How much would $2,875 due in 50 years be worth today if the discount rate were 7.5%? Select the correct answer.   a. $77.31     b. $84.51     c. $82.71     d. $80.91     e. $79.11

Q: lue Llama Mining Company is analyzing a project that requires an initial investment of $3,225,000.…

A: MIRR is modified rate of  internal rate of return which assumes that cash flow are reinvested at the…

Q: The table below lists the terms to maturity, the coupon rates, coupon payment dates and yields to…

A: Periodic or semiannual coupon is calculated as shown below.         Periodic coupon=Par…

Q: Your business manager forwards the following information to you. Your businesses earned a real rate…

A: To calculate the nominal rate of return we will use the below formula   Nominal rate of return =…

Q: Contemplating retirement an individual wants to create a fund on an 6% basis allowing $10,000.…

A: Present Value of annuity due There are two types of annuity due: Payments are given at the end of…

Q: The current yield on the bond is:

A: Current yield = coupan payment / bond price

Q: To raise $5,000,000 to expand into new markets, a very successful laptop manufacturing company…

A: Periodic cost of the debt here will be the periodic interest paid and the amount deposited in the…

Q: Compute the missing variable for each of the following alternatives of investments to accumulate…

A: The present value can be converted the future value using the technique of compounding, while the…

Q: Consider two riskless perpetuities: (i) pays $120 every year; (ii) pays $10 every month. If the…

A: When the rate of return of the two risk less perpetuities is same, the factor that influences the…

Q: According to our authors, define and provide an example of “common stock.”

A: The common stock will be reflective of equity shares which will be providing ownership in a…

Q: Motors from two different manufacturers are being considered. Motor A is 45hp a 50hp, both are 460…

A: The annual equivalent cost which is equivalent all cost and cash flow from the equipment needs that…

Q: The other photo is the example of the format of the supposed answer (solution and Excel). Thank you…

A: Information Provided: Loan amount (P) = 1,400,500.00 Interest rate (j) = 5+1/8% = 5.125% Years (t)…

Q: Brooke is evaluating two alternatives for improving the exterior appearance of her Victorian-style…

A: The PV analysis provides the investor with information regarding the overall actual costs that the…

Q: Which of the following compounding rates is equivalent to an effective interest rate of 2.75% p.a.?

A: When the compounding frequency per year is not 1 then in that case the stated interest rate will not…

Q: Determine the interest rate per compounding period as a decimal. Time of payment every 6 months.…

A:

Q: how do you calculate this question with excel formulas

A: Information Provided: Withdraw amount = $10,000 Interest rate = 6% Years for withdraw $10,000 = 5…

Q: Carlton Co plans to buy a new machine. The cost of the machine, payable immediately, is $800,000 and…

A: Net Present value ( NPV) is a capital budgeting techniques which help in decision making on the…

Q: 3. Consider a two-year coupon bond with a face value of $1,000 and a coupon rate of 5%. Investor A…

A: As per the honor code of Bartleby we are bound to give the answer of first three sub parts, please…

Q: how much interest will mico pay

A: PV = A[ (1-(1/(1+r)^n)/ r] Where PV = present value, A = Annuity amount. r = interest rate. n =…

Q: Jane invests $700 at the end of each year for 5 years. If interest is paid at 7%/a compounded…

A: Data given: Investment amount = $ 700 (at the end of each year) n= 5 years Interest = 7% p.a.…

Q: arie deposits 1,000 into an account that pays interest at an annual nominal rate of interest of ?,…

A: Money is deposited into account that earn the interest on the account and that interest is being…

Q: A straddle is a neutral options strategy that involves simultaneously buying both a put option and a…

A: An options straddle strategy is used by investors to hedge their risks in case of a volatile market.…

Q: eferred stock is priced at $1,000 and paid a dividenc dend that is due to be paid five years hence (…

A: The preferred stocks are paid dividend annually and the cost of preferred stock depends on the…

Q: To what amount will ​$5,000invested for 10 years at 10 percent compounded annually​ accumulate?…

A: Initial amount (I) = $5,000 Period (t) = 10 years Interest rate (r) = 0.10 or 10% Accumulated value…

Q: a) Share A and Share B have the following returns under different states of the economy. State of…

A: To Find: Expected return Standard deviation of individual security Standard deviation of portfolio…

Q: define and provide an example of “comprehensive income.”

A: The income represents the earnings of the company. The income is the total profit or earnings. One…

Q: a stock index fund that had an average APR of 11% over the last year. estment in 5 years and advise…

A: Information Provided: Investment = $10,000 Years = 5 Safe rate = 1.5% compounded monthly Risky rate…

Q: Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of…

A: Here, Lucas: Deposit amount = 10,000 Annual nominal interest rate = 6% convertible monthly Danielle:…

Q: yield 12% compounded semi-annually. Determine the gain of The is $ (Round the final answer to the…

A: Price of bond is present value of coupon payment and present value of par value of bonds taken on…

Q: how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise…

A: Information Provided: Debt weight = 45% Preferred weight = 4% Equity weight = 51% Tax rate = 25%…

Q: A Corp. and B Company will be merging. Independently, A has forecasted annual earnings of P400,000…

A: Synergy is a type of creation of additional value when two companies are together in merger. It will…

Q: returns is 57% and the standard deviation of stock Z's annual return is 49%. The retu

A: Due to diversification the risk is reduced very much but the reduction of risk depends on…

Q: Calculate the value of a bond that matures in 18years and has a $1,000 par value. The annual coupon…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: A design studio purchase a camera. If they settled the loan in 2 years by making quarterly payments,…

A: Loans are to paid by the periodic payments that carry the payment for loans and payment for interest…

Q: Consider an EOY geometric sequence of cash flows in which the first payment made was P2,000. This is…

A: Annuity refers to a constant stream of payments made at regular intervals for a defined period. The…

Q: The market price of TRUST bond is currently $890. Its par value is equal to $1,000 and it is…

A: Bond: These are fixed-income securities that reflect loans from investors to borrowers . A bond can…

Q: Jordan's investment manager offers her an interest rate of 8.0% compounded monthly on her…

A: Earlier Interest rate is 8% Compounded monthly Interest rate changed to  is 8% compounded annually…

Q: Keith deposits 10,000 into a bank account at time 0. The bank credits interest at an annual nominal…

A: Given: Principal = 10,000 Interest rate annual = i% Semi-annual rate = i%/2 For simplicity let us…

Q: While buying a new car, Monica made a down payment of $900 and agreed to make month-end payments of…

A: Down payment (D) = $900 Month end payment (m) = $240 Monthly period of repayment (p) = 56 (i.e. 4…

Q: 1) Steve decided to save $100 at the beginning of each month for the next 7 months. If the interest…

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…

Q: Suppose the two-year interest rate is r2 with quarterly-compounding and 30/360 daycount. Suppose the…

A: Compounding is the method through which interest is added to both the principle balance already in…

Q: Discuss the following topic(s) in the forum and submit proof of your participation in the online…

A: The following qualitative criteria should be taken into account when assessing the company's…

Q: ased on estimates the data for 2 types of bridges with different lives are as follows. If the min…

A: Annual cost method Under this method, equivalent annual cost (EAC) is calculated for all projects…

Q: Assume that Skye uses the book value of each capital compoent for the weights of capital components.…

A: WACC: It is calculated by adding all the costs of capital of individual sources of capital that are…

Q: Analyse the different capacities of Mudarib as Trustee, Partner ,Liable, Employee.

A: Mudarabah is a silent partnership agreement made up of cash and labor. It can be reached between the…

Q: The “circuit breaker rule” governs that “a stock will be allowed to trade ±15% from the close price…

A: Circuit breakers are all such restrictions for volatility of the stock beyond certain band. Circuit…

Q: Data for 2 alternatives are given below, determine the cost of alternative B so that the two…

A: The benefit-to-cost ratio analysis measures the profitability of a project. It uses the relation…

Q: Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large,…

A: Please note that as per guidelines, Im required to answer only the first three sub parts a, b and c…

Q: Finance Discuss an overview of securities analysis and portfolio management and its implication to…

A: Security analysis is referred as an analysis for the tradable financial instruments, which deals…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Mortgage/ Borrowings:  Borrowings are the loans taken by an individual, from banks or non-banking…

Q: Wanda is thinking of buying stock X at the beginning of the year. By the end of the year, the market…

A: In the question, we have to calculate value of stock at the beginning of the year. Dividend discount…