Correlations change over time. Assets more strongly positively correlated wh market crashes, and less positively co the market booms. In your opinion, hc time-varying correlations would affec berformance of the market portfolio?

Q: Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 Accounts receivable 100000 Accr...

A:

Q: per must choose between two projects: In Project A, she would build an apartment building for $200 ...

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Q: 6. A P10,000, 8% bond pays dividends semi- annually and will be redeemed at 110% on April 29, 2027. ...

A: Here,

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A: Given, The loan amount is $16,278.13 Down payment is 10%Rate of interest is 11.5%.

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

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A: Loan (L) = P 40000 n = 5 years = 60 months Interest rate = 8% quarterly compounded Let r = Monthly i...

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A: Solution:- As per the various dividend theories, if the expected returns of a project exceeds the co...

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A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: Find the interest rate for a $9000 deposit accumulating to $11,517.62, compounded quarterly for 9 ye...

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A: M&M theory states that the capital structure of a company does not have affect in its overall va...

Q: You are an engineer proposing a potential investment and your company requires you to develop a cash...

A: Here, Initial Investment is Php 500000 Annual Revenue is Php 100000 Annual Expenses is Php70000 Mark...

Q: Balance sheet Assets (in KD) Liabilities (in KD) Cash 263854 Accounts payable 80000 Accounts receiva...

A: Solution:- Quick ratio measures the ability of the company that how efficiently the company can pay ...

Q: For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, ...

A: WACC is the weighted average cost of capital of the capital sources of a firm. It includes equity, d...

Q: A share of Fantastic Four sells for $85. A call on its share with exercise price of $80 sells for $6...

A: Share price refers to the price of each share of shareholder’s equity or it is the cost to purchase ...

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A: Fist we need to do a trend analysis in the sales of last 4 years. If growth rate is near to 12% than...

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

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A: Taxes and Insurance = 3% Interest Rate = 16%    

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A: Currency board is one of the way to manage the exchange rate and foreign currency and supply of fore...

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A: Given, Quarterly payment is $580 Number of years is 12 Rate is 4.4% compounded quarterly.

Q: A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4% ...

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Q: A loan, amortized over 15 years, is repaid by making payments of $1,900 at the end of every month. I...

A:

Q: ABC Co. wants to have a weighted average cost of capital of 10 percent. The firm has an aftertax cos...

A: Cost of capital = (After tax cost of debt x Debt ratio) + (Cost of equity x Equity ratio)           ...

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A: A measure of relationship between two variables is called coefficient of correlation. It gives a mea...

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A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: O s28 million O $12 million O Zero

A: Cost of acquisition is the amount paid above the value of company.

Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two ...

A: We need to calculate present value of both options by using present value of ordinary annuity formul...

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A: Dividend in Year -1 is $2 Growth rate in Year -2 is 15% Growth rate in Year -3 is 18% Required rate ...

Q: Find the balance of the account earning compound interest annually $7000 at 2% for 4 years. S7000 at...

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Q: If you take corporate taxes and the cost of financial distress are into consideration, the market va...

A: The cost of conducting business that a company in financial crisis faces, such as a greater cost of ...

Q: Stream Tube made $15 billion worth of revenue this year. The total market for streaming television s...

A: Solution:- Market share means the proportion of a company in the entire industry.

Q: 1. What nominal rate compounded semiannually is equivalent to 8% compounded Quarterly?

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

Q: why is knowledge of the money market important for carrying out value maximizing working capital sho...

A: The money market is important for the organizations and the government to keep a smooth cash flow op...

Q: Which do you prefer: a bank account that pays 5.3% per year (EAR) for three years or a. An account t...

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Q: Joey is considering investing P200,000 in an investment that will have a maturity value of P1,000,00...

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...

Q: c) Suppose you observe the following three bonds. Assume that all bonds are denominated at $100 face...

A: Bonds are the debt securities which are issued by the corporations or the government to arrange the ...

Q: Assets (in KD) Liabilities (in KD) Cash 263854 Accounts payable 80000 Accounts receivable 100000 Acc...

A: To Find: Quick ratio

Q: Based on SME’s financial statements, what is its average collection period or DSO

A: Receivables days means the average number of days a company takes to collect receivables from its cr...

Q: You have 3 projects with the following cash flows: Year 1 4 Project 1 Project 2 Project 3 - $150 $18...

A: Net present Value or NPV is the present value of all the expected cashflows. NPV is an cashflow that...

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A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either r...

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A: Risk Free Rate = 1.94% Stock Market Return = 5.4%

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

Q: How long will P15 000 be P24 000 if invested at 10 % simple interest?

A: Principal (P) = P 15000 Final value (F) = P 24000 r = 10% simple interest Let n = Years to accumulat...

Q: Diane Wallace bought a​ living-room suite on​ credit, signing an installment contract with a finance...

A: Principal amount refers to the amount of money that is borrowed from the lender and is also the amou...

Q: A $10000 15-year bond is priced to yield at 12% compounded quarterly. It has quarterly coupons of $2...

A: Face Value = $10,000 Time Period = 15 Years Yield = 12% compounded quarterly

Q: If P25, 000 is deposited now into a savings account that earns 6% per year, what uniform annual amou...

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at pre...

Q: "If the nominal rate is 12% compounded semi-annually, the annual percentage rate is higher than the ...

A: The annual percentage rate is is nominal rate of interest I.e. 12%

Q: BUG's stock price S is $108.67 today. It pays dividend of $0.5 after two months an- $0.6 after five ...

A: The forward price of forward contract will includes the value of dividends and future value of stock...