Alternative K the preferred alternative? [A] 0%<=MARR<=8.144169% [B] 4.2775% <=MARR<=8.144169% [C] 0%<=MARR<=6.63733% [D] 6.63733% <=MARR<=8.439925% [E] None of the above (Select the best answer)
Q: A loan was to be amortized by a group of four end-of-year payments. The initial payment was to be…
A: Here, Annual Payment is P5,350 Increase in Annual Payment is P620 Number of Payments is 4 Interest…
Q: You purchase a TIP note with an original principal amount of $1,.000,000 and a 9 percent annual…
A: Original Principal Amount = $1,000,000 Annual coupon Rate = 9% Inflation over the first six months =…
Q: Lambda Corporation has current liabilities of $450,000, a quick ratio of 1.8, inventory turnover of…
A: Cost of Goods sold: Cost of goods sold is the cost of goods which is sold by the company. The cost…
Q: 2. For each of the following compounding intervals, show the formula and the t that would be needed…
A: Interest and its types: Interest is the cost of money and is received or paid when money is lent or…
Q: What price is paid for a P2000 par value 10-year bond with 8.4% coupons paid semiannually that is…
A: Bond: It represents debt security issued by the company for raising capital from debt investors.…
Q: Quiz# 5 (Q) The following are estimates for four risk assets (A,B,C,D). The portfolio P is an equal…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The basic principle of valuation states that the value of any asset is: O The sum of the present…
A: The present value of an asset is the sum of all future cash flows discounted at the discount rate.
Q: An investment that cost ₱300,000 was placed in a bank and the bank gave you a 4% compound interest…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: sewage pump equipment initially costs P95,000. Annual maintenance costs are P1850. The equipment’s…
A: Here we need to find the equivalent annual cost (EAC). EAC, essentially, is the annual cost of…
Q: Your company had net income of $82,500 for the year just ended. Dividends of $35,250 were paid on…
A: Net income = $82,500 Dividend paid = $35,250 Dividend per share = $35,250 / 62,000 =…
Q: An investor owns $3,000 of Adobe Systems stock, $6,000 of Dow Chemical, and $7,000 of Office Depot.…
A: Weight are the proportion of individual security to total investment in portfolio. It is calculated…
Q: The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on…
A: Explanation : We can Calculate the Share Price with the help of Dividend paid by company in future…
Q: Random Inc generates operating profit of either $4 or $5 M with equal probabilities, but the risk is…
A: Return on investment Return on investment is calculated considering all cash inflows and cash…
Q: Times-Interest-Earned Ratio The Morrit Corporation has $480,000 of debt outstanding, and it pays an…
A: Ratio analysis is defined as an quantitative method for gaining an insight into the liquidity of the…
Q: Give 2 factors that you will consider when using the following assets as stores of value?Explain the…
A: Factors that have to be considered when using the Real Estate as stores of value are as follows:…
Q: A sales man is giving the following conditions: Problem: Example: Total cost bought = 1. A discount…
A: Discount of 10% if Total cost bought is equal to or greater than 1000 but not greater than 15000 A…
Q: Name Spot The Difference There are 10 differences in the pictures below. Can you find them all?
A: Difference are marked in the below image with black color line. Please find black line to identify…
Q: Alternatives A, B associated with a project have data as in the following figure, MARR=12% /year,…
A: Here, To Find: Alternative to select =?
Q: B. Solve for the following: 13. An annuity contract pays P35,000 quarterly for 16 years. What is the…
A: Note: Since here two questions have been asked, but we are allowed to answer only one question at a…
Q: Q2- Calculate the future worth and draw cash flow diagram as shown - P=3232 - F=? - 1=8% - Y=3
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Consider a convertible bond as follows: par value: $1,000.00 coupon rate: 5.00% market price of…
A: Bonds are the debt securities which are issued by the government or corporations to arrange the…
Q: When does a leveraged buyout occur?
A: Leveraged Buyout: An LBO (leveraged buyout) is the acquisition of another firm by using a…
Q: danger of scam and how can you prevent from falling to it.
A: Scams are many methods of fraud that are aided by hackers on the Net. Scams can take many forms,…
Q: Mark Welsch deposits $7,900 in an a earned interest must remain in the ac years? (PV of $1, FV of…
A: Given: Deposit = $7,900 Interest rate = 12% Years = 2
Q: A P100,000, 10% bond pays dividend every quarter for 8 years. The bond is priced at par and is…
A: The par value of bond us P100,000 Number of years to maturity 8 years
Q: Which of the following are all correct financial characte fitability, growth profile, and end…
A: Companies are to be compared based on the some characteristic so that it is better to select the…
Q: What is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple…
A: Time value of money (TVM) concept refers to the method used to measure the value of money at…
Q: Charter Enterprises currently has $1.5 million in total assets and is totally equity financed. It is…
A: The capital structure of the company generally consists of some portion of debt and a balanced…
Q: Prime Paints is in the process of evaluating two mutually exclusive additions to its processing…
A: Calculation of range of cash outflows: Range of annual cash outflows= Optimistic cash flow -…
Q: Suppose that Taiwan Semiconductor Manufacturing Company Limited (TSM) is selling for $100.00.…
A: Given, The required return on stock is 20% The selling price of stock is $100
Q: On October 24, you plan to purchase a$1500 computer by using one of your two credit cards. The…
A: As per the information provided: Date Cash flow Net balance 1-Oct 0 0 24-Oct -$1500…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: Given, Balance is $350 Rate is 18%
Q: DIVIDENDS Brooks Sporting Inc. is prepared to report the following 2018 income state- ment (shown in…
A: Answer- Solving first 4 subparts - Part 1 - Calculation of Pre share dividend in 2018 - Total…
Q: You buy a stock for $47 per share and sell it for $58 after holding it for slightly over a year and…
A:
Q: Jessica purchased an electric guitar from Music World. The purchase price was $2,700. She took…
A: This problem involves the application of time value of money. Time value is a concepts which…
Q: Calculate the actual portfolio return, rp, for each of the 6 years. b. Calculate the expected…
A: Portfolio Return: It is computed by the sum of individual securities returns which are…
Q: Your company is considering a project which will require the purchase of $635,000 in new equipment.…
A: Given: Particulars Amount Cost of asset $635,000 End value 25% Sales $224,000 Working…
Q: Dreyer's Grand Comparable Firm Multiple Revenue EBITDA Multiple Multiple 3.2 10.5 Drone Corp…
A: Enterprise Value is measure of a total value of company. It looks at the entire market value than…
Q: Monthly payments for 5 years after you graduate, annual interest rate of 6% compounded monthly.…
A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Ordinary…
Q: David Lyons, CEO of Lyons Solar Technologies, is concerned about his firm’s level of debt financing.…
A: Weighted average cost of capital (WACC) It is an enterprises average cost of capital from the…
Q: 5 YEARS Present Value Payment Amount Future Value Annual Interest rate Periods (number of payments)…
A: Annuity: It is a series of equal disbursements over a period of time occurring at regular…
Q: Questions a) Corporations do not receive any funds from investors when their bonds are re-sold in…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable…
A: To calculate the bond cost we will use the below formula Bond cost today = FV/[1+(r/m)]n*m Where…
Q: Compute the Asset Quality Index and select the best Answer: 12/31/2020…
A: The Asset Quality Index: The Asset Quality indicates the relative increase or decrease in the…
Q: Dosky expects to receive GHȼ300, GHȼ500, GHȼ1000 and GHȼ1500 in year1,2,3 and 4 respectively. What…
A: Cash flow Year 1 = 300 Cash flow Year 2 = 500 Cash flow Year 3 = 1000 Cash flow Year 4 = 1500…
Q: A company estimates that it will have $402,330 in sales and $90,850 in operating costs annually.…
A: The cash flow statement (CFS) is a financial statement that outlines the movement of cash and cash…
Q: What is the present worth for the investment represented by the given cash flow? Interest is 12%.
A: Present Worthbis the sum of present value of cash flows discounted at the required rate of return.
Q: 1. . Identify the given statement whether simple annuity or general annuity. A. Installment…
A: The simple annuity is which payment and interest compounding is same but in general annuity both may…
Q: Compute the mean return, variance, and standard deviation of returns, and the coefficient variation…
A: Formula to be used: Mean(X̄)=∑X/n Variance=∑ (X-X̄)^2)/n Standard deviation (SD)=√(∑(X-X̄)^2)/n…
Q: 4 years? What is the effective interest rate if the present worth factor is 0.6875
A: Present value factor is the factor used to convert a future cashflow to current terms. That is, when…
Please answer fast please arjent help please
Step by step
Solved in 2 steps
- Use the information below to answer the following questions.Present and future value tables of $1 at 9% are presented below. PV of $1 FV of $1 PVA of $1 FVAD of $1 FVA of $1 1 0.91743 1.09000 0.91743 1.0900 1.0000 2 0.84168 1.18810 1.75911 2.2781 2.0900 3 0.77218 1.29503 2.53129 3.5731 3.2781 4 0.70843 1.41158 3.23972 4.9847 4.5731 5 0.64993 1.53862 3.88965 6.5233 5.9847 6 0.59627 1.67710 4.48592 8.2004 7.5233 Marroquin Company can earn 9% on its investment and wants to have $100,000 in five years. How much should be invested now at 9% interest, compounded annually? Group of answer choices $64,993 59,600 59,627 91,743Four mutually exclusive alternatives are evaluated using three estimates or strategies (pessimistic, most likely, and optimistic) for several parameters.The resulting PW values over the LCM are determined as shown. The best alternative to select under the stated condition is:a. pessimistic: select alternative 2b. optimistic: select alternative 2c. pessimistic: select alternative 1d. optimistic: select alternative 4Given the following information, determine the beta coefficient forStock L that is consistent with equilibrium: r⁄L = 10.5%; rRF = 3.5%; rM = 9.5%.
- The single sum, present worth factor: a. Can be depicted as (1 + i)−n b. Can be depicted as (P|F i%,n) c. Is represented as PV using the Excel® financial function with −1 inserted for the fv parameter d. All of the above.The 4 mutually exclusive alternatives shown below are compared by the incremental B/C method. What alternative, if any, should be selected?Given the choice between two assets with standard deviations of 18.10% each, a return for asset A of 16.40% and a return for asset B of 17.20%, a rational investor would choose: A. asset B. B. either asset. C. asset A.
- Here are the estimated ROE distributions for Firms A, B, and C: Probability 0.1 0.2 0.4 0.2 0.1 Firm A: ROEA 0.0% 5.0% 10.0% 15.0% 20.0% Firm B: ROEB (2.0) 5.0 12.0 19.0 26.0 Firm C: ROEC (5.0) 5.0 15.0 25.0 35.0 Calculate the expected value and standard deviation for Firm C’s ROE. ROEA =10.0%, σA =5.5%; ROEB =12.0%, σB =7.7%. Discuss the relative riskiness of the three firms’ returns. (Assume that these distributions are expected to remain constant over time.) Now suppose all three firms have the same standard deviation of basic earning power (EBIT/Total Assets), σA = σB = σC =5.5%. What can we tell about the financial risk of each firm?find the trynors ratio for q and compare it to treynor ratio for m does this analysis indicate whether q is under priced, over priced or correctly priced Beta q= 1.25, rf= 2% rm=12% rq=13.5%Given the following information, calculate the expected value for Firm C's EPS. Data for Firms A and B are as follows: E(EPSA) = $5.10, and σA = $3.63; E(EPSB) = $4.20, and σB = $2.94. Do not round intermediate calculations. Round your answer to the nearest cent. Probability 0.1 0.2 0.4 0.2 0.1 Firm A: EPSA ($1.61) $1.80 $5.10 $8.40 $11.81 Firm B: EPSB (1.20) 1.30 4.20 7.10 9.60 Firm C: EPSC (2.59) 1.35 5.10 8.85 12.79 E(EPSC): $ You are given that σc = $4.12. Discuss the relative riskiness of the three firms' earnings using their respective coefficients of variation. Do not round intermediate calculations. Round your answers to two decimal places. CV A B C The most risky firm is .
- How is the present value factor of r=8% and n=10, 6.71?Let each decision variable, A, P, M, H, and G, represent the fraction or proportion of the total investment placed in each investment alternative. Max 0.073A + 0.103P + 0.064M + 0.075H + 0.045Gs.t. A + P + M + H + G = 1 0.5A + 0.5P - 0.5M - 0.5H <= 0 -0.5A - 0.5P + 0.5M + 0.5H <= 0 -0.25M - 0.25H + G >= 0 -0.6A + 0.4P >= 0 A, P, M, H, G <= 0 a. What fraction of the portfolio should be invested in each type of security (A, P, M, H, G)?b. How much should be invested in each type of security?c. What are the total earnings for the portfolio?d. What is the marginal rate of return on the portfolio? That is, how much more could be earned by investing one more dollar in the portfolio? *Please use excel solver & show all steps**Which of the following would be considered the weakest current ratio? A. 0.25 B. 1 C. 1.35 D. 1.9