List four main tools or formulas used for doing calculation related loans and describe this method as the best tool for a specific situation.

Q: Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner o...

A: Total market value of Almonds = 1047 tons×$101 = $105, 747 Total market value of walnuts = 791 tons×...

Q: Compare and contrast the following: A.  Primary and secondary financial markets.

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Q: pu are CEO of Rivet Networks, maker of ultra-high performance network cards for gaming computers, an...

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

Q: Jack has $800 in credit card debt that has a 18 % yearly interest rate, as well as $1,700 in a savin...

A: A person earns interest on the savings made by him. He also incurs interest expenses on the amount b...

Q: ISLAMIC FINANCE COURSE What are the terms and condition of the Musharakha contract?

A: Musharakha stands for Partnership. It is an agreement between two parties who binds themselves into ...

Q: The Petit Chef Co. has 10.6 percent coupon bonds on the market with ten years left to maturity. The ...

A: Given,  The bond that pays 10.6% with the par value of $1,000 The current price of bond is $1,152.27...

Q: Question 15, 8.2.5 = Homework: Homework 3 Part 2 of 3 An investor purchased a 182-day, $10,000.00 T-...

A: Original Yield on the T-Bill is the annualized return earned by an Investor if the bill is hold till...

Q: 11. hich of the following statements about hedging is (are) true? I. Hedging is a form of risk trans...

A:

Q: You are getting into a business and want to take a loan. The  bank requires that you show them your ...

A: Tax Rate = 36% Selling Price = 6kshs No. of units = 100,000 Time Period = 5 Years

Q: Creative negotiation techniques that establish deal structure such as offering owner financing , a l...

A: Negotiation is defined as the style of discussion factors, where individuals have an effort to satis...

Q: The bank is paying 9.37% What is the inflation rate?

A: Inflation is the gradual loss of purchasing power of a currency. The pace at which a basket of selec...

Q: How much interest interest will be paid by Mr. Scusta Clee, if he borrowed Php515,515 at 3.25% after...

A: Note : It has been assumed that the one time interest word has been misprinted and the same is consi...

Q: The fixed payment for a mortgage is P1 297.20. The original balance is P200 000.00. If the interest ...

A: The new balance of loan will be original balance minus principal payment  

Q: 30. Trade-Off Theory. Smoke and Mirrors currently has EBIT of $25,000 and is all-equity- financed. E...

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

Q: Can you show how this is done

A: Levered beta When a company has both equity and debt, then equity beta is adjusted as per debt. The ...

Q: If you have a small business and you are earning Php 10,000 a month, should you pay any tax?

A: Taxation is defined as the financial charge imposed on an individual levied by the authority or gove...

Q: o minimize the risk from exchange rate because the U.S. firm is going to receive euro 100,000 in 90 ...

A: Bank provide two rates for currency, spot rate and forward rate Spot Rate- It is the rate for curren...

Q: The owner of a number of gas stations is considering installing coffee machines in his gas stations....

A: Profitability index  (PI) is the ratio of present value of operating cash inflows to the present val...

Q: Which of the following statements correctly translates into funding? Group of answer choices Fundi...

A: Funding: The word "funding" refers to a certain sum of money provided for a specific purpose.    

Q: An insurance policy provides a benefit of $21,500 twenty two years from now. Alternatively, the poli...

A: Amount to received after 22 years 21,500 Payment per year is $590

Q: Exercise 4: The table below displays the prices for stock XYZ on the 15th of each month in the year ...

A: Spark line is a small chart that can be displayed in a cell and that provides a visual representatio...

Q: Orchid Biotech Company is evaluating several different development projects for experimental drugs. ...

A: Before investing in new assets or projects, profitability of the project is evaluated by using vario...

Q: A bridge design firm is performing an economic analysis of two mutually exclusive designs fora highw...

A: EUAC is a cost calculated to compare the projects having a different useful life. It is the average ...

Q: h of the following is the most likely if the interest rate of the U.S. is lower relative to the Unit...

A: The arbitrage opportunity exist if the interest are not same and if the spot rate and forward are sa...

Q: 43. Ms. Perez borrowed money as capital for her business. She plans to pay back her lender by paying...

A: Here, Monthly Payment (PMT)is Php 5,000 Interest Rate (r) is 10% Compounding Period (m) is Monthly i...

Q: A contract requires lease payments of $700 at the beginning of every month for 4 years. a. What is t...

A: We need to use present value of annuity due formula to calculate present value of contract. PV =PMT1...

Q: Vulcan, Ic., has 8.5 percent coupon bonds on the market that have 8 years left to maturity. The bond...

A: Bond A bond is a financial instrument that pays a series of equal amount as coupon payment at equal ...

Q: 2) A benefactor wishes to establish a trust fund to pay a researcher's salary for T years. The salar...

A: Perpetuity means a set of infinite numbers of payments which are the same in size and made in equal ...

Q: A reputable company plans to place an investment with a private equity firm with an amount of Php 10...

A:

Q: The rise of securities markets and the expansion of intermediation by nonbanks has come partly at th...

A: A "security" is a fungible, negotiable financial instrument that has some type of monetary value. It...

Q: A company's common stock currently sells for $27.27 per share. The dividend is projected to increase...

A: Share price: Share price is the current market price of the share. It is the price of the share at w...

Q: Jack Fitzgerald wishes to purchase a used car that has a cash price of ​$13,000. The installment t...

A: Cash price = $13000 Down payment = $4000 Loan amount = 13000-4000 = $9000 Number of monthly payments...

Q: Tuxa inc . Produces an average 40 chairs / day. Labor costs average $ 570, material costs are typic ...

A: Productive is something which measures the efficiency and profitability of the business organization...

Q: NPV Project A Project X $0 Cost of Capital 0% 22% 30% 12% What is the IRR of Project A? O A. 12% В. ...

A: Internal rate of return Internal rate of return is the method of capital budgeting that measures the...

Q: A. You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the ne...

A: The present value is today's value of future cash flows. It represents the discounted value of cash ...

Q: Carbondale Corporation is a manufacturer of converters sold on a private label basis to large discou...

A: The break-even point: In production, the break-even point occurs at the level where the total revenu...

Q: A mutual fund manager has a $20 million portfolio with a beta of 2.7. The risk-free rate is 5.5%, an...

A: Current fund value = $20 million Beta of the portfolio = 2.7 Rf = 5.5% (Rm - Rf) = 7%

Q: Hani owns a small construction company and is considering buying a new scissor to improve efficiency...

A: Annual saving needed to breakeven is amount of required to cover all expenses that are necessary to ...

Q: How does credit risk affect insurance companies

A: Credit risks affect insurance companies in a tangible and often direct manner.

Q: ngs life of the project. The project has a first cost of P and a salvage value equal to zero at the ...

A: We know that annual worth is the equivalent annual series of cash inflows and outflow  which is dete...

Q: Consider a U.S. government bond with as 63% coupon that expires in December 2020.The Par Value of th...

A: Given: Coupon rate = 63% Period between 2016 and 2020 is 5 years Yield = 5% Par value = $1,000

Q: he value of a 7 year lease that requires payments of $550 made at the beginning of every month is $4...

A: Given information: Period: 7 year  Monthly payment: $550 value of lease = $43800 Calculation of the ...

Q: Given data:             Sales  $2,000.000             OpCap  $1,120,000             Wacc 9%         ...

A: Here,

Q: 46. If money is worth 10% compounded quarterly, what monthly savings is required monthly in order to...

A: Future value is the value of a current asset at a future date based on an assumed rate of growth (FV...

Q: A put option has a strike (exercise) price of $0.82. If the spot exchange rate is $0.79, the put opt...

A: The put option is purchased when the investor anticipates the spot price of the given asset to go be...

Q: 5. A merchant buys a particular product at P 20 per unit and sells them at P 35 per unit. His fixed ...

A: The selling price is the amount of money that a consumer pays to buy a product or a commodity. It is...

Q: What is the present value af these investments if the interest rate is 10% per year compounded annua...

A: Present Value: It represents the present worth of the future amount and is computed by multiplying ...

Q: Finance professionals make decisions that fall into three distinctive areas: corporate finance, capi...

A: Corporate finance deals with the capital structure of a company, funding, and it also consists of al...

Q: aleulating Cash Flews. The onner of a bicycle repair sop forecasts revasues of Sls0,000 a pear. Vari...

A: Answer -  Part 1 - Income Statement - Income Statement For the Period     Particulars Amoun...

Q: If Treasury bills are currently paying 6 percent and the inflation rate is 2.3 percent, what is the ...

A: Data given: Treasury bill rate = 6% Inflation rate= 2.3%   Required: i) Approximate real rate ii) Ex...

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.