A retail kiosk has listed a pair of sunglasses for $136 less 30%. A department store in the shopping mall lists the same model for $126 less 20%, less an additional 15%. What additional rate of discount must the kiosk give to meet the department store price? Cyber Computer Ltd. bought a shipment of laptops at a net price of RM 4077.36 each, after discounts of 15%, and 4%. What is the list price? An invoice for RM 3,500 dated March 25, terms 5/10, 2/30, n/60, is paid in full on April 20. What is the total amount paid to settle the account?
Q: A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.4...
A: Given Expected return is 6.4% and standard deviation is 9.4%. The risk free rate is 3.4% Expected r...
Q: the consultant's report, the cash flows that can be generated from the upgrade are as follows and 2)...
A: NPV Net present value (NPV) is the present value of all cash flows resulted in different time period...
Q: f 2015, Toronto Dominion Bank (TD) stock cost $45 per share and was expected to yield 4% per year in...
A: Dividend yield is dividend received on the price of stock and and total dividend received is depende...
Q: 4. An annuity pays $6500 at the beginning of every year for 10 years. If the payments are deferred f...
A: The cash value of annuities is the present value of annuities considering the interest rate and peri...
Q: A corporation issues 100 sinking fund bonds of P1,000 face value, redeemable at par in 15 years, wit...
A: Given: Number of bonds = 100 Face Value = P1000 number of periods "n" = 15*2 = 30 Semiannual coupon ...
Q: Dausin Design offers bonds with a coupon rate of 9 percent per year, paid semiannually. The yield to...
A: Solution:- We know, Current Price of a bond = Present Value of Cash Inflows receivables from bond. C...
Q: How can banks safeguard their information security?
A: Protecting information and information systems from illegal access, usage, disclosure, interruption,...
Q: Sarafina has bonds in her portfolio. She wants to know about her position in the bond market. Specif...
A: Yield to maturity (YTM) is the total return expected on a bond if it is held until it matures. It is...
Q: Hy point to straight-line. Now what is the present value of the depreciation tax shields? (Enter you...
A: Tax shield of depreciation is benefits in taxation due to the depreciation of equipment available. P...
Q: Which of the following is the amount of cash remaining after a company has covered its operating act...
A: Cash flows are majorly divided into 3 types: - Operating cash flows - Investing cash flows - Financi...
Q: Which of the following statements is/correct regarding the Cash Budget? The cash budget is a stateme...
A: Cash budget - It is an estimate of cash inflow and cash outflow of a company . Cash budget are usua...
Q: CARIBBEAN CREAM LIMITED Statement of Financial Position February 28, 2021 (Expressed in Jamaica doll...
A: Financial leverage is defined as the financial leverage, which assess an ability of the corporation ...
Q: The sum of P15, 000.00, deposited in an account earning 4% per annum compounded quarterly, will beco...
A: Deposit amount (D) = P 15000 r = 4% per annum = 1% per quarter
Q: Big Rock is listed on the local stock exchange and its stock has had mixed performance over the last...
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...
Q: Commercial banks are often restricted by Central banks to hold sufficient capital. Why is such a res...
A: A commercial bank may be a financial institution that accepts deposits, provides bank account servic...
Q: Company OMEGA wants to invest in Bonds and Stocks. The financial manager was looking at different ty...
A: Bond Number of Bonds Type Coupon rate YTM Maturity Face value A 20 Discount bond 0.059 0.089 13 30...
Q: yeild to maturity using t.
A: Yield to maturity represents the rate of return on the value of the bond while assuming the investor...
Q: VI. Solve the following problems. 1. QRS Corporation has declared dividend for January 2019 of P20 p...
A: The Supernormal Growth Model is the model in which the value of the stock is measured through its di...
Q: Yawi has a medium-size trucking company that distributes appliances within Metro Manila. Fuel consum...
A: The discounted cash inflows or outflows of future payments or receipts are known as the equivalent p...
Q: incurred at the project’s commencement. Financing for the project has been arranged as follows: 80,0...
A: Cost of equity can be calculated by using this equation Ke =(D1/P0) +g where P0 =current market pric...
Q: CEO wants to assign the budget to each business function for functional strategy execution. As you n...
A: An organization's financial strategy is primarily concerned with the acquisition and utilisation of ...
Q: to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair ...
A: Mortgage is a value which is taken from external sources for a specific period. This amount is repai...
Q: 3. If money is worth 8% compounded quarter ly, determine the present value of the following: a. An a...
A: Annuity is a series of equal cash flows occurring at regular intervals. A perpetuity is an annuity t...
Q: If money is worth 12% compounded bimonthly, what quarterly savings is required in order to have P320...
A: We need to use future value of annuity formula to calculate quarterly payment PMT =FV*i(1+i)n -1 wh...
Q: Saving cash in the bank is not as attractive as it was in the past, and Big Rock is looking to inves...
A: Markowitz Portfolio Theory was propounded by American Economist Harry Markowitz in the year 1952 in ...
Q: Determine the exact simple interest on P 5,000.00 for the period from June 10 2015 to November 21, 2...
A: Simple Interest is calculated using the following formula: = Principal * Rate * Time
Q: Cost of Abalone Country Australia Chile Ireland New Zealand South Africa CLP Abalone Cost AUD 93,500...
A: Data given: $1 US = 104 Yen Offer price = 9.46 million Yen Working Note #1 Offer price in USD: 9.4...
Q: Find the present value of an annuity P20,000 payable annually for 8 years, with the first payment at...
A: Annual payment (P) = P20,000 Interest rate (r) = 5% Number of annual payment (n) = 8 Years First pa...
Q: Bond valuation and yield to maturity Personal Finance Problem Mark Goldsmith's broker has shown him ...
A: Bond value: A bond's value is calculated by discounting the bond's predicted cash flows to the prese...
Q: 5. A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitte...
A: The Present Value of a cash stream: A series of cash equal or unequal cash flows that occur regularl...
Q: Cash Conversion Cycle. Will each of the following events increase or decrease cash conversion cycles...
A: Cash conversion cycle represent the number of days taken by the company to convert its goods into ca...
Q: ecrease the per-share book value of the stock held by shareholders b. To increase the per-share p...
A: A share repurchase may have an impact on a company's BVPS. Because BVPS is used to calculate the pri...
Q: Name Symbol Close Net Chg Volume 52 Wk High 52 wk low Div Yield P/E YTD %Chg Gen Dyn GD 142.97 -0.47...
A: P/E ratio Price to earnings (P/E) ratio is calculated as shown below. PE=Price per shareEarnings per...
Q: Ex. You anticipate a tuition liability of $40,000 per year at the end of 3 and 4 years from now. Wha...
A: The risk of loss in investment due to changes in interest rates is known as interest rate risk. It c...
Q: 2. Consider a chooser option where the holder has the right to choose between a European call and a ...
A: European call option used to give an owner the right, which used to acquire an underlying security a...
Q: Use to determine the regular payment amount, rounded to the nearest dollar, Consider the following p...
A: A mortgage is a type of loan in which a financial institution lends money at interest in exchange fo...
Q: Procter and Gamble (PG) paid an annual dividend of $2.79 in 2018. You expect PG to increase its div...
A: Share prices fluctuate on a regular basis due to market factors and internal factors. Interest rate,...
Q: A $1,000, 9.5% coupon Government of Canada bond has 10 years remaining until its maturity. It is cur...
A: Solution:- We know, Current Price of a bond = Present Value of Cash Inflows receivables from bond. C...
Q: You are trying to decide which of the two automobiles to buy. The first is American-made costs $1428...
A: Data given:: Cost of 1st car = $14288 (American-made) Mileage of 1st car = 27 miles...
Q: Find the present value of an annuity of P30,000 payable annually for 10 years, with the first paymen...
A: An annuity is a contract where, in exchange for a lump sum amount, a fixed amount is paid for a set ...
Q: A bank sets the loan rate on a prospective loan at 14%. This consists of a 12% base rate and a 2% cr...
A: A loan is a financial aid which is given by one party to another party. This transaction can take pl...
Q: Round each z-score to the nearest hundredth. A data set has a mean of x = 6.2 and a standard dev...
A: A difference in given value from standard deviation is known as a Z- score. It denotes how far or cl...
Q: what is my capital gain if: par value=1000 maturity=13 coupon rate= 7.4% interest paid annually ...
A: Capital gain is the gain from change in the price of an asset. It may be short term or long term in ...
Q: Previous balance, Finance charge- Purchase- New balance 2 month Previous balance, Finance charge- Pu...
A: A credit card is issued by banks or financial institutions that allows cardholders to make payments ...
Q: Big Rock has several investment portfolios with a local mutual fund company. One of the company's di...
A: The formula for the calculation of Sharpe ratio is as follows: Sharpe ratio=Expected return on portf...
Q: You would like to sell 200 shares of Xenith Bankshares, Inc. (XBKS). The current ask and bid quotes ...
A: Bid size is the number of securities that investors are ready to buy at a certain bid price. The bid...
Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides ...
A: Here, Present value = $180,000 Term = 20 years Rate of interest = 5% compounded semi-annually To Fin...
Q: make money, we need to make än investi
A: In money and finance you need money to invest and if you do not invest you will not earn money you m...
Q: What form of partnership allows some of the investors to limit their liability?
A: A limited partnership enables some of the partners to limit their liability. Under this condition...
Q: The interest rate for the first five years of a $95,000 mortgage is 7.2% compounded semiannually. Mo...
A: Given, The mortgage loan is $95000 Rate is 7.2% Term of amortization is 25 years Prepayment is $300...
Step by step
Solved in 5 steps
- A computer was put on sale by the store owner. A trade discount of 30% is given to any buyer but still, the store will realize 25% margin. If the computer has a tag price of P41, 550, What should be its cost?1. A watch store owner decided to offer a 20% discount for a particular brand of watchthat sells at PhP 35 000. By doing so, his average sales increased from 5 watchesto 12 watches a day. If he bought one watch at a price of PhP 22 000 from thesupplier, by how much was the daily profit increased or decreased by offering suchdiscount on the watch?ssence of Skunk Fragrances, Ltd., sells 6,900 units of its perfume collection each year at a price per unit of $399. All sales are on credit with terms of 2/30, net 50. The discount is taken by 50 percent of the customers. a.What is the amount of the company’s accounts receivable? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)b.In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 4/30, net 50 to preserve its market share. Will this change in policy increase or decrease accounts receivable?
- DOLLAR BILL'S, a retail store in New York City, buys its inventory on credit. Upon purchase, it is given 30 days in which to pay its suppliers. It sells all of its merchandise on credit. It extends 60 days of credit to its customers. Its inventory turnover rate is 60 days.Situation 1Using the Cash Conversion Model, measure DOLLAR BILL'S financing cycle in both days and money ($US) using the following assumptions: Sales of $730,000 Gross Margin of 30% Financing Rate 6.5%Jamestown Industries sells $48,000 in gift cards and expects 20% breakage. Cost of goods sold is 25% of each gift card. When the expected gift cards are redeemed, how much cost of goods sold will Jamestown record? O $12,000 $24,000 O $10,000 O $9,600Gerry runs a clothing store in London. He recently purchased 1200 dress shirts that had manufacturer's list price of %55 per shirt. On each shirt there was a trade discount of 20% 10% and 5% from the manufacturer. Gerry's store has operating expenses that are 20% of the selling price and rate of markup is 50% on selling price. a. What was the cost per shirt to the store? b. What was the total amount of discount received on the purchase of the 1200 shirts from the manufacturer? c. What was the equivalent discount rate of the 20% 10% and 5% trade discounts? d. He sold 400 shirts at the regular selling price e. What was the total revenue from the 400 shirts sold?
- 3. Tim is looking at buying business cards from two differentcompanies. Company A, charges $50 for the design plus 10 cents foreach business card. Company B, charges $5 for the initial design plus 25cents for each business card. Find the cost function, A(q), that gives thecost of buying q business cards for company A. Find the cost function,B(q), that gives the cost of buying q business cards for company B. Findthe quantity of business cards that makes the cost of the cards equal. IfTim is a small business and only need 200 business cards at one time.Which company should he go with? Explain your reasoning.appliance store realizes a mark-up of php3,450 in selling tv sets. if its items are sold at a mark-up of 40% of the selling price, a. what is the regular selling price of the tv set? b. what was the cost of the tv set?Computers and More offers discounts to its customers and allows the customer to return the product if not satisfied. Computers and More had sales of $850,000 and offers the customer a payment term of 3/12 n/30. The company received $15,000 in returned goods. The cost of goods sold for the period after returns was $320,000. Calculate net profit and gross profit.
- Ralph Nurseries purchased seeds costing $25,00 with terms of 3/15 net 30 EOM on January 12. Show Solutions and Explanation. A. How much will the firm pay if it takes the cash discount? (Format: 11, 111) B. What is the approximate cost of giving up the cash discount, using the simplified formula? (Format: 11%)Sharma Kennels buys some items with a list price of $4,100. The supplier extends a 40% trade discount rate. What is the net price (in $)?Suppose a supermarket ordered 11 cases of organic vegetable soup with a list price of $18.90 per case and 6 cases of organic baked beans with a list price of $33.50 per case. The wholesaler offered the supermarket a 39% trade discount. (Round your answers to the nearest cent.) (a) What is the total extended list price (in $) of the order? (b) What is the total amount of the trade discount (in $) on this order? (c) What is the total net amount (in $) the supermarket owes the wholesaler for the order?