Q: Aaron owns a two-stock portfolio that invests in Happy Dog Soap Company (HDS) and Black Sheep…
A: Market Condition Probability of Occurrence Happy Dog Soap Black Sheep Broadcasting Strong 0.2…
Q: has an interest rate of 2.88% (APR) and is amortized over 30 years, using fixed monthly payments.…
A: Loans are paid by equal periodic monthly payments and these monthly payment carry the payment for…
Q: Assume you want to start your own small business. You like to open a bakery or nail salon. We assume…
A:
Q: A project has the following cash flows: Year 0 1 Cash flows -$85 30
A: NPV is the one of the most important capital budgeting technique which is based on the time value of…
Q: family friend has approached you to help her determine which of the two common stocks she should…
A: Standard deviation is measure of how much return is different from mean and it is measure of risk of…
Q: An insurance company must make a payment of $19,487 in seven years. The current yield curve in the…
A: We have to duration match the liability with a portfolio of two bonds of varying maturities.
Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 5.5% interest. a)…
A: Monthly payment (C) = $1400 Monthly interest rate (r) = 0.00458333333333333 (i.e. 0.055 / 12)…
Q: Which investment should your friend invest in?
A:
Q: 5. The data below are estimated for a project study. į = 10% Plan A Initial Investment P 35,000…
A: We need to find the present worth of the to plans and then decide on our recommendation. The…
Q: ¨In the fiscal year ended September 2013, Disney reported the following: ¤Operating income…
A: Free cash flow is cash flow available from the operating activities after capital expenditure and…
Q: You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$.…
A: Currency options contract give the option holder the right to exercise the option at a given strike…
Q: 6. A drill press costs $30,000 and is expected to have a 10 year life. The drill press will be…
A: Reduction in operating costs = $4,500 Tax rate = 40% Annual depreciation = $3,000 (i.e. $30,000 /…
Q: HR Industries (HRI) has a beta of 1.6; LR Industries's (LRI) beta is 0.5. The risk-free rate is 6%,…
A: Required rate of return refers to the minimum return that is earned by an investor from the…
Q: Consider the following information about the various states of economy and the returns of various…
A: State of the economy Probability T-Bills Philips Pay-up Rubber-Made Market Index Recession 0.2 7%…
Q: Assume that the Inflation is predicted to have an average of 5% over the next 6 years. A company…
A: Time value of money The concept that specifies the value of money today is having more than the same…
Q: QUESTION 15 What annual interest rate would you need to earn if you wanted a $1,000 per month…
A: The Future Value of an Ordinary Annuity refers to the concept which gives out the compounded or…
Q: The Brigaphenski Co. has just paid a cash dividend of $2 per share. Investors expected return is…
A: Current value of the stock is calculated using following equation Current value of stock =…
Q: You plan to visit Geneva, Switzerland in three months to attend an international business…
A: Total Cost = CHF 15,000 CHF/USD rate =1.1013 CHF/USD 3 month forward rate = 1.1154 3 Month Interest…
Q: Suppose a ten-year, $1,000 bond with an 8.4% coupon rate and semiannual coupons is trading for…
A: Yield to maturity is the rate of return realized when bond is held for the expiration of bonds and…
Q: Harold Hill borrowed $15,500 to pay for his child’s education at Riverside Community College. Harold…
A: The borrowed amount is $15,500 The interest rate is 3.5% The time period is 18 months To FInd:…
Q: Solve for the missing item in the following. Principal Interest rate Time Simple interest $345 5%…
A:
Q: A Computer System purchased by Jons Cost $ 419,300. Using the MACRS meth the accumulated. 3. (Round…
A: Given The cost of computer is $49,300.
Q: You have $18,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…
A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated…
Q: Your company sold call options on a stock. The option expires in 6 months, the risk-free rate is 6%,…
A: All the features of a call option and the underlying stock are available. We have to find the shares…
Q: evious answer given by one of you is wrong. Need a correct one please AAA is a fast-growing…
A: Value of stock can be found as the as present value of future dividends and also the present value…
Q: teven is thinking about buying a duplex. His monthly expenses will be $888 for the mortgage, $480…
A: The mortgage can be defined as a type of loan taken to purchase land, home, property, etc by making…
Q: For Discounted Cash Flows to be useful, individual investors and companies must estimate a discount…
A: Solution: Discounted cash flow technique is the technique used to determine whether a project should…
Q: Which of the following is FALSE regarding ARM loans? O Lenders only originate ARMS if the expected…
A: Several statements have been made about ARM. We have to find the one that is FALSE.
Q: You are trader at Tiger Capital. Todays market (bid-ask) rates for the number of USD per EUR are…
A: Forward rate is the interest rate of the financial transaction that will take place in the future.…
Q: Molly Ellen, bookkeeper for Keystone Company, forgot to send in the payroll taxes due on April 15.…
A: Here, Due date 15-April Settlement date 8-November Penalty charged by simple interest 8%…
Q: An individual has $50,000 invested in a stock with a beta of 0.5 and another $35,000 invested in a…
A: Solution:- Beta means sensitivity of stock with reference to market. It measures the percentage…
Q: Use the following information to answer questions 1 - 4. A 5-year 8% annual coupon bond yields 7%.…
A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…
Q: Consider the following information about the various states of economy and the returns of various…
A: Formula for calculating Mean, Standard deviation and coefficient of variation with probability is as…
Q: Describe the two of the asset categories in working capital. 2. Why is working capital so important?…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: Consider the following information about the various states of economy and the returns of various…
A: State of the economy Probability T-Bills Philips Pay-up Rubber-Made Market Index Recession 0.2 7%…
Q: 1. Market psychology describes the common practices and overall
A: The price movement in stocks can not be predicted with 100% accuracy even though applying all…
Q: Bermuda Co. must choose between gas-powered and an electric-powered forklift truck for moving…
A: Capital budgeting The process involve in the allocation of fund funds to various long-term…
Q: a. Determine the expected return of security X. b. Calculate the return of Anna’s portfolio. c.…
A: First let us write the formula to determine the expected return with CAPM formulaExpected Return =…
Q: Part a. write a function F(t)= that describes the value after t years of a $2000 investment that…
A: We have to establish a function for the accumulated value of an initial investment, after a given…
Q: Consider the following information about the various states of economy and the returns of various…
A: State of the economy Probability T-Bills Philips Pay-up Rubber-Made Market Index Recession 0.2 7%…
Q: Given the following NAVPS in a Mutual Fund, compute the cumulative, 1 year and effective returns.…
A: Two questions appear on the screen. They are unrelated. hence, only the first questions have been…
Q: Danny has P13760 in cash and he would like to invest it in business. His estimates of the year by…
A: As per the given information: Amount in cash - P13760Receipts and…
Q: Stock R has a beta of 2.5, Stock S has a beta of 0.65, the required return on an average stock is…
A: The Beta of Stock R is 2.5 The beta of stock S is 0.65 Average stock return is 14% Risk free rate is…
Q: If all of the following mutual funds are designed to passively mimic the S&P 500 stock index, which…
A: Mutual funds refer to the money that is being managed by a professional fund manager. It works as a…
Q: P Ltd owns 45% of the shares of S Ltd. P Ltd can appoint or remove four of the six directors on the…
A: Directors are the major stakeholders of a company who control, manage and direct the operational…
Q: Assume that the risk-free rate is 6.5% and the market risk premium is 8%. What is the required…
A: The CAPM is used to find out the return of a stock based on the systematic risk the stock faces and…
Q: Thanks to acquisition of a key patent, your company now has exclusive production rights for special…
A: Net present value (NPV) is a financial measure used by companies to assess the profitability of…
Q: With practical examples, provide an understanding of ethical dilemma and how to use RIMS strategy to…
A: The RIMS technique is intended to be utilized as a decision-making strategy in the workplace for…
Q: Jennifer is the owner of a video game and entertainment software retail store. She is currently…
A: Compounding Compounding is the method through which interest is added to the existing principal…
Q: If a company has a forward (forecasted) EPS of 5.242 and a forward PE of 76.495, what is the…
A: Price Earning Ratio refers to a financial ratio that is being used in order to value a stock and…
Step by step
Solved in 2 steps with 2 images
- Orbit Limited : Statement of Financial Position as at 31 December 2022 2021 Non-current Assets R11 810 000 R7 560 000 Property, Plant, Equipment R10 025 000 R6 250 000 Investments R1 785 000 R1 310 000 Current Assets R4 190 000 R4 690 000 Inventories R 1 875 000 R2 350 000 Account Receivable R1 925 000 R2 200 000 Cash R390 000 R140 000 Toatal Assets R16 000 000 R12 250 000 Equities & Liabilities Equity ? ? Oridanary share capital R5 480 000 R3 680 000 Retained earnings ? ? Non-current Liabilities R4 500 000 R3 800 000 Loan (20% p.a) R4 500 000 R3 800 000 Current Liabilities R2 300 000 R1 500 000 Accounts payable? R2 300 000 R1 500 000 Calculate the increase in the retained earnings over the two-year period.39- YEAR 2018 YEAR 2019 Current Assets 800.000 TL 1,000,000 TL Calculate the amount of change in TL using the comparative table analysis method according to the information above. a) 100,000 TL B) 200.000 TL NS) 300.000 TL D) 500.000 TL TO) 400.000 TLAce Business Forms Month Current Assets Fixed Assets Total Assets January P125,000 P250,000 P375,000 February 130,000 250,000 380,000 March 135,000 250,000 385,000 April 150,000 250,000 400,000 May 150,000 250,000 400,000 June 125,000 250,000 375,000 July 115,000 250,000 365,000 August 120,000 250,000 370,000 September 115,000 250,000 370,000 October 100,000 250,000 350,000 November 110,000 250,000 360,000 December 115,000 250,000 365,000 Ace Business Forms has compiled several factors relative to its financing mix. The firm pays 8 percent on short-term funds and 10 percent on long-term funds. The firm’s monthly current, fixed and total asset requirements for the previous year are summarized in table above. Determine: a. the monthly average permanent funds requirement b. the monthly average seasonal funds requirement
- Ace Business Forms Month Current Assets Fixed Assets Total Assets January P125,000 P250,000 P375,000 February 130,000 250,000 380,000 March 135,000 250,000 385,000 April 150,000 250,000 400,000 May 150,000 250,000 400,000 June 125,000 250,000 375,000 July 115,000 250,000 365,000 August 120,000 250,000 370,000 September 115,000 250,000 370,000 October 100,000 250,000 350,000 November 110,000 250,000 360,000 December 115,000 250,000 365,000 Ace Business Forms has compiled several factors relative to its financing mix. The firm pays 8 percent on short-term funds and 10 percent on long-term funds. The firm’s monthly current, fixed and total asset requirements for the previous year are summarized in table above. Determine: 1. the annual financing costs (aggressive strategy) 2. the annual financing costs (conservative strategy)Collections for services rendered in 2nd quarter 60,000 Collections for services rendered in 1st quarter 30,000 Collections for services to be rendered inthe 3rd quarter 40,000 Uncollected billings in 1t quarter 20,000 Uncollected billings in 2d quarter 25,000 How much is the taxable income in the 2nd quarter using cash basis and accrual basis?_________1. On 2020, an entity made cash sales of ₱3,000,000. It paid ₱1,000,000 in expenses and owed ₱300,000 for services it received in 2020 but payable in 2021. What is the profit for 2020? A. ₱1,200,000B. ₱1,700,000C. ₱2,000,000D. None of the above _________2. Calculate for the profit given the data below: Sales ₱2,000,000Prepaid Rent Expense (2 months advance payment) 50,000Cost of Sales 400,000Operating Expenses 300,000Admin Expenses 100,000A. ₱1,150,000B. ₱1,200,000C. ₱1,250,000D. None of the above _________3. Which of the following is an expense? A. Interest paid on loanB. Withdrawal of cash made by the ownerC. Payment received for service rendered to customerD. Repayment of principal amount of a loan _________4. How…
- Income Statement for the years ending 31 August: 2020 2019 £ £Revenue 950,000 975,000Cost of sales 455,000 460,000Gross profit 495,000 515,000Total expenses 320,000 310,000Net profit 175,000 205,000 Statement of financial position as at 31 August:- 2020 2019£ £Non-current assets 70,000 65,000Current assetsCash at bank…What amount should be reported as income from discontinued operations for 2020? *5,000,0004,200,0003,500,0005,600,000Attached is a schedule of five proposed changes at the end of the year. ($ in 000s) Before theChange ProposedChange After theChange Net sales $ 18,800,000 (a) $200,000 $ 19,000,000 Cost of goods sold 13,200,000 (b) 400,000 13,600,000 Operating expenses 1,600,000 (c) (100,000) 1,500,000 Other revenue 500,000 (d) 50,000 550,000 Other expense 450,000 (e) (50,000) 400,000 Net income $ 4,050,000 $ 4,050,000 Required:1. Indicate whether each of the proposed changes is conservative, aggressive, or neutral.2. Indicate whether the total effect of all the changes is conservative, aggressive, or neutral.
- Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32% 1.Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. 2.Prepare an income statement for 2021 and 2022 for the company. 3.For the year ending 2022, determine the Net New Equity, Change in Net Working Capital, Net Capital Spending and Operating Cash flow. 4.Calculate the cash flow from assets, cash flow to creditors,…Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00 30,000.00 Net fixed assets 41,500.00 48,000.00 Other expenses 2,400.00 2,800.00 Sales 58,000.00 62,500.00 Short-term Notes Payable 2,890.00 2,340.00 Shares outstanding 85,000.00 90,000.00 The tax rate is 32% 1.Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders for 2022. 2.what is the Dividends per Share and Earnings per Share for each year for Brown Company. 3.Briefly comment on the company’s cash flows for 2022 in light of an expansion plan which will be financed by both debt and…Life-Positive’s Account Balances 2021 ($) 2022 ($) Accounts Payable 24,600.00 21,250.00 Accounts receivable 15,700.00 12,340.00 Cash 23,450.00 28,600.00 Cost of goods sold 19,700.00 23,000.00 Depreciation 3,090.00 4,590.00 Dividends 5,800.00 10,800.00 Interest 2,340.00 2,890.00 Inventory 7,050.00 8,640.00 Long-term debt 28,000.00…