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Q: identify and explain four advantages and four disadvantages of e-wallet

A: The question is based on development and usage of e-wallet . E-wallet is a digital payment system.

Q: The Estrella-Pantaleon Bridge connecting Estrella, Makati City to Barangka Drive in Mandaluyong is a...

A:   Initial Cost is the cost that is incurred during the design and construction process.

Q: Justify favouring shareholders’ wealth maximisation over profit maximisation as the goal of a firm w...

A: Profit maximization refers to maximizing rupee/dollar income of the firm. Shareholders’ wealth maxim...

Q: You are considering investing $4,000 at an interest rate of 5% compounded annually for five years, o...

A: Compounding means earning interest on the interest received. Simple interest only pays interest on t...

Q: A company has 15-year bonds with a $5000 maturity value and a quoted coupon rate of 14% paid semiann...

A: PRICE OF BOND CAN BE CALCULATED USING FOLLOWING FORMULA: PRICE OF BOND=Par1+rn+C×1-11+rnr where, r =...

Q: This table shows the U.S. federal income tax rates from 2014. (Source: Internal Revenue Service) Rat...

A: Federal tax will be paid on taxable income as per the applicable rates for applicable status. Here, ...

Q: Suppose you want to have $800,000 for retirement in 35 years. Your account earns 4% interest. How mu...

A: Using excel PMT function to calculate the monthly deposit.

Q: Gabriele Enterprises has bonds on the market making annual payments, with seven years to maturity, a...

A: Coupon rate = coupon amount / Face value 

Q: When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday f...

A: Annual savings refers to the amount that that has been saved by the person from their income or earn...

Q: Laurel, Inc., has debt outstanding with a coupon rate of 6.1% and a yield to maturity of 7.2%. Its t...

A: Effective after tax cost of debt = Before tax cost of debt (YTM) * (1- tax rate)  

Q: You purchase 100 shares of stock for $42 a share. The stock pays a $2.5 per share dividend at year-e...

A: Purchase price of stock=$42Dividend=$2.5Ending stock price=$45Inflation rate=4%

Q: EPS and merger terms Expanding Corporation is interested in acquiring Target Company by swapping 0.4...

A: The merger is the process of collaborating two or more individual corporate entities into one entity...

Q: State of economy Probability Rate of returns     Stock A Stock B Stock C Boom 0.35 0.24 0.36 0.5...

A: Expected return on portfolio = weight of stock A * return of stock A + weight of stock B * return of...

Q: Mutual Fund A returns 13% over the past year and had a standard deviation of 11%. The risk freeretur...

A: Sharpe Ratio is a measurement of the portfolio performance compared to the risk taken. It is quantif...

Q: A buyer purchased an item worth P10,000 with no down payment at 0.85% per month for 24 months. What ...

A: Using excel PMT function 

Q: y calculations and I cannot select n these two. What is my MARR? pur answer as a decimal number, wit...

A: PROJECT A  initial investment =5000 Annual cash flow =5000 Present value FACTOR =1-(1+r)-5/r initial...

Q: For the given cash flows, suppose the firm uses the NPV decision rule.   Year Cash Flow 0 ...

A: NPV of the project is the present value of future cashflows 

Q: 1. DPCL is a small-sized firm manufacturing hand tools. Its manufacturing plant is situated in Sohar...

A: Net present value is the net present worth of a project computed by the concepts of the time value o...

Q: Discuss on how a bond issuer decides on the appropriate coupon rate to set on its bonds.

A: Definition  Bond issuer : In simple words, A bond  issuer can be understood as the legal entity whic...

Q: Justify favouring shareholders’ wealth maximisation over profit maximisation as the goal of a firm w...

A: Profits and wealth sound similar but they are a bit different terms. The profits of the company are ...

Q: Assume it is now January 1, 2000, and someone offers the following deal: starting from year 2000, yo...

A: PV = 20001.1+20011.12+20021.13+.....+30001.11001                         (1) Multiply both sides by ...

Q: Q.3 Banks are the custodian of public borrowing and savings which may face different types of intern...

A: Banks are the custodian of public borrowing and savings which may face different types of internal a...

Q: Help me fast so that I will give good rating....

A: Discounted cashflow = years before discounted payback period occurs + (cumulative cashflow in the ye...

Q: A project requires an investment of $800 in a fixed asset that is classified as a five-year asset un...

A: MACRS stands for Modified Accelerated Cost Recovery System. For the purpose of tax, MACRS depreciati...

Q: 3. A company sets up a quarterly award to recognize the hard work and dedication of one employee per...

A: PV of annuity=A(1+r)n-1r(1+r)n PV of growing annuity=CF1r-g1-1+g1+rn PV of perpetuity=Cash flow(1+g)...

Q: Suppose that the prices of zero-coupon bonds with various maturities are given in the following tabl...

A: Given:

Q: usset class

A: Fixed income investments as the name indicates are securities that provides return in a fixed schedu...

Q: You are analyzing a stock that has the following returns given the various states of economy. Sta...

A: Working note:

Q: Monica and Rachel are having a discussion about IRR and NPV as a decision model for Monica’s new res...

A: Net present value (NPV) is the difference between the present value of cash inflows and the present ...

Q: Consider the following cash flows:   Year Cash Flow 0 −$28,300       1 15,400       2 ...

A: The profitability index is the ratio between the present value of future cash flows and the initial ...

Q: You are considering an investment opportunity that yields $520 one year from today, $900 in two year...

A: PV = sum of (Cashflow/(1+r)^1 +.......Cashflow/(1+r)^n)

Q: Consider an 5.0% coupon bond selling for $960.90 with three years until maturity making annual coupo...

A: Computation:

Q: (TCO F) Written, Inc. has 300,000 outstanding shares of $2 par common stock and 60,000 shares of no-...

A: Preference shares are shares that have a fixed rate of dividends which are paid cumulatively or year...

Q: If you buy a bicycle for $1000 and sell it for $1276.3 after 5 years.  What is your rate of return? ...

A: Future Value = Present value * (1+r)^n Where, r = rate of interest  n = no. of years 

Q: 7) see picture

A: Given information: Par value of preferred stock is $100 Quarterly dividend is $1.00 Current price is...

Q: A firm is making an initial public offering. The investment bankers agree to a firm-commitment under...

A: Underwriter's Spread : It is the cost of issuing securities which is take by the agents or underwrit...

Q: Finance Question

A: Present value of annuity = payment * (1 - 1/(1 + r)^n)/r where payment = 500 r = 5%/12 n =12 Present...

Q: Discuss your understanding in valuation.

A: Valuation is the process that is used by the company in order to determine the fair value of an asse...

Q: 11) see picture, can not get right answer

A: Using Gordon's growth perpetuity method: Terminal value=FCFFn(1+g)WACC-g=43(1+0.07)0.13-0.07=46.010....

Q: On October 25, you plan to purchase a $1,200 computer by using one of your two credit cards. The Sil...

A: (A) For silver card: Interest on 10th November month=balance on 1st oct*18%=0*18%=0, remaining balan...

Q: Benefits of diversification.   What is the expected return of investing equally in all three assets...

A: Expected return of investing equally in all three assets = 1/3 * Return on M + 1/3 * Return on N + 1...

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.