How much would you be willing to pay for this investment if you required a 12 percent rate of return? $   If the payments were received at the beginning of each year, what would you be willing to pay for this investment?

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: On the exercise date, Blue Corporation has a put option for 100 tons of copper at an exercise price ...

A: Put option is a right to sell an underlying security at a predetermined price at a future date.  

Q: What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond was original...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: 11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interes...

A: Net income (EAT) = $57000 EBIT = $150,000 Tax rate = 40%

Q: Compute for Receivable Collection Period, Inventory Conversion Period, Payables Deferral period and ...

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

Q: a) PW I=-150,000+11,000(P/A,15%,3)+25,000*(P/F,15%,3)

A: Present worth will be the difference between total present worth of cash inflows and total present w...

Q: Bob has been investing $4,000 in stock at the end of every year for the past 8 years. If the account...

A: Future value of an annuity is calculated by multiplying the regular payment by Annuity factor which ...

Q: $10,500 of sales, $4,000 of operating costs other than depreciation, and $4,500 of depreciation. It ...

A: based on the data given in the sum we will calculate the EBIT. 

Q: Jana, now 23 years old, is a grade school teacher in Batangas City. She has been invited by her high...

A: A deposit or payment of equal amount of money at equal intervals of time is called annuity. Insuranc...

Q: cost of preferred shares

A: Preferred shares are the shares having priority for getting dividends rather than common shares. It ...

Q: When discussing a mix of risky assets please briefly explain the following concepts, making sure you...

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

Q: In calculation of weighted average cost of capital, is trades payable included?

A: Trade payable- Amount that is payable by a firm  for goods purchased or services availed and it  ari...

Q: gdhoo3Q0NZTErqE4rKhjN 8. The December 31, 2019 income statement for App Inc. reported $2.5 million o...

A: Since you have asked multiple questions we will answer the first question for you. Please post quest...

Q: What is the owner's equity for the BlueDragon company for accounting period 2020? note: write the nu...

A: Solution:- Owner’s equity means the amount of funds contributed by the owners of the entity. In case...

Q: Explain these three 1. PURCHASING POWER RISK - is perhaps, more difficult to recognize than the oth...

A: The term "risk" refers to the unpredictability of future events. The possibility of experiencing an ...

Q: draw the cash flow tnx.

A: The present value is the total value of the future payment series you must have now. For example, if...

Q: A corporation has a taxable income of $7,356,401.  At this income level, the federal income rate is ...

A: Given that: Total Income=$7,356,401 Local Tax= 13% State Tax= 21%  federal income rate =46%    

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: CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a n...

A:

Q: What is the Macaulay duration of a bond with a coupon of 5.8 percent, eleven years to maturity, and ...

A: The weighted average term to maturity of a bond's cash flows is known as the Macaulay duration. The ...

Q: Aloha, Inc., has 6 percent coupon bonds on the market that have 11 years left to maturity. If the YT...

A: Par value (FV) = 1000 Coupon rate = 6% Annual coupon amount (C) = 1000*0.06 = 60 Years to maturity (...

Q: current position of

A: A call option is a financial contract that provides the buyer to buy the right but does not provide ...

Q: has a callable bond outstanding with a coupon of 10.8 percent, 25 years to maturity, call protection...

A: The return a bondholder will earn if the bond is held until the call date, which occurs before the b...

Q: 4. LSP Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing ...

A: Based on the information available we will calculate the net income, taxes, and other costs.

Q: 10.4 (LG 10.4) The following data are available for two mutually exclusive projects: Project A Proje...

A: Since question involves multiple subparts , We will answer 1st sub 3 parts for you as per prescribed...

Q: 16. LSP Manufacturing recently reported Net income of $350,000, Interest expense $112,000. It has RO...

A: Net income = $350,000 Interest expenses = $112,000 ROA = 9% Assets = Net income/ROA             = 35...

Q: You just purchased a share of SPCC for ​$95. You expect to receive a dividend of ​$7 in one year. If...

A: Total return includes dividend yield and capital gain yield

Q: Irredeemable bonds were issued at 103 but registration and other fees amounted to 5% of issue price....

A: Issue  price = 103 Issue cost = 5% Net amount received = 103*(1-0.05) = 103*0.95 = 97.85 Par value =...

Q: Kolby's Korndogs is looking at a new sausage system with an installed cost of $695,000. This cost wi...

A: Installed Cost is $695,000 Life of project is 5 years Initial Investment in net working capital is $...

Q: 5. When an organization underwrites and distributes new investment securities to helps businesses ob...

A: The business obtains finance by issuing securities and bonds to meet the objectives of the business

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: The investor would like to evaluate her position with respect to any gain or loss accrued on the for...

A: Forward Contract: It represents a contract that is customizable and is between two parties for the ...

Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years fo...

A: The required return on the stock represents the total return earned on the stock. This return is con...

Q: Q4) a) Dimond 7 has been operating an excavation company in British Columbia for the last 20 years. ...

A: WACC stands for weighted average cost of capital.  It represents a firm's average cost of capital fr...

Q: Last year, Joan purchased a $1,000 face value corporate bond with an 9% annual coupon rate and a 10-...

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

Q: The investor’s required rate of return is 15 percent. • The expected level of earnings at the end of...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...

Q: 24. Namak Co. has an ROE=20%, TATO = 2.5, Equity multiplier of 3, and sales =$30,000. Calculate the ...

A: Sales = $30,000 TATO = 2.50 Equity multiplier = 3 Equity = (Sales/TATO)/Equity multiplier           ...

Q: Duration is a measurement of a bond’s interest rate risk. It is also referred to as the responsivene...

A: Bond duration or duration of the bond means the price sensitivity of the bond when the interest rate...

Q: Find the periodic payment R required to amortize a loan of P dollars over t years with interest char...

A: The periodic amount will be found using excel’s PMT function. It is the minimum amount that must be ...

Q: Bond valuation Bond X is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000...

A: Hi! Thank you for the question , As per the Honor code , we are allowed to answer the one question i...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Formula's Calculations: Therefore; Cost of Debt is 5.53%

Q: Company ABS’s Cash Conversion Cycle has 241.46 days while Company CBN has 194 days of CCC. Which com...

A: Cash conversion cycle (CCC) refers to the time period ( number of days) between the payment for raw ...

Q: stock. The required return on this stock is 13 percent. What will your capital gain and capital gain...

A: The capital gain is the increase in price of stock due to the dividend and dividend growth rate and ...

Q: Yummy Food is expanding its business and wants to open a new facility to make frozen lasagna, which ...

A: Concept Break even lease rental is rental at which lessee is indifferent to choice between lease fin...

Q: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the...

A: Given Forward dividend = $2.08 1T Target Est = $105.28 Required return = 11.5%  

Q: You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise pri...

A: Time period is 1 year Exercise price is $2.02million Market Value is $1.72million Interest rate is 1...

Q: You are considering investing in a bond that matures 20 years from now (the par value of the bond is...

A: Time Period = 20 Years Par Value = $1,000 Coupon Rate = 9.65% or Coupon Value = $96.5 Current Value ...

Q: What is the present value of a $90 annual annuity for 10 years with an additional $1000 received at ...

A: Solution:- When an equal amount is paid each period, it is called annuity. The terminal value receiv...

Q: 13. Adams Corp's sales last year were $57,000, and its total assets were $34,000. What was its total...

A: Sales = $57000 Total assets = $34000