Explain which is the better option.

Q: What will be the future value of $5 000 invested for six years at 8% per annum compounded quarterly

A: Formula for finding the future value is P(1+i/4)^(t*4) P = $5000, i= interest = 8% , t = time = 6

Q: A $6,000 bond had a coupon rate of 5.75% with interest paid semi-annually. Bianc purchased this bond…

A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

Q: What are elements of financial reporting as per conceptual framework? Explain with example

A: The release of financial statements, which contain the income statement, balance sheet, and…

Q: What is the contribution margin per unit? 8.2 What is the contribution margin ratio? 8.3 If sales…

A: Information Provided: Sales = $48,000 Variable expenses = $32,000 Contribution margin = $16,000…

Q: Irving Corp. has no debt but can borrow at 7.25 percent. The firm's WACC is currently 13 percent,…

A: When firm does not have debt, cost of equity = WACC.  Firm's cost of equity when it has 25% debt:…

Q: Explain how increases and decreases in exchange rates between 2 countries might impact business and…

A: Exchange rate is referred as the rate, where one currency will get exchanged with regard to another…

Q: Sun Co., an electronics product manufacturer, is expecting to pay a dividend of $2 per share this…

A: Given, Dividend D1 is $2 growth rate for year 2 and 3 is 15% and further is 4% The required return…

Q: The following two-step binomial cree depicts the quarterly price bath of an underlying share for an…

A: Call options gives opportunity to buy stock on the expiration by payment of small premium but no…

Q: General Computers Inc. purchased a computer server by taking a loan of $32,500 at 3.75% compounded…

A: Here, Loan Amount is $32,500 Semi Annual Payment is $2,300 Interest Rate is 3.75% Compounding Period…

Q: You are planning for a very early retirement. You would like to retire at age 40 and have enough…

A: Types of investments and withdrawals: A certain amount of money can be invested either as a lump sum…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Here, Cost = $507,000 Down payment = 20% Interest rate = 4.3% Revised no. of years = 15 years  No.…

Q: each of the following conditions. Do not round intermediate calculations. Round your answers to the…

A: *Answer:  Present Value = $675 Present Value = Future Value / (1+r)^n

Q: Calculate the amount of simple interest payable if a person borrowed $25 500 at a simple interest…

A: Simple interest is the method of calculating interest when the interest earned does not get…

Q: Suppose you receive $10,000 and have an opportunity to earn a real rate of return of 10% (assume…

A: Perpetuity will be reflective of a stream of cash flows which will be provided forever. The present…

Q: a. How many payments are required to s-

A: A loan refers to the amount that should be taken by the borrower from the lender for a specific…

Q: . Which of the following is TRUE regarding a whole life insurance policy that pays a dividend?…

A: Please not th  at as per the guidelines, I am required to answer only the first three questions.…

Q: Sanford Corporation's bonds currently sell for $798.70 and have 10 yars to maturity. The bonds have…

A: Price of the bond = $798.70 Maturity period = 10 years Coupon rate = 5% or 0.05 Yield to maturity…

Q: What is the percentage change in a 5-year zero-coupon bond with a duration of 5 years, when interest…

A: Duration of zero coupon bond is equal to maturity period of zero coupon bond

Q: . If Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how…

A:

Q: On April 1, 2020, ET Inc. has available for issue $391,000 bonds due in four years. Interest at the…

A: Information Provided: Face value = $391,000 Years = 4 Interest rate = 5.5% compounded quarterly

Q: ain why would a firm consider investing in a portfolio of foreign currencies instead of just a…

A: Firms always invest in different currencies while doing the business at international levels but…

Q: Big Rock Brewery currently rents a bottling machine for $50,000 per year, including all maintenance…

A: Renting cost = $50,000 Purchase of current machine = $165,000 with maintenance expense = $24,000…

Q: what excel formula feature would you use

A: Information Provided: Price of bond = $1135.90 Years to Maturity = 10 Annual Yield to Maturity = 8%…

Q: Determine the yield to maturity. b.  What is the value of the bonds to you given the yield to…

A: Information Provided: Year = 13 Par value = $1000 Coupon rate = 15% Comparable YTM = 18% Current…

Q: ELECTRON Computers just issued a bond that matures in 8 year equal to $1,000 and its coupon rate is…

A: Price of bond is present value of coupon payment and present value of par value of bond taken on the…

Q: Bond valuation) A bond that matures in 15years has a ​$1,000 par value. The annual coupon interest…

A: A bond is a debt instrument issued by a company. The value of a bond is the present value of all…

Q: a. Calculate the size of the periodic sinking fund deposit. Round your answer up to the next cent b.…

A: Please note that as per the guidelines, only the first three questions a, b and c are to be…

Q: The “circuit breaker rule” governs that “a stock will be allowed to trade ±15% from the close price…

A: Circuit breakers are all such restrictions for volatility of the stock beyond certain band. Circuit…

Q: lue. If the bonds are trading with a market's required yield to maturity of 18 percent, are these…

A: Price of bond is the present value of coupon payments and present value of par value of bond taken…

Q: O c. i, iii and iv

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

Q: Formulate but do not solve the problem Me and Mrs. Garcia have a total of $200,000 to be invested in…

A: Note: as stated only equation is formulated in the solution. Three investment assets are there Stock…

Q: ement is considering rupees 100000 investment in a project with a 5 year life and no residual value…

A: Average rate of return is the profit earned on the investment which is done initially as percentage…

Q: Your friend offers to pay you an annuity of $9,300 at the end of each year for 3 years in return for…

A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…

Q: FV of $800 each 6 months for 8 years at a nominal rate of 16%, compounded semiannually. Do not round…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: Jackson pays $2200 Mortgage Payment, $400 Property tax, $250 Maintenance fees, $100 Heating, $200…

A: GDS  or Gross Debt Service is a metrics used by lender to assess the proportion of housing debt that…

Q: Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of…

A: Coupon rate = 0.038 (i.e. 3.8%) Annual coupon amount (C) = $38 (i.e. $1000 * 0.038) Maturity period…

Q: Month      Rate of return Stock  A    Market portfolio 1…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: 4) Finance You estimate that the net income for a company next year is a uniform distribution with a…

A: The maximum and minimum are away from mean by number of standard deviations and that depends on the…

Q: Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at…

A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

Q: Over the last 120 years, few countries have achieved the realized rate of returns enjoyed by US…

A: International diversification is a method of investing in international assets which will be helpful…

Q: The amount that goes towards interest is $ (Round to the nearest cent.). The amount that goes…

A: *Answer:  Loan Amortization Schedule gives the information of your loan and how you'll repay it. The…

Q: An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of…

A: Offer price = $9.50 Underwriters spread = 0.0725 Underwriters pay per share = ?   Underwriters…

Q: We consider the following zero-coupon curve: Maturity Yield (years) (%) 1 2 3 4 5 4.00 4.50 4.75…

A: Bond price: A yield correlates with a bond's dollar price and cash flows. The principal repayment…

Q: whether they are dealing with personal or corporate finances. The risks for personal finance often…

A: *Answer:    Difference between Systematic and Unsystematic Risk Systematic Risk Unsystematic…

Q: Q 6. An Investor has €20000 and faces an interest of 5% in the Euro Zone or he could his Euro for…

A: Exchange rate as per Interest rate parity theorem can be computed as follows Forward Rate = Spot…

Q: What is the total stockholders’ equity?  $

A: Information Provided: Common stock = $500,000 Additional paid in capital = $40,000 Retained…

Q: Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a…

A: MM Proposition I maintains that the capital structure of the company has no bearing on its value…

Q: What is the future value of an ordinary annuity with annual payments of $1200 for 20 years at 10%…

A: An annuity is a constant stream of cash flows. An ordinary annuity is one in which cash flows takes…

Q: What is the present value of $250,000 received in 250 days at 12% p.a. simple interest? Select one:…

A: Future Value = $250,000  Time Period = 250 Days Interest Rate = 12%

Q: According to our authors, define and provide an example of “common stock.”

A: The common stock will be reflective of equity shares which will be providing ownership in a…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.