Q: Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6.…
A: As you have asked more than one question, we will answer the first question for you. To get answers…
Q: The future value of $2500 four years from now at 7 percent is
A: Future value for 2500 principal amount plus interest compounded for four years at the interest rate…
Q: National Co. has portfolio consist of three shares below: Stock Investment Beta АВС 140,000 1.45 CDE…
A: Stock Investment Beta ABC 140000 1.45 CDE 75000 1.2 EFG 160000 0.7
Q: If the manager of a gold mine wants to protect its operations against a market price decline, while…
A: It is a financial instrument whose value/price is determined by the given assets. Options, forwards,…
Q: In Shiller’s terminology, what are ex post stock prices?
A: The intrinsic value of the stock could be higher or lower. The stock investor's purpose is to find…
Q: 12. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…
A: Ans: (a) Loaned raised 5000 Discount 12% Time 272 days Cash received=…
Q: 3) When firms increase their debt-equity ratio, we find: Group of answer choices The ROE always…
A: We know that debt is the cheaper source of finance, if any company uses more debts in capital…
Q: You decide to borrow $250,000 to build a new home. The bank charges an interest rate of 8%…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: Bernard co. has 7% coupon bonds on the market that have 13 years left to maturity. The bonds will…
A: Current bond price will be equal to present value of Maturity Value and present value of interest…
Q: In 1999, the euro was trading at $0.82 per euro. If the euro is now trading at $0.99 per euro, what…
A: To calculate the percentage change in euro's value we will use following formula Percentage change…
Q: .A bank offers a 272- day discounted loan at a simple discount rate of 12%. (a) How much money would…
A: The discount on loan is given and that discount on loan is the interest being charged on the loan…
Q: The common stock of Salazar Insurance pays a constant annual dividend of $4.80 per share. What is…
A: To calculate the value of stock we will use the following formula Stock value = Annual…
Q: If the municipal bond rate is 6% and the corporate bond rate is 7%, what is the marginal tax rate,…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: You are promised yearly payments of 200 EUR forever from your fairy godmother. The first payment is…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: company's discount rate is 12%, then the net present value for this investment is closest to:…
A: NPV= Present value of cashinflows - Present value of cashoutflows.
Q: Year Investment Cash Inflow $13,000 $10,000 $1,000 $2,000 $2,500 $4,000 $5,000 $4,000 $5,000 $4,000…
A: Payback period = initiative investment/Annual cash inflows Here cash inflows per year is not…
Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…
A: Future value can be calculated as: = Present value * (1 + rate)^periods
Q: Which of the following is true? A.Forward contract buyers and sellers do not know who the…
A: Forward and futures contracts are derivatives agreements in which two parties associate to acquire…
Q: BMW just paid an annual dividend of 2 per share. Management has promised shareholders to increase…
A: Last dividend (D0) = 2 Growth rate (g) = 0.10 Required return (r) = 0.15 Current price per share = ?…
Q: Calculate the expected return, variance, and standard deviation for a portfolio of four equally…
A: The expected return of the portfolio is the return that an investor gets based on the weightage…
Q: What is the default risk premium imputed on the 1-year short-term corporate bond?
A: Default risk premium refers to the additional amount or higher interest rate which is paid by the…
Q: Teduie company bought a new model of motor for its electric power generating plant in 2017. The…
A: In order to determine whether the the investment is worthwhile or not we need to calculate the Net…
Q: The real risk-free rate of interest, r*, is 3%. Inflation is expected to be 4% this year, 5 percent…
A: Yield on 10 years bond will be the risk free rate,inflation and maturity risk premium.
Q: Data from The Economist BigMac index from January 2022 shows that the local price of a Big Mac in…
A: Purchasing power parity says that purchase power of both countries must be equal and exchange rate…
Q: What is the variance of returns for Security ABC
A: In finance we use variance of returns as a measure of risk that is inherent in a stock or a…
Q: GS Co.’s capital structure consists entirely of long-term liabilities and common equity. The cost of…
A: Cost of long term liabilities (Kd) = 0.03 Cost of common equity (Ke) = 0.05 Tax rate (T) = 0.30…
Q: ibe how agency conflicts in multinational corporation can be addres
A: Agency problem exist in the corporation due to conflict of interest between the managers and…
Q: Which of the following would constitute an Agency Problem in the context of Business? Check all of…
A: An agency problem is a conflict of interest between an agent and a principal. An agent can be an…
Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…
A: Maximum loan amount that Larry can repay in 6 Years = Present value of monthly payment of $700…
Q: The table below contains the covariance matrix of stock returns and the market. Assume that the…
A: Risk is the possibility of loss for an organization and risk management is one of the most important…
Q: Consider the following cash flows. The interest rate is 8%. What is the total wealth after 2 years…
A: Present value of a future amount With interest rate or discount rate (r), period (n) and future…
Q: Ritter Sports Industries has preferred stock outstanding with a par value of $100. The stock pays a…
A: To calculate the effective rate of return we will use below formula Effective rate of return =…
Q: BCD Company offer its investors option contracts to buy their shares at a price of P50. Currently,…
A: Given, The spot price is P60 Risk free rate is 8.25%
Q: Which of the following four bonds has the least Macaulay duration? A bond with A. 4.75%…
A: Macaulay duration is the weighted average of the time it takes to get cash flows from a bond and it…
Q: Winant Inc. is comparing several alternative capital budgeting projects as shown below:…
A: Profitability index = present value of future cash inflows/Initial investment A project with lower…
Q: Financial markets are important because A. It gives investors equal footing with debtors B. Capital…
A: The answer is option A. Financial markets are important because it gives investors equal footing…
Q: Technique commonly used when an uncertain single factor determines the selection of an altenative of…
A: Alternative Analysis: An alternative analysis is a comparison of the numerous paths that can be…
Q: at is the variance of returns for Security ABC? probability distribution fro security ABC:…
A: Mean return would be expected probabilistic rate of return in both outcomes and variance would be…
Q: The EPA proposes to cap emissions of ground-level ozone promoting emissions in both Illinois and…
A: Marginal abatement cost is the cost that the concerned institution needs to incur to reduce an…
Q: 1. Graph investors' long-term expected inflation rate since 2003 by subtracting from the 10-year…
A: A financial crisis is any of a number of scenarios in which the nominal value of some financial…
Q: -260000 120000 140000 -350000 100000 130000 200000 50000 3 100000 4 50000 The firm has an…
A: Net present value is the present value of cash flow to the initial investment and if it is positive…
Q: A middle-aged school teacher is dreaming about retirement. She believes she can comfortably leave…
A: Given, The future amount is $600,000 present value $425,000
Q: Marcie Mays plans to have $350,000 in retirement fund 30 years from now. What monthly ordinary…
A: Future value of ordinary annuity Annuity is a series of equal payments at equal interval for a…
Q: Hall Service Corporation is considering a project that will require $39,000 in net working capital…
A: Annual sales = $78500 Cash costs = $41000 Annual depreciation ($68000 / 4) = $17000 Tax rate = 0.25…
Q: Consider a newly issued 5-year, $1,000 par value, 2.815% annual-pay bond selling for $881.41. Its…
A: Modified duration is used to measure the change in the price of the security with the change in the…
Q: If the risk-free rate is 2.2 percent, the inflation rate is 1.9 percent, and the market rate of…
A: The risk premium on the U.S. Treasury bond will be zero as it is backed by US government and as…
Q: 1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: ABC Co. has recently purchased ordinary shares of XYZ Co, one of its competitors, as part of a…
A: a. Call option is purchased when the share price of a company is expected to increase in the future.…
Q: 4.14 The Ship Company is planning to produce two products, Alf and Tarf. Ship is planning to sell…
A: Contribution is the amount left after reduction of variable cost from the sales, then to calculate…
Q: Prepare a cash Collection Schedule for Producers Inc. For the months of March, April and May 2022…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
How to achieve a good financial planning? Explain in 10 sentences.
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- What is the best method of financial planning? How do you save money and spend money wisely? Explain in 300 words.In five sentence define the following 1. Financial Planning 2. Financial ForecastingThe longest stage of the Life Cycle of Financial Planning is? A. Stage 1 B. Stage 2 C. Stage 3 D. They are all the same
- Review the material in Chapter 1 on Personal Financial Planning. Define the financial planning process List the elements of a good financial plan. Identify and discuss the three most important personal factors and the three most important economic factors that affect your financial planning decisions.Discuss the role that investing plays in the personal financial planning process and identify seven different investment objectives.Define the financial planning process. List the elements of a good financial plan.
- What is the basic formula for finance? For example, presenet and future value... I need to know the basic formulas to have some knowledge to do well in my class.Which of the following statement is TRUE about the financial planning?A) Financial planning should attempt to minimize risk.B) Financial planning is necessary because financing and investment decisions interact and should not be made independently.C) Firms’ planning horizons rarely exceed three years.D) Financial planning models should include as much detail as possible.What are the five practices that makes a financial model a good model?