dividend

Q: 2.50. Armes Corporation has the opportunity to receive $20,000 right now, or, $3254.91 per year for ...

A: In the given question we require to calculate the rate of interest at which following two options be...

Q: Define each of the following terms: i. Capital gain or loss; tax loss carryback and carryforward

A: The capital gain or loss is computed as the difference in the sale price and purchase price of an as...

Q: Tom Bond borrowed $6,600 at 6-% for three years compounded annually. What is the compound amount of ...

A: An interest rate method in which current interest is computed by multiplying the interest rate by th...

Q: Describe some financial instruments

A: Financial instrument It is the contract that provides rise to the financial asset of 1 entity and th...

Q: Osborne Construction currently has the following capital structure: Debt: $20,500,000 paying 9.5...

A: Total Debt = $20,500,000 Interest rate on debt = 8% Face value of bond = $1,000 Selling price of bon...

Q: How should derivatives be used in risk management? What problems can occur?

A: Derivatives are financial instruments that have values derived from other assets like stocks, bonds,...

Q: A company is considering two mutually exclusiveexpansion plans. Plan A requires a $40 million expend...

A: Hey, since there are multiple sub-part questions posted, we will answer the first three questions. I...

Q: Skylark Industries has P6,000,000 in inventory and P3,000,000 in accounts receivable. The company ha...

A: Given information: Inventory amount is P6,000,000 Accounts receivables is P3,000,000 Average daily s...

Q: A 7 year bond with maturity value of $5504.1 and a yield rate of 5% was sold 15 months before maturi...

A: Holding period return is the return actually earned throughout the period, the bond is held for. .  

Q: A self-employed person deposits $2,000 annually in a retirement account (called a Keogh or H.R. 10 p...

A: The future value formula can be used to derive the future value of a present sum or a stream of futu...

Q: C7. Number 9.

A: Broker is a person who is dealing with the seller and buyers of the property to consider a transacti...

Q: Define speculative balances

A: Speculation in simple terms can be associated with gambling. speculation is done on basis of guess w...

Q: What is a Eurodollar?

A: Currency refers to the medium through which goods and services are exchanged. Basically, it's the mo...

Q: a. Assuming you purchased the bond for $350 what rate of return would you earn if you held the bond ...

A: given data bond purchased price = $350 no of years = 25 maturity value = $1000 a) finding rate of re...

Q: What is EBITDA?

A: The company is providing services or selling goods for the purpose of gaining profit. The profit wou...

Q: Define each of the following terms:c. Additional funds needed (AFN); AFN equation; capital intensity...

A: 1.) ADDITIONAL FUND NEEDED- Additional funds required (AFN) is that the quantity of cash a corporati...

Q: uestion: 10 How much must be deposited todayi count with quarterly compous deposited todav the final...

A: Present value states that the money received in future is not worth as much as the same amount of mo...

Q: 2.24. The U.S. government fixed the price of gold at $35 an oz in 1934. In 2005, the price of the ye...

A: In this question we are given following details: Price of Gold in 1934 = $35 per oz Price of Gold in...

Q: What do the three theories indicate regardingthe actions management should take withrespect to divid...

A: Dividend policy is the policy the company uses to structure its dividend payout to its shareholders.

Q: List the five possible procedures for dealing with real options.

A: Real options gives right to management to undertake certain investments and opportunities related to...

Q: Why should companies use a project’s cash flows rather thanaccounting income when determining a proj...

A: Net Present Value is the difference between the current value of cash inflow and cash outflow for a ...

Q: A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the ...

A: given, price 10 12.5 15 probability 0.4 0.45 0.15

Q: n general, can the risk of a portfolio be reduced to zero byincreasing the number of stocks in the p...

A: Portfolio is like a basket of securities. It can have different class of securities such as debt , e...

Q: Consider a student loan of $12,500 at a fixed APR of 12% for 20 years. a. Calculate the monthly paym...

A: A concept that implies the future worth of the money is lower than its current value due to several ...

Q: Define required rate of return on Stock i

A: Stock refers to the security that represents the ownership of the stockholders in the company. The s...

Q: Michelle Payne deposited $4,000 in a savings account paying 6.25% simple interest. How long (in year...

A: The future value is the future worth of the amount that will be paid or received in the future.

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw ...

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future Valu...

Q: Projects A and B have the following cash flows:            End-of-Year Cash Flows                   ...

A: Given information: Cost of capital is 10%

Q: QUESTION 1 A "sunk cost" refers to money spent in the past. True False

A: A sunk cost is an amount that has been incurred in the past and cannot be recovered now.

Q: On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. T...

A: Interest payable on the bond is the amount payable on the bond by the bondholder at the coupon rate,...

Q: Market value ratios try to answer what question for potential investors? Do financial statements con...

A: An investor is any person or other organisation (such as a company or mutual fund) that invests capi...

Q: Compare the monthly payment and total payment for the following pairs of loan options. Assume that b...

A: A concept that implies the future worth of the money is lower than its current value due to several ...

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying amo...

A: GAIN ON SALE OF BOND: GAIN ON SALE=SELLING PRICE+COUPONPURCHASE PRICE-1

Q: Gertrude wants to make $500 monthly withdrawals for 10 years from an account which pays 4% compounde...

A: The amount that individual G needs in her account is the present value of the monthly withdrawals.  

Q: Related to international business.

A: In international trade mostly invoicing is done in US dollar .

Q: 3.5. The British Government issued perpetual bonds in 1821 with a coupon rate of 3% and face value o...

A: In the given question we require to calculate the price of perpetual bond : Price of perpetual bond ...

Q: 3.9. You have bought a zero-coupon bond for $300. It will mature in 6 years and pay face value of $1...

A: In the given problem we need to calculate the implied rate of return on zero coupon bond from follow...

Q: What does “investment risk” mean?

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual ret...

Q: 1. difference b/w creditors and stockholders 2. why does "maximizing firm value" equal to "maximizin...

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: A woman is planning for retirement in 30 years and decides she can deposit $6,000 each year on Decem...

A: An Annuity Due is a stream of regular periodic payments made at a beginning of period for a specifie...

Q: Define Profi tability ratios

A: A ratio is a tool used by management to analyze the effectiveness of various financial statements. T...

Q: Use the basic equation for the capital asset pricing model (CAPM) to work each of the following prob...

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...

Q: 2.33. You have decided to put $130 in a savings account at the end of each month. The savings accoun...

A: In the given problem we require to calculate the C made every month in the savings account for 6 yea...

Q: Blossom Airlines is considering two alternatives for the financing of a purchase of a fleet of airpl...

A: When the company issues common stock, the net income will remain the same but the number of shares w...

Q: If investors’ aversion to risk increased, would the risk premium on a highbeta stock increase by mor...

A: ACCORDING TO CAPM FORMULA: REQUIRED RATE OF RETURN=risk free rate+beta×market risk premium

Q: Alpha Consulting LLP has 1 million common shares outstanding with a total market value of £20 millio...

A: rate of return of common share formula: re=D1P0+g where, D1= dividend next year P0=price of share g=...

Q: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks forher c...

A: The amount of money that can be accumulated in Investment 1 at the end of 15 years is future value o...

Q: b. Assume the firm’s stock now sells for $20 per share. The company wantsto sell some 20-year, $1,00...

A: Computation:

Q: Jasmine Flowers (JF) must raise $345 million for its future expansion.  To do so, JM expects to issu...

A: Flotation cost is cost incurred during the issue of share, and it is calculate on the total share ca...

Q: Assume that Home Afrika stock has an expected return of 15%, a required rate of return (RRR) of 12%,...

A: Risk calculated fot Afrika stock:Coefficient of variance=VolatilityExpected Return×1000.045=Volatili...