Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 percent, the future value of the bond (the amount the bond pays in one year) is * P1,560.00 P1,540.00 P1,440.00 P1,442.31

Q: You invest $900 in stock A and $900 in stock B. If you earn 10 percent on stock A and 5 percent on s...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: A mechanical engineer designs and sells equipment that automates manual labor processes. He is offer...

A: The defender is the old equipment or product currently used by the company and might use for more se...

Q: LLL Company is listed on its country’s stock exchange. The following individuals serve on the board ...

A: The board of directors of a company constitute sub committees which play an important role in corpor...

Q: annually. Payments will be made at the end of each year. Find the total value of the annuity in 16 y...

A: Future Value of Annuity: It represents the future worth of the present annuity cash flow stream. It...

Q: You are planning to accumulate P2.5M in your personal savings account by the time you retires at 60....

A: Each year deposit earn the some portion of interest and it is compounded annually. 

Q: A project requires an initial outlay of $80000 and produces a return of $20000 at the end of year 1,...

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

Q: Dahlia is in the 32 percent tax rate bracket and has purchased the following shares of Microsoft com...

A: Date Purchased Shares Basis Cost per Shares 7/10/2011 580 $27,840 $48.00 4/20/2012 480 $25,824 $...

Q: Assume that 25 years ago your dad invested $300,000, plus $34,000 in years 2 through 5, and $49,000 ...

A: The theory of time value of money is that the value of a certain sum of money received today is wort...

Q: your required return is 7.32% how would adding ETFS with average annual returns that are expected to...

A: ETFs or exchange traded fund  is a pool of securities like bonds, stocks, commodities, etc. ETF or e...

Q: 8. The December 31, 2019 income statement for App Inc. reported $3.5 million of net income, and its ...

A: The statement of retained earnings is one of the financial statements prepared by a firm that reconc...

Q: Compute the capitalized cost of a new car worth P800,000.00 if it is estimated that it requires P20,...

A: New car cost (C) = P 800000 Annual cost (A) = P 20000 Salvage value (S) = P 300000 n = 5 years r = 1...

Q: certificates of deposit (CDs), earn interest compounded each day or even more frequently, such as ev...

A: Future value includes the amount deposited and the compound interest accumulated over the period of ...

Q: An individual decides to invest in one of two projects, A and B, which both require the same initial...

A: Here, Initial outlays of both Projects A and B = $10,000 Yields from Project A = $11,500 Number of y...

Q: resale lvaluue of a What is the rate of depreciation (in $ per year) after 5 years? Icar arter t yea...

A: Time Period = (t=5) Resale Value R(t) =300,000 e-0.1t 

Q: Any manufacturing company has costs which include fixed costs such as plant overhead, product design...

A: Solution:- Break-even point is the point where the entity is at the situation of no profit, no loss....

Q: What is the future worth of a series of equal year-end deposits of $3,000 for 15 years in a savings ...

A: Given in the question, Deposit (p v) = $3,000 Time = 15 years Interest = 9% We have to find the Futu...

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: Anderson Steel Company began 2021 with 570,000 shares of common stock outstanding. On March 31, 2021...

A: Basic earnings per share Basic earnings per share is calculated considering the outstanding shares b...

Q: What is the relevance of personal financial planning in a daily life of a student? And what is the s...

A: Financial planning is a systematic approach to achieving one's life goals. As you travel through lif...

Q: has made the decision to finance next year’s capital projects through debt rather than additional eq...

A: Step 1 Taking out debt is nearly always a better alternative than putting your firm up for sale. By ...

Q: Bond valuation An investor has two bonds in her portfolio, Bond C and Bond Z. Each bond matures in ...

A: Bond C coupon (C) = 11% of $1000 = $110 Face value for both bonds (F) = $1000 r = 9.2% Let n = Years...

Q: project requires $ 80,000 end produces a A on Pnitial out lay of return of $20,000 end of year 1 , $...

A: Initial outlay (CF0) = $80,000 Year 1 cash inflow (CF1) = $20,000 Year 2 cash inflow (CF2) = $30,000...

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

A: Initial Investment = $100 million Market price of share = $500 Dividend = $4 Growth rate = 9% Number...

Q: Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. ...

A: Shares Outstanding = 2,500,000 Share Price = RM45 per share

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...

A: Loan amount (PV) = $30000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1% Period = 10 Ye...

Q: If P500.00 is invested at the end of each year for 6 years at an annual interest rate of 7%, what is...

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

Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposi occ...

A: The today value is the present value of annual series considering the interest rate and given period...

Q: A successful investor has decided to set up a scholarship fund for deserving students at her alma ma...

A: The annual scholarship to be paid there should be sufficient amount today considering the interest r...

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

A: OCF is the operating cashflow of a company. It is the cash generated from normal business operations...

Q: What is LVMH's capital structure? If it has debt, will it be able to generate the future required ca...

A: With all the analysis, we can conclude that LVMH is harmless. Its market value is said to be rising ...

Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...

A: 2020 Net income = P200,000 Net sales = P5,050,000 2021 Net income = P225,000 Net sales = P7,000,000

Q: Find the periodic payment R required to amortize a loan of P dollars over t years with interest char...

A: The periodic amount will be found using excel’s PMT function. It is the minimum amount that must be ...

Q: stock. The required return on this stock is 13 percent. What will your capital gain and capital gain...

A: The capital gain is the increase in price of stock due to the dividend and dividend growth rate and ...

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

A:

Q: The management of Russel Ltd. is trying to decide whether it can increase its dividend. During the c...

A: The net cash flow (FCF) represents the cash generated by a company after considering cash outflows t...

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O, 0...

A: The payment flow which continues for a definite time period and terminates after lapse of time perio...

Q: The minimum required return by Cross-Ocean’s debtholders. 2.    The minimum required return by Cro...

A: Minimum Required Return: It represents the minimum return expected by the investors for investing i...

Q: Find the present value of the given future amount.

A: Present Value: It represents the present value of the future sum of the amount. It is computed by d...

Q: 18. TSE has an equity multiplier of 1.88, and its assets are financed with some combinations of long...

A: Equity multiplier = 1.88

Q: 10.4 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Proje...

A: Since question involves multiple subparts , We will answer 1st sub 3 parts for you as per prescribed...

Q: how the Du Pont system of analysis breaks down return on assets. Also explain how it breaks down ret...

A: Du pont system Return on equity = net profit margin×asset turnover× financial leverage 

Q: Huang Industries is considering a proposed project whose estimated NPV is $12 million. This estimate...

A: Given, The NPV of the project with different probabilities.

Q: Bob and Jane are competitors in the grocery store market and each is trying to decide if it is worth...

A: Answer -  According to game theory, the dominant strategy in game theory refers to a situation where...

Q: Calculate the total amount paid for Mortgage A. Calculate the total interest paid for Mortgage A. Ca...

A: Home loan mortgages are paid on a  monthly basis.  During the initial years interest amounts are hig...

Q: A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due...

A: We need to use the concept of time value of money here. We will first have to find the amount at the...

Q: What is the monthly interest rate for a fixed interest rate of 12% per annum? Choices: 1% 12% ...

A: Annual Interest rate = 12%

Q: FRO082 (7% coupon, paid semi-annually) will mature on September 15, 2030. If you buy this bond on Ma...

A: Cash Flow at the time of maturity = 100 Interest (Annuity) semiannually = (100 * 7%) * 6 / 12 = 3....

Q: nas is bonds mature annually at the rate of P1,000,000 on February 1, 2022 and every year thereafter...

A: Amortization is an accounting technique used to reduce the value of a loan or immovable asset over a...

Q: Over the past 10 years, the dividends of Party Time Inc. have grown at an annual rate of 16 percent....

A: Current (D0) dividend  $                  2.70 D(1) 3 Growth rate for 2 Years 13% Growth rate ...

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: