DISCUSS WHY ESTIMATING THE VALUE FOR A BOND IS EASIER THAN ESTIMATING THE VALUE FOR COMMON STOCK.

Q: what are factors that can influence the price of a stock?

A: Stocks are the company’s securities issued by the companies to raise the funds. Prices of stock depe...

Q: A preferred stock will pay a dividend of $1 per year. If the annual return is 7.63%, what is the sto...

A: Stock price today = Annual dividend / Annual return where, Annual dividend = $1 Annual return = 7.63...

Q: You will invest $31 per month. If the rate is 8.07%, how much will you have in 6 years?

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper...

Q: Assume that the government sets a binding price ceiling on the interest rate that banks charge on lo...

A: A price ceiling is a mandate that the price charged on certain goods or products may not rise or fal...

Q: OpenSeas, Inc. is evaluating the purchase of a new cruise ship. The ship will cost $501 million and ...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: Main Content Net Revenue Years 1 Investment You are thinking about buying a new Hot Dog cart for $7,...

A:

Q: 13.) A bond has an annual 8 percent coupon rate, a maturity of 10 years, a face value of ST000 and m...

A: Yield to maturity (YTM) is the total rate of return received by a bond after it has made all interes...

Q: You can earn $59 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless...

A: Effective Annual Rate: It refers to the annual real rate taking into account compounding effects. He...

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...

A: future value of an investment is Php5,500,000 present value is Php3,500,000 Time period of 13 years ...

Q: At what rate compounded monthly will P4,222 accumulate to P16,444 in 2 years and 10 months?

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...

Q: Examples of Current liabilities includes accounts payable, accruals and other short-term liabilities...

A: Current Liabilities are the liabilities (payments) that the company has to pay within a year. These ...

Q: Using the table below show and explain whether the two assets A and B are ideal for Hedging         ...

A: Risk is a factor which is always present in the investment. Hedging is a risk management strategy wh...

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...

A: Time period is 4.5years Present value of investment is Php50,010 Future Value is Php60,072.82 To Fin...

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...

Q: QUESTION 4 Jeremiah invested RM100 every month into his Paradise Mutual Fund account for 8 years at ...

A: A trade discount is offered when a manufacturer sells a product to a reseller rather than the end cu...

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

A: Cash flow at year 0 (CF0) = $200 Cash flow at year 1 (CF1) = $200 Cash flow at year 2 (CF2) = $200 C...

Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibr...

A: To calculate the value of project, it is required to calculate the net present value of Project usin...

Q: b) Herman bought a terrace house at RM650,000. He paid a 10% down payment and the balance was financ...

A: Calculate the present value of the loan taken by multiplying the purchase value which is RM650,000 w...

Q: Assume a hedge fund has a fee structure of 4 plus 25%. What return is the hedge fund required to gen...

A: Hedge funds are also known as the actively managed funds that uses various non - traditional and ris...

Q: One-year T-bills yield 1.00%. Based on future rates, the market expects that one year from now, new ...

A: Pure Expectations Theory (PET) is used to compute the future rates because this theory defines that ...

Q: How many years are needed for P40,000 to yield P13,756.66 if invested at 6% converted semi-annually ...

A: Given,  Interest rate 6% compounded semi annually  So, Interest rate per semi annual = 6%/2  = 3%   ...

Q: Perform profitability analysis for the two quotas

A: Profitability ratios are the ratios which shows or enhances the profitability of the company and use...

Q: Accumulate $2000 for 3 years at 7% simple interest. O I = $420; F = $2420 %3D %3D O 1= $4200; F= $64...

A: Amount (P) = $2000 n = 3 years r = 7%

Q: Find the amount of an ordinary annuity of Php18,450 payable quarterly for 3.5 years at 12% compounde...

A: Calculation of value of an ordinary annuity: = Annuity amount * PVAF (interest rate per period, numb...

Q: If a stock has a much higher than normal P/E ratio, investors probably expect ... O A. rapid growth ...

A: PE ratio is the ratio of the stock price and the earnings per share of a stock

Q: You have a portfolio with the following: Expected Return 10% Stock Number of Shares Price W $ 54 31 ...

A: Portfolio return is the weighted average expected return of all the securities in the portfolio. Thi...

Q: Using Problem 1, if Hogwarts Corp.’s policy is to employ Aggressive financing policy, which of the f...

A: "Hi, Thanks for the Question. Since you asked multiple question, we will provide the answer of first...

Q: If you deposit BD1,500 now, BD3,600 three years, BD2000 seven years, and BD1,800 nine years from now...

A: Deposit now = 1500 Deposit in three years = 3600 Deposit in seven years = 2000 Deposit in nine years...

Q: Use the table for the question(s) below.   Consider the following two quotes for XYZ stock:   No...

A: Exchange Rate Exchange rate refers to the quoted rate between the currencies of two countries at whi...

Q: rong form efficient eak form efficient and S

A: Step 1 Strong form performance is a very strong version of the efficient market hypothesis (EMH) inv...

Q: How much would you pay for an asset that costs you 10,000 for each of four years in a row (starting ...

A: Discounting is a technique to compute the present value (PV) of future cashflows by using an appropr...

Q: The cash price of a motorcycle is Php325,000. A fixed amount is to be paid at every end of the month...

A: Cost (PV) =Php 325000 Interest rate = 9% Monthly interest rate (r) = 9%/12 = 0.75% Period = 1.5 Year...

Q: If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving     ...

A: The present value is the value of the sum received at time 0. It is the current value of the sum tha...

Q: Sunny Co. recently reported sales of P100 million, and net income of P10 million.  The firm has P80 ...

A: The increase in retained earnings can be calculated as increase in net income after dividend payouts...

Q: If your goal is to determine how effective a firm in managing its assets, you would examine O Profit...

A: If the goal is to determine firms effectiveness in managing assets, asset management ratios should b...

Q: ABC Inc. share will pay dividends of 40 for the first year, 45 for the second year, and 3% above the...

A: Dividend in year 1 (D1) = 40 Dividend in year 2 (D2) = 45 Growth rate (g) = 3% Required return (r) =...

Q: A. True or False: Write T if the statement is correct. If it is not, write F, and state your reason ...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...

Q: Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hi...

A: To Find: NPV

Q: If money is worth 12% compounded monthly, determine the present value of the following: a. An ann...

A: Annual payment (P) = 10000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1%

Q: .Net Sales is equal to P200, 000 and Cost of Goods Sold totaled P65, 000. What is the Gross Profit? ...

A: Gross Profit is the sum of all salaries, wages, interests, etc. before any deductions and taxes. Ope...

Q: Independent Activity 2 Starting on her 30th birthday, a woman will invest an amount every year shoul...

A: Investment each year on birthday Beginning of period investments Annual rate = 7% Future Value Requi...

Q: Ray Miller was looking for funds to support his company's expansion. His bank offered him a $25,000 ...

A: Value of simple discount loan is $25,000 Interest rate is 10% Time period is 90days To Use: 30/360 ...

Q: Suppose Capital One is advertising a 60​-month,5.85% APR motorcycle loan. If you need to borrow $7,1...

A: Loan amount (PV) = $7100 Interest rate = 5.85% Monthly interest rate (r) = 5.85%/12 = 0.4875% Period...

Q: on gives the right to sell an asset at any time prior to or at maturity? * A. European Put B. Americ...

A: Options gives the opportunity Buy or sell the stock on or before maturity of stock. But there is obl...

Q: Vhat are the annual CCA deductions associated with this equipment for the first five years? What are...

A: CCA deduction are capital cost allowance work like depreciation and goes on reducing with time.   No...

Q: orksheet Net worksheet Using the information provided, complete Figure 1.1, Seller Net Worksheet. Se...

A: Seller Net Worksheet Various issues to consider.

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...

A: The nominal rate of investment can be found using the RATE function in excel. RATE = (NPER, PMT, PV,...

Q: Use the following information to answer the question(s) below. Expected Liquidating Dividend $920 Ma...

A: Beta of Nielson motors (B) = 1.40 Risk free rate (RF) = 3% Market risk premium (RP) = 5%

Q: Why do floating charge holders frequently include a negative pledge clause in the charge.

A: Negative pledge ensures that, in case of insolvency of a firm, other creditors wont be able to obtai...

Q: What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and ma...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...