Explain certificate of deposit (CD).

Q: 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375…

A: Future value of the savings can be calculated as: = Annual savings * Future Value Annuity Factor…

Q: CX Enterprises has the following expected dividends: $1.11 in one year, $1.19 in two years, and…

A: Here we will use the dividend discount model. As per the dividend discount model the price of stock…

Q: 35. What is the amount of the annuity at the end of 10 years?

A: Future value of the Annuity: It is estimated by the product of the present stream of cash flows and…

Q: what is the payback in this investment, assuming that the savings accrue over the whole year?

A: Payback period refers to the period within which the sum invested by the company in a project will…

Q: a series of 12 annual payments of $2400 is equivalent to three equal payments, one each at the end…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: d exactly, then the yen would trade at one yen to the dollar. True or False? Explain.

A: Purchasing power parity say that prices all over the world should be one and same and law of one…

Q: (a) A sum of $2000 is deposited in a time-deposit account that pays interest at a rate of 3% per…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R, 10 percent in Stock…

A: Portfolio beta will be reflective of the systematic risk of the portfolio and it cannot be…

Q: The dividends and earnings of Company ABC are expected to grow as follows: - 20 percent a year for…

A: We will first calculate the dividend considering all the growth rates, thereafter we will calculate…

Q: Answer question 34

A: Intermediate Bonds also known as medium term funds are a type of debt funds  that invest in debt…

Q: What would be the spot price if a stock index futures price were $75, the risk-free rate were 10…

A: Futures price is $75 Risk free rate is 10% Dividend yield is 3%

Q: 7. A sports equipment company issued a $6 cumulative preferred stock issue. In 2010 the firm's board…

A: 7. Cumulative preferred stock-It is a type of preferred stock in which the holders  are entitled to…

Q: You just bought you first house using a 30-year, 2.5% per year mortgage, fo What will your monthly…

A: The following information has been provided in the question: Time period= 30 years Interest=2.5% per…

Q: What cash flow must the investment provide at the end of each of the final 4 years, that is, what is…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: Your company has two divisions: One division sells software and the other division sells computers…

A: The Weighted Average Cost of Capital WACC is calculated with the help of following formula  WACC =…

Q: Last year, Industrial Industries had Operating Cash Flow of -55,000. It had Net Capital Spending of…

A: Free cash flow is cash generated from business. It is calculated as follows Free cash flow = Cash…

Q: Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent, and the expected…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: One year ago, your company purchased a machine used in manufacturing for $110,000. You have learned…

A: Initial Cost of old machine = $110,000 Initial Cost of new machine = $150,000 Depreciation for old…

Q: Noel's Auto Repair Shop paid P3,586.20 invoice dated November 12,2014 on December 10 of the same…

A: Given: Invoice = P3,586.20 Invoice date = November 12,2014 Paid on = December 10, 2014 Stated…

Q: If your monthly payments are $173, how much will you have in your retirement fund after 40 years? $…

A: Future value of annuity Annuity is a series of equal payment at equal interval over a specified…

Q: Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are…

A: Spontaneous liabilities are liabilities which vary with sales. In this case accounts payable and…

Q: a) What is the annual dollar amount of interest that you receive from your bond investment? b)…

A: Bond Price: The price of the bond is computed by discounting the par value of the bond and the…

Q: ORDINARY if the proble

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

Q: Each day a small business owner sells 200 pizza slices at $1.50 per slice and 85 sandwiches at $3.50…

A: Solution:- Profit means the excess amount of money available from sale proceeds after meeting all…

Q: For a business firm, what type of activities does financial management involve?

A: Financial management refers to the process of planning,organizing , directing and controlling the…

Q: How much money would you have in savings if you kept $200 on deposit for eight years at 8%,…

A: Money Deposited now (present Value) is $200 Time period is 8 years Interest rate is 8% Compounded…

Q: the benefits of merging and diversifying one's assets in or

A: Merging is making one asset out of two and diversifying is increasing investment in different types…

Q: The Federal Reserve recently shifted its monetary policy causing Lasik Vision’s WACC to change.…

A: The question is related to Net Present Value. Net Present Value is calculated with the help of…

Q: d. If the company can issue $1,000-par-value, 12% coupon, 11-year bonds that can be sold for $1,180…

A: Cost of Debt: It represents the cost of raising capital for the issuer from the investors. The debt…

Q: FarCry’s WACC? (R

A: The weighted average cost of capital refers to the return on the proportion of the amount invested…

Q: Use the following exchange rates to calculate the cross rates:              EURUSD = 1.0500…

A: Solution:- Exchange rate means the rate of one currency in terms of other.

Q: what is X?

A: Cash flow statement refers to the statement which provides the exact amount of all cash inflows…

Q: pany is considering the purchase of a new machine to replace an obsolete one. The machine being used…

A: NPV= Present value of cashinflows - Prsent value of cashoutflows.

Q: firm is considering two projects and the cash flows associated with them are shown in the following…

A: Pay back period is the number of years required to recover the initial investment and it must be…

Q: Exercise 4 (it's only one question) In 2016 the company FinTech.Inc had a capital structure which is…

A: Weighted Average Cost of Capital: It is  is the  average cost of capital from and  are based on…

Q: ASSETS FOREIGN CURRENCY FINANCIAL ASSETS International reserves Deposits with foreign banks Other…

A: Inventory : Inventory refers to the items or goods that any business holds with the objective of…

Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…

A: Given, The amount invested today is $2000 The rate of interest is 7%

Q: ABC Corp’s beta is 1.4, risk-free rate is 3%, and the market return is 9%. If the risk-free rate…

A: The Capital Asset Pricing Model (CAPM) is a link between necessary return and systematic risk that…

Q: a.  Given the information in the​ table, the expected rate of return for stock A is enter your…

A: Expected Rate of Return = (Probability 1 x Return 1) + (Probability 2 x Return 2) + (Probability 3 x…

Q: You are purchasing a new car for $27,600. The dealership offers you three options: • 0% financing: 0…

A: Car Price = $27,600 Time Period(Months) = 48 Interest Rate = 0% Down Payment = $0

Q: actual ash value

A: Actual cash value refers to the amount of property that is present today subtracting the amount of…

Q: 3. Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375…

A: In case both the cars are insured with the same insurer, there will be a savings of 10% on the…

Q: Define letter of credit.

A: Credit refers to the concept, is defined as the financial agreement where the borrowers receive…

Q: The Joshi Fish Farm (JFF), a saltwater aquarium company, is planning to expand its operations. It…

A: We have to compute the future value of the investment made each year after the end of 5th year.…

Q: You can obtain a loan of $200000 at a rate of 15 percent for two years. You have a choice of (i)…

A: Loan amount  $ 2,00,000.00 Time Period 2 Interest Rate 15%

Q: Humanics Ltd is considering a proposed investment to manufacture medical equipment for a large-scale…

A: While evaluating a capital project, only those cash flows are considered that are resulted due to…

Q: The Blue Moon Corporation has ending inventory of $500,000, and cost of goods sold for the year just…

A: Here, Ending Inventory is $500,000 Cost of Goods Sold is $1,800,000

Q: A) calculate the amount of money you will have after 25 years if you deposit $150 each month in an…

A: Monthly deposit: Monthly deposits are instructions to the bank or financial institution to take a…

Q: Calculating the geometric and arithmetic average rate of​ return)  The common stock of the Brangus…

A: Rate of return is an important metric that is used in finance. This metric shows the changes in…

Q: Suppose that LilyMac Photography expects EBIT to be approximately $46,000 per year for the…

A: The taxable income is calculated with the help of following formula  Taxable Income = EBIT -…