differenc

Q: Present value is based on the concept of:   a. discounting.   b. duration.   c. systematic ris...

A: Present value means how much the value of future money worth today. The amount received today will b...

Q: Differentiate primary markets from secondary markets?

A: Financial Markets refers to the place where financial assets or securities  are being created , purc...

Q: Assume that today's settlement price on a CME EUR futures contract is $1.1145/EUR. You have a long p...

A: Margin Balance is the amount deposited by the Investor in advance to settle all future expenses, if ...

Q: Question 2: Time Value of Money a. Suppose a rancher borrows $10,000 from a bank at a 7% rate for 5 ...

A: Money has time value and due to the interest rate and period the value of money grow with time.   As...

Q: In 300 words describe what the one-year principle is?

A: Since you have posted a multiple question, we will be solving the first question as per our guidelin...

Q: GMC is growing quickly. Dividends are expected to grow at a rate of 6 percent for the next three yea...

A: Dividend: The dividends are the returns provided to the shareholders by the company. The dividends a...

Q: Ashely Corporation has 80 million outstanding equity shares and the following projected financial in...

A: We need to find the free cash flows in year 1 to 4 Cost of capital (c) = 13% Number of shares = 80 m...

Q: return of 12% per ar

A: The worth of a present asset at a future date based on an estimated rate of growth is known as futur...

Q: A working capital financing policy that finances almost all assets with long-term capital     a. Res...

A: Working capital is the difference between current assets and current liabilities. ------------------...

Q: $300 $270 $240 $210 $180

A: Given information : Year Cash flows 0  $                              -   1  $               ...

Q: In 2020, the two bend points for computing Social Security’s Primary Insurance Amount (PIA) are $960...

A: Primary Insurance Amount is one of the parts of Social Security Rules in the US. This is a kind of b...

Q: compounded monthly is now $2,997.78. How much of this amount is principal and how much is interest? ...

A: Future value of amount is value of principal amount and interest while present value is amount of or...

Q: HYZEL Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2...

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three, as per...

Q: Which one of the below most likely respresents the periodic receipts of interest? O the coupon rate....

A: Periodic payments means fixed amount paid regularly to the investor. Example interest amount on loan...

Q: Current $6,000,000 $6,000,000 $500,000 $5,500,000 $5,000,000 Proposed Assets Debt $1,000,000 Equity ...

A: Let the breakeven EBIT = X  

Q: Find the periodic payment which will amount to a sum of $16000 if an interest rate 8% is compounded ...

A: Present value (P) = $16000 Interest rate (r) = 8% Period (n) = 19 Years

Q: Which of the following is correct about the security market line (SML)? Investment projects that plo...

A: Security market line is the graphical representation of the values of stock against the risk relativ...

Q: ccounts receivable 58,500 90,000 upplies 28,000 40,000 and quipment 360,000 300,000 120,000 1,066,50...

A: Given information : Assets 2019 2020 Cash 500000 400000 Accounts receivable 58500 90000 Sup...

Q: d) Calculate Leland's cost of common equity using the Security Market Line.

A: Calculate the beta of the stock (β) by dividing the covariance of stock with the market (Cov L,M) wh...

Q: BUSINESS FINANCE Name: Grade & Section: General Directions: ALL FORMS OF ALTERATIONS OR ERASURES WIL...

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts ...

Q: You are considering investing $2,000 into the stock market. In the first 3 years, you are expecting ...

A: Before investing in new assets or projects, profitability of the project is evaluated by using vario...

Q: Jenny has no assets, but she has $1,000 to invest in one of two stocks. Stock A has a beta of 1.2 an...

A: One of the approaches for determining the needed rate of return for equity capital is to utilize the...

Q: WHY IS MONEY MARKET IMPORTANT FOR BUSINESS?

A: The money market is a market of funds in which short-term funds are provided to the entities that ar...

Q: not use of the excel Q)You plan to purchase a new TIG welder for your company. It will cost $2,800 ...

A: Cost now = 2800 Cost at end of 3rd year = 60 Cost at end of 4th year = 130 Sale value at end of 5th ...

Q: Selected financial data for Fey Company is presented below.

A: A tax shield is a decrease in taxable income accomplished by an individual or organization by claimi...

Q: Find the cash value of a lease if money is worth 9% compounded annually of a four-year lease agreeme...

A:

Q: The plan was to leave $8,000 on deposit in a savings account for 15 years at 7.5% interest compounde...

A: Deposit amount now (D) = $8000 Interest rate (r) = 7.5% Withdrawal after 5 years (W) = $2000 Period ...

Q: Mysty offered to sell her car to Tim for $15 000. Tim faxed a letter to her that said, "Consider it ...

A: Part 1 - Mysty offered to sell her car to Tim for $15 000. Part 2 - Tim faxed a letter to her that s...

Q: The Hohner Marine Band harmonica retailed for €30 in Germany (see Exhibit 2). German retailers gener...

A: Contribution per unit is the difference between the selling per unit and the variable cost per unit....

Q: What is the indicated value of the subject property using direct capitalization, rounded to the near...

A: Direct Capitalization Method: This method computes the value by dividing the net operating income re...

Q: estimated cash flows before tax (CFBT) are? 10,000; 11,000; 14,000; 15,000 and v machinery. The proj...

A: Tax rate is 55% Discount rate is 10% Depriciation Method is straight line   To Find: Average rate o...

Q: The annual demand for imported oranges is given by the following equation: QD= 600,000-30,000P whe...

A: Demand = Qd = 600000 - 30000P Supply = Qs = 30000P P = Price per Kg  

Q: Consider a trader who takes a long position in a six-month forward contract on the euro. The forward...

A: Forward rate: $1.75 = €1 Contract size = €62500 Spot exchange rate at the maturity: $1.65 = €1

Q: Compute the future value in year 9 of a $2,000 deposit in year 1, and another $1,500 deposit at the ...

A: Future Value = Present Value *(1+r)N - Invest period   

Q: Assume that your client invests $2,300 at the end of each of the next four years. The investments ea...

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher...

Q: Please select the risk that affect only a single company? market risks. specific risks. systematic r...

A: Systematic risk is also known as non-diversifiable risk, and it exist for entire market. It arises d...

Q: Simon Company's year-end balance sheets follow. At December 31 2017 2016 2015 Assets $ 30,510 $ 36,3...

A: The current ratio is the measure of a company's ability to pay back its short-term debts. It is calc...

Q: The cash-flow forecasta (in millions of dollara) for the project are as PS #1 Type B: You are a cons...

A:

Q: Broadly defined, the foreign exchange (FX) market encompasses: O a. Foreign trade financing. Ob. Tra...

A: The foreign exchange market is the place where various countries' currencies are purchased and sold ...

Q: Federal Income Tax Summary (2018)   Top 1% Top 5% Top 10% Top 25% Top 50% Bottom 50% All Tax...

A: The questions are based on the interpretation of tax filling data for the different income and tax l...

Q: Find the firm’s Cost of equity, given only the following information about the firm: the firm’s cost...

A: The cost which the firm has to bear for having equity funds in their capital structure is called cos...

Q: Buy house using a 15-year fixed mortgage. Willing to pay up to $3,000 per month in monthly mortgage ...

A: The loan amount: The loan amount can be computed as the present value of all the loan payments to be...

Q: Debt Market value = $450,000 pre-tax cost of debt is 8%. shares are trading at $12 per share with 10...

A: Companies raise funds from a variety of external sources to run the business or pay their financial ...

Q: Only two zero bonds are traded. Both zero bonds are repaid at their face value of 100 EUR. The one-y...

A: Par value of bond is EUR 100 One year Zero bond trading at a price of EUR 97.09 Forward rate  for tw...

Q: Treasury auctions sell longțierm treasury bonds a. Monthly b. Daily c. Weekly d. Quarterly

A: Bonds are the debt securities issued by the corporations or the governments to arrange the funds. Bo...

Q: On March 15, year 1, ABC Corporation adopted a plan to accumulate P1,000,00 by September 1, year 5. ...

A: When an equal amount is paid every period at the beginning of each period, it is called as an annuit...

Q: 1) Law of one price implies the price of the coupon bond to be $1186, suggesting no arbitrage opport...

A: The law of one price states that a particular commodity or asset has the same price globally.

Q: You have a credit card that has a balance of $3430 at an APR of 17.49 %. You plan to pay $200 each m...

A: Credit card is a way to raise a loan. Loan means borrowing the amount from an external source at a f...

Q: nd), the purchase price is $250,000. The net cash flows for the project are $30,000 per year for the...

A: Given information : Year Cash flows 0  $ -2,50,000.00 1  $     30,000.00 2  $     30,000.00...

Q: You decide to invest in a portfolio consisting of 25 percent Stock A, 35 percent Stock B, and the re...

A: Expected Return: The expected return is the minimum required rate of return which an investor requir...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.