an you describe with examples of the advantages and disadvantages of ratio analysis?

Q: About market efficiency, which of the following statements is right: a. In a highly efficient stock…

A: Market Efficiency refers to the level up to which the market prices of the stock match all the…

Q: a) What is the nominal weighted-average cost of capital (WACC) for this project? b) As CFO, do you…

A: WACC The Weighted Average Cost of Capital (WACC) shows the after-tax cost of capital from all…

Q: The Capital asset Pricing Model (CAPM) contends that there is systematic & unsystematic risk for an…

A: Total risk of a portfolio consists of systematic risk and unsystematic risk. Systematic risk   also…

Q: You read in The Wall Street Journal that 30-day T-bills are c n-law, a broker at Kyoto Securities,…

A: The yield on the the treasury bills are considered to be the risk because they are issued by federal…

Q: Mina borrowed Php 10,000 from a financing institution which agreed to charge an annual simple…

A: Note: It has been assumed that the given options are just the choices given with positive numbers…

Q: Using the information provided in the pictures: Let’s assume, you want to construct a portfolio of…

A: Optimal Portfolio Allocation: The optimal allocation between risk-free assets and a risky portfolio…

Q: A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $320;…

A:

Q: Jacques borrowed from a bank and wants to start paying P50,000 annually at the end of th 4th year.…

A: Loans are paid by the annual payments and these payments carry the payment for interest and payment…

Q: Suppose you want to withdraw $30,000 at the end of year 3 and another $30,000 at the end of year 5.…

A: Solution:- When some amount is deposited somewhere, it earns interest on it. The amount initially…

Q: Problem 2 Assume that it is now January 1, 2022. On January 1, 2023, you will deposit Rs 1,000 into…

A: When interest is calculated on the principal amount every year it is known as simple interest.…

Q: Companies sometimes consider stock splits to bring down the price so that the stock attracts more…

A: The stock split refers to dividing the existing number of shares into more shares. The stock split…

Q: There are 10 solar panels (each of 2MW), and the following information is about them. The solar…

A: The NPV analysis is conducted to measure a project's profitability. It uses the concept of TVM to…

Q: A firm has a long-term debt-equity ratio of 0.4. Shareholders’ equity is $839,800. Current assets…

A: Solution:- Total debt ratio means the percentage of total debt in the total assets of the entity.…

Q: 3. s) Maggie deposited $X into fund A and $2X into fund B. Fund A earns interest at 8% effective…

A: The time value of money is connected to the current value of money and the future value of money.…

Q: Which one is most correct about AFN (additional fund needed) A. AFN > 0 happens when a firm exhausts…

A: External funds needed: When a firm needs to expand to increase its revenues, it needs to increase…

Q: 7. Sarah has an annual expenses of $625 for life insurance, a semi-annual car insurance premium of…

A: Annual expense of life insurance shall be divided by 12, semi annual car insurance premium shall be…

Q: Musashi and Rina are building their portfolios. Musashi purchases shares in a mutual fund and pays…

A: Stock market is a place where the sellers and buyers of stocks exchange money. Stock portfolio is…

Q: Monster Limos plans to issue new bonds that have the same yield as its existing bonds, which have a…

A: Yield to maturity (YTM) If coupon is paid semiannually, then semiannual YTM, considering total…

Q: You want to have $46,000 in your savings account 6 years from now, and you're prepared to make equal…

A: Annuity is a series of payments being made in order to receive more value in future. Under ordinary…

Q: What is the future value of $800 in 24 years assuming an Interest rate of 10 percent compounded…

A: Time value of money concept says that amount invested today will have more value in future due to…

Q: Suppose that an annuity will make annual payments of 4200 dollars apiece (starling a year from now),…

A: Here, To Find: Final Partial Payment =?

Q: Penalty APRS and When it Applies Prime Rate. This APR may be applied to new purchases and balance…

A: Credit cards: Credit cards are pre approved loans from banks for a approved limit of loan. Credit…

Q: As part of its environmental strategy, the Antland government wishes to reduce the annual…

A: Price elasticity of demand measures the percentage change in quantity demanded/consumed when there…

Q: 29. Qualified accountants have superior knowledge of tax and financial reporting. What sort of…

A: First, let us define each of the options given: Coercive power is the power to convince someone to…

Q: A hardware store purchased a tool at P20,000 per unit. At what price should the tool be sold so that…

A: Profit is made when a business entity sells an item to any other party. Profit amount is the selling…

Q: Moxabl Inc. plans to buy land and build an assembly line for its expansion. The anticipated total st…

A: Land and Structures cost  $                             6,50,000.00 Monthly Saving  $…

Q: Chik’s Chickens has average accounts receivable of $5,533. Sales for the year were $9,000. What is…

A: Average collection period is the days taken by the firm to collect the payment against its account…

Q: Please calculate the NOWC.

A: Information Provided: Cash Balance = $200,000 Accounts Balance = $500,000 Inventory Balance =…

Q: Determine the effective annual yield for each investment. Then select the better investment. 6%…

A: 1. Nominal annual yield = 0.06 Semiannual yield (s) = 0.03 (i.e. 0.06 / 2) Number of semiannual…

Q: . A new computer is to be purchased for a lab. It costs $3,000. The software this machine needs will…

A: Years Cash flows 0 -3000 1 -230 2 -230 3 -230 4 -230

Q: Hanson corporation's present year ROE remained at last year's 14% level, while the profit margir…

A: Return on Equity = Profit margin*Asset turnover ratio*leverage ratio   Asset turnover ratio = Return…

Q: On March 1, Wayne Michaels bought 10 bonds from a particular company with a coupon rate of 9.325%.…

A: Coupon rate = 9.325% Purchase Price = 89.875 commission = $9

Q: How should the $70,000 be allocated to each alternative to maximize annual return? What is the…

A: As per the given information: Investment amount - $70,000 Return on instruments: Municipal bonds -…

Q: According to the simplified Brennan Lally CAPM, what is the cost of equity for A Ltd? Using the…

A: Risk free rate is 3% Tax adjusted market risk premium "TARMP" is 7.5% Corporate tax rate is 28%…

Q: Supppose you lend a friend $100 on January 1st, and in return she offers to pay you back $10 at the…

A: In the above question we are given that. Monthly payment from January 1st to January 1st of next…

Q: 1. Robert borrowed a certain sum of money from Joey on June 1, 1994 and signed a note promising to…

A: A promissory note is a financial instrument that is issued on a current date with a promise to pay a…

Q: 9. What is the payment commencing in month 49? 10. What is the loan balance at the end of 60 months?

A: A3/1 is the floating rate adjustable loan with the interest rate fixed for the first 3 years and…

Q: 21. Year 2 3 5 6 Machine A cash flow (GH) 15000 21000 32,000 35,000 40,000 43,000 Machine B cash…

A: The payback period is used to measure the time it takes a project to recoup its initial investment.…

Q: A northern California consulting firm wants to  start saving money for replacement of network…

A: Present Value - It is the value of future cash flows in present time, it can be calculated by…

Q: Year 0 1 2 3 5 6 7 8 9 Cash Flow -$950,000,000 190,000,000 215,000,000 225,000,000 285,000,000…

A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…

Q: 2. Company A contemplates on taking a project which costs Php5 M. The equipment to be purchased will…

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

Q: You find the following order book on a particular stock. The last trade on the stock was at $66.76.…

A: Buy Orders Sell Orders Shares Price Shares Price 250  $             66.75 250  $…

Q: A 210,000​$ issue of ten ​-year bonds redeemable at par offers 8.67 coupons payable monthly. What is…

A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…

Q: (Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: Trux Ltd is a listed company in the heavy vehicle industry. The market value of Trux Ltd's net debt…

A: Present Value  - This is the value of future cash flows in present time, it can be calculated by…

Q: 35. Oliver plc's IT function collects, organises and interprets very large sets of unstructured…

A: Oliver plc's IT function collects, organizes and interprets very large sets of unstructured data.…

Q: Monster Limos plans to issue new bonds that have the same yield as its existing bonds, which have a…

A: Given: Particulars Amount Face value (FV) $1,000 Present value(PV) 886 Coupon rate 4%…

Q: (Related to Checkpoint 5.4) (Present-value comparison) You are offered $100,000 today or $300,000 in…

A: Here, Present value (PV) = $100,000 Future value (FV) = $300,000 No. of years (NPER) = 13 years…

Q: Lever Age pays an 10% rate of interest on $10.20 million of outstanding debt with face value $10.2…

A: a) Times Interest earned = EBIT/Interest expense =1.2 million/(10.20 million * 10%) =1.2…

Q: (Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay…

A: Data given: rate=8% FV=$4000 nper =32