Q: 8. A street-level road traffic estimates has been conducted at the intersection from Monday to…
A: Given data for Question 8 Road traffic estimate for Monday to Friday are 48, 52, 40 , 55, 60 To…
Q: Question content area top Part 1 (Present value of a perpetuity) At a discount rate of…
A: A perpetual annuity is a long-term insurance policy that you pay for for the rest of your life. In…
Q: An equipment costs P8,000 has an economic life of 8 years and salvage value of P400 at the end of 8…
A: Equipment Costs = P8,000 Time Period = 8 Years Salvage Value = P400 1st Year Depreciation Amount =…
Q: Maintenance money for an athletic complex has been sought. Mr. Kendall, the Athletic Director, would…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: In 1988 the average tuition for one year at an Ivy League school was $1,800 (PV). Thirty years…
A: Value of money declines with the passage of time due to various factors like inflation rate and due…
Q: You have the following information regarding an annual bond. What is the modified duration of this…
A: Modified duration of a bond shows the change in the value of the security as the value of the…
Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…
A: Variance of Stock: volatility of stock is measured by variance of stock How much a stock tends to…
Q: is considering purchasing equipment that will reduce costs by P40,000. The equipment costs P300,000…
A: In the future worth method we find out the future value of cost and benefits and see whether they…
Q: if the simple interest discount rate is 9.681% , what is the future value of 45,907 after 9 years…
A: Simple interest method is a method of computing interest on borrowed amount where interest is…
Q: A quantity of steel in the amount of $423,000.0 is needed for a project, payment due (from…
A: Amount due: 4230000 Interest rate: 1.5% Monthly Payments are made as Month 3: 50%…
Q: A company wants to buy a new machine for $5 million. The machine can be used for 7 years. It will…
A: New Machine Cost $ 50,00,000.00 Salvage Value $ 2,00,000.00 Time Period 7 Declining…
Q: Political stability is a major factor of which one of the following? business risk inflation risk…
A: "Hi, Thanks for the Question. Since you asked multiple questions, we will answer first question for…
Q: In this problem. Deposits of 500 will be deposited starting at time 5 and will go on up to time 18.…
A: Solution:- “n” means the number of times a deposit is made.
Q: 1.A Assume that a Peruvian company, DMB LLC, just reported its earnings this year. The reported…
A: Given: Revenue = $10 million Cost = $9 million Discount rate = 8%
Q: An investment costs $100 and it promises $50 in 3, 4, 5, 6 and 7 years. What is the return of this…
A: The return on investment is a financial metric used to find out whether the investment will give a…
Q: II. Case Application. Answer the following situations by applying what you have le the previous…
A: Insurance is important and necessary part of life due to too much risk involved in the life of…
Q: 9. Calculate the annual payment for a 20-year mortgage on a P3.5 million building at a 7.5% interest…
A: Solution:- When an equal amount is paid each period at end of period, it is called ordinary annuity.…
Q: 4. Discount P55, 000 for 9 years at a) r= 8.75% m = 4 b) r= 10.15% m = 2
A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…
Q: Wine and roses offers bonds with 7% coupon semiannual payments and YTM of 7.73%. The bonds mature in…
A: Coupon rate is 7% YTM is 7.73% Time to maturity is 9 years Face Value is $1,000 To Find: Market…
Q: How will investors get their money back?
A: An investor is a person who is involved in the allocation of capital with an expectation that he or…
Q: Find the equivalent interest rates to the given nominal interest rates.
A: Effective Annual Rate: It refers to the rate of interest earned on an investment or charged on a…
Q: 2 What is the expected return on equity for a firm with a 14% expected return on assets that pays 9%…
A: Expected return refers to the return earn by an investor on the amount invested during a period of…
Q: A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and life of 12…
A: Initial Investment = P2,500,000 Salvage Value = 0 Time Period = 12 years Annual Maintenance Cost =…
Q: 18 A stock has an expected return of 13.74 percent. The return on the market is 12.68 percent, and…
A: As per Capital Asset Pricing Model, Expected Return = Risk free return +[ Beta * ( Market return-…
Q: A growing monthly perpetuity will start 6 months from today. If the discount rate is 6% APR…
A: A perpetuity is a payment method that pays a fixed periodic amount in the future for a lump sum…
Q: shan and Hazel plan to retire at age 60 with a retirement income of $48,000 a year from their…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Best Electronics has a quick ratio of 0.53, current liabilities of $7.3 billion, and inventories of…
A: Given: Quick ratio = 0.53 Current liabilities = $7.3 Billion Inventories = $5.2 Billion
Q: At what interest rate will ₱30,750 amount to ₱44,875 in 4 years and 6 months, if interest is…
A: Data given: Description Data FV (P) 44875 PV (P) 30750 r= rate (Compounded semiannually)…
Q: what will be the new net income?
A: Financial leverage means the degree by which a company uses fixed income securities or outside…
Q: Determinethe payback period for each b.Calculatethe net present value (NPV) for each…
A: Net present value is the difference between the present value of cash flow and initial investment of…
Q: a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 8%…
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…
Q: Use the end-of-year stock price data in the popup window, LOADING... , to answer the following…
A: Here,
Q: Consider that you have in your portfolio a 3-year 3% coupon bond with face value of $100. The…
A: The duration of a Bond : is a measurement of the average term-to-maturity of that bond. In simple…
Q: A. Given the data in the table and the information below, please answer the following question. Show…
A: Note: This post has several distinct questions. The first has been answered below.
Q: You are considering a project that requires a $1000 investment today and returns $550 at the end of…
A: NPV or Net present value of an investment proposal is the difference between the present value of…
Q: The price of the stock will be $. (Round to the nearest cent.)
A: Stock Price: It refers to the current value of the stock to the buyers and sellers. Thus, it is…
Q: Which of the following point is related to institutional factors that affect the accounting quality?…
A: The answer is option. d - Internal Auditing
Q: You are planning on taking out a mortgage and would like to determine the cash value for a given…
A:
Q: flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 =…
A: The net present value is the difference between the present value of cash flow and initial…
Q: The current quoted price of a 13% coupon bond is $110. It pays coupon semi-annually. The next coupon…
A: The futures price is the price that is agreed upon by the two parties for the sale of the asset.
Q: Required ROI 18% Project Omega NPV (Year 0) Project Omega Total NPV Which of the two projects would…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: Wally loves your analysis. He has now asked you to evaluate potential new project investments. Both…
A: PAY BACK PERIOD Payback Period - It is the duration of the project life within which the initial…
Q: How to make a personal financial statement?
A: Personal Dinancial statement is a summary statement of individual financial position, it contains…
Q: An infrastructure project has a timeline of 15 years and starts on the first day of the coming…
A: Time period of project is 15 years One time expense at t=0 is $1.6 million Annual expense is $12…
Q: You agree to make payments on student loans. Starting on the 8th month, 11 payments will be for…
A: Monthly Payment for 11 Months $ 673.59 Time Period 11 Monthly Payment for 32…
Q: What is the most you would pay for this investment if you require a 10% return? answer in dollars…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: Is share repurchase always a positive move? explain
A: Repurchase of shares-Under this transaction, a company buys back its own shares directly from the…
Q: Select one down payment present value of penodic payments b down payment number of payments times…
A: When you buy the property than you have to pay some money as down payment and remaining amount as…
Q: Stock A has a beta of 0.87 and an expected return of 9.21 percent. Stock B has a beta of 1.36 and an…
A: Expected return as per CAPM = Risk free rate + Beta * Market risk premium
Q: What equal deposits should be placed by Carolyn Jane in a credit cooperative at the end of each year…
A: Equated Annual Deposit: It is a fixed deposit amount made by a investor to a financial…
Step by step
Solved in 2 steps
- H7. Don and Ellen had capital balances of $85,000 and $95,000 respectively when Frank invested $90,000 for a 35% ownership of the business. Don and Ellen share profits and losses in a 70:30 ratio. Which statement is correct? Select answer from the options below Don will get a bonus of $3,150. There will be no bonus. Ellen will get a bonus of $1,350. Frank will get a bonus of $4,500. Please show all step by step calculationE12-2 Chancellor lndustries has available retained earnings of $ 1.2 million. The company plans to make two investments that require financing of $ 950,000 and $ 1.75 million respectively. Chancellor uses a target capital structure with 60 percent debt and 40 percent equity. Apply the residual theory to determine the dividends that can be paid and calculate the resulting dividend payment ratio.If current assets are $100,000 and current liabilities are $42,000, what is the working capital? A. 200 percent B. 50 percent C. 2.0 D. $58,000
- Juan and Pedro have the following transactions during the year:Juan:Beginning capital – 01/01/2022 – 1,000,000Debit - - 08/01/2022 – 300,000Debit - - 09/01/2022 – 800,000Credit - - 10/30/2022 – 900,000Credit - - 04/01/2022 – 70,000Pedro:Beginning capital – 01/01/2022 – 700,000Debit - - 09/01/2022 – 100,000Debit - - 05/30/2022 – 90,000Credit - - 11/30/2022 – 500,000Credit - - 06/30/2022 – 100,000What is the ratio of Juan’s share in income if the partnership calls for profit sharing equivalent to the average capital ratio?The firm invests $1,000 today, and realizes after tax cashflows in the amounts of $110, $660, and $880 at the ends of years 1-3, respectively. WACC=10%. Find NPV.Michaela Marie invested in Home Development Mutual Fund (HDMF) Pag-IBIG MP2worth Php 300,000 for five (5) years. What is the total account value of herinvestment at maturity? (Total Dividends Earned at 6.96%) Topic: Principle of Finance
- X derived the following income in 2020: Business income of P400,000 Compensation income of P200,000 Interest income from 5/6 lending to clients: P150,000 Interest income from bank deposits in the amount of P25,000. Royalty income for the sale of books where he is the author: P120,000. Capital gain on sale of personal car in the amount of P20,000. Capital gain on the sale of stocks directly to buyer: P30,000. Ordinary gain on sale of old office furniture in the amount of P10,000. Dividend income from stocks of San Miguel Corporation: P60,000. Proceeds received from the life insurance of his deceased father: P1,000,000 what is the total income of X which is subject to final tax?A5 6a DEF Company is comparing three different capital structures. Plan A is an all-equity plan and would result in 1000 shares of stock. Plan B would result in 700 shares of stock and $13,500 in debt. Plan C would result in 800 shares of stock and $9000 in debt. The firm’s EBIT will be $10,000 per year until infinity. The interest rate on the debt is 12%. a. Ignoring taxes, compute the EPS for each of the three plans. Which of the three plans has the highest EPS? Which has the lowest?Ay 1. An investor bought a $500,000 face Government of Ontario Treasury Bill 355 days before maturity at an interest rate of 3.9% p.a. She sold the T-bill 219 days later at a rate of 3.45% p.a. Determine: a. The amount she paid for the T-bill. b. The amount she sold the T-bill for c. The rate of return (R) she realized on her investment over the 219 days.
- que 3 You have been appointed as a financial consultant by the directors of Cochin Holdings. They require you to calculate the cost of capital of the company. The following information is available on the financing of the company: · R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%. Prepare a loan amortization schedule Hint: the annuity factor is 3.7908Abdullah has OMR 5000 to invest in a small business venture. His partner has promised to pay him back OMR 8200 in five years. What is the return earned on this investment? Select one: a. None of these b. 10.39 % c. 12.40 % d. 10.75 % e. 14.50 % Gross working capital refer to the Select one: a. Firms liabilities in total current assets of the enterprise b. Firms investment in total fixed assets of the enterprise c. Firms investment in total Equity of the enterprise d. Firms investment in total current assets of the enterprise e. None of the optionsTammy had the following aggregate results from her 2019 investing activity: STCG $300,000 LTCG $450,000 STCL -$260,000 LTCL -$390,000 After the capital gain and loss netting procedure listed below 1.Classify as short-term or long-term based on holding period: •Short-termheld less than 12 months •Long-term held longer than 12 months 2. Net short-term and long-term gains and losses to obtain a net short-term and a net long-term position for the year. Collectibles gains and losses, gains on qualified small businessstock, and unrecaptured Section 1250 gains are treated as long-term gains and losses inthe netting procedure. Short-term capital gain $ XX Short-term capital loss (XX) Net short-term gain (loss) Short-term capital gain or loss Long-term capital gain $ XX Long-term capital loss (XX) Net long-term gain (loss) Long-term capital gain or loss 3.If long-term…