A person buys a piece of lot for P110,000 down payment and 10 deferred semi-annual payments of P 8,000 each, starting two years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?

Q: You may remember seeing home mortgage interest rates fluctuate widely in a period of not too many ye...

A: As per the information given  Amortization = $120,000 Time period=30 year Mortgage Rates 4.0% and 12...

Q: A condominium unit is being amortized with a quarterly payment of P56,000 for 5 years at 3% compound...

A: Loan means a value which is borrowed from the external sources for a certain  period. This loan is r...

Q: t is the current price of a share of stock when the current dividend is P5, the growth rate is 5%, a...

A: Current price of stock can be found out from dividend ,growth rate and required rate by using consta...

Q: o encourage the managers to act in a way which is consistent with the objective of maximization of s...

A: In corporation shareholders are the owners and managers are who run the organization but due to agen...

Q: 18. Questions 18 and 19 are based on the following information: Regine Company manufactures plugs us...

A: In its most basic form, total cost (TC) refers to all of the costs associated with producing somethi...

Q: Severn plc is assessing a new project to expand its business. It will require an investment of £20m ...

A: Investment = £20,000,000 Annual cash inflow for first 5 Years = £1,750,000 Annual cash inflow after ...

Q: f the firm's dividend policy was to pay P0.25 per share each period except when earnings exceed P1.5...

A: Dividend per share Net earnings or profit of a firm is used to retain in business itself or is distr...

Q: Given six years of percentage return of Stock A and Stock B, identify the expected return, and risk ...

A: Let R1 to R6 be the returns from 20X1 to 20X6 Ra = Expected return of A Rb = Expected return of B

Q: Increasing debt can be used as part of the financial strategy c

A: Debt refers to the amount which is to be paid back and a fixed amount of interest is charged over a ...

Q: Compute the future value o

A: Future Value is defined as the amount that is accumulated at some upcoming period of time. The perio...

Q: Bulldogs Inc., a corporation with a 40% tax rate, plans to issue P500,000 of 5% preferred share in e...

A: Weighted average cost of capital = cost of debt * (1-tax rate) * weight of debt in capital + cost of...

Q: (a) What is meant by 'mutually exclusive projects'? (b) Wivenhoe Ltd's managers sought your advice r...

A: Since you have posted a multiple part question therefore as per our guidelines we will be solving th...

Q: Bulldogs Inc. has been growing at a constant rate of 10% each year and produce earnings per share of...

A: Growth rate (g) = 10% EPS = P4.00 Payout ratio = 35% Expected dividend (D1) = 4*0.35 = P1.40 Risk fr...

Q: best way to invest your saved up money after retirement? Buy stocks or construct a building to be re...

A: Retirement money is very important and you can not more money after retirement so you must invest in...

Q: What is the price per $100 face value of a four-year, zero-coupon, risk-free bond?

A: A bond is defined as the financial instrument that is used to raise capital from the market at a sta...

Q: An indium-gallium-arsenide-nitrogen alloy developed at Sandia National Laboratory is said to have po...

A: Rate of return- the rate that will make present value of all extra revenue equal to investment.   Da...

Q: A forward rate agreement (FRA) is

A: Meaning of FRA i.e., Foreign Rate Agreement Forward rate agreement is a contract to determine the ra...

Q: Larry owed Rusty a $3,000 debt that is past due. In a telephone conversation, Kathy orally promised ...

A: There are laws governing the financial transactions and these must be written only and any oral thin...

Q: Company A and B both expected rates of return of 18%. Company A has a Standard Deviation of 45% and ...

A: Expected returns of both A and B = 18% Company A standard deviation = 45% Company B standard deviati...

Q: Robert owns of RPM which involve in manufacturing business The cash flow profile of RPM Enterprise i...

A: Depreciation can be defined as the process of allocation of the cost of the asset to its given usefu...

Q: You think you will be able to deposit $4,000 at the end of each of the next three years in a bank ac...

A: Annuity  An annuity is the series of payments which is received or paid for a certain period of time...

Q: Comparative ratio analysis can be applied when analyzing performance of the company for one period a...

A: Solution:- There are two types of analysis: a) Time Series Analysis:- It is the analysis and compari...

Q: Evaluate the two strategies adopted by financial institution to manage their risks.

A: Note: As you asked to provide the solution of part iii), we are providing the solution of part iii) ...

Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the ...

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or b...

Q: 22. The company has P5,000,000 n in inventory and P2,000,000 in accounts receivable. Its a daily sal...

A: Cash conversion cycle is the time period that the company takes to convert its inventory into cash. ...

Q: The ____ of an annuity is the sum of all payments plus all interest earned

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...

Q: 3. Find the amount (in $) of interest and the maturity value of the loans. Use the formula  MV = P ...

A: Solution:- When an amount is invested somewhere, it earns interest and the amount receivable at matu...

Q: The following data are gathered for: · The real risk-free rate is 1.25% · Inflation ...

A: The real risk-free rate  (RP) = 1.25%Inflation premium is constant (IP) = 2.50%Default risk premium ...

Q: Bulldogs Inc. has a financial break-even point at P163,500. How much is the total preferred dividend...

A: Financial breakeven deals with bottom line of company income statement. It is the level of EBIT at w...

Q: The rate charged for issue of foreign currency notes for travelling abroad to the customer.

A: The rates mentioned in each case are selling and buying rates for the market maker or the commercial...

Q: Instruction: Solve the following problems on a piece of paper. Show your solution. 1. A man buys a t...

A: The present value of the loan is equal to the sum of the present values of all the future installmen...

Q: Let's suppose you (USA dealer) imported a product from German on Dec 1, 2018 at € 300, payable in 60...

A: Exchange rate (ER) is a value at which payment is made in foreign currency to buy the goods. Exchang...

Q: Dennis wants to buy a $370,000 house with a 20% down payment. He is looking at a 20-year mortgage at...

A: Net mortgage = Value of house * (1-% of downpayment) = 370000 * (1-.20) = 370000 * .80 =296000

Q: 11. A debt of P29,000 bears simple interest at 7½% per annum. If it is repaid after 5 years, how muc...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: An annuity with a cash value of $14,000 earns 7% compounded semi-annually. End-of-period semi-annual...

A: An annuity is defined as the fixed payment made at the beginning or the end of the period for a part...

Q: McGloire Construction is analyzing its capital expenditure proposals for the purchase of equipment i...

A: Here,   Project A Project B   Project C   Projected cash outflow        Net initial investm...

Q: What is the difference between a covenant not to compete in a contract versus a covenant not to comp...

A: Covenant A covenant is a formal legal agreement between two parties for doing or not doing some spec...

Q: the 4 factors that affect the level of interest rate, How each one of them works

A: The interest rate is the amount charged by a lender to a borrower on top of the principle for the us...

Q: Find the net asset value of the mutual fund.

A: Net assets value (NAV) is defined as the per-share value of total assets less liabilities. The norma...

Q: Fifteen years ago your grandfather purchased for you a 25-year $1,000 bond with a coupon rate of 12 ...

A: Bond valuation is a strategy for assessing a bond's conceptual fair value. Bond valuation entails de...

Q: business operations risk for a bank.

A:   Risk is a type of uncertainty for any business. Most of the risks faced by the banks are operation...

Q: Sara met with a financial planner and has determined that she will need $1,250,000 when she retires ...

A: Retirement amount needed (FV) = $1,250,000 n = 30 years = 360 months r = 5.65% per annum = 0.47083% ...

Q: Determine the outstanding balance of an electronic gadget which was bought with a down payment of P2...

A: Down payment (DP) = P20,000 Monthly payment (P) = P2799 Interest rate = 2 1/2% = 2.50% Monthly inter...

Q: Which of the following are problems in using net present value to appraise an investment? 1. The dif...

A: In evaluating the various investment proposals, one of the methods used is NPV method. In this metho...

Q: Ten years ago, when Franco was still a college student, he deposited 10,000 in a bank. The bank's ra...

A: Amount deposited 10 years ago (X) = 10000 r = 2% per annum = 0.5% per quarter n = 10 years = 40 quar...

Q: 17. Compute the rate (in %) for the loan. Round answers to the nearest tenth of a percent; use ordin...

A: Principal = $54000 Interest rate = r Period = 60  days Interest = $864

Q: QUESTION ONE Jogena Company Ltd. is being considered by Adwen Na Nsa Community Bank for a credit fac...

A: Projected Cash budget statement A cash budget statement is a financial statement that provides infor...

Q: How does a bank try to achieve the best possible risk adjusted return on its overall loan portfolio?

A: The possibility of a loss arising from a borrower's inability to repay a loan or meet legally bindin...

Q: trend has openned an RRSP account by making an initial deposit of $1000. he intends to make annual d...

A: Future Value of Growing Annuity helps in ascertaining the total amount accumulated at the end of a p...

Q: A company has a P1,200 face value bond with 8 years until maturity. The bond possesses a characteris...

A: Approximate Yield to maturity is the rate of return of a bond with an assumption that the bond will ...

Types of Money Market Instruments