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Q: a gets a 5 year, $10,000 car loan with montly payments at 6% APR.  What is the amount of his monthly…

A: Loans are to be paid by the monthly payments and these monthly payments carry the payment for…

Q: Arbitration, as an Alternative Dispute Resolution (ADR) is   Select one: hears and determines…

A: The alternative dispute resolution will be providing with a procedure of settlement of various types…

Q: Valuation of shares is an important tool to evaluate the ongoing performance of any company. Under…

A: Valuation of shares is the process of determining the intrinsic or true value of a company’s shares.…

Q: Which of the following will generate the greatest future sum of money, assuming other variables stay…

A: Assumed values: Assume: Amount Present value(PV) $2,500 Years(NPER) 5

Q: An investor has P1,000 that she is interested in investing i Huan Inc. stock, which is currently…

A: Warrant premium Warrant premium is calculated as shown below. Warrant premium=Price of…

Q: O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal…

A: Data given: Par value= $1000 PV= $1075 N= 25 years nper= 25*2 =50 YTM= 9.25% Semi-annual rate=…

Q: You work as the CEO of StarBright Berhad, and the company is facing the threa buyout by StarZip…

A: Take over and mergers are very common in today's time where there are mergers and acquisitions are…

Q: a. What is the profitability index for each project? Note: Do not round intermediate calculations…

A: Initial Investment of Project Y = 28,400 Initial Investment of Project Z = 64,000 Year Project Y…

Q: a. If she choose to receive the present value of the prize now, how much will she receive? b.  If…

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

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year 0 1 2 1234 3…

A: To Find: IRR NPV NPV profile for both projects

Q: The one-year interest rate over the next 10 years will be 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%, and 10%.…

A: One year interest rate over the next ten years will be as follows: 1st Year Interest = 1% 2nd Year…

Q: Find the interest on Php 750 invested at 9% per annum for 2 years and 6 months

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: What is the IRR of the project, stated as an APR compounded annually?

A: IRR: It is a measure of relative profitability for a project.  It is a rate at which the project…

Q: A $2.2 million investment will result in the cash flows in millions shown below: 1 year: $1.3 2…

A: Net present Value of a project is the sum of the present value of all the cash inflows and outflows.…

Q: 6. Factors that affect the cost of capital equation Each of the following factors affects the…

A: Weighted average cost of capital WACC gives the firms combined cost of capital, including the…

Q: vii. List two (2) disadvantages of using the NPV method in evaluating business investments.

A: NPV is a techniques in Capital Budgeting which help in decision making on the basis of future Cash…

Q: Question 26 From our discussion of interest rate frameworks, we can guess that the demand for…

A:

Q: Vincent borrows Php 4,800 with interest at 18% compounded quarterly. How much should he pay to the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: 2. 4. Briefly explain the following Time value of money L IL n 0 1 Doarp Difference between simple…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Build Corporation wants to purchase a new machine for $295,000. Management predicts that the machine…

A: NPV is the difference between present value of all cash inflows and initial investment NPV =PV of…

Q: Rafael Corporation has two projects under consideration. The cash flows for each project are shown…

A: Solution:- Payback period means the period at which the summation of cash inflows from the project…

Q: Classify each as an asset, liability, cash inflow, or cash outflow:

A: Solution:- Asset means something that an individual owns and holds and also get benefit from it in…

Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: MIRR refers to modified internal rate of return. MIRR, as a capital budgeting tool, seeks to remove…

Q: You have a choice of four increasing Annuity A $300 5% 12 Payment Annual Rate Interest Periods Per…

A: To Find: Which annuity reach FV of $100,000 earlier

Q: Which of the following 10-year maturity, $5000 face value coupon bonds earns the lowest interest…

A: Bonds: These are debt instruments issued by the company to raise debt capital. The debtholders are…

Q: Consider the following case of Marston Manufacturing Company: Marston Manufacturing Company pays an…

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

Q: For the company in the previous problem, what is the  dividend yield? What is the expected capital…

A: Solution:- Required rate of return means the rate of return demanded by an investor while investing…

Q: The following annual data pertains to National Co.: Financial breakeven point 519,000 Preferred…

A: The financial breakeven point is a measure for finding out the financial health of the company. It…

Q: Any crypto currency’s callouts I should know of in the next week?

A: Cryptocurrency is defined as the digital current, which are alternative payment form that created…

Q: The decision process Before making capital budgeting decisions, finance professionals often…

A: Net present value (NPV): The net present value is a technique used for making the investment…

Q: A $4 million investment today, in a project to last 10 years,  is believed to result in the…

A: NPV is the technique under capital budgeting which help in decision making on the basis of future…

Q: O None of the options are correct. D

A: A loan refers to a debt that is to be incurred by an individual or an institution. The lender…

Q: GIVE THE FORMULAS FOR THE FOLLOWING EFFICIENCY RATIOS OF NESTLE. THANK YOU Ratio Analysis Efficiency…

A: Efficiency ratios are those ratios that measures the ability of a company to generate income using…

Q: Your brother asks you to invest in one of his hair brained schemes. The scheme involves you…

A: We will have to determine if this deal is financially viable for me or not. For this I will compute…

Q: sequence of loan balances. Choose the correct graph below. 000 1 ✔ 125 150 months O B. on 160,000…

A: Loans are paid by the monthly payments that carry the payment for loan and payment for interest also…

Q: What is the firm's total corporate value (in $ million)?

A: Enterprise or corporate value = (Free cash flow in current year * (1+growth rate))/(WACC - growth…

Q: $450,000. What will be the interest paid at the end of the term if the business risk percentage is…

A: Interest rate on loan will be based on the risk involved in the business and risk free interest rate…

Q: Stay Swift Corp. has an expected net operating profit after taxes, EBIT(1-T), of $14,700 million in…

A: In the corporate valuation, we can compute the company value by discounting the future cashflows.…

Q: The company is considering investing R40million in equipment which will generate a net cas four…

A: Net present value is difference between the present value of cash flow and initial investment. The…

Q: A sailboat costs $31,749. You pay 10% down and amortize the rest with equal monthly payments over a…

A: Data given: Costs = $ 31,749 Down payment =10% n= 9 year r=8.1% compounded monthly   Formula to be…

Q: Blue Sky Aviation has sales of $15,465, assets of $5,980, a debt to equity ratio of 0.57, and an ROE…

A: Given, Sales $15,465 Assets $5,980 Debt equity ratio is 0.57 ROE is 8.6%

Q: 2.Evan has the following income and expenses. Use 4 weeks = 1 month even though this is generally…

A: Solution:- Income means the amount earned and expense means the amount expended. The difference…

Q: explain three CAPM assumptions and their appropriateness for family firms?

A: The  (CAPM) describes the link between systematic risk and expected return on assets, namely stocks.…

Q: Capital Motors, a car dealership, recently announced that itwill rely less on high-volume strategies…

A: Capital Motors is a car dealership company announced strategies to rely less on high sales volume…

Q: What amount of money invested today at 15% interest can provide the following scholarships: P 30 000…

A: The present value is the discounted value of future cash flows. For sustaining a scholarship the…

Q: A $3,000,000,000 bond with coupon j2 = 15% maturing in 12 years can be redeemed after 4 years at 108…

A: The price of a bond: The maximum price that can be paid to get a minimum return is the total present…

Q: Mr. Kevin Dates is the owner of an expanding business operating in bakery industry located in…

A: NPV is techniques under Capital budgeting which help in decision making on the basis of positive…

Q: Which of the following is NOT the role of Ministry of Finance under IFSA 2013 and FSA 2013?…

A: The Ministry of finance is very important of government department and has much bigger role in…

Q: Accumulate P25,300 for 7 years at 8% compounded semiannually.

A: FV = P (1+ r/m)^mt Where, FV = future value P = Initial value of Investment  r = Interest Rate m =…

Q: 3M has famously increased its dividend for 63 straight years. Let’s assume you think this will…

A: An approach is referred as the approach, which used to assume that the dividend growth at the…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.