Differentiate between the Passing of Risk and the Passing of Ownership.

Q: Cash flows cannot be added together unless

A: The concept of time value of money states that value of money and hence value of cash flows changes ...

Q: If the total sale is P125,750.00, the cost of sales is 42.25% of the total sales, and the operating ...

A: Total sales = P125,750.00 Cost of sales = 42.25% Operating expenses = P15,429.30

Q: a) Determine the price of Bond X if it has 3 years to maturity, a par-value of $2500, a coupon rate ...

A: Given, Par value of bond is $2500 Coupon rate is 5%. Yield is 9%.

Q: Cody invested the profit of her business in an investment fund that was earning 2.25% compounded mon...

A: Given, The amount of withdrawal is $5000.  

Q: National Co. uses about 200,000 yards of a particular fabric each year. The fabric costs P25 per yar...

A: The total annual cost is the cost of all the product cost including fixed and variable both. The dif...

Q: Suppose that standard deviation of monthly changes in spot prices of live cattle is 1.2 cents per po...

A:

Q: (a) If $5,500 is invested at 1.35% interest, find the value (in dollars) of the investment at the en...

A: Future Value: It refers to the future worth of the current amount and is computed by the product of...

Q: The cost of discounts missed on credit terms 2/10, n/50 is (use 360 days)

A: Credit terms Credit terms are those requirements that are mentioned on an invoice that includes the ...

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you ...

A: Annuities are financial contracts that provide a stable cash flow, typically to retirees. The accumu...

Q: Suppose you get a loan of $2000 from UNO FCU for 2 years. The loan requires semianmual installment p...

A:

Q: How large must each annual payment be if the loan is for $60,000? Assume that the interest rate rema...

A: Given: Loan = $60,000 Interest rate = 12% Year = 5

Q: /hich of the following statements is the most reasonable conclusion from the given information below...

A: The debt ratio is the total debt being used as compared to total assets and it is indicative of the ...

Q: A bond with 5 years to maturity and a coupon rate of 6% has a par or face value of $20,000. Interest...

A:   Cash Flow at the time of maturity = $20000 Interest (Annuity) annually = ($20000 * 6%) = $1,20...

Q: You are looking at a 18-year zero-coupon bond that has a yield to maturity of 5.0%. What is the valu...

A:

Q: ABC PLC is an all equity financed company with 100 million shares outstanding trading at €2 per shar...

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...

Q: New equipment costs $847,000 and is expected to last for five years with the salvage value of 10% of...

A: The formula for the calculation of PVCCATS is as follows: PVCCATS=CdTd+k×1+0.5k1+k-SdTd+k×11+kn C is...

Q: At an interest rate of 10% per year, the perpetual equivalent annual cost of $70,000 now, $100,000 a...

A: Perpetual equivalent annual cost in simple words is an annual cost of one period considering the who...

Q: 1. The minimum required return by Cross-Ocean’s debtholders  2. The minimum required return by Cross...

A: Cost of capital means the return a company must earn from its investments to pay its capital provide...

Q: 7) If Supla Dah renegotiates the contract at a price of $10 per cake, compute for EBIT. 8)lf the sto...

A: You have asked to answer question no. 7 and 8. Concept . EBIT is  Earnings before interest and tax. ...

Q: How large must each annual payment be if the loan is for $30,000? Assume that the interest rate rema...

A: Given, The loan amount is $30,000. Interest rate is 6%

Q: Rank the following bonds in order from lowest credit risk to highest risk all with the same time to ...

A: Credit Risk Ranking can be done based on the yield. The more the Yield the more credit risk would be...

Q: Subject: Engineering economics Topic: Deferred annuity Question: The present value of an annuity is ...

A: Annuity refers to series of payment to be made or receivable for a definite or infinite time as the ...

Q: You currently have $900 (Present Value) in an account that has an interest rate of 4.5% per year com...

A: Future value is the accumulated amount of a deposit along with the interest earned on it. The amount...

Q: the interest rate is 10% and compounding is semiannual, what series of equal annual ansactions is eq...

A: The series of annual equal payment that are equivalent to the present value of cash flow of series c...

Q: Consider a portfolio consisting of the below securities with the below characteristics: Securit...

A: Portfolio refers to group of investment. Beta refers to measure of a stock volatility in relation to...

Q: On June 1, 2021, Java Company issued 10% bonás payable with face amount of P6,000,000 to yield 12%. ...

A: To Find: Market price of bond. Effective interest amortization table Journal entries for 2021 and 2...

Q: QUESTION 17 1. A principal may not revoke an agency contract if the agent has an interest in the sub...

A: As per the guidelines in case of multiple question we are supposed to do the first question.

Q: ome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as...

A: Net Income is $35,363 Depriciation is $5,333 Interest paid is $1,430 EBIT is $55,834 Short term liab...

Q: A house owner plans to buy a fire insurance for his house worth $100000, suppose there is 10% chance...

A: The main purpose of fire insurance is to cover the person from various losses that may arise from fi...

Q: Consider two lotteries. Lottery A is such that an individual receives a prize of 1.25 units of a con...

A: The expected value is determined by multiplying the probability with its units. This is expected val...

Q: Advanced personalized learning, tailoring instruction to a student's particular needs and learning p...

A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of intere...

Q: What is the balance of Gabriella’s $3000 after 8 years?

A: Here, Present value = $3,000 Rate of interest = 2.2%  Time in years = 8 years Frequency = continuous...

Q: You own a house along a river that floods severely and destroys the house once every 30 years. If yo...

A: With insurance policy that offers full insurance - Without seawall, the expected loss is = $200,000 ...

Q: Call Provisions A company is contemplating a long-term bond issue. It is debating whether or not to ...

A: Long bonds are the US Treasury's bonds with the longest maturities. It can also be applied to tradit...

Q: XYZ Company has raw beta of 090. Tx te is 21% XYZs corporate struchure is 65% debt and 35 equity. Un...

A: Unlevered beta = Raw beta /(1+(D/E)*(1-tax)) where  D  = Debt E = Equity

Q: Your paycheck was just deposited and you noticed that had overdrawn your bank account 10 days ago. Y...

A: The actual cost of loan that is interest amount paid in a single year on the amount due is called as...

Q: Deep Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,000. The manufactu...

A: Here, Cost of equipment = $ 106,000 Number of equal annual payment = 10 Equal annual payment = $ 17,...

Q: Transaction costs In late December you decide to sell a losing position that you hold in Twitter so ...

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question. We will answer first thre...

Q: Consider a European call option struck "at-the-money", meaning the strike price equals current stock...

A: With the given information, we will try to find out the precise value of delta,

Q: Burkhardt Corp. pays a constant $14.90 dividend on its stock. The company will maintain this dividen...

A: Constant dividend are of $14.90 Time period is 6 years Required return is 10% To find: Current Shar...

Q: lolanda purchased a Treasury bond with a coupon rate of 2.62% and face value of $100. The maturity d...

A: Face Value = 100 Maturity Date = 15-Apr-2029 Purchase Date = 7-Feb-2018 Yield = 5% Compounded Semi A...

Q: James heard about a good investment opportunity from his financial advisor, Bob. The interest rate f...

A: Let PV = Amount to be deposited FV = Future value r = 12% per month n = Number of months 

Q: Callie Corporation’s products sell for $180 each. The variable cost of each product is $135, and fix...

A: Prepare the income statement of the company as follows: Working: Note that the 'EBIT' refers to th...

Q: Question 3 You know you will receive $1,450 each month in Social Security payments in retirement. As...

A: An annuity is referred as the fixed amount of the funds, which will be provided to an individual for...

Q: s. What is the present value of these cash flows if the discount rate is 189%?

A: Present Value: It represents the present worth of the future annual cash flow stream. It is compute...

Q: International Cargo Inc. which is subjected to 20% tax rate employs residual dividend policy to its ...

A: Dividends are paid from the net income of a company i.e. profits left after paying taxes.

Q: Fowler, Inc., just paid a dividend of $2.90 per share on its stock. The dividends are expected to gr...

A: Dividend paid now is $2.90 Constant growth rate is 4.75% Required return is 9% To Find: Current Sha...

Q: : Identify the different types of annuities, calculate the present value and future value of both an...

A: Annuities are payments are that paid periodically each period these amounts are fixed ,variable and ...

Q: Would it be better for the business to have a lot of cash on hand? Why or why not?

A: A business should always have an appropriate amount of cash on hand – i.e. neither too much cash nor...

Q: plete your last year in business school and then go through law school, you will need $10,000 per ye...

A: The present value of the money needed today is the required money to sustain the four year education...

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.