Q: You bought a stock one year ago for $51.34 per share and sold it today for $45.64 per share. It paid…
A: Purchase Price = p = $51.34Selling Price = s = $45.64Dividend = d = $1.23
Q: You hold a bond with three years to maturity and a yield to maturity of 10% If the yield to maturity…
A: To calculate the approximate percentage change in the price of a bond when its yield to maturity…
Q: Sara wants to make a deposit now into an account that earns 3% annually so that she will be able to…
A: Annual withdrawal (C) = $125Interest rate (r) = 0.03Period (n) = 5 YearsAmount need to deposit today…
Q: You are considering a CNC machine. This machine will have an estimated service life of 10 years with…
A: Annaual savings is $60,000.The period is 10 years.The salvage value at the end of 10 years is 10% of…
Q: In an attempt to have funds for a down payment, Carmella Carlson plans to save $3,600 a year for the…
A: Future value of money is the amount of money that was deposited plus the amount of interest…
Q: China Bank granted a loan to a borrower on January 1, 2023. The interest rate on the loan is 10%…
A: To calculate the effective interest rate (EIR) of the loan, use the formula for the EIR of a loan.…
Q: Use the formulas you learned about in the previous stage of the problem to answer the following…
A: Ratio analysis is a quantitative method to know liquidity, operational efficiency, and profitability…
Q: Your subscription to Investing Wisely Weekly is about to expire. You plan to subscribe to the…
A: The annuity due is a phenomenon where the payments are made at the beginning of the period and at a…
Q: You've borrowed $27,950 on margin to buy shares in Ixnay, which is now selling at $43.0 per share.…
A: Margin call refers to the excess money required to maintain the account for stock trading. Before…
Q: ou are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per…
A: The initial margin refers to the amount that the broker demands in exchange for providing access to…
Q: Suppose you bought 600 shares of stock at an initial price of $42 per share. The stock paid a…
A: Initial price (P0) = $42Dividend (D) = $0.38Ending price (P1) = $43Number of…
Q: Laurel, Inc., and Hardy Corp. both have 10 percent coupon bonds outstanding, with semiannual…
A: Both bonds are currently priced at the par value of $1,000, therefore the yield to maturity will be…
Q: The balance on a mortgage was $49,800 and an interest rate of 3.25% compounded semi-annually was…
A: Monthly payments is calculated by present value of annuity formula. In excel monthly payments is…
Q: Risk premiums Standard deviations Sharpe ratios S&P Portfolio Hedge Fund Portfolio
A: The formula to determine the expected risk premium, standard deviation and Sharpe Ratio is as…
Q: which of the following cases will the agency problem between shareholders and managers be the…
A: In a corporate organization there are many shareholders and the company is managed by managers. So…
Q: Martina wants to buy a property for $105,000 and wants an 80% loan for $84,000. A lender indicates…
A: Mortgage loans are paid by equal monthly payments that carry payment for interest and payment for…
Q: It is now June 1, 2023. Consider the following corporate bonds. Bond Bank of Naboo Bond Mongo Co.…
A: Bond is a financial asset that belongs to the debt capital market. It is issued by organization to…
Q: (Inflation and interest rates) What would you expect the nominal rate of interest to be if the real…
A: To calculate the nominal rate of interest we will use the below formulaNominal rate of return =…
Q: Greta has risk aversion of A = 3 and a 1-year investment horizon. She is pondering two portfolios,…
A: To calculate Greta's capital allocation, use the Capital Market Line (CML) formula, which depends on…
Q: Accounting statements represent a company's earnings, but this is not the real cash that a company…
A: The amount of a firm's available cash that can be used without harming operations or the ability to…
Q: You have saved $3,000 for a down payment on a new car. The largest monthly payment you can afford is…
A: We take loans to buy expensive things like a car, a yacht, etc. which we otherwise are not capable…
Q: Assuming the following ratios are constant, what is the sustainable growth rate? PLEASE INCLUDE…
A: ROE (Return on Equity) is a financial metric that calculates the profitability of a company by…
Q: Today You deposit 2000 dollars on Your bank account for 3 years. The annual interest rate is 5%. How…
A: Future value can be calculated usingFV = PV* (1 + r / n)ntWhere,PV = Present valueFV = Future valuer…
Q: Suppose you deposit $4,000 in a savings account paying 10% simple interest. How much money will you…
A: Present Value = pv = $4000Interest Rate = r = 10%Time = t = 4 Years
Q: Samantha and Samuel both have student credit cards issued by VISA. Their credit card statements show…
A: In the scenario presented, Samantha and Samuel both hold student credit cards issued by VISA, with…
Q: A company plans to make our di deposits of $4,500 bal to a special building hand. The hands assets…
A: Here,AnnualDeposit is $4,500Time Period is 4 yearsInterest Rate is 12%
Q: A company has net income of $184,000, a profit margin of 8.5 percent, and an accounts receivable…
A: Profit margin=Net income/SalesHence sales=(184000/0.085)=$2164705.88
Q: Which of the following is a characteristic of preferred stock? A. Give voting rights to its owner.…
A: This is a statement that is accurate. One way in which preferred stock is comparable to an annuity…
Q: Suppose the returns on a particular asset are normally distributed. The asset had an average return…
A: Average return = 11.3% or 0.113Standard deviation= 24.2% or 0.242Normal distribution=…
Q: Five years from today, you would like to withdraw $5,000 from an account that pays interest rate of…
A: Future Value (FV) is a financial concept representing the projected worth of an investment, series…
Q: What is the difference between income and savings contribution categories on the income statement.?
A: As the global community becomes increasingly interconnected and informed, the impact of business…
Q: Braxton Enterprises currently has debt outstanding of $35 million and an interest rate of 8%.…
A: Whenever business takes any debt or loan, it needs to make regular interest payments on the same.…
Q: Use the Black-Scholes formula for the following stock: Time to expiration 6 months Standard…
A: A Put Option is a financial contract that gives the holder the right, but not the obligation, to…
Q: Select all statements which are correct. An American stock option with strike K and maturity T is at…
A: Options are financial derivatives that give the holder the right, but not the obligation, to buy…
Q: .Modern Artifacts can produce keepsakes that will be sold for $70 each. Nondepreciation fixed costs…
A: Here,Selling price per Unit is $70Variable Cost per unit is $35Initial Investment is $4,000Non…
Q: Monthly gross income $ 4,700 Down payment to be made (percent of purchase price) 20% Other…
A: Mortgage loans are secured loans and these are paid by monthly payments and these monthly payments…
Q: The technique for calculating a bid price can be extended to many other problems. Answer the…
A: NPV is most used capital budgeting method based time value of money and is the financial break even…
Q: A couple thinking about retirement decide to put aside $3,900 each year in a savings plan that earns…
A: The problem case focuses on calculating the retirement funds, based on annual savings and periodic…
Q: In general, a firm with low operating leverage also has a small proportion of its total costs in the…
A: The concept of operating leverage is vital in understanding the cost structure of a firm and its…
Q: Industrialization Enterprise is considering a three-year project that will require an initial…
A: Initial Investment $ 44,000.00Strong demand 50% $ 28,000.00Weak demand 50 % $ 1,250.00Life of the…
Q: systems engineer who invested wisely can retire now because $2,000,000 in her self-directed…
A: There is need of retirement planning and it should be done on time and should be sufficient enough…
Q: what is the pv? N= 30 PMT=0 I/Y= 7% FV= -100
A: The time value of money determines the future value of present investments or the present value of…
Q: In 1972, federal vehicle emission standards allowed 3.4 grams hy drocarbons released per mile…
A: We can determine the rate of change in hydrocarbons per year using the formula below:
Q: Ortiz Lumber Yard has a current accounts receivable balance of $350,000. Credit sales for the year…
A: Accounts receivable turnover ratio helps to determine how efficient company is in recovering or…
Q: Mario's Home Systems has sales of $2,870, costs of goods sold of $2,210, inventory of $514, and…
A: The days sales of inventory is the time in days that a company takes to turn the inventory into…
Q: Hagement ratios measure how effectively the firm uses its plant and equipment. Which of the…
A: The TIE ratio measures the extent to which operating income can increase before the firm is unable…
Q: Long-term investment decision, payback method Personal Finance Problem Bill Williams has the…
A: Year Project A Cash flow Cumulative Project A cash flowProject B Cash flow Cumulative Project B Cash…
Q: Too little working capital had been a constant problem at Industrial Robotics (IR), a designer of…
A: Jack Miller and Mario Sarducci have different views on the company's needs due to their different…
Q: Consider a bank account with the following transactions for the month of June 2021: No. of Days…
A: The average daily balance is a financial term that refers to the average amount of money in an…
Q: What is the future value of a $200 annual payment over 10 years if interest rates are 6 percent…
A: The given details are:Required: Compute the future value & future value due.
Determine the revenue per year and revenue over the lifetime of the customer
Step by step
Solved in 3 steps with 3 images
- Unearned Sales Revenue Brand Landscaping offers a promotion where a customers lawn will be mowed 20 times if the customer pays $700 in advance. Required: Prepare the journal entry to record (1) the customers' prepayment of S700 and (2) Brands mowing of the lawn one time.Hh2. Net credit sales for Turner Company are $200,000 for the year and the average accounts receivable balance is $20,000. What is the company's average collection period? (Use 365 days in a year.) Multiple Choice 5 days 548 days 54.8 days 36.5 daysA company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 a) Calculate decimal. Please present answer to nearest half a month.
- Break-even analysis for a service companySprint Nextel is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 32.5 million direct subscribers (accounts) that generated revenue of $35,345 million. Costs and expenses for the year were as follows (in millions): Cost of revenue $20,841 $20,841 Selling, general, and administrative expenses 9,765 Deprecation 2239 Assume that 70% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts).a. What is sprint Nextel's break-even number of accounts, using the data and assumptions given? Round units (accounts) and per-account amounts to one decimal place. b. How much revenue per account would be sufficient for Sprint Nextel to break-even if the number of accounts remained constant?Topic: Annuities Due (payments at the beginning of the month) Formulas: Future value- F=C [(1+i)^n -1/i] (1+i) Present value- P=C [1-(1+i)^-n/i] (1+i) P.S, Please show Manual Solving thanks!Bought delivery van P850,000 terms 20% down and the balance payable in oneyear. Required: 1. Record the transaction in the general journal.
- Q5 Libscomb Technologies' annual sales are $6,879,896 and all sales are made on credit, it purchases $3,179,857 of materials each year (and this is its cost of goods sold). Libscomb also has $565,311 of inventory, $545,421 of accounts receivable, and $422,365 of accounts payable. Assume a 365 day year. What is Libscomb’s Operating Cycle (in days)?Question A All That Remains Products has projected sales for next year of: Q1 Q2 Q3 Q4 Sales $ 77,300 $ 80,750 $ 87,150 $ 95,040 The company places orders each quarter that are 65 percent of the following quarter's sales and has a 60-day payables period. What is the accounts payable balance at the end of the third quarter? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. 30% pays on the 20th day and take discounts while the remaining customers always pay on time. 1. What is the average amount of accounts receivable? (Use 360-day year)
- The sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000 Calculate Margin of safety at a profit of OMR 22000: Select one: a. OMR 44000 b. OMR 62000 c. OMR 64000 d. OMR 72000SCRUMPTIOUS CUPCAKESProfit and loss accountfor the year ended 30 April 20202020£SalesSales 220,000Cost of sales 120,000Gross Profit 100,000ExpensesSalaries 24,000Other Fixed cost 4,800Distribution 3,000Advertising 4,500Rent 13,200AHUtilities 3,600Other Cost 4,00057,100Operating Profit 42,900 SCRUMPTIOUS CUPCAKESBalance Sheetas at 30 April 20202020£Fixed assetsIntangible assets -Tangible assets 35,000Investments -35,000Current assetsStocks 3,000Debtors 10,000Cash at bank and in hand 6,30019,300Written ReportsCreditors: amounts falling duewithin one year (11,300)Net Current Assets 8,000Total assets less currentliabilities 43,000Net Assets 43,000Capital and reservesCalled up share capital 100Profit and loss account 42,900Shareholders' funds 43,000 please calculate the folliwing ratios: Profitability Ratios – Gross Profit Margin, Net Profit Margin and ROCE● Liquidity – Current Test and Acid Test● Gearing● Activity/Performance – Stock Turnover, Debtors’ Collection Period and AssetTurnover…Question 1 The firm's average collection period ACP is 39 days. Purchases are 75% of sales and are made a month before the sales month. About 40% of a month's purchases is paid in the same month whereas the remainder is paid in the next month. Assume there are 30 days in a month Feb, 2022 Mar, 2022 Apr, 2022 Sales (RM) 52,000 55,000 54,000 (a)What is the total amount of sales collection in April 2022? (b) What is the total amount of purchase disbursement in March 2022? Question 2 A firm's expected sales in the coming year is RM3.6 million, and the firm's average receivables for the year is RM400,000. The firm is considering factoring the receivables. A factor offers a discount rate of 1.75%% for the firm's receivables. [Assume there are 360 days in a year] (a) How much can the firm obtain from factoring its receivables, and for how long? (b) What is the cost per year to the firm if it factors its receivables continually? (c) if a bank offers a loan for the…
