Q: URCES OF SHORT TERM AND LONG
A: Short term sources are those which are payable within a year and long term are those which are payab...
Q: b. Compute the IRR for the cash flow below 3000 3000 3000 3000 3000 3000 3000 3000 2000 2000 2000 20...
A: Let the IRR = r When IRR is the discount rate, NPV = 0
Q: Côntrast the implementation of various bonds and insurances as needed by the Client, contractor, and...
A: While insurance and bonds decrease risks for contractors and owners, bonds are primarily intended to...
Q: om Superfiber Insulation, Inc., has told you, $15000 worth of Superfiber now. If the cost plans to k...
A: The given problem can be solved using NPV function in excel.
Q: Assume that you have utility of wealth of the square root of money, and that you currently have a we...
A: Financial betting is the gambling on price development of a financial instrument at a later period ...
Q: Say you own a Mexican place that produces, among other things, Mexican burritos. Your production of ...
A: Q = 4KL, where Q is the number of burritos, K is the amount of capital and L is the amount of labor ...
Q: A 25,000 5% bond with coupons payable semi-annually is redeemable at 97% at the end of 10 years. If ...
A: Par value = 25000 Coupon rate = 5% Coupon amount = 25000*0.05/2 = 625 Redeemable price = 25000*0.97 ...
Q: Equity share are known as:
A: Equity shares are the shares which provides its holders the ownership rights and right to vote durin...
Q: PLEASE SHOW YOUR SOLUTIONS. ASAP THANKS. #25 26 27
A: The split value method can be used to allocate the joint cost which involved the sale value of the f...
Q: The following table shows the UK consumer prices index for the years 2013-16 based on 2014=100. Year...
A: CPI in 2014 = 100.00 CPI in 2013 = 87.50
Q: Find the simple interest paid on a Php810 investment at 2.8% annual interest for 315 days.
A: Investment = Php 810 Interest rate = 2.8% Period = 315
Q: Corporate Taxes lE (= kg) Cost of capital (r=k= WACC) ra (=kv) r=WACC rD(= kp) D/E-ratio
A: In the first graph, wwith corporate taxes in the economy, rA = kU is the unlevered cost of equity. I...
Q: Find the value on June 1, 1990 of 4,000 with interest at 4% compounded semi-annually, redeemable at ...
A: Given information: Par value 4000 Settlement date 01 October 1989 Maturity date 01 June 1990 ...
Q: The common stock of Danny Enterprise had a market price of $12 on the day you purchased it just one ...
A: Let the return earned = r Market price a year ago (P0) = $12 Market price today (P1) = $14 Dividend ...
Q: Troy Industries purchased a new machine 4 year(s) ago for $80,000. It is being depreciated under MAC...
A: Book value = Book value of machine in previous year - depreciation Year Depreciation rate Dep...
Q: A borrower and lender negotiate a $20,000,000 interest-only loan at a 5 percent interest rate for a ...
A: Yield maintenance is a sort of prepayment penalty paid by borrowers to lenders or bond issuers to re...
Q: The effective rate of interest is 3% per annum. Calculate the value at start of the payment stream o...
A: Interest Rate = 3% Time Period = 14 Years First Payment = £600 Increased payment by = £600
Q: Explain the differences between yield-to-maturity and yield-to-call
A: While both yield to maturity and yield to call are related to bonds they are not the same thing.
Q: A semi-annual pay interest rate swap where the fixed rate is 5.00% (with semi-annual compounding) ha...
A: Interest rate swap Interest rate swap is a term used for forward contracts to increase or reduce exp...
Q: Josie wants to be able to celebrate her graduation from CSULA in 4 years. She found an annuity that ...
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...
Q: Manuel is preparing for an income fund for his retirement. He wants to receive P 15 500 at the begin...
A: Let the amount to deposit now = X Monthly payout (M) = P 15500 n = 25 years = 300 months r = 10.5% a...
Q: bond wit interest at 6% payable quarterly is bought to yield 4 ½% converted quarterly. On a certain ...
A: The reduction in the amount of the overpayment of the Bond is called the premium amortization of the...
Q: ABC Corporation has decided to sell ₱1000 bonds which will pay semiannual dividends of ₱20 (2% per p...
A:
Q: wed ₱24,480 from Marie at the rate of 10% simple interest per year. She then returned the money afte...
A: Given, Borrowed amount = 24,480 Interest rate = 10% No. of years = 4 years 6 months or 4.5 years Tot...
Q: Total assets of Alpha Company are 3,00,000. The company's total assets turnover ratio is 3, its fixe...
A: Operating leverage is the ability of EBIT to react differently to change in sales. Formula: DOL = Sa...
Q: A few years ago, Largo Industries implemented an inventory auditing system at an installed cost of ...
A: Current book value =Installed cost - depreciation
Q: DEF Corporation has projected that their performance for the next five years will result to the foll...
A: Useful life is 10 years CAPEX is P2million Orginal purchase price is P50million Tax rate is 30% Requ...
Q: ke for your money to grow to five times its original value if the interest rate of 5% per year?
A: The given problem can be solved using NPER function in excel. NPER function computes no. of years/ p...
Q: The selling price of product is $20 with Contribution Margin Ratio 20% and Fixed Cost is $175,000. P...
A: Selling price = $ 20 Contribution margin = 20% Fixed cost = $ 175,000
Q: An employer uses a career average formula to determine retirement payments to its employees. The ann...
A: a) Years worked (n) = 27 Average salary (A) = $68000
Q: Conducting monetary policy so that the FF rate = 1.25%, where the FF rate is the nominal federal fun...
A: The main goal of central banks of any country is to provide price stability to the currency of the c...
Q: Calculate the and standard deviation for each alternative 7. Based on the findings above, which alte...
A: Firstly, Standard deviation and Variance of each Stock is calculated as below: Stock Media Prima, ex...
Q: An annuity that pays $12,500 a year at an annual interest rate of 5.45 percent costs $150,000 today....
A: Given Annuity = $12,500 Interest rate = 5.45% Present value of annuity = $150,000 Time period = ?
Q: What is the discount interest rate if P129,750 was obtained after a loan of P150,000 was granted for...
A: Simple interest is a quick and easy way to find out how much money you owe. The daily interest rate ...
Q: what will be the operating leverage?
A: formula combined leverage = financial leverage*operating leverage given combined leverage =3 financi...
Q: 26. The following data pertain to Sunlight Corp., whose management is planning to purchase an automa...
A: Here, Economic Life of Equipment is 8 years Disposable Value after 8 years is NIL Estimated Annual C...
Q: You are considering investing in JR stock. Your stockbroker has informed you that the expected retur...
A: Expected returns, volatility, and the probability of occurrence: The expected returns from stock are...
Q: Financial data of Company TXY as follows: Outstanding Common Shares $76,262 Total Equity $1,754,...
A: Sales = $3.074 million COGS = $2.088 million Net profit = $0.221 million Number of shares = 76262 As...
Q: "To pay off $58000000 worth of new construction bonds when they come due in 29 years, a water munici...
A: Answer: Calculation of the amount of each deposit: Formula, we will use here, Future value of annuit...
Q: Which plan is the less expensive way to purchase plant maintenance equipment? The discount rate is 1...
A: Discount rate (r) = 11% Let down payment = D Equal annual payment = A n = 20 years
Q: t rate would $1,000 at the end of 2000 be equivalent to $2,000 at the end of 2007? Use excel.
A: The given problem can be solved using RATE function in excel. RATE function computes interest rate f...
Q: I want to save for a vacation. My plan is to put $200.00 each month into an ordinary annuity that ea...
A: A study that proves that the 1value of money today is higher than the future value of money is term ...
Q: A currency swap has a remaining life of 15 months. It involves exchanging interest at 10% on £20 mil...
A: Currency swaps: A currency swap is an arrangement wherein involved sides swap the principle and inte...
Q: The 14-year, $1,000 par value bonds of Waco Industries pay 7 percent interest annually. The market ...
A: Given, Par value of the bond = $1,000 Annual coupon rate = 7% Time to maturity = 14 years Current pr...
Q: A credit card had a previous balance of P 9 500 on June 10. A purchase of P 5 000 was made on June 1...
A: Average daily balance = Total of (Number of days * Unpaid balance) / Total number of days
Q: Exhibit 2: Project Cash Flow Data Investment-related cash flow forecasts: Invoice price of the machi...
A: Here, WACC is 10.10% Selling Price per unit is $250 with 2.5% inflation Cost per unit is $185 with 2...
Q: The 12-year $1,000 par bonds of Vail Inc. pay 13 percent interest. The market's required yield to ...
A: Par value of bond (F) = $ 1000 Coupon rate = 13% Coupon amount (C) = 1000*0.13 = $ 130 Number of ann...
Q: You have been purchasing $12,000 worth of stock annually for the past eight years and now have a por...
A: Given, Annual payment = $12,000 Future value = $87,881 Period = 8 years
Q: Your car dealer is willing to lease you a new car for $190 a month for 36 months. Payments are due o...
A: Monthly payment (P) = $ 190 Number of monthly payments (n) = 36 Interest rate = 6.5% Monthly interes...
Q: Determine the unearned interest income on January 1,2020. Determine the gross profit on sale. Prepar...
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Explain the concept of External fund needed in 40-50 words.
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- Elaborate as to which of the three commonly used fund performance measures (Sharpe, Treynor, Jensen) is each measure below designed to improve upon? M2 Information Ratio Sortino Ratio ??Word limit: 100 words for each question!1. Define agency relationship, agency problem, and describe how it gives riseto agency costs. Who bear the agency cost?2. Describe broadly how firms raise fund through financial market?Create a cash budget using the pic
- 2. What information/ data is required for budget preparation? List at least six items.Describe the factors needed in computing Additional Funds Needed.When justifying a budget request (in narrative form), which of the following should be included in the request? Select all that apply. What you want to do Budget request counterarguments Why you want to do it A list of required resources
- Match the term on the left with the definition on the right. Budget Credit Debt Emergency Fund Principal Income Need vs. Want [Choose ] [Choose ] is a strategy in which saving is prioritized and made an essential cost in a budget occurs when a borrower is unable to meet the obligation of debt repayment. is the money that a borrower owes to a lender. It can be accrued through any form of borrowing - cred is money received through sources such as employment, investments, or business transactions. is the percentage of a loan principal that lenders charge borrowers. is money set aside for big, unexpected expenses such as job loss or large medical bills. It provides a fin is a plan for using income to meet financial obligations. It tracks how much income a person receives a is the amount of money due to a loan before interest. is a financial arrangement in which money is borrowed for a purchase and paid back at a later date. It a One of the most basic concepts of personal finance is being…What are five basic principles which, if followed, should improve the probability of preparing a meaningful budget? Why is each important?a. Name three budget preparation approaches.
- Define the following with formulaes if possible: 3. Purchases Budget 4. Cash Payment Budget 5. Summary Cash Budget 6. Short Term Financial Needs 7. Budgeted Income Statement 8. Budgeted Balance SheetMatching Following are a number of key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–12). Note that not all key terms and concepts will be used. Answers are provided at the end of this chapter.a. Budgetingb. Top-down budgetingc. Participative budgetingd. Zero-based budgetinge. Single-period budgetf. Rolling (or continuous) budgetg. Operating budgeth. Budget slack (or budget padding)i. Cash budgetj. Committed costk. Discretionary costl. Standard costm. Ideal (or engineered) standardn. Attainable standardo. Past experience standardp. Predetermined overhead application rate____ 1. A budgeting process that involves justifying resource requirements based on an analysis and prioritization of unit objectives without reference to prior period budget allowances.____ 2. A budgeting approach that implies little or no input from lower levels of…Explain the steps in developing a cash budget.