings ...

A: The question is based on the concept of the Incremental Capital Output Ratio (ICOR). ICOR is ratio t...

Q: Janet's parents want her to go to the same college that they did. They decided to pay a lump sum pay...

A: Lump sum Payment as on today (PV)=$126,000 Duration (n)=8*4=32 periods Rate per period (i)=6%4=0.015

Q: Goross porfir ratio and net profit ratio

A: The answer states the computation of Gross profit and net profit ratio

Q: Identify which among the cases describe a net supplier of funds. [C1] The government has collected t...

A: Supplying funds: It means injecting money into the capital market that is useful for the general pub...

Q: Due to a recession, expected inflation this year is only 2.5%. However, the inflation rate in Year 2...

A: Information Provided: Inflation rate, year 1 = 2.5% Inflation rate, year 2 and thereafter = 2.5%+(co...

Q: Which of the following investment opportunities all maturing at the end of 2 years and requiring the...

A: Time value tells that money received today has more value than that of receiving the exact value lat...

Q: Can I have an answer and explanation for this one, please? I need step by step solution tonight, thi...

A: An annuity is the payment of an equal amount of money at a given interval of time. An annuity can be...

Q: The original cost of a property is $ 35000. Its salvage value is to be $3500 at the end service life...

A:   The decrease in the monetary value of an asset over time due to use, wear and tear, or obsolesce...

Q: You want to endow a scholarship that will pay $11,000 per year forever, starting one year from now. ...

A: In the given question we require to calculate the amount of donation to receive $11000 per year fore...

Q: Why is it important for a new business venture to prepare financial projections?

A: All the business planning is actually used to process for the preparation of the financial statement...

Q: Which of the following increases basis risk? Select one: O a. A large difference between the futures...

A: basis risk: it is the risk which arises from mismatches in the hedged positions.

Q: Which of the following obligations ismore valuable at 5% and by howlarge? (A) 2,700 due without in...

A: The present value of the cash flow is the current worth of a future cash flow at a certain rate of i...

Q: Because it fumes at room temperatures, hydrochloric acid creates a very corrosive work environment. ...

A: Annual Worth(AW) is annuity of cost for operating asset over its life. It accounts for initial outla...

Q: EX 4-6 Income statement; net loss Obj. 2 O The following revenue and expense account balances were t...

A: Question is based on the concept of Income Statement

Q: You are considering two possible marketing campaigns for a new product. The first marketing campaign...

A: Cash outflow = Perpetuity Cash inflow / IRR

Q: ABC Company is re-evaluating its debt level. Its current capital structure consists of 72% debt and ...

A: Risk-free rate (Rf)=0.05 Market risk premium (Rm-Rf)=0.069 Current beta (β)=1.63 Current Capital Str...

Q: The top prize for the state lottery is $105,000,000. You have decided it is time for you to take a c...

A: Given information: Top prize for state lottery is $105,000,000 Annual payments of $5,250,000 for 20...

Q: Your firm is evaluating a project that should generate revenue of P4,600 in year one, P5,200 in year...

A: Information Provided: Year 1 cashflow = 4600 Year 2 cashflow = 5200 Year 3 cashflow = 5900 Year 4 ca...

Q: A restaurant manager has the option of a 30-year loan of $412,000 at an annual interest rate of 3.95...

A: Required: The monthly payment for both loans. The savings by using the 15-year  loan. Is the paymen...

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest ...

A: Annuity refers to series of equalized payments that are paid or received at start or ending of speci...

Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest ...

A: Annuity refers to series of equalized payments that are paid or received at start or ending of speci...

Q: You had a 15 year mortgage of $300,000 for five years and made payments of $3,500 per month. Now fiv...

A: The question can be solved as follows:

Q: A perpetuity pays $ 100 each year , with the first payment scheduled two years from now . Assume tha...

A: present value of prepetuity: present value of the perpetuity=Arwhere,A=annuityr=rate of interest

Q: In the equation, PV = P1,000 x (1+ 1.06)-5, the (1+.06)-5 can otherwise be presented as %3D

A: When the company is considering the present value or future value for an amount then, it would be ta...

Q: Jen Law Firm is evaluating a project that must create a revenue of $4,600 in the 1st year, $5,200 in...

A: The future value can be calculated as follows : Results obtained :

Q: 1.b  A 30-year Canada bond is issued with par value of $1,000, paying interest of $60 per year. If m...

A: Bond is debt-instrument that is used by entities t raise debt funds from public-at-large. Bonds pay ...

Q: You wrote a piece of software that does a better job of allowing computers to network than any other...

A:   Present value of annuity is the current value of the future sum of cash flows. The present value d...

Q: Assume the $14,560 Treasury bill, 5% for 14 weeks. Calculate the effective rate of interest. (Use ca...

A: Given information: Treasury bill amount is $14,560 Interest rate is 5% for 14 weeks

Q: Determine the coupon rate on a $50,000 bond with an annual coupon payment of $2,800.

A: In this question we require to calculate the coupon rate from the following details: Face value of b...

Q: With cash flow diagram

A: Effective annual interest rate can be defined as that rate which is charged on annual basis after ad...

Q: 2) Kitchen cabinet knobs in the Designer Hardware catalog list for $3.00. The net price to the retai...

A: Catalog list price = $3.00 Net price to retailer =$2.40 Now, the trade discount offered is  - 

Q: Stocks A and B have the following historical returns:   a. Calculate the average rate of return for ...

A: Answer a:

Q: Present value.   A​ smooth-talking used-car salesman who smiles considerably is offering you a great...

A: We have to find out present value of all annual payments to get price of car.

Q: A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for ...

A: Details given in the question are : Just paid dividend (D0) = $2 Growth rate (g) = 15% = 0.15 Requir...

Q: May I ask for an explanation and solution to the question for a better understanding. Thank you!

A: in this problem we have to find out future value each of cash flow using semiannual interest rate.

Q: Which are the General Contents of Leases?

A: Lease is a contract between two parties (lessor and lessee), where one party (lessor) gives right to...

Q: 3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the...

A: Investment = 5000 Return % = 8% Time Period = 5 years

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying amo...

A: The gain amount which an investor will get after buying a bond is the function of the purchase price...

Q: Future value of an ordinary annuity. Fill in the missing future values in the following table for an...

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: What are the risks and rewards of investing in the stock market as compared to the bond market?

A: Risks of investing in the stock market as compared to the bond market : a) Stock market is riskier t...

Q: You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments...

A: The question can be solved as follows:

Q: Madison is thinking of buying an investment from PEP. If she purchases the investment, Madison will ...

A: The present value of the annuity due is the current worth of a cash flow series received/paid at the...

Q: Beverly is considering starting her small family business in five years’ time. She has decided to de...

A: Annuity is a stream of equal cash flows(deposits) over specified time. Where cash flow is due at the...

Q: What's the correct answer then?  Note: Please give me the correct answer

A: The equation for Present Value of an amount is, PV=FV(1+i)n  

Q: A firm manufactures a product that sells for $11per unit. Variable cost per unit is $6 and fixed cos...

A: Question is based on the concept of Corporate finance

Q: You have 1,500 to invest today at 7% interest rate Compounded annually. a- Find how much will you ge...

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on...

A: The question is based on the concept of Loan and mortgages

Q: The final payment the bank will require you to make is $ (Round to the nearest dollar.)

A: Information Provided: Annual payments = $8000 Interest rate = 6%

Q: Given a choice between 5-year and 1-year instruments most people would choose 5-year instruments whe...

A: The term structure of interest rates deals with the relationship among the yields of default-free se...