ABC Company reported in 2021 sales of P15,000,000, an asset turnover ratio of 3.0, and a rate of return on average assets of 18 percent. The percentage of net income to sales is   • 5% • 6% • 7% • 8% • None of the above

Q: Andrew has been employ and open his own independent pharmacy. His annual expenses will include…

A: Implicit cost-It represents  an opportunity cost. Implicit cost in this case would be: Implicit…

Q: The following are quotes for four currencies with the quote in terms of US dollars per unit.…

A: Foreign Currency Exchange: The price of the domestic currency relative to another currency is…

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Q: How can a developer create value over and above their project cost when attempting to obtain…

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Q: 2. Whale Wash Limited issued eleven-year bonds one year ago at a coupon rate of 7.5%. The bonds have…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: A bond that has a face value of $1,500 and coupon rate of 4.10% payable semi-annually was redeemable…

A: We need to use bond price formula to calculate the price of bond PV =C1-1(1+i)ni +FV(1+i)n where…

Q: Nana and Abena Sarfo are saving for the university education of their newborn daughter, Akosua. The…

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Q: Explain why we de-lever and re-lever the ³₁.

A: Beta Beta is a measure of systematic risk. It measures the volatility of a portfolio or a security…

Q: IBL Ltd went public by 5 million shares of common stock of $65 per share. The shares are currently…

A: WACC "Weighted Average Cost of Capital" The weighted average cost of capital (WACC), a crucial…

Q: ​(Bond valuation) A bond that matures in  11 years has a ​$1,000 par value. The annual coupon…

A: Maturity period = p = 11 years coupon rate = 0.08 or 8% Face value or maturity value = Q = $1,000…

Q: Use the Constant Dividend Growth Model to compute the expected price of a stock in 4 years. Each…

A: First year dividend (D1) = $3.97 Required rate of return (r) = 0.146 or 14.6% Growth rate (g) =…

Q: define and provide an example of “comprehensive income.”

A: The income represents the earnings of the company. The income is the total profit or earnings. One…

Q: The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in 15…

A: Par value = $1000 Coupon rate = 8% Semi annual coupon amount = 1000*0.08/2 = $40 Years to maturity =…

Q: The MM irrelevance capital structure theory proved that a firm’s value is unaffected by its capital…

A: The MM irrelevance capital structure theory states that a firm’s valuation is unaffected by its…

Q: What is a philosophy on hedging investment for multicurrency portfolios.

A: Multicurrency portfolios are those where in a portfolio that consist of currency investments of…

Q: How many monthly advance deposits of $2,500.00 each do we need to make to accumulate $638,513.00 if…

A: Monthly deposit (m) = $2,500 Accumulated value or future value (FV) = $638,513 Monthly interest rate…

Q: will generate $1.82 million per year (starting at the end of the first year) in perpetuity.…

A: Net present value is the difference between the present value of cash flow and initial investment…

Q: Bond valuation) A bond that matures in 15years has a ​$1,000 par value. The annual coupon interest…

A: A bond is a debt instrument issued by a company. The value of a bond is the present value of all…

Q: Holmes Manufacturing is considering a new machine that costs $285,000 and would reduce pretax…

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

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Q: At what annual interest​ rate, compounded​ annually, must ​$520 be invested for it to grow to…

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Q: Compute the pretax profit (income before income taxes) if the net income is $140,000 and the income…

A: Net income = $140,000 Income tax rate = 0.30 or 30% Pretax profit = ?   Pretax profit is the profit…

Q: stimate the annual required rate of return for BTO stock, using the Constant Dividend Growth Model.…

A: To calculate the annual required rate of return we will use the below formula   Annual required rate…

Q: For a market timer, the ________ will be higher when the market risk premium is higher Select one:…

A: The portfolio beta will be reflective of the systematic risk associated with a particular asset and…

Q: You have an opportunity to acquire a property from First Capital Bank. The bank recently obtained…

A: Property Costs  $      2,00,000.00 Acquisition related expenses  $         10,500.00 Repair…

Q: ement is considering rupees 100000 investment in a project with a 5 year life and no residual value…

A: Average rate of return is the profit earned on the investment which is done initially as percentage…

Q: Purcell Farms Inc. has the following data, and it follows the residual dividend model. Currently, it…

A: Residual dividend policy states that internal accruals (net income) will be first used to finance…

Q: BQ, Incorporated, is considering making an offer to purchase iReport Publications. The vice…

A: iReport Information  Price earning ratio = Market Price / Earnings Price earning ratio = 8.80…

Q: A call option for a P5,000,000-face value bond has a strike price of 101. If the market value of the…

A: Strike price = $5,000,000 * 1.01 = $5,050,000 (i.e. Face value * priced at) Market value =…

Q: Use the option data from the table to determine the rate Buffin would have paid if it had issued…

A: The yield on the debt is defined as the rate of return that is expected by an investor to earn on…

Q: to trade at par? A company releases a five-year bond with a face value of $1000 and coupons paid…

A: Face value or maturity value = Q = $1,000 Semiannual YTM = YTM = 0.03 (i.e. 0.06 / 2) Semiannual…

Q: The value of the account after 10 years is: -$ 31,874.85 $ 114,549.99 - $ 114,549.99 $31,874.85

A: Information Provided: Annual deposits = $2000 Interest rate = 10.00% compounded annually Years = 10…

Q: A landscaping company buys a new bulldozer for $61,000.00. The company makes a down payment of…

A: The loans are paid by the monthly payments that are equal monthly payments these carry the payment…

Q: yields of $1000 dollar par value zero-coupon government bonds (ignore liquidity premiums) are tabled…

A: 2 year interest rate 3 years from now is calculated using following equation [1+f(T*,T)]T =…

Q: how did you get the yield on debt

A: The yield on Debt: It represents the rate of return expected by the debtholder if the debt…

Q: Find the nominal rate compounded quarterly which is equivalent to 12% compounded semimonthly. O…

A: First we need to use effective annual rate formula to calculate nominal rate Effective annual rate…

Q: Growth Company's current share price is $19.95, and it is expected to pay a $1.00 dividend per share…

A:

Q: Bianca purchased a $5,000 bond that was paying a coupon rate of 4.50% compounded semi-annually and…

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Q: Murdoch Pty Ltd is considering three mutually exclusive projects. The initial cash outflow and…

A: Many Thanks for the question. Bartleby's Guideline: “Since you have asked multiple question, we will…

Q: Aaron's student loan of $24,500 at 3.32% compounded quarterly was amortized over 5 years with…

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Q: What is the relationship of business risk, financial risk, and stand-alone risk? How to calculate…

A: Risk refers to the proportion of uncertainty arising as a potential financial loss inherent while…

Q: Compute the simple payback period for this replacement option. Determine the discounted payback…

A: Information Provided: MARR = 10% Initial cost = $12 million Year 1 Savings = $2.25 million Year 2…

Q: What is a firm’s business risk? operating leverage? How does the operating leverage affect the…

A: A business can be defined as the entity or organization established to earn profit by providing…

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A: Dividend policy is referred as the dividend distribution, which has the guidelines that actually…

Q: Explain which is the better option.

A: Information Provided: House costs = $100,000 Down payment = $25,000 Option A = 3% APR for 20 years…

Q: There are two accounts. One pays simple interest and the other pays compound interest. Both accounts…

A: In case of simple interest  Future value = Present value×[1+Periodic interest rate×time ]

Q: Your friend offers to pay you an annuity of $9,300 at the end of each year for 3 years in return for…

A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She…

A: Given, Face value of bond is $1000 Interest rate is 9%

Q: How does additional debt in a firm influence its WACC? its free cash flow (FCF)? the agency costs of…

A: Debt is the presence of additional financial leverage in the total business and it will be having…

Q: en Outdoor Gear is considering a new 7-year project to produce a new tent line. The equipment…

A: Net present value is difference between the present value of cash flow and initial investment of…