GSM Inc. STOCK RETURN YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = AVERAGE OF RETURNS (x₁-x)²

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A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: . A bank offers a 272 – day discounted loan at a simple discount rate of 12%. (a) How much money…

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Q: and generates annual income of $300,000 for the next 4 years with a salvage value of $200,000. At…

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Q: The following are the assumptions of the Modigliani and Miller approach, EXCEPT A. Investors think…

A: According to MM hypothesis, dividend decision is irrelevant for the value of firm. In other words,…

Q: Mia received a gift of $8,200 at the time of her high school graduation. She invests it in an…

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Q: An equipment has an original cost and book value of 2,100,000 and 1,560,000 respectively. It has…

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Q: What is standard deviation? What type of risk does it measure

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Q: A stock has a dividend growth rate of 2% and a required rate of return of 5%. Bad news reduces the…

A: Existing growth rate = 0.02 New growth rate = 0.01 Rate of return = 0.05   Lets assume next dividend…

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A: Given, The future amount is $600,000 present value $425,000

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Q: Is the value of money affected by time, and if it is, in which direction? O a. It is not affected O…

A: The value of time of money is the idea that the money currently available is worth more than the…

Q: Suppose the term structure of risk-free interest rates is as shown below. 2 yr Term 1 yr 3 yr 5 yr 7…

A: Given, The EAR for year 1 to 20

Q: AIX Investment Group considers two alternative portfolios. The risk and return characteristics of…

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A:

Q: The company cost of capital, when the firm has both debt and equity financing, is called the:…

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Q: The YTM on a three year bond is 5%. What is the average expected short rate over the life of the…

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Q: What would be your annualized discount rate% on the purchase of a 170-day Treasury bill for $4700…

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Q: act of statement of Income and Expenditure for the Financial Years Ended 31 August 2020 2020…

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Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…

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Q: Complete the following, using ordinary interest. (Use Days in a year table.) (Do not round…

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Q: What is the total return of an equal-weighted index over the holding period given the following data…

A: Return refers to the additional earnings over the invested amount. Basically, it is a profit which…

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: Panelli's is analyzing a project with an initial cost of $139,000 and cash inflows of $74,000 in…

A: WACC = ( weight of equity * Cost of equity) + ( weight of debt * after Tax cost of debt) = ( 1/1.39…

Q: that today is December 31, 2021. Use the following information that applies to Harrison Corporation…

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Q: The current exchange rate between the Japanese yen and the U.S. dollar is ¥90 per dollar. If the…

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Q: True or False The following statements relate to liquidation. a.) Compared to a forced liquidation,…

A: Liquidation value is total value of the company's physical assets when these assets are sold out.

Q: 1. An asset that is purchased with the expectation that it will produce income or appreciate at some…

A: Hi, since you have posted multiple question, I am answering the first three. Please repost the…

Q: Silo Mills is an all-equity financed firm that has a beta of 1.18 and a cost of equity of 12.2…

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Q: A non paying dividend stock is priced at 50. Call option delta is 0.5. Stock volatility is 0.29. By…

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Q: Steve wants to have $5,000, after 3 years, in a savings account that pays 4% interest compounded…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: 7. In a project, the initial outlay is R$30,00,000; useful life of the project is 10 years; net cash…

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Q: purpo Badgeting 3. Keeping track of all income and expenses is very important to achieving your…

A: Financial objectives plays a vital role in the economy , As if we maintain our finances then we will…

Q: Describe a situation when a. Investor would want to use a limit order.

A: The limit order's primary objective is to set a specific price of a security in order to buy or sell…

Q: Following your graduation, you are employed by a bond trader who asks you to prepare an analysis of…

A: Current price of a bond is the sum of present value of all its future cash flows. Future cash flows…

Q: Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6.…

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Q: The future value of $3000 deposited a year of 4 years earning 6 percent would be

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Q: 13. A discounted loan of $3,000 at a simple discount rate of 6.5% is offered to Mr. Jones. If the…

A:

Q: A firm has a total market value of $10 million while its debt has a market value of $4 million. What…

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Q: Shawn is buying a new Jet Ski for $12,500. He is considering two credit options. Option A offers a 6…

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Q: Please use excel to provide the calculation and answer Using the margin facility for a short sale,…

A: Margin call price is when the margin taken from call price is runs low below the required minimum…

Q: A company estimates that a certain piece of machinery will have to be replaced in five years' time…

A: This question can be solved in light of normal annuity and growing annuity. Annuity is a series of…

Q: Analysts projected that Apple will have earnings per share 2$. The industry has average PE ratio of…

A: To calculate the stock price we will use the following formula   Price = Earning per share*PE Ratio…

Q: ou have purchased a put option on ABC common stock for $3 per contract. The option has an exercise…

A: Profit on put is the difference between the exercise price of put option and closing price of put…

Q: Why would a company's ROA be positive and its ROE negative

A: ROA refers to return on assets. ROE refers to return on equity.

Q: Contraction risk is the risk that loan principal will be repaid more rapidly than expected,…

A: The statement is FALSE. Correct Statement: Contraction risk is the risk that loan principal will be…