If the company was calculating its weighted average cost of capital(WACC),the proportion of financing provided by bonds is:

Q: ou are considering investing in a combination of a stock and a risk-free asset. The stock has an…

A: The portfolio standard deviation and expected return: When an investment is made in at least two…

Q: Suppose that you just purchased 250 shares of Beta Banana’s stock for $70 per share. The initial…

A: A margin call is made when an investor's equity, expressed as a percentage of the total market value…

Q: the component costs combined to form a weighted average cost of capital (WACC), and why is it…

A: Weighted average cost of capital is the weighted cost of equity, weight of debt and weight of…

Q: Ultra Petroleum (UPL) has earnings per share of $1.63 and a P/E ratio of 33.08. What’s the stock…

A: Earning per share = $1.63 P/E Ratio = 33.08

Q: aria has extra money, and she is planning to buy certain income-earning assets to help her earn…

A: There are many method of investing the money in the market depending on the need and objective of…

Q: What does immunization using factor durations allow the bond portfolio manager to do that cannot be…

A: Bonds are called bond goods because they typically pay a set interest rate to the borrower (coupon).…

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: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…

A: To calculate the bond price we will use below formula   Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…

Q: Ultra Petroleum (UPL) has earnings per share of $1.65 and a P/E ratio of 33.12. What’s the stock…

A: P/E ratio is the times of share value to the earning of the share.   P/E Ratio = Price Per Share /…

Q: 1. Ascertain the future value if compounding is done monthly, weekly and daily

A: Compounding is the process of calculating future value of a present sum of money. The future value…

Q: Companies are digitizing their finance operations. Some have argued that finance will eventually be…

A: Data Science in Finance:  The financial analysis uses statistical methods to better understand…

Q: ost of first class airplane ticket of an employee is a taxable fringe benefit. a. True b. false

A: There are  taxable and non taxable fringe benefits that any employee get on it some are paid and…

Q: Consider a portfolio consisting of the following three stocks: The volatility of the market…

A: By using the CAPM approach, the expected return of the stock is calculated. A portfolio consists of…

Q: Define the following terms: ‘stakeholder’; ‘shareholder’ and ‘stakeholder analysis’. Using a named…

A:

Q: Question 2 The following interest rate structures are on offer by three independent banks: Tree…

A: For a borrower, the most preferable would be the bank that they have to pay the least interest to as…

Q: Manuel takes a 5-year loan that has 60 end of the month payments of L under the nominal annual…

A: Given that the loan i used to purchase bonds. Therefore, the principal amount of loan will be equal…

Q: aims of the Basel II capital accords

A: The Basel Committee on Bank Supervision (BCBS) established the Basel Accords, a series of three…

Q: ate herself in that area before making any major decisions. She has a short-term investment for that…

A: The more is compounding the more is effective interest rate and less is compounding less is…

Q: years from today. Assume that the YTM today is 3.8%   • Calculate the price of the same bond after…

A: The price of bond is the present value of coupon payment and present value of par value of bond…

Q: 40. If the straight line depreciation for a car was y=-3,400x+65,000, what was the original price of…

A: Depreciation is the systematic allocation of cost of an asset to its life. This helps to match the…

Q: setup in the finance system that ensures clear ownership of responsibilities. A. Macroprudential…

A: Finance system is nothing but group or cluster of institutions, such as Banking Company, Investment…

Q: A series of equal semi-annual payments of $1200 for 4 years is equivalent to what present amount at…

A: Semiannual payment (C) = $1200 Number of payments (t) = 8 (i.e. 4 years * 2) Annual interest rate =…

Q: Is current yields affected by whether the bond is callable ?

A: A callable bond is a bond where the institution that issues the bond has the option to prematurely…

Q: Find the internal rates of return on a cash flow with deposit amounts of Ao = 40, A₁ = 120, A₂ 290,…

A: Net Cash Inflow at (t = 0) (N_1) = A_0  - B_0 = 40 - 240 = -200 Net Cash Inflow at (t = 1) (N_2) =…

Q: What is the total shareholder return?

A: Total return refers to a method which shows the relationship between the total return and current…

Q: A. Discuss main theories of financial intermediation and their rationale for the existence of…

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

Q: a. What should be the repurchase price? b. How many shares should be repurchased? c. What if the…

A: Treasury stock or repurchased stock are the company’s own stock which is purchased by the company…

Q: ear amortizing bond has a coupon rate of 4% and pays its coupons semi- annually. Coupon payments are…

A: The bond's susceptibility to interest rate fluctuations is measured by its duration. The…

Q: Consider the three stocks in the following table. Pt represents price at time t, and Ot represents…

A: The price during year 0 (P0) is multiplied by the quantity in year 0 (Q0) to determine the market…

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: A company with P50,000 in current assets, P25,000 in quick assets, and P30,000 in current…

A: Current ratio = Current assets/Current liabilities Quick ratio = (Current assets - Inventory)…

Q: prominently in a headquarters, satellite office of the establishing agent or broker, by the…

A: given head quarters satellite office of the establishing agent or broker, by the supervising…

Q: When MUST the Policy Summary for a life insurance policy be delivered? Prior to the sales…

A: Life insurance is a type of insurance which provides assurance to a insured person to provide…

Q: lue of a bond today is $1,055 and matures in 12 years’ time and a coupon rate of 10.5% paid…

A: Price of bond is discount rate at which price of bond present value of coupon payment and present…

Q: What sum of moeny invested now at 5% will give GHc 120 in 2-years' time?

A: Future Value = GHc 120 Time period = 2 years Interest rate = 5%

Q: Home Place​ Hotels, Inc., is entering into a​ 3-year remodeling and expansion project. The…

A: Data given:: D0= $2.20 D1= $2.20 D2 and D3 , 6% growth is expected. D4 ,19% growth is expected D5…

Q: (Measuring growth)  If​ Pepperdine, Inc.'s return on equity is 17 percent and the management plans…

A: The multiplication of the retention ratio with return on equity results in the company's growth…

Q: The following limit order book was observed for Tesco PLC: Bid quantity Bid Price Ask Price Ask…

A: Bid Price is the price that the buyer is willing to pay for the underlying stock or commodity Ask…

Q: Question 7 Mr Conner calls his broker to inquire about purchasing a bond of Tesla Corporation.…

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

Q: The Capital Asset Pricing Model is usually adopted in a variety of circumstances but it does have…

A: Capital Asset Pricing Model: The relationship between expected return of a stock  and systematic…

Q: A family takes out a $168,500 mortgage at 6.5% interest compounded monthly with monthly payments for…

A: Solution:- When some amount is borrowed, it can either be repaid as lump sum payment or in…

Q: Degree of financial leverage of 1.5 implies that: Select one: Increase in revenues by 2.5% would…

A: Degree of financial leverage measures the change in the earnings per share or net income of the…

Q: According to the CAPM, what is the required rate of return for a stock with a beta of 0.7, when the…

A: To calculate the required rate of return we use the below formula   Required rate of return = Risk…

Q: Given per number are three options for using the capital (or other parameters) of a certain project.…

A: B/C ratio is present value of benefits to the present value of all costs. Should be accepted if more…

Q: Determine whether Livestock Wealth is using an “inside-out” or “outside-in” perspective

A: Platform for community farming By raising its asset valuation to R100 million, Livestock Finance…

Q: Which of the following is not a benefit associated with the NPV technique in capital budgeting?…

A: The best method for evaluation of an investment proposal is net present value method or discounted…

Q: Perit Industries has $135,000 to invest. The company is trying to decide between two alternative…

A: Calculations are done in excel, so there is no intermediate rounding PV of Outflow = $135,000 PV of…

Q: st cent

A: A growth model assesses a company's stock by assuming that payments to common equity owners will…

Q: Please correct the aswer

A: The current yield of the bond is referred to as the relationship between the annual coupon amount…

Q: If the trade executes, how much money do you receive from the buyer? (Round your answer to 2 decimal…

A: Investment refers to those mechanism which is used by the company for the purpose of generating…