A woman expects to have $10,000 in 4 years to buy a pair of earrings. She plans to create a sinking fund by depositing an amount every 6 months. If the fund earns 16% interest compounded semi-annually, find the semi-annual deposit and construct a sinking fund schedule.

Q: Verga plc has 10,000,000 shares and £16,000,000 current earnings, from which it distributes 50% as…

A: Here,

Q: Machine A Machine B R100 000 R110 000 Initial cost 5 years 5 years Expected economic life R10 000 0.…

A: Payback period- It represents the time period required for recovery of the initial investment made…

Q: If a college freshman invests a $10000 gift at 8% per annum compounded quarterly, how much can be…

A: Present value of investment (PV) = $10000 Interest rate = 8% Quarterly interest rate (r) = 8%/4 = 2%…

Q: ROUND ALL How much will $10,000 grow to in 3 years, assuming an interest rate of 9% compounded…

A: Future Value: It represents the future worth of the present amount and is estimated by the product…

Q: 4. You are evaluating a project that will cost $534,000​, but is expected to produce cash flows of…

A: Payback period is an investment appraisal tool. It represents the time required for a project to…

Q: w (inputting a similar table, with related work shown above or below, is suggested). Payment EOY…

A: Loan are paid by equal amount but the amount of interest and principal amount paid are different for…

Q: 11. Consider the actual dollar CFs of a project below. The real MARR is 3% and the general inflation…

A: Here, MARR is 3% Inflation Rate is 5% Actual Dollar means cashflows without the adjustments of…

Q: Ava Co. sells custom jewelry for $200. The variable cost per jewel is $160. Ava has fixed operating…

A: Solution: Breakeven quantity of sales is that level of sales at where the firm is in situation of no…

Q: NITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED DISPOSAL/RESIDUAL…

A: Payback period can be defined as the time taken to recover the initial capital invested in a…

Q: here is a situation where investors in the US are looking to Japan as a place where they should…

A: Value of a currency is determined by aggregate demand and supply situation for that currency. Demand…

Q: Compute the modified duration

A: Duration of the bond = 7.88 years Yield to maturity (YTM) = 4.5%.  Formula for calculation of…

Q: Explain why governments give the task of conducting monetary policy to the Central Bank and how this…

A: Central banks play an important role in monetary policy by aiming for price stability (low and…

Q: You are planning on investing to save for retirement.You will invest $25,000 each year for 20…

A:

Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…

A: More than profits, it is important to analyze the cashflows of a business. The cashflow position of…

Q: Which of the following is an asset of the Fed? Federal Reserve notes bank reserves

A: The assets of Federal reserve consist of Gold stock, Special drawing rights, reserve position in…

Q: Suppose a seven-year, $1,000 bond with a 7.8% coupon rate and semiannual coupons is trading with a…

A: Solution:- The bond pays a fixed amount to its holders every period. This is called coupon. On the…

Q: You anticipate that Liebendauer Enterprises (ticker: LBE) will have earnings per share of $5 this…

A: Earning per share = $5 Dividend per share = $1.25 Retention ratio (RR) = (Earning per share-Dividend…

Q: The risk-free rate of interest, kRF, is 6 percent.  The overall stock market has an expected return…

A: The required return on the stock can be calculated as per the CAPM equation

Q: How much revenue should the vendor recognize immediately at the time of your original purchase

A: Purchase price = $3,000 Voucher value = $ 500 Probability of redemption (estimate) is 90%

Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…

A: Given: Particulars Amount Par value (FV) 1000 Debenture interest 10% Years(NPER) 3

Q: BMW just paid an annual dividend of 2 per share. Management has promised shareholders to increase…

A: The current price of the stock can be calculated as per the dividend growth model

Q: The correct answer is 9.1978 Please explain

A: The provided solution is correct. But the expert rounded the final answer to two decimals.

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…

A: The Break-even selling price is the price where the organization neither earns any profit nor bears…

Q: . A certain sum of money is divided among A, B, C in the ratio 2:3:4. If A's share is $200, find the…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: 1. A manufacturing company wants to expand its product line. There are two investment projects which…

A: Equivalent annuity method calculates the constant annual cash flow the project will generate over…

Q: The payback rule is generally most useful when:

A: The payback period is the time taken to recover the money spent on the project. According to the…

Q: You are an assistant to the CFO and have collected the following data to conduct the analysis. The…

A: Here, Tax Rate is 35% Market price of Debt is $1,219 Market price of Preference Share is $30 Market…

Q: The shares of Google are expected to generate the following possible returns over one year.…

A: The stock price in one year is calculated as current price plus the capital gain yield on the stock

Q: 1. If you wished to calculate a stock's 5% daily VAR using historical data. If you had 2000 data…

A: The Value at Risk: The Value at Risk (VaR) is a metric that is used to quantify the worst potential…

Q: orrelated assets have the same expected return of 10% per year and the same standard deviation of…

A: Portfolio Standard Deviation is the standard deviations of an asset portfolio's interest rate and is…

Q: An individual wishes to purchase a house that is selling for $200,000. The person has $50,000 they…

A: Value of house = $200000 Down payment = $50000 Term for amortization "n" = 10 years or 10*12 = 120…

Q: Mergers often are classified according to the merger's participants and their lines of business.…

A: Mergers are a type of agreement where two or more companies decide to form a single entity.

Q: 10. A corporation has decided to use borrowed capital to finance a portion of an equipment purchase.…

A: A loan amortization schedule is a schedule showing the Opening balance, closing balance and…

Q: NC Corp. holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A…

A: The new portfolio beta can be calculated by subtracting the beta contribution of Stock A in the…

Q: To help with the startup costs of his new comic book store, Pablo is taking out a $47,000 amortized…

A: The amortization schedule is used to show the periodic payment, the amount of interest, and the…

Q: Which of the following statement(s) is(are) TRUE? (i) The valuation price of a stock primarily…

A: Investors who want to beat the market need to master stock valuation techniques. Basically, stock…

Q: What does it mean for markets to be efficient? What are the differences in the degree of efficiency,…

A: The markets are considered to be efficient if the information related to various aspects that create…

Q: new engine was installed by a textile plant at cost of P and projected to have a useful life of 15…

A: Capitalization describes the practice of depreciating the expenses of acquiring an asset throughout…

Q: 1. A firm has the following capital structure: thousands € Liabilities and equity thousands € Assets…

A: WACC = kd*D/A+ke*1-D/Awhere, kd = Cost of debt or debt interest rateke = Cost of equityD/A =…

Q: Discuss the argument that central banks should have a mandate for price  stability to prevent an…

A: The central bank is the banker's bank. It gives advice to the government Central bank assists in…

Q: Consider a zero-coupon bond with a $100 face value and 10 years left until maturity. If the YTM of…

A: Face value of the bond = $100 Maturity period = 10 years Yield to maturity (YTM) = 0.111 (i.e.…

Q: What is the expected return for asset X if it has a beta of 1.5, the expected market return is 15…

A: The expected return for the asset can be calculated with the help of CAPM equation

Q: Interest coverage ratio of JFC *

A: In the given question, we have to calculate the Interest Coverage ratio of the JFC.

Q: 8e. A large profitable corporation is considering a capital investment of $50,000. The equipment has…

A: The success or failure of a capital investment can be determined by analyzing the cashflows of the…

Q: Floating Homes, Inc., is a manufacturer of luxury pontoon and houseboats that sell for $40,000 to…

A: Expected revenue will be computed on the basis of the given probabilities and expected unit sales…

Q: I need an answer for this specific question please LCT Computers is listed on the Alternative…

A: Given, Working of cost of equity by applying :-( part 1) Model of Constant (Dividend) Growth…

Q: internal rate of return (IRR): Group of answer choices will always lead to the same decision as…

A: IRR is a method used for investment appraisal. It is the rate of return at which the present value…

Q: Suppose that the EUR/USD spot exchange rate is EeUr'USD =0.95 and that a 12-month for contract is…

A: The rates may go up and down depending on the interest rate and there may be appreciation or…

Q: You are going to invest P20,000 in a portfolio consistin g of assets X, Y, and Z, as follows:…

A: The beta of the portfolio is calculated as sum of weight of each stock and the respective betas

Q: 11. Consider the actual dollar CFs of a project below. The real MARR is 3% and the general inflation…

A: Real MARR is 3% Inflation rate is 5% To Find: Discounted payback period