management consulting firm has four types of professionals on on its staff:  Managing consultants, senior associates, field and and office staff. Average rates charged to consulting clients for work of each of these professionals categories are k3150/hour, k1680/hour, k1260/hour and k630/hour respectively. Office records indicate the following number of hours billed last year in each category: 8000, 14000, 24000 and 35000, respectively. If the firm is trying to come up with an average billing rate for estimating client charges for next year, what would you suggest they do and what do you think is the appropriate rate?

Q: A firm has total debt of $1,400 and a debt–equity ratio of .25. What is the value of the total asset...

A: Debt = $1400 Debt to equity ratio = 0.25 Equity = debt/Debt to equity ratio            = 1400/0.25  ...

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation...

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both ...

Q: At 6% interest rate, find the capitalized cost of a bridge whose cost is P 300 million and life is 2...

A: iAnswer -  Capitalised Cost - A capitalized cost is recognized as part of a fixed asset as it is an ...

Q: Encik Azhar deposited RM500 every quarter for five years in an account that paid 3.85% interest comp...

A: Here, Quarterly Deposit is RM 500  Interest Rate (r) is 3.85% Compounding Period (m) is Quarterly i....

Q: What is the value of the firm?

A: FCF = EBIT + (1-tax)+ depreciation - capital expenditure = $59,000,000*(1-21%) + 5,900,000-7,300,000...

Q: uestion 5 Jack deposits $5000 in an account which pays 5 percent compounded quarterly. How much will...

A: The compound interest is the method in which interest earned is reinvested which gives us even more ...

Q: Find the compound interest if 1600 Rials is invested for 7 years at an annual rate of 5% compounded ...

A: The compound interest can be calculated with the help of future value function. 

Q: What is the effective annual rate for 18 percent compounded semi-annually? O 18.81% O None of the li...

A: The effective annual rate is the actual return that the investment gives. It is usually calculated i...

Q: # 5 Reynelds' stock has a beta of 1.21 and an expected dividend next year of $1.60 a share. The firm...

A: Beta 1.21 expected dividend 1.6 Risk-free Interest 2.5% Market return 10.6 % 

Q: A car is to be paid P15000 forever at the rate of 9%. What is the amount of the car after 9 years at...

A: Cash flow of car = P15,000 Rate = 9% Time = 9 years Rate = 6% compounded quarterly To Find: Amount o...

Q: If your money is compounded at 12% interest monthly, you have to save _____ monthly to accumulate Ph...

A: Here, Interest Rate (r) is 12% Required Accumulated Amount (FV) is Php 10,000 Time Period (n) is 2 y...

Q: A stock's returns have the following distribution: Demand for the Probability of this Rate of Return...

A: The return provided by stock over and above the risk-free return in proportion to the risk taken is ...

Q: Do you think we have an agency problem in big businesses and organizations (such as Eskom) in South ...

A: The agency problem is due to asymmetry in information and management information systems. Managers a...

Q: A stock has a required return of 7%, the risk-free rate is 6%, and the market risk premium is 4%. ...

A: Required return = 7% Risk free rate = 6% Market risk premium = 4%

Q: Outline Roll’s critique and explain how this affects the application of the CAPM in practice.

A: Roll's critique suggest or is built on the idea that it is next to impossible to create or observe a...

Q: Techiefy Co. wants to launch a new product. it is observed that the fixed cost of the new product is...

A: Cost function = 35,000 + 500D Revenue function = 5000D-100 D2   Profit function at breakeven = Reven...

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is P1...

A:  Present worth is the sum total of present values of all future cash flows. It is calculated as foll...

Q: The Table above (in Q.1) shows data for Terrania and its three trading partners A, B, C. Assume that...

A: Foreign exchange index: A foreign exchange index tracks the changes in the PPP of a country over a g...

Q: In making a financing decision, how would a financial manager answers questions like:   1. How sho...

A: Financial manager (FM) has to make various decisions for the company related to the funds. One of th...

Q: The annualized yield on a two-year security is below the annualized one-year interest r The one-year...

A: We can calculate the forward rate for 1 year by taking the 2-year annualized interest rate and 1 yea...

Q: What is the operating cash flow in 2018? What is the change of working capital in 2018? What is the ...

A: A cash flow statement is an important component of the financial statements because it helps to eval...

Q: 5% 51 1% 2% 3% 4% 6% 7% 8% 9% 10% 3 4 61 80 10 A A 1. Suppose that there is a single $100 cash flow ...

A: Equivalent uniform series is which will give the future value at given interest rate the required fu...

Q: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.3 percent, a YT...

A: The price of bond will be sum of the present value future coupon payments and the present value of f...

Q: Bart is a college student who has never invested his funds. He has saved ​$540 and has decided to in...

A: An initial investment accumulates interest. The future value is the accumulated value of the initial...

Q: At the beginning of each month, P 200 is deposited into a retirement fund. The fund earns 6% compoun...

A: An annuity is a series of equal payments made or received at regular intervals. When the cash flows ...

Q: If you are calculating the present value of this cash flow under semiannual (twice per year) compoun...

A: Future Value: It represents the value of annual cash flows or the sum of money at a later/future da...

Q: er year, how much will the investor have in the account in 3 years?

A: Future Value: It is the future worth of the present annuity stream of cash flows and is computed by...

Q: Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of fin...

A: NPV means PV of all the benefits which will arise from the project. NPV is computed by taking the di...

Q: A wholesale company prices its inventory at $143,483. If the original price of the items was $229,62...

A: Transaction price = $143,483 Original price = $229,622  

Q: What does this tell you about total cost when financing for longer periods?

A: Leasing a vehicle refers to driving a car through periodic payments towards the car without actually...

Q: What is the par yield on the gov bond you’re following? How has it changed since you’ve been followi...

A: Bond Valuation is a method or a procedure or a technique for the valuation of bond which helps in th...

Q: Financial Market is a market in which financial assets (securities) such as stocks and bon can be pu...

A: A financial market is a place where buyers and sellers of financial securities meet together in orde...

Q: The questions fall under financial management

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a ti...

Q: Assuming interest rates are at 6%, what is the fair value of this offer?

A: Fair value or present value can be calculated using the present value concept.  1. Find the value of...

Q: Rayhan Company has an average collection period of 55 days. The annual sales is 8,500,000. What is t...

A: The average collection period indicates the period between the sale and collection/ receipt of money...

Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of ...

A: Price ratio analysis helps in ascertaining the price of the stock in relation to various other facto...

Q: Find the future value of −−P60, 000 invested for 10 years at 3% interest compounded monthly

A: Answer-   Future Value Formula- FV = PV ( 1 + r/n) nt   Given,   PV = P 60000 r= 3% n = 12 nt = 12*1...

Q: A manufacturing plant installed a new boiler at a total cost of P 150,000 and is estimated to have a...

A: Given: Particulars Amount Plant cost    -150,000 Life 10 Scrap value          5,000 Inter...

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded mon...

A: A perpetuity is an annuity that gives payments but has no maturity period.  

Q: Cross Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of...

A: The sinking fund is the amount of money accumulated by the company to pay off a debt or any bond. A ...

Q: Your company has been doing well, reaching $1.05 million in earnings, and is considering launching a...

A: Net present value is the difference between the present value of cash inflows and present value of c...

Q: /hat is the exact rate of return?

A:  MACHINE A         PV FACTOR PRESENTVALUE A 0 FIRST COST -8000   8000                       ...

Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is P1...

A: The future worth of the single of a single cash flow is calculated by the following formula. Here, ...

Q: For which of the following purposes is it LEAST logical for a company to issue equity securities on ...

A: Equity refers to the owner's funds. It is that portion of the capital of a business that is financed...

Q: Beginning Balances for Quentin's Four Credit Cards Card A Card B Card C Card D Balance $4,134.00 $2,...

A: Loan is a value which is borrowed from external sources like banks for a specific period. This amoun...

Q: How much will it cost to purchase an ordinary annuity delivering semiannual payments of $2000 for 12...

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

Q: Yıl Nakit akışı 0 -1000 TL 1 +300 TL 3 +300 TL 4 +300 TL 5 +300 TL

A: Internal Rate of Return is the rate at which NPV of the Investment is zero. It is compared with MARR...

Q: Your company, which is financed entirely with common equity, plans to manufacture a new  product, a ...

A: Ratio is a tool which is used to measure the growth or performance of the company by establishing th...

Q: The exact simple interest of P7,000 invested from April 28, 2002 to December 25, 2002 is P700. What ...

A: Interest amount (i) = P700 Investment (P) = P7000 Period from Apr 28, 2002 to Dec 25, 2002 (t) = 241...

Q: A Corporation issued preferred stocks for P120 per share. The issue price is P20 more than the stock...

A: Stock price (P) = P120 Annual dividend (D) = P12 Underwriting cost (UC) = P10 Tax rate = 30%