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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only o...
Q: A $14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was pur...
A: Face value (F) = $14500 Coupon (C) = (5.80% * 14500) / 2 = $420.50 n = 5 years = 10 periods t = 6 pe...
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A: a) Amount in the account initially (P) = $2000 Future value (F) = $10000 n = 10 years r = Interest r...
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Q: Suppose DAVID wants to have P10,000,000 to retire 45 years from now, how much would she have to inve...
A: Amount needed at the retirement (X) = P 10000000 n = 45 years r = 15%
Q: Analyse Time Interest Earned ratio in 2019 is 4.89 and 2020 is 9.9
A: Solution:- We know, Times Interest Earned ratio means that how many times a firm earns its EBDIT to ...
Q: What is the Macaulay duration of a bond with a coupon of 5.8 percent, eleven years to maturity, and ...
A: Since, the number of compounding is not given, we will assume that the coupon is paid annually. Form...
Q: Mr. O got a 5 year, 100,000 dollars balloon commercial loan. The annual interest rate is 6% and the ...
A: Loan amount (L) = $100000 r = 6% per annum = 0.5% per month n = 30 years = 360 months Let X = Monthl...
Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...
Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next...
A: given that: interest rate= 12%= 0.12 n (no. of period)= 5 years 1st year salaries=$150000 (S) since ...
Q: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to fu...
A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments / Peri...
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A: Sales = $57000 Total assets = $34000
Q: #2 - You expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What ...
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...
Q: 5. Finding the interest rate and the number of years The future value and present value equations al...
A: Present Value is calculated by dividing the future value by the 1+r factor for the given required ra...
Q: An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purpos...
A: To calculate the BV at the end of four years, we must first calculate the accumulated depreciation f...
Q: 7. LSP Corporation has forecasted sales of $120,000, operating expenses excluding depreciation and a...
A: Sales (S) = $120,000 Operating expenses (O) = $40,000 Amortization and depreciation (D) = $20,000 Ne...
Q: 20. Lina's Corp's sales last year were $852,500, its operating costs were $543,750, and its interest...
A: Sales = $852,500 Operating expenses = $543,750 Interest charges = $18,750
Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price ...
A: Par value = $1000 Coupon rate = 6% Coupon amount = 1000*0.06 = $60 Years to maturity = 24 Years Pric...
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A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...
Q: Assess the use of interest rate options, including swap options
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Q: 1. Gert. Co recently reported $10,750 of sales, $5,500 of operating costs other than depreciation, a...
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Q: 6. I plan to borrow $350,000 from a bank to buy an apartment. The interest rate is a nominal 4% comp...
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Q: 9. TSE company reported a Net income of $150 million for year N. Depreciation expense was $141 milli...
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Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...
A: Concept. Present value is calculated by formula Pv = Fv ÷[ ( 1+ r) n ] Where Pv = present value Fv ...
Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was purc...
A: Par value (FV) = $14500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 = $420.50...
Q: XYZ inc. considers an investment project that requires $200,000 in new equipment and $30,000 in extr...
A: Cash flow for a project is calculated after adjusting all the operating expenses and adding back the...
Q: A $50 million face value bond carrying a 4.83 % coupon with 25 years until maturity is issued. The b...
A: Bond carry the interest payments to be paid each period and face value is to be paid on the maturity...
Q: ace value bond carrying a 4.83 % coupon with 25 years until maturity is issued . The bond has a sink...
A: Annual cost of bond is the sinking fund payment and the coupon payment to be paid on the bond. The ...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: WACC: It stands for Weighted Average Cost of Capital. It refers to the total cost of the project. It...
Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into...
A: Future value is the amount accumulated on the deposit made along with interest earned on the deposit...
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A: Net present value is a popular capital budgeting approach since it is one of the most informative an...
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A: Quick ratio = 2x Current assets = $170,000 Current liabilities = $50,000 Inventory = Current assets-...
Q: nds: a zero-coupon bond with a maturity of six years, and a perpetual b 8%. How many percent of your...
A: Duration of perpetuity bond = (1+yield)/yield = (1+8%)/8% = 13.5
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Q: Silver Inc. will be registering with SEC. Its incorporators was able to gather the following cost of...
A: The minimum rate of return a company will seek while investing in a project is the weighted average ...
Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was purc...
A: Par value (FV) = $14,500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 = $420.5...
Q: Explain why the weighted average cost of capital (WACC) is used in capital budgeting.
A: WACC = multiplying the cost of each capital source (debt and equity) by its relevant weight by marke...
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How does extence of rivalry among competitors in the banking sector affect the investment industry sector?
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- What is the relationship between securitization and the role of financial intermediaries in the economy? What happens to financial intermediaries as securitization progresses?What is the relationship between securitization and the role of financial intermediaries in the economy? What happens to financial intermediaries as securitization progress?What roles are played by an investment bank and its brokeragefirm during an IPO?
- Describe how financial intermediationand financial innovation affect bankingand the economyExplain foreign exchange risks and operational risks faced by banks operating in the financial sector, and discuss how a risk management tool can be used to mitigate such risks.What's the connection between financial intermediaries and securitization? When securitization moves forward, what happens to the financial intermediaries involved?
- What is the link between securitization and the economic function of financial intermediaries? What happens to financial intermediaries when the process of securitization advances?What’s the risk of competition on financial markets and institutions profitability?Define Gearing and explain its advantages and disadvantages. Why might a bank be interested in a company’s level of gearing?
