A Php 100,000,10% bond pays dividend every quarter for 8 years. The bond price at par and is redeemable at 110% of the par value Find the yield to maturity.

Q: i) Based on the information provided above, apply Gordon’s growth model to compute the dividend…

A: Gordon Growth Model: This model helps in valuing the share of a company by discounting all the…

Q: A certain college graduate borrows 7406 dollars to buy a car. The lender charges interest at an…

A: Continuously compounded interest rate refers to the interest rate that is calculated on the…

Q: A 3-year, 1000 par value bond with a 3% annual coupon is trading to yield 4%. What is the current…

A: Current yield is the rate of return  an investor earning on the current value of its investment, in…

Q: From the given information find the Cash Flow From the Asset. Operating Cash Flow 775 Net Change in…

A: Cash flow from asset = cash flow from operation + changes in working capital + changes in fixed…

Q: BCD Company offer its investors option contracts to buy their shares at a price of P50. Currently,…

A: Given, The spot price is P60 Risk free rate is 8.25%

Q: The current (year t) price of a 5-year coupon bond is 100. It has a coupon rate of 5%, a yield to…

A: Note: Lets us assume $ as the currency Data given: Current price of bond(year t)=$ 100 Coupon rate…

Q: 1. The concept of "pay myself first," saving and investing before you pay other expenses, is a…

A: False. The concept of "pay me first," saving and investing before you pay other expenses, is not a…

Q: The price of $6100 face value commercial paper is $5900. If the annualized investment rate is 10%,…

A: Here, Face Value of Commercial Paper is $6,100 Price of Commercial Paper is $5,900 Annualized…

Q: Ali will perform the pilgrimage in 10 years. Estimated ONH for the next 10 years is IDR 50,000,000.…

A: Here, To Find: Part A. Annual Payments =? Part B. Present value =?

Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…

A: It will be enough if the present value of monthly payment of $700 is equal to or more than the car…

Q: Which of the following LEAST accurately describes the advantages of specific types of mergers and…

A: Mergers and acquisitions (M&A) are business transactions in which two or more companies…

Q: AIX Investment Group considers two alternative portfolios. The risk and return characteristics of…

A: A risk adjusted return is the profit earned in an investment after taking the risk associated to it…

Q: Reported annual total returns (%) of Vanguard FTSE Emerging Markets Index Fund ETF Shares for the…

A: Compound annual growth Annual growth rate is calculated as shown below. Annual growth rate=Ending…

Q: Analysts projected that Apple will have earnings per share 1$. The industry has average PE ratio of…

A: To calculate the stock price we will use the following formula   Stock price = Earning per  share*PE…

Q: Consider the following cash flows. The interest rate is 10%. What is the total wealth after 2 years…

A: It is given that: Year  Cash flow  1 150 2 120 3 100 4 200       And the Expected…

Q: Are mixed mutual funds and hybrid funds are same ? explain

A: Mutual funds are the investment options through which a group of investors contribute funds to…

Q: is invested now, $2,400 two years from now, and $3,400 four years from now at an interest rate of 8%…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: Chango Industries has decided to borrow $50,000,000.00 for six months. To reduce the company’s…

A: Interest rate swap Under Interest rate swap, one party pays fixed interest rate while another party…

Q: he value of your investment increased by 9.77% last year, and your purchasing power decreased by…

A: Inflation is a situation of general increase in prices. Inflation leads to decrease in purchasing…

Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…

A: Earnings per share(EPS) refers to an indicator or a financial ratio that shows how much a company is…

Q: True or False The following statements relate to liquidation. a.) Compared to a forced liquidation,…

A: Liquidation value is total value of the company's physical assets when these assets are sold out.

Q: 23) If the Canadian dollar to U.S. dollar exchange rate is 1.35 and the British pound to U.S. dollar…

A: The value of one country's currency in terms of another country's currency is known as the exchange…

Q: 6) Banco Bradesco S.A.,  announced yesterday that its 1th quarter earnings will be 2.9% higher than…

A: Abnormal returns are the returns when usually a company has large profits  or losses generated from…

Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…

A: Future value can be calculated as: = Present value * (1 + rate)^periods

Q: A new homeowner, Ms. Dee Young, needs to decide whether to install R-11 or R-19 insulation in the…

A: Data given: Insulated area = 1,650 square feet Insulation costs  =$0.10 per square foot Savings due…

Q: Using the corporate valuation model approach, what should be the company's stock price today?

A: Free cash flow = (EBIT*(1-T)) + Depreciation exp. - Capital expenditure - Changes in working capital…

Q: The company DstriBut.inc decides to take a technological shift by replacing its old distribution…

A: Given,  The cost of equipment is $6,000,000. Depreciation rate is 30%

Q: PROBLEM 1: Three mutually exclusive project design alternatives are being considered. The estimated…

A: NPV is the difference between Present Value of cash Inflows and Initial Investment. A project with…

Q: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent?…

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

Q: Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t…

A: IRR may be calculated using the following excel formula

Q: What is the present value of an investment that pays $103 at the end of each of years 1, 2, and 3?…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: You have 4 types of assets in your portfolio: Corporate bonds earn 5% return and make up 15% of…

A: A portfolio is a basket of securities. Many investors purchases diversified stock in order to reduce…

Q: Consider the following two stocks:  - Stock A is expected to pay a dividend of $12 forever;  -…

A: Value of stock can be found out from the constant dividend growth model and from dividends and…

Q: What is the total return of an equal-weighted index over the holding period given the following data…

A: Return refers to the additional earnings over the invested amount. Basically, it is a profit which…

Q: Select the appropriate term to complete the sentences. A offers investors the opportunity to pool…

A: Mutual fund:  A mutual fund is a pool of money from several individuals to invest in securities such…

Q: Achtung Co uses 3machines to finalize the product. The machines got outdated and it has been…

A: The Net Present Value: The net present value or the NPV is a technique used to assess the…

Q: If the risk-free rate is 2.2 percent, the inflation rate is 1.9 percent, and the market rate of…

A: The risk premium on the U.S. Treasury bond will be zero as it is backed by US government and as…

Q: trofitted space-heating system is being considered for a small office building. The system can be…

A: Present worth method is to determine the present value of all cost and benefits from the project.…

Q: What is the effective interest rate on an overdraft facility where the bank requires 3.5% interest…

A: Effective interest rate is interest rate consideration for compounding of interest rates on annual…

Q: Marcie Mays plans to have $350,000 in retirement fund 30 years from now. What monthly ordinary…

A: Future value of ordinary annuity Annuity is a series of equal payments at equal interval for a…

Q: The stock of Yakir Development has a beta of 1.31. The risk-free rate of return is 1.5 percent and…

A: To calculate the risk premium on this stock we will use following formula   Premium on this stock =…

Q: A firm has a debt-to-equity ratio of 0.60 and a market-to-book ratio of 2.5. What is the ratio of…

A: Debt-equity ratio is the ratio which compares the total liabilities of the company with the total…

Q: If the dividend yield for year 1 is expected to be 7% based on a stock price of $30, what will the…

A: Dividend Yield  = Dividend Per Share/ Share Price  7% = Dividend per share/30 Dividend Per Share =…

Q: Can I get a breakdown on how this is done all I'm seeing is a bunch of numbers

A: In the solution provided present value of all the coupon payments and future value is done to…

Q: I Current ratio li. Times interest earned jli. Inventory turnover

A: Current Ratio: It is a measure of a firm's liquidity and shows the firm's ability to repay its…

Q: Which of the following is NOT a capital component when calculating the weighted average cost of…

A: WACC (discount rate) refers to the joint cost of company's capital from all the sources of the…

Q: Calculate the expected return, variance, and standard deviation for a portfolio of four equally…

A: The expected return of the portfolio is the return that an investor gets based on the weightage…

Q: 20) A firm will start paying dividends 5 years from now and thereafter that will be expected to grow…

A: Dividend in year 5 (D5) = $16.3 Growth rate (g) = 0.054 Required return (r) = 0.132 Terminal value…

Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

A: Final Amount (Principal+Interest) = P (1+r/n)nt Where P = Principal Amount r = rate of interest n =…

Q: What is the CAPM? What does it tell you?

A: Capital asset pricing model (CAPM) is a model or method which is used by the company to define the…