Determine the issuance price of the bonds assuming an annual market rate of interest of 7.5 percent.

Q: $5.10 4.) Find the amount received by Peter if he uses an automated phone sale ($12.95) of 400…

A: Given that the total number of shares = 400 Sale price per share is $12.95  Total consideration…

Q: Maximum house you can afford. You have an income of $70,000 per year. You are applying for a 4.5%,…

A: Loan repayment requires extending periodic payments which can be monthly, quarterly, or annually.…

Q: Please work out manually the Covariance with MP.

A: Co-variance   between X and Y means joint deviation of X around X and Y around Y. Formula for…

Q: Suppose you have a 30 year mortgage for 221,564 with quarterly payments of 5,552 what is the total…

A: Interest can be computed as follows  = Total Payment - Principle Amount of Mortgage Total payment is…

Q: Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio…

A: The term "floatation cost" refers to the expense that a publicly traded company would incur if it…

Q: 1. Loan Amortization Schedule (P/Y = C/Y) Details: RBC has provided a $50,000 loan to Capilano…

A: We have to find the monthly mortgage payment amount and prepare the loan amortization schedule. We…

Q: You have taken a loan of $95,000.00 for 27 years at 5.5% compounded quarterly. Fill in the table…

A: Given Loan amount is $95000 Term is 27 years Rate is 5.5%

Q: Classify and journalize the different transactions in the corresponding fund Exercise 1 The City…

A: Need to do Journal entry relating to transactions below

Q: Question 4) Look at Maya's balance sheet at the beginning of April and her transactions throughout…

A: Balance sheet is one of the important financial statement which shows how much assets, liabilities…

Q: Which is the better investment? 4.6% compounded weekly 4.62% compounded monthly -4.6% compounded…

A: More is the compounding than better is effective rate of return than better is the investment.…

Q: Normal Manufacturing Co. is purchasing a production facility at a cost of $22.5 million. The firm…

A: I Year Cash flow 0 -22.5 1 7 2 7 3 7 4 7 5 7

Q: Why would staff costs increase with increase in revenue?

A: We have to explain why staff costs would increase with increase in revenue.

Q: Find the annual simple interest rate of a loan, where $500 is borrowed and where $570 is repaid at…

A: Amount repaid (FV) = $570 Amount borrowed (P) = $500 Period (n) = 4 Months   Annual simple interest…

Q: You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year…

A: A mortgage is a loan that is forwarded for the purchase of a property. It is one of the most used…

Q: Assume that you expect the price of gold to increase over the next month. Does your expectation of…

A: Prices of commodities are determined by market determined and dependent on supply and demand in the…

Q: Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.…

A: A collection of multiple securities, projects, or investment avenues in which an investor infuses…

Q: You sell a 50 put for 4 and buy a 55 call for 5. Stock ends at $47. Premium=.....

A: put Strike price is 50 Call strike price is 55 put premium is 4 Call premium is 5 Ending price of…

Q: Todd is driving his SUV and Susan is a passenger. They are heading downtown for dinner. Todd’s PAP…

A: The driver and the passenger, both have a  PAP policy. In case of a claim, we need to figure out…

Q: Christine Yamaguchi is the manager of the A-to-Z Office Supply Company in Charlotte. The company…

A: The optimal loan amount refers to the money borrowed by the borrower from the lender following…

Q: Read Machine needs $25.7 million to fund an expansion project. The firm has decided to raise the…

A: Amount needs to raise = $25,700,000 Stock price = $18.75 Underwriter spread = 0.071   Number of…

Q: Finance Question

A: Discounted pay back period is a method of calculating recovery period of initial investment. It is…

Q: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost…

A: Original cost = $23,200,000 Depreciation = 0.85 Sale value = $5,800,000 Tax rate = 0.25   After tax…

Q: Carlos earns a gross income of $5,690 per month and applies for a mortgage with a monthly PITI of…

A: Possible mortgage type available for Carlos are known. We have to find if he qualifies for any, or…

Q: Yara owns a home that was recently appraised for $183,000. The balance on the existing mortgage is…

A: To find out this solution we need to find the loan to value ratio(LTV). LTV ratio measures the…

Q: A P485,000 loan was originally made at a rate of 3% compounded semi- annually for 1 year. At the end…

A: A loan goes through two successive periods of different interest rates. We have to find the maturity…

Q: You are considering starting a new factory producing small electric heaters. Each unit will sell at…

A: In a typical capital budgeting project, we have all the relevant cash flows emanating from the…

Q: A stock price is currently $100. Over each of the next two 3-month periods, it will go up by 10% or…

A: Given Stock Price (S0) = $100 Risk Interest free rate (Rf) = 6%p.a compounded semi-annually Srike…

Q: The Sweetwater Candy Company would like to buy a new machine that would automatically dip…

A: Reduction in annual operating costs:   A) Operating cost , present hand method $38,000 B)…

Q: Identify two investment alternatives that can be combined in a portfolio. Assume a 50- 50 investment…

A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…

Q: te of the economy Probability T-Bills Phillips Pay -up Rubber-made Market Index Recession…

A: A stock that performs well irrespective of the state of overall stock market is termed as defensive…

Q: The quoted rate of interest is calculated using the following formula.  Quoted Rate  = r* + IP +…

A: Given r* = 2% IP = 3% MRP = 3% LP =  .6%                                       DRP = .4%

Q: Based upon the information below calculate the Expected Return of the Asset (E)= ∑ Pr * R Worst…

A: Expected return on asset = P1×R1+P2×R2+.....+Pn×Rn Where, Pn  is nth probability  Rn is return for…

Q: Estimating Intrinsic Share Value Using Dividend Discount Model Mattel, Inc. is expected to pay a…

A: We have; Cost of equity or required rate of return as 8% Amount of dividend is $1.44 for part-3, the…

Q: Massy Ltd on the other hand is a matured company so their dividend has not changed in years. Their…

A: The value of security can be find out the from dividend discount model and can be calculated as the…

Q: QUESTION 7 Massey Enterprises is planning to buy a new machine to decrease the overall cost of…

A: concept. Net Present Value . It is capital budgeting technique used for making investment decisions.…

Q: A debt of $7,000.00 is to be paid off with 10 equal semi-annual payments. If the interest rate is…

A: Given: Particulars Amount Debt (PV) $7,000 Semi annual payments(NPER) 10 Interest rate 13%

Q: Fiber Corporation declared a dividend of $.90 per share on April 20th to holders of record as of…

A: Dividend The portion of the profit of a company that is distributed to the shareholders on the basis…

Q: Vilas Company is considering a capital investment of $198,900 in additional productive facilities.…

A: For a typical capital budgeting project, we have to find the cash payback period, annual rate of…

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects:     Year Cash…

A: formula :

Q: hat is the horizon value of the interest tax shield? Do not round intermediate calculations. Round…

A: Horizon value is the present value of cash flow after the constant growth have started and the…

Q: Suppose a government starts spending less than it receives in tax revenue each year. All else equal,…

A: concept. Whenever a firm is going to take up a project or to make investment in the project, there…

Q: A proposed nuclear power plant will cost $ 965 million and then produce cash inflows of $ 147…

A: Net Present Value is a technique which is used to understand how feasible a project is. It uses the…

Q: m trying to pay off a quarterly home improvement run and it charges a 4.2% and my balance is 48000…

A: Loans are paid equal periodic payments that carry the payment for interest and payment of principal…

Q: Stag Corp. will pay dividends of $4.75, $5.25, $5.75 and $7 for the next four years. ($4.75 in year…

A: Year Dividend 1 4.75 2 5.25 3 5.75 4 7.00 Required return = 15% Growth rate after 4th…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: The current balance will be a function of opening balance, fresh borrowing, less repayment and the…

Q: Suppose that without an adjustment for the relationship between the yield on a bond to be hedged and…

A: We have the hedge ratio without an adjustment for the relationship between the yield on a bond to be…

Q: he firm's marginal tax rate is 35%.  The firm's currently outstanding 10% annual coupon rate…

A: The cost of equity and cost of retained earnings is generally equal. The cost of equity can be…

Q: Between 1980 and 1987, the average home price Keene, NH increased from $42,000 to $97,000. What is…

A: The percentage increase is the compounding growth rate of price and due to which the growth is too…

Q: An installment contract for the purchase of a car requires payments of ​$217.43 at the end of each…

A: The loan can be repaid by making periodic payments which can be monthly or annual etc. These…

Q: Strange Manufacturing Co. is purchasing a production facility at a cost of $21 million. The firm…

A: Cost of capital = 10% Year Cash flow 0 -2100000 1 7000000 2 7000000 3 7000000 4…