A salesman earns P2,500 on the 1st month, P2,800 on the 2nd month, P3,100 on the 3rd month and so on. Find the accumulated amount of his income 15th month if money worth 18% compounded monthly.

Q: CEO wants to assign the budget to each business function for functional strategy execution. As you n...

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Q: Assume Highline Company has just paid an annual dividend of $0.99. Analysts are predicting an 11.9% ...

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Q: get the amount and percent of the following problem   2001 2000 Amount Percent Sales Revenue 2,000,...

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Q: les Galactic Industries is choosing a steel production process. Their first option "Alpha" has a fir...

A: The procedure through which a company evaluates possible big investments is known as capital budgeti...

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: Calculate the compounded interest after 7 years and 9 months if 500,000 is placed at an annual rate ...

A: a) Amount invested (A) = 500,000 n = 7 years 9 months = 93 months r = 11.28% per annum = 0.94% per m...

Q: On January 1, 2021, STUDY HARDER Company purchased 9% bonds with face amount of P6,0 The bonds matur...

A: Price of bond is the present value of coupon payment and the present value of the par value of the b...

Q: A project that will provde annual cash flows of $2,450 for nine years costs $10,100 today. a. At a r...

A: a) Initial Investment=$10100 Annual Cash Flow=$2450 Required Rate of return= 9%  NPV of the Project=...

Q: A 30 year 1/1 ARM has an initial rate of 3.75%. In the future, the rate will reset to 325 basis poin...

A: LIBOR at the first reset (After 1 year) = 1% In 1/1 ARM, interest rate resets 325 basis points above...

Q: You deposit $700 in an account paying 7.3% simple interest. Find the future value of the investment ...

A: Deposit amount (P) = $700 Interest rate (r) = 7.3% Period (t) = 4 Years

Q: hedge

A:   “Since you have posted a question with multiple sub-parts, we will solve the first three subparts ...

Q: You have been asked to value a firm with expected annual after-tax cash flows, before debt payments,...

A: Capital structure of the firm consists of both debt and equity. Cost of raising funds from each sour...

Q: Rose Gardens is looking into investing opportunities. The following are potential opportunities: Zi...

A: Dividend is the amount which is paid as a reward to the shareholders of the company for the risk the...

Q: Nu Things, Inc., is considering investing in a business venture with the following anticipated cash ...

A: Given,  A project which has initial investment of $70000. MARR on the project is 20%.

Q: Tatsuo has just been awarded a four-year scholarship to attend the university of his choice. The sch...

A: An annuity is defined as the series of payment made each year for a definite period of time. In annu...

Q: The scientist of spectrum have come up with an electric mop. The firm is ready for pilot production ...

A: Answer  -  Decision tree analysis  -     

Q: A monthly deposit of R161 is made once a month into an account at an interest rate of 18% pa compoun...

A: Monthly deposit (M) = R 161 r = 18% per annum = 1.5% per month n = 13 deposits

Q: Dreamline expects to earn $20 per share this year and intends to pay out $8 in dividends to sharehol...

A: The percentage of profits held in the company as retained earnings is known as the retention ratio. ...

Q: Survey Corps lends money to improve their equipment, P10,000 due in 2 years, P25,000 due in 3 years,...

A: Annuity refers to the payments being made at regular intervals. Ordinary annuity is one where paymen...

Q: r expected return on this investment?

A: Expected return on investment refers to the rate of return that an investor is expecting on an inves...

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: a) Use rate of return (ROR) analysis to determine which of the mutually exclusive projects listed be...

A: Mutually exclusive projects are those available set of investment alternatives who are closely relat...

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-y...

A: Cash Flow Diagram: Income and expenses over some time interval are visually represented in cash flow...

Q: Find the present value of a perpetuity of P15,000 payable semi-annually if money is worth 8% compoun...

A: A perpetuity is a series of continuous payments made at regular intervals. It can also be understood...

Q: The FFR is an important influence on other interest rates, like those on car loans and home loans, b...

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

Q: ange rates between the USD and CAD, AUD, and BRL respectively are 1.20, 0.90, and 1.40 respectively ...

A: Real effective exchange rate is based on the overall exchange rate based on trade between the countr...

Q: 1. Discuss: Firms often involve themselves in projects that do not result directly in profits. For e...

A: Direct profit is defined as the amount of money earned from sales after deducting direct costs. This...

Q: Consider the following investment options. Option 1: invest $5000 for 7 years at 10% compound annual...

A: FV= PV*(1+r)^n   Where, FV= Future Value PV = Present Value r = Interest rate n= time pe...

Q: Required: Calculate the quick ratio in each of the above cases and select the case which is in the b...

A: Quick Ratio: It is a measure of the firm's short-term liquidity and shows the ability of the firm t...

Q: In order to overcome the differences in the preferences of surplus units and deficit usnits, it may ...

A: The large institution takes funds from the small investors and they prepare large amount of funds an...

Q: Light Motors is taking a look at a new product line that will take a few years to create. New lab eq...

A: Initial Cost  Php 1,00,00,000.00 MARR 12% Expense for 4 Years Php 1,50,00,000.00 Time Period 2...

Q: LO 3 8. Calculating IRR What is the IRR of the following set of cash flows? Year Cash Flow $19,400 -...

A: Year Cash flow 0 -19400 1 10400 2 9320 3 6900

Q: Imagine that you work for OstBank, a fictional European bank, as part of the team that manages repur...

A: A repurchase agreement with a central bank is an agreement where the central bank agrees to loan out...

Q: Capi of PHP 1.5M. The manufacturing company can produce an annua evenue of PHP250,000 for 7 years, b...

A: If the net present value is positive than project is acceptable and if the net present value is nega...

Q: A mortgage balance of $25,000 is to be repaid over a 10-year term by equal monthly payments at 5.6% ...

A: Effective monthly rate when compounding is semiannual With nominal stated interest rate (r), the eff...

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: A bond will sell at ____________ if the required return is greater than the coupon rate. Select one...

A: Required return relation with price and coupon rate If required return is greater than coupon rate t...

Q: Lucy bought a house for $100,000. Lucy's annual cost of ownership net of tax savings is exactly equa...

A: Cost of House  $1,00,000.00 LTV 80% Buying Cost  5% Selling Cost 8% Annual Growth rate 4.50%

Q: Ann got a 15 year Fully Amortizing FRM for $1,500,000 at an annual interest rate of 7% compounded mo...

A: Here, Present value = $1,500,000 Number of years = 15 years Rate of interest = 7% compounded monthly...

Q: 12. A 20-year 1000 par value bond is purchased at a discount. The bond pays annual coupons of 4%. Th...

A: Bonds are issued at discount or at premium of the par value of bond and discount is below par value ...

Q: )A stock currently trades at $37. The continuously compounded risk-free rate of interest is 5%, and ...

A: The European call option refers to that option that gives the holder the right to buy a stock at a p...

Q: The Bond Market Big Rock’s directors are looking to expand into a new suite of services. Although th...

A: Company raises money through various methods equity, bonds and preferred stock. Each one has advanta...

Q: Jim has an annual income of $300,000. Jim is looking to buy a house with monthly property taxes of $...

A: Here, To Find: Maximum monthly mortgage payment =?

Q: A company expects EPS to be $8.81 next year. The industry average P/E ratio is 34.84 and Enterprise ...

A: The method of comparables means the relevant ratios of industry, peer groups or similar kind of comp...

Q: What is the difference of Cost of Equity and the required rate of return on equities?

A: The amount of money that would be transferred to a company's shareholders if all of the company's as...

Q: Consider a project with inflows of $20,000 and outflows of $13,000. If the tax rate is 33%, and if t...

A: Annual inflow (A) = $20000 Annual outflow (O) = $13000 Tax rate (T) = 33% Let D = Depreciation

Q: A bond has a $13,000 face value, a 6-year maturity, and a 3.05% coupon. Find the total of the intere...

A: Face value= $13000 Number of interest payments = 6 Coupon rate = 3.05%

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

A: Here, To Find: Payback Period =? NPV =?

Q: Suppose the demand functions for two products are q1 = f(p1, p2) and q2 = g(p1, p2) where p1, p2, q1...

A: Given  Demand function for q1 = f(p1, p2) Demand function for q2= g(p1, p2) where (p1, p2, q1, q2) a...

Q: Calculate the effective interest rate per month for an interest rate of 14% in continuously compound...

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...