How much money be invested today in order to withdraw P1500 per year at the end of each year for 8 years at an interest rate of 8%? P8,620 O P8,260 O P8,206 O P8,602

Q: You are a treasure analyst for your bank. One of your large corporate customers is interested in a…

A: As per provided :  3 Months DOLLAR Deposit Rate 4.50% p.a. 6 Months DOLLAR Deposit Rate 5.00% p.a.

Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…

A: More than profits, it is important to analyze the cashflows of a business. The cashflow position of…

Q: You are faced with making a decision on a large capital investment proposal. The capital investment…

A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows.…

Q: CHAR is offered an annuity that will pay P24,000 per year for 11 years (the first payment will occur…

A: Annual payment (P) = P24,000 Period (n) = 11 Interest rate (r) = 13%

Q: LotsaDough's common stock is expected to pay a dividend of $1.20 next year, with a forecasted…

A: Next year dividend (D1) = $1.20 Growth rate (g) = 0.07 Stock price (P0) = $12.50 Cost of common…

Q: b) The new shares which are issued in a rights issue are offered to the existing shareholders at…

A: Right Shares are those shares which are issued to the existing shareholder of the company instead of…

Q: expects to have EPS (earning per share) of $5 in the coming year. The firms plan to pay all of its…

A: Cost of equity depends on the dividend to be paid and how much that is going to be retained over the…

Q: Q. Jayden borrows $10500 from his grandmother for 4 years. Jayden’s grandmother gives Jayden a…

A: Simple Interest to be paid at the end of Year 4 Simple Interest = Principal * Interest rate * Time…

Q: How is your borrowing power affected when you are considered a "high risk"? O There is a good chance…

A: A high risk individual is the one who has bad credit history and who has defaulted payments in the…

Q: A 180-day note was signed on June 11 for $24, 700. The note has a rate of 9.5%, compounded annually.…

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

Q: Analysts projected that Apple will have earnings per share 2.5$. The industry has average PE ratio…

A: The stock price can be calculated on the basis of relative valuation metrics. The PE multiple can be…

Q: Calculate the cash surrender value for Lee Chin, age 43, who purchased a $340,000 20-year endowment…

A: Cash value at end of year 10 for 20 year endowment policy is 319

Q: Harper Corporation has the following information about the purchase of a new piece of equipment:…

A: Given Cash revenues less cash expenses $50,000  per year Cost of equipment $130,000 Salvage value at…

Q: A measure of the overall price level paid for various goods and services by individuals: O a. Gross…

A: Solution:- Gross Domestic Product (GDP) means the sum total of prices of goods and services paid by…

Q: You need to borrow $10 million for 90 days. You have the following alternatives: a. Issue high-grade…

A: Given,  The interest cost is associated to the alternative is the reason by way of which the…

Q: MACHINE A MACHINE B INITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED…

A: MACHINE A INITIAL COST     1,00,000.00 EXPECTED DISPOSAL/RESIDUAL VALUE       10,000.00 Year…

Q: If the municipal bond rate is 6% and the corporate bond rate is 8%, what is the marginal tax rate,…

A: The taxable equivalent yield is 8% in this scenario whereas tax free yield is 6%. We need to find…

Q: Subah's current stock price is $36 and its D0= $2.4. The company’s required rate of return is 12%…

A: Stock price = D0*(1+growth rate)/(required return - growth rate) where D0 = Current dividend 36 =…

Q: 12.1 Calculating the Cost of Equity Suppose stock in Boone Corporation has a beta of .90. The market…

A: Cost of equity is defined as the return, where the corporation used to need for the project or…

Q: Ow at a rate of 3% per year and these payout rates are expected to remain constant. What is the…

A: As per the DDM Model, value of stock in year 0 = D1/(r-g) D1 = Dividend next year r = Required rate…

Q: Joy, a sole proprietor involved in AirBnB, needs to sell almost all of his apartments. The selling…

A: The process by which a business sells off its assets and ceases operations is known as liquidation…

Q: An apartment unit in a rural area that sells for P1,800,000 can be purchased under terms requiring…

A: Price of  apartment (PV) = P1,800,000 Number of monthly payments (n) = 200 Interest rate = 12%…

Q: Despite his extravagant clothing purchases, Mr Hypebeast was unable to impress his crush. Dejected…

A: Here,   Note: In the second stage, as the growth rate is given annually, Semi-Annual dividends are…

Q: 1 $6300 $1100 8100 2100 3 10200 2500 4 11700 3100 15600 2600 The asset will be depreciated using the…

A: The Payback Period is one of the techniques of capital budgeting that ignores the concept of the…

Q: What is the criteria to accept a project based on the net present value and the internal rate of…

A: Net present value (NPV) Is the difference between present value of all cash inflows and initial…

Q: The expected value, standard deviation of returns, and coefficient of variation for asset A are…

A: To Find: Expected return Standard deviation COV

Q: Black and White Corp.’s balance sheet shows total assets of P3,000,000 and total liabilities of…

A: When the company decides to discontinue its operations it is known as liquidation. It can be a…

Q: If Project A and Project B are independent, which project should be undertaken? PLEASE ANSWER THE…

A: Independent projects are those available set of investment alternatives who are not related to each…

Q: Suppose you want deposit $200 each month into an account earning 3.5% APR compounded monthly. a)…

A: Annuity is a fixed periodic payment made over a period of time, leading to the accrual of a definite…

Q: IV. Complete the table. Round to the nearest cent. Invoice Date Last Date to Take Last Date to Date…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 10. A corporation has decided to use borrowed capital to finance a portion of an equipment purchase.…

A: A loan amortization schedule is a schedule showing the Opening balance, closing balance and…

Q: what is the expected return on a portfolio that is invested 70 in k and 30 given the following…

A: Average Return  in scenario 1 = (16+13)/2 = 14.5% Average Return  in scenario 2 = (12+8)/2 = 10%

Q: Explain the role of the Central Bank and critically evaluate the advantages and disadvantages of the…

A: The central bank performs a lot of roles which are discussed below: It maintains price stability.…

Q: contractual savings institution, hedge fund, I.P.O. , investment banking, mutual fund, pension fund,…

A: Contractual saving institutions are financial intermediaries like brokers. They accept funds on a…

Q: 1.what is the  Investment Approach of Pax World?  2. what is the Future Development Strategy and…

A: In 1971, Pax World launched the United States' first socially responsible mutual fund.Luther Tyson…

Q: An investor buys a land for PhP 1M and constructs a three-door apartment for students worth PhP 5M.…

A: Here, Cost of Land is Php 1 million Cost of Apartment is Php 5 million Annual Revenue is Php 1.2…

Q: 1. what is the approach of Pax World?  2. what is the Future Development Strategy and Planning of…

A: Pax World Funds is a collection of 11 funds advised by Impax Asset Management LLC, a sustainable…

Q: areq is about to make his dream of a house of his own ome true. For years he has been saving for…

A: Down Payment = 1,500,000 * 10% = 150,000 Loan Taken = House Price - Down-payment = 1,500,000 -…

Q: How much will the company pay in total if they are going to pay all these costs today? Interest for…

A: The amount the company will pay today can be found using the present value concept.  By discounting…

Q: Year ended December 31 (in Smillions) 2006 2005 Total sales 610.1 558.8 (366) 192.8 Cost of sales…

A: Answer -  Net Profit margin = net income / sales

Q: Describe the following stakeholders’ objectives and what a financial manager needs to be mindful of…

A: A stakeholder is someone who has a vested interest in a company and has the ability to affect or be…

Q: The following are the total sales of Top Class Ltd for the past three months of 2021 Month April May…

A: Given, The sales from the month April to September The cash sales are 40% of total sales

Q: A family has a $134,345, 25-year mortgage at 5.1% compounded monthly. (A) Find the monthly payment…

A: Mortgage is a loan to buy a property or asset. The mortgage repayment in equal amount is an annuity…

Q: just sold your house for $1,000,000 in cash. Your mortgage was originally a​ 30-year mortgage with…

A: Mortgages are paid by equal monthly payments and these payments carry the payment of principal…

Q: oju Ltd is currently trading at $39, and recently paid an annual dividend of $4.5. If it is expected…

A: Current stock price (P0) = $39 Recent dividend (D0) = $4.5 Retention ratio = 30% ROE = 8% Annual…

Q: Based upon this information, Budget Wings' current weighted average cost of capital (WACC) is…

A: WACC: It represents the company's average cost of capital and is computed by the sum of the…

Q: Which of the following is an asset of the Fed? Federal Reserve notes bank reserves

A: The assets of Federal reserve consist of Gold stock, Special drawing rights, reserve position in…

Q: 1. A firm has the following capital structure: thousands € Liabilities and equity thousands € Assets…

A: WACC = kd*D/A+ke*1-D/Awhere, kd = Cost of debt or debt interest rateke = Cost of equityD/A =…

Q: Slow 'n Steady Enterprises currently pays an annual dividend of $1.50 /share. Investors expect that…

A: Annual dividend = $1.5 Equity cost of capital = 0.09 Value of one share = ?

Q: What is the expected return for asset X if it has a beta of 1.5, the expected market return is 15…

A: The expected return for the asset can be calculated with the help of CAPM equation