Bob Katz would like to save $250,000 over the next 25 years. If Bob knows today that he will be given $150,000 in 15 years as part of an inheritance, how much would Bob need to save annually over the next 25 years assuming he earns 4% interest?

Q: . A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To accu...

A: When a number of payments or receipts of equal amount is made at equal intervals of time, it is call...

Q: 14 Zoom has inventory turnover of 4x, it has sales of $300,000, in addition it has current assets of...

A: Current assets = $270,000 Current liabilities = $80,000 Inventory turnover ratio = 4x Sales = $300,0...

Q: Bond J has a coupon of 6.4 percent. Bond K has a coupon of 10.4 percent. Both bonds have 20 years to...

A: Here,

Q: William's student loan of $24,500 at 3.22% compounded quarterly was amortized over 6 years with paym...

A: The present value of loan is equal to the sum of the present values of all future monthly installmen...

Q: What is the possible suggestion of the Accountant or Financial Officer to the owner of the company, ...

A: The first priority of a company should be to pay off all the debts, as paying off debts saves intere...

Q: 16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has RO...

A: Net income = $350,000 Interest expenses = $112,000 ROA = 8% Tax rate = 30%

Q: You receive a tax slip from your Canadian mutual fund showing $1,000 of capital gains, $100 of divid...

A: Capital gains and dividend income show that the equity investment is made through the fund.

Q: Daisy invested 37000 Australian dollars (AUD) in a fixed deposit account with an annual a) 37000 x (...

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...

Q: Ronda wants to buy a new house. She makes S200,000 per year at her job and can put S70.000 a year in...

A: Return on investment or ROI is referred as the performance measurement, which helps in evaluating th...

Q: What deposit made at the beginning of each month will accumulate to $120,000 at 30% compounded month...

A: The deposit amount can be calculated with the help of future value of annuity due function

Q: Assume you are the CIO (chief investment officer) for Dragon Industries, LLP (LLP stands for Limited...

A: Expected Return: The expected return is the minimum required rate of return which an investor requir...

Q: 5. When an organization underwrites and distributes new investment securities to helps businesses ob...

A: The business obtains finance by issuing securities and bonds to meet the objectives of the business

Q: If the interest rate is 12% per year compounded annually, a) what is the equivalent present worth of...

A: The present worth analysis is an analysis which takes into account the present worth of the benefits...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: The cost of equity is the return that an investor requires for investing his money in an entity. The...

Q: 24. Namak Co. has an ROE=20%, TATO = 2.5, Equity multiplier of 3, and sales =$30,000. Calculate the ...

A: Sales = $30,000 TATO = 2.50 Equity multiplier = 3 Equity = (Sales/TATO)/Equity multiplier           ...

Q: 2. RIM Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing ...

A: Based on the data mentioned in the problem we will calculate the amount of interest to be booked in ...

Q: firm considering the installation of an automatic data processing unit to handle some of its account...

A: The equipment can be purchased by cash payment but may be leased also by payment of lease which give...

Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was purc...

A: Par value (FV) = $14,500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 = $420.5...

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: The following statements relate to long-term financing. Which is true? a. The risk on any type of e...

A: Long term financing Long term financing is a financing that has the maturity more than a year.

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Given: Cost of machine = $80 Million Working capital = $20 Million Tax rate = 30%

Q: A family friend has asked your help in analyzing the operations of three anonymous companies operati...

A: The return on investment is a measure which shows the return that a company will earn on its investm...

Q: Discuss concentrating banking

A: A concentration bank is a financial institution that acts as the primary bank for a company. A conce...

Q: Find the nominal rate which if converted quarterly could be used instead of 12% compounded monthly.

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...

Q: If an individual stock's beta is higher than 1, that stock is riskier than the market

A: If individual stocks beta greater than 1 has risker than market and more volatile.  CAPM cost of equ...

Q: Carnes Cosmetics just paid a $5 dividend. Company sales are falling, as the industry is slowly decli...

A: Share price Share price is the current market price of the share. It is the price of the share at wh...

Q: what is the stock market, and why is it important?

A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of e...

Q: Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formul...

A: An Annuity:- An annuity is a fixed amount of perodic payment that an individual receive or pay for a...

Q: Regular investments made at the beginning of each quarter earn 6.4% compounded quarterly. How many m...

A: Payments are made at the beginning, hence this is an annuity due. Quarterly payment = Q r = 6.4% per...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Given: Cost of machine = $80 Million Working capital = $20 Million Tax rate = 30%

Q: 31. Flyers plc operates public transport services in major cities in the United Kingdom (UK). The co...

A: Capital budgeting decisions are investment appraisal decisions that are taken to attain the profitab...

Q: 5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the ...

A: Annuity can be defined as a series of payments or receipts of equal amounts of money at equal interv...

Q: Studies concluded that college graduation is a very good investment. Suppose a college graduate make...

A: Expected value of college graduation can be found using the earnings average and percentage given. S...

Q: Currently, Sky corp. has a capital that is 70% equity funded. The company has a 30% tax rate. The be...

A: There are two types of risk for a company, which are business risk and financial risk. Levered beta ...

Q: How can we reduce this risk in financial reporting process? "Are redundant and out-of-date informat...

A: Financial reporting is a typical accounting approach that uses financial statements to convey a comp...

Q: Calculate the missing information based on the format of the income statement. Net sales : $4,236,00...

A: Net Sales are of $4,236,000 Gross margin is of $1,830,000 Net profit of $659,500   To Find: Cost of...

Q: Nigel is considering an investment in split shares of SPL Corp. The company has been in business for...

A: Types of shares and their characteristics: A company can issue two types of shares. They are: Commo...

Q: On January 1, 2016, Saul Company issued convertible bonds with a face amount of P 5,000,000 for P 6,...

A: Bond premium The bond premium is the excess paid amount over the par or face value for the bond. It ...

Q: A project has the following cash flows. What is the internal rate of return? Years Cash flow -$46.80...

A: Solution:- Internal Rate of Return (IRR) is the rate of return which the bank is yielding. At IRR, N...

Q: If Maria wants to be a millionaire ($1,000,000) by the time she retires (45 years from now), how muc...

A: Future value (FV) = $1,000,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4% Period =...

Q: Mr. Sanchez's new machine has been installed. Based on the contract and warranty, there will be no m...

A: Here, Life of Machine is 16 years Maintenance Cost for first 2 years is $0 Maintenance Cost from 3rd...

Q: a. What price would you be willing to pay for a share of Acap stock today. you planned to hold the s...

A: Dividend discount model refers to a stock valuation model which is used by the company for estimatin...

Q: A loan in the amount of $10,000 is being paid back with monthly payments of $1800. Determine the fol...

A: Here, Loan Amount is $10,000 Monthly Payments is $1,800

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: f Average assets and capital are 900,000 and 540,000, respectively, with an ROE of 0.046, how much i...

A: Average Assets are 900,000 Capital is 540,000 ROE is 0.046  

Q: capital investment:

A: Capital investment refers to acquiring physical assets for the further use of achieving long-term bu...

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be earn...

A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of annuit...

Q: 18. A man will deposit 200 with a savings bank at the beginning of each 3 months for 9 years. If the...

A: Question 18 pertains to annuity due. Annuity due is that annuity in which payments are made at the b...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Formula's Calculations:

Q: A tenter with $ 1189.08 has a one year lease. The landlord is willing to accept two payment options....

A: Present value of annuity due = $1189.08 Monthly payment (M) = $100 Let r = Monthly interest rate n =...

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.