How much will P54,200 be in 24 months at 4% compounded monthly? A P59,590.33 B P49,297.16 P31,002,650.00 D) P388,579.66

Q: How much will be my money after 5 yrs, if I will have periodic deposits of P2,500 compounded…

A: Annual deposit (P) = P2500 Period (n) = 5 Years Interest rate (r) = 12%

Q: INA United has 2 companies of the same size, company I sells computers and company II in the…

A: Given: Company WACC suggested by consultant WACC taken by the company Computer company 12% 10%…

Q: Contracting company plans to update its equipment so that its trucks are replaced after five years…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Liliac Berhad is a unlevered firm with the cost of equity 20 percent per year. Based on the current…

A: Unleveraged firm means a firm in which there is no debt in the capital structure. In other words it…

Q: A 30,000, 6% bond with coupons payable quarterly is redeemable at par at the end of 8 years. The…

A: Face value = 30,000 Coupon rate = 6% Quarterly coupon amount = 30,000*0.06/4 = 450 Years to maturity…

Q: Financial analyst of Castle Investment Trust has gathered the following information on FRIVY Inc.…

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

Q: For the Years 1,2,3,4, and 5, the index numbers are 108, 112, 116, 124, and 131 respectively. Based…

A: Index for Year 1 rebased on year 3 = Index of Year 1 / Index of Year 3 * 100

Q: Assume a trader who has no existing CPO positions is bullish on CPO spot and futures pricing over…

A: The trader is bullish and so he expects that the price will increase in the near future. So, he will…

Q: 20) A firm will start paying dividends 5 years from now and thereafter that will be expected to grow…

A: Dividend in year 5 (D5) = $16.3 Growth rate (g) = 0.054 Required return (r) = 0.132 Terminal value…

Q: The ABC Incorporated paid a dividend of Php142.60 per share last year. Yesterday's last price is…

A: Dividends are the distribution of a company’s profits to its shareholders. Dividends are paid out of…

Q: 36)    Based on the information provided below, estimate the correlation coefficient of returns…

A: The correlation coefficient helps to measure the correlation between two securities. It shows the…

Q: Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity is higher…

A: Given: When bond  yield to maturity is higher than the coupon rate.   Required:The investor should…

Q: Employees in 2020 pay 6.2% of their gross wages towards social security (FICA tax), while employers…

A: Federal Insurance Contributions Act tax is a payroll tax that covers both the salaried and…

Q: Dakota Oranges Company paid an annual dividend of $2.97 per share yesterday. Dividends are expected…

A: Here, Annual Dividend = $2.97 per share Growth rate = 8% Required rate of return = 11% To Find:…

Q: You want to invest in a company that guarantees your money's interest payments and returns at the…

A: The best option would be Treasury Bonds.

Q: Emek is planning to retire in 15 years. She decides to start saving toward building up a retirement…

A: Here,

Q: For each period, Precious will invest 1,600 at 6% for 16 years. Find the specified amount for each…

A: A series of the amount paid over a period is called annuity for which future value and present value…

Q: You purchased a machine for $1.17 million three years ago and have been applying straight-line…

A: The majority of individuals pay a higher percentage on their income than just about any long-term…

Q: You have 3 accounts: Account A has a $100 balance and a $300 credit limit. Account B has a $100…

A: Credit Limit: A credit limit is the maximum amount of credit that a lender provide to the borrower.…

Q: Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose…

A:

Q: Based on the following information, estimate the justified leading P/E ratio    Return on Equity:…

A: Given, The EPS is $6.20 Return on equity (r) is 18% Growth rate (g) is 6.09%

Q: series during those five years to provide the amount to be paid directly. What is the amount of…

A: Loan Amount: It refers to the amount of credit provided by the lender to the borrower. The borrower…

Q: Indie Inc. recently hired you as a consultant to estimate the company's WACC. You get the following…

A: The weighted average cost of capital is the cost of the complete capital structure of the company.…

Q: The life cycle theory of dividend payment posits that a. Mature companies tend to adopt the residual…

A: The life cycle theory of dividend payment - It is based on the fact that when a firm matures, its…

Q: Based on market indicators, you are convinced that the price of wheat is going to significantly…

A: Futures are standardized contracts that place an obligation on the concerned parties to buy/sell the…

Q: What is the Future Development in the fund management industry? 2. What is Fund Valuation?

A: On a digital level, asset managers will become more responsive to customer needs. Personal…

Q: If you can earn 13% percent on similar-risk investments, what is the most you would be willing to…

A: Investment: It refers to an asset acquired for the purpose of generating income or price…

Q: Lionel Company has 1,500 units of bonds outstanding. Each unit has $100 face value, 6% coupon rate…

A: Here, Units of Bond is 1,500 Face Value of Each Bond is $100 Coupon Rate is 6% Coupon Compounding…

Q: Aika wishes to set aside a total of P60,000 as savings for the year 2022. She p at a bank that…

A: The future value of deposit is interest accumulated over the period of time and deposit made at the…

Q: Peter uses a savings account with a bank. The contract between Peter and the bank is one of: D.…

A: Peter uses a savings account with a bank. The savings account is a primary account type that lets…

Q: The annual interest rate, compounded annually, at which $520 must be invested for it to grow to…

A: To calculate the interest rate we will use the below formula   Interest rate = (FV/PV)1/n-1 Where FV…

Q: 4. A company estimates that its profit can be represented by the equation 50x P=²+5 where P is the…

A: The break-even quantity: The break-even quantity is the sales quantity at which the total costs…

Q: What is Pension Funds and insurance companies? What is Private Investors? What is Wholesale…

A: A retirement benefit is a payment paid to a retired individual.An investor is any individual or…

Q: XPTO SA is an industrial all-equity financed company, and its shares have a beta of 1,6. The…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: tional Co.’s evaluation of its cash outlay required indicates that it needs 500,000 for the year.…

A: Optimum number of cash transactions required would be such that there would be minimum cost of…

Q: If you are offered 300,000 in 14 years and you can earn 16% on your money what is the present value…

A: To calculate the present value we will use the below formula   Present value = FV/(1+r)n Where FV -…

Q: How much interest is earned at 2-% if an amount of P10,500 was invested on October 3, 2021 and will…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: 6) Banco Bradesco S.A.,  announced yesterday that its 1th quarter earnings will be 2.9% higher than…

A: Abnormal returns are the returns when usually a company has large profits  or losses generated from…

Q: les are expected to increase each month by 15%. Prepare a budgeted income statement.

A: Opening Inventory = 330,000 x 15% = 49,500 Closing Inventory = 330,000 x 1.15 x 15% = 56,925…

Q: 4.A corporation is considering purchasing a machine that will save $210,000 per year before taxes.…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Nikita Berhad is evaluating a project which expected to earn a series of cash inflows as shown in…

A: NPV technique assesses the project by analyzing the discounted value of all future cash flows. If…

Q: 1. If P5,000 is invested in a time-deposit for 2 years in a bank that offers 4% annual interest…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: 1. What are three significant differences between income property finance and owner occupied single…

A: In the world of home financing and commerical and residential real estate financing we come across…

Q: Present Value of Growth Opportunities (PVGO) if the investors' required rate of return is 20%?…

A: PVGO means present value of growth opportunities. It is a method of valuation applied to growing…

Q: The prices of an iPad (8th generation) 32GB in some countries are assumed to be as follows: • 329.99…

A:

Q: i) Estimate Mencias Corp. total financing requirements (total assets). ii) What is Mencias Corp. net…

A:

Q: What are the supposed benefits of targeting owners' wealth? 2. How can managers target owners'…

A: In a capitalist society where individuals own goods and services privately, earning per share is the…

Q: ce Which of the following is correct as it relates to using Excel Solver in case of capital…

A: In capital rationing we need to find out the net present value of all projects and one with maximum…

Q: Financing Cash Flow                                      415                                1,809…

A: Every business goes through three main phases – start up, mature, declinimg. Starup is the first…

Q: If you save $5 per day in an account that earns 4.5% interest per year, how long will it take for…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.