Assume the money earns 7% interest, compounded quarterly

Q: t 14.4.1. This conspiracy to raise prices violates the anti combine law because

A: This conspirancy to raise prices viloates the anti combine law because    Here Price is changes , re...

Q: What are the holding period and the annualized compounded returns if you buy a stock for $40 and sel...

A: Holding period return is the total percentage return on an investment over a period of investment. T...

Q: Island Water Taxi has decided to lease another boat for four years rather than finance the purchase ...

A: Lease liability = $55000 n = 4 years = 48 months r = 8.7% per annum = 0.725% per month Let lease pay...

Q: What are the signals of the financial distress that we can look for in the Annual Comprehensive Fina...

A: Financial distress is a condition in which a company or individual is unable to generate sufficient ...

Q: vo categories of cash flows: single cash flows, referred to as "lump sum:

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

Q: a. Compute the net present value of each project. Which project should be adopted based on the net p...

A: Net present value is the result arrived at by subtracting the total outflows in year 0 (or initial i...

Q: 4. When an organization underwrites and distributes new investment securities to helps businesses ob...

A: Business raises finance from various sources such as equity , bonds loans etc to meet its business o...

Q: Which of the following statements is false?     A.   Historical VaR simulation involves using pa...

A: The financial term Value at Risk (VaR) estimates the risk of an investment. VaR is a statistical tec...

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed a...

A: Concept NPV is difference between present value of cash inflows and initial investment. It is used i...

Q: Jana, now 23 years old, is a grade school teacher in Batangas City. She has been invited by her high...

A: A deposit or payment of equal amount of money at equal intervals of time is called annuity. Insuranc...

Q: What does the financial breakeven point shows?

A: A breakeven point is a situation of no loss no profit. The breakeven point is generally calculated a...

Q: Fiscal year is January-December. All values PHP Millions. 2020 2019               Cash & Short Term...

A: Working capital management is defined as the business strategy, which helps in ensuring the company ...

Q: 1. In buying a car, Amiel pays P 210,000.00 cash and agrees to pay P790,000.00 for 4 years at 12% in...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: Anle Corporation has a current stock price of $19.49 and is expected to pay a dividend of $1.25 in o...

A: Equity cost of capital = (Expected stock price after dividend + Dividend - Current stock price) / Cu...

Q: You just received an inheritance of $123,456. How long would you need to leave it in an RRSP earning...

A: Here, Inheritance Amount is $123,456 Monthly Payment for 20 years is $800 Interest Rate is 2.5% Comp...

Q: current position of

A: A call option is a financial contract that provides the buyer to buy the right but does not provide ...

Q: Which arrangement of the different modes of financing appropriately reflects the related cost of cap...

A: Highest cost capital modes of fiannacing is cost of equity.  

Q: A stock currently pays a $3 dividend out of $9 of earnings (EPS). If earnings (EPS) are expected to ...

A: Dividend is the return that a shareholder gets from investing the money in the shares of the company...

Q: Soprano's Spaghetti Factory issued 26-year bonds two years ago at a coupon rate of 7.50 percent. If ...

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to finan...

Q: eBook Problem 16-07 Assume that the rate of inflation is 5 percent and continues indefinitely and t...

A:  Future Value refers to the value of the current asset or investment of cash flows at a specified in...

Q: A government bond pays coupons at an annual rate of 6%. It has a nominal value of K100 and it will b...

A: Dirty price of a bond The bond price is called dirty price when it included the accrued interest. Ac...

Q: What is the difference between a budget deficit and a budget surplus?

A: A budget deficit is when the expenses outweigh the revenue brought in by a project. Conversely, a bu...

Q: Duration is a measurement of a bond’s interest rate risk. It is also referred to as the responsivene...

A: Bond duration or duration of the bond means the price sensitivity of the bond when the interest rate...

Q: When you were at lunch, you overheard a heated conversation between two employees of Big Rock. One w...

A: When an investor invests in a fund then he or she needs to know how their investment is performing a...

Q: Consider a portfolo consisting of the following three stocks: E The volatility of the market portfol...

A: Beta is used as a measure of systematic risk in the CAPM model. It provides a direct relation betwee...

Q: Consider a forward contract that expires in 9 months. The underlying asset is worth $250 and the for...

A: Underlying price (S) = $250 r = 8% n = 9 months = 0.75 years

Q: How is risk defined and measured? How might the magnitude of the market risk premium impact someone’...

A: In financial terms, the risk is referred to as the possibility that an outcome's actual gains will d...

Q: Why do maximizing EPS and maximizing value not necessarily lead to the same conclusion about the opt...

A: Earning per share or EPS is referred as the net profit of the corporation, which are divided through...

Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years fo...

A: The required return on the stock represents the total return earned on the stock. This return is con...

Q: PLEASE don't use excel for this. Show the solution with formula needed. COMPOUND INTEREST 1. When co...

A: Solution:- When an amount is deposited somewhere, it earns interest. The amount invested initially i...

Q: DFB, Inc. expects earnings next year of $5.99 per share, and it plans to pay a $4.36 dividend to sha...

A: EPS1 = $5.99 D1 = $4.36 Let p = Payout ratio ROE = 14.8%

Q: The current price of a stock is £205 and the annual continuously compounding risk-tree rate is 3%. A...

A: Here, Current Price of Stock is £205 Risk Free Rate is 3% Compounding is Continuous Compounding Firs...

Q: The value of a large piece of equipment decreases from OMR 185,000 to OMR 95,000 in six years. If th...

A: Solution:- Exponential decrease rate means the rate at which the value is decreasing consistently fo...

Q: A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan...

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that includ...

Q: 4. _______ is the act of paying out includes money paid out to run a business, cash expenditure and ...

A: Disbursement – it means paying out. It can be used to describe money paid into running a business bu...

Q: The effective cost of the preference share is closest to * a. 8.40% b. 7.50% c. 9.40% d. 5.88%

A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in...

Q: 2. An investment of P3,000,000.00 earns interest of 9% compounded continuously. What is the effectiv...

A: Solution:- Effective rate of interest means the net annual interest rate after effect of all the com...

Q: The Macaulay duration is the weighted average number of coupon periods until a bond’s scheduled cash...

A: Macaulay Duration: It is used to calculate the duration of bonds, which is a measure of the sensitiv...

Q: If Average assets and capital are 900,000 and 540,000, respectively, with a net income of 47,520, wh...

A: Return on equity is a type of financial ratio of a company. Return on equity is a performance measur...

Q: EMC Corporation's current free cash flow of $370,000 and is expected to grow at a constant rate of 6...

A: Value of operations = FCF*(1+g)/(k-g)   Where FCF = Free cash flow current g = growth rate k = Cost ...

Q: Which one is LEAST likely to be considered in developing financial strategies? a. Investment and gr...

A: Financial strategy of a company or an organization is concerned with the procurement of funds and th...

Q: Find the amount (future value) of the ordinary annuity. (Round your answer to the nearest cent.) $1...

A: Given that  P=$1300 t= 7 Years Compounded semiannually = 7*2=14 r=4.5%=0.045

Q: sent worth of income from an investment that follows an arithmetic gradient was projected to be P 47...

A: Gradient mean that there is constant growth of annuity by the fixed interval and in this we need to ...

Q: How much can a construction company afford to spend now on new equipment in lieu of spending 300,000...

A: Solution:- Amount which is to be paid today = Present value of future payments discounted at the giv...

Q: Harper Electronics is considering investing in manufacturing equipment expected to cost $250,000. Th...

A: Capital Budgeting methods: Managers use several capital budgeting methods while evaluating investmen...

Q: draw the cash flow tnx.

A: The present value is the total value of the future payment series you must have now. For example, if...

Q: compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much w...

A: Future value: It represents the future worth of the present sum of money. The future value is compu...

Q: The financial breakeven point of Soil Inc. is P90,000, while the tax rate applicable to the company ...

A: At financial breakeven point, EBIT level is such that net income is zero. EBIT = P 90000 Tax rate = ...

Q: A finance company paid a merchant $3,975 for a conditional sale contract after discounting it to yie...

A: The value of payment or receipt to be executed in future at present time is called the Present Value...

Q: 3. Although Mutual funds and Hedge funds are traded on exchanges regulated, they are not

A: Both hedge funds and mutual funds are made of pooled funds and have portfolios that need to be manag...