Michaela Marie invested in Home Development Mutual Fund (HDMF) Pag-IBIG MP2 worth Php 300,000 for five (5) years. What is the total account value of her investment at maturity? (Total Dividends Earned at 6.96%)
Q: (a) Compare and contrast the unit trusts and the exchange traded funds.
A: Unit trust is referred as the type of mutual fund, where the funds from the different investors are…
Q: Subah's current stock price is $36 and its D0= $2.4. The company’s required rate of return is 12%…
A: Stock price = D0*(1+growth rate)/(required return - growth rate) where D0 = Current dividend 36 =…
Q: WACC On the most basic level, if a firm's WACC is 12 percent, what does this mean?
A: Weighted Average Cost of Capital or WACC helps in representing the cost of capital of the company…
Q: he par value of 8% bond is P5,000 with maturity is 5 years. What would be the price if interest rate…
A: Price of a bond is simply the present value of its cash flows that will occur in future. Cash flows…
Q: company usually has an average balance in its bank account equal to $60,000. The The company makes a…
A: The company here is required to hold more money in the bank. The usual balance is $60,000 and the…
Q: 4. You are evaluating a project that will cost $534,000, but is expected to produce cash flows of…
A: Payback period is an investment appraisal tool. It represents the time required for a project to…
Q: The following bond was quoted in The Wall Street Journal: Bonds Current yield Volume Close Net…
A: Increased cost = Face value of bond * Net change % * Number of bonds
Q: Polly purchased a car. She paid ₱250,000 as down payment, and ₱15,000 payable at the beginning of…
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type])…
Q: maintenance costs of this equipment are estimated to be about $25,000 per year. Salvage value is…
A: EUAC is uniform annual equivalent cost that is equivalent to all costs of equipment.
Q: Assume you have an optimal risky portfolio with an expected return of 17% and a standard deviation…
A: Given: Expected return = 17% Standard deviation = 27% Risk free rate = 5% Risk aversion = 2
Q: Bond matures in 15 years. Coupon rate 18%. Payment made in weekly. R = 12%. After 10 years coupon…
A: Rate of Return (ROR) is the Gain or Loss on investment over a certain period of time. A positive…
Q: The activity date, company, and amount for a credit card bill are shown below. The due date of the…
A: Here, Interest rate = 1.7% per month To Find: Finance charge =?
Q: Average payment period of PETRON STATEMENT OF FINANCIAL POSITION AND INCOME STATEMENT OF 3 COMPANIES…
A: Average payment period is the time taken to pay accounts payable dues. It can be calculated Average…
Q: You are an assistant to the CFO and have collected the following data to conduct the analysis. The…
A: Here, Tax Rate is 35% Market price of Debt is $1,219 Market price of Preference Share is $30 Market…
Q: Compute for the Settlement Amount Yield: 5% Coupon Rate: 4% Term: 3 Yrs Frequency: Quarterly Face…
A: Here, Here, Coupon is paid in every three months , hence coupon date will be 25/June, 25/ sept,…
Q: Assuming that Bennett uses the straight-line method of amortization, interest expense for Year 2 is…
A: Bond amortization refers to a schedule which is prepared to shows the coupon payments, amount paid…
Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…
A: The Break-even selling price is the price where the organization neither earns any profit nor bears…
Q: Wyatt oil presently pays no dividend. You anticipate Wyatt Oil will begin paying an annual dividend…
A: Dividend after 2 years (D2) = $0.49 Growth rate (g) = 4.2% Required rate of return (r) = 11.2%
Q: Suppose that the EUR/USD spot exchange rate is EeUr'USD =0.95 and that a 12-month for contract is…
A: The rates may go up and down depending on the interest rate and there may be appreciation or…
Q: In a scenario where in there is a higher number of compounding periods within a given year, this…
A: The interval between the last compounding of interest and the next compounding of interest is…
Q: Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in S millions) Liabilities…
A: Total debt = Notes payable + Current maturities of long term debt + Long term debt Book value of…
Q: 12.1 Calculating the Cost of Equity Suppose stock in Boone Corporation has a beta of .90. The market…
A: Cost of equity is defined as the return, where the corporation used to need for the project or…
Q: Suppose a French bottle of champagne costs 20.5 euros. Instructions: Enter your responses rounded to…
A: The cost of one currency expressed in another currency is called exchange rate. Currencies are…
Q: you mean by payback period? What are their significano:s and drawbacks? Find the payback periods of…
A: Payback period is a tool of capital budgeting that enables a company to determine the duration…
Q: Explain whether it is better for an investor to buy a discount bond and pay a price below its face…
A: Bond Issued at premium If coupon rate is higher than the prevailing interest rates. , it is called…
Q: Use the following to answer the question below. Reserve Requirement Ratio 25.8% Initial Deposit $1…
A: Solution:- Total change in deposits is the change in initial amount after the effect of Reserve…
Q: A standard “fixed for floating” interest rate swap contract is effectively a series of call…
A: Interest rate swaps are the derivative contracts where two parties exchange cashflows each other on…
Q: Treasury bills are currently paying 6 percent and the inflation rate is 3.10 percent. What is the…
A: Nominal interest rate = 6% Inflation rate = 3.10%
Q: co. Derive F= uhtre symbals have Hhei'r usual meoniage
A:
Q: Explain why an increase in the inflation rate will cause the yield to maturity on a bond to increase
A: Bond yield to maturity is the interest an investor earns by holding the bond till maturity.…
Q: Question 6. One day, a letter arrives in your mailbox. The letter comes from a trusted attorney…
A: Compound interest. FV = A ( 1 + r)n Where FV = amount avaliable including compound interest after n…
Q: Management is considering buying a pump that costs $20,000 and could save them $7,500 per year over…
A: Solution: Whether the investment should be made or not depends upon the Net Present Value ie. NPV of…
Q: Diol Athletics is trying to determine its optimal capital structure, which now consists of only debt…
A: Formula of Levered Beta is as follows: Levered Beta= Unlevered Beta×1+1- Tax Rate×DebtEquity
Q: A cutting edge metallic 3D printer is purchased by Helix Corp for $160000. It is expected to last 9…
A: The following information has been provided in the question: Cost of metallic printer =$160000 Life…
Q: In recent months, Allied’s group has begun to focus on real option analysis. What is real option…
A: When analyzing projects, we use different capital budgeting tools to determine the financial…
Q: Returns earned over a given time period are called realized returns. Historical data on realized…
A: 1) Average Realized return (Mean) is the average of all years return 2) Standard Deviation is the…
Q: Petron Globe Assets Cash Receivables Inventories 7,619 90, 602 16, 757 7, 621 5, 972 2. 810 17,927…
A: Average payment period is the time in days to pay accounts payable. It can be calculate Average…
Q: Okik Inc. has a beta coefficient of 1.0 and a required rate of return of 12 percent. The market risk…
A: Capital Asset Pricing Model (CAPM): CAPM is the method of calculating the expected return on…
Q: What is the expected rate of return for the Philippine Stock Index Portfolio? STOCK MARKET VALUE…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: borrowed $69,100 to purchase a home the bank offered her an APR of 4.12% for a term length of 20
A: A mortgage is a loan that is used to buy or maintain a home, land, or other type of real estate. The…
Q: Let us assume a company ABC Ltd has issued a bond having the face value of $100,000 carrying a…
A: Face value of the bond = $100,000 Annual coupon rate = 0.08 Semiannual coupon amount (C) = $4,000…
Q: Explain each of the investment instruments stated below that offered by financial institutions.…
A: A financial instrument can also be considered a tradable asset or a block of tradable capital. Most…
Q: A firm's overall cost of capital that is a blend of the costs of the different sources of capital is…
A: A company can raise funds through 1. Equity and 2. Debt issue
Q: You are evaluating the balance sheet for Goodman bees corporation from the balance sheet you find…
A: Business requires funds to make investments and to meet the day to day financial need. Amount which…
Q: John Mojico invested her USD 20,000 in a BPI Time Deposit Account earning 2.8% simple interest for 2…
A: Simple interest is referred as the quick as well as easy method for the calculation of the interest…
Q: irms facing hostile takeovers often take actions to forestall the acquisition. For instance, in a…
A: Hostile takeovers refer to those acquisitions and takeovers in which the management of the company…
Q: G.I loan over 30 years has an annual nominal interest rate of 3.8% paid quarterly. What is the…
A: "Hi, Thanks for the Question. Since you asked multiple questions, we will answer first question for…
Q: Please explain everything without any plagiarism do in your words will give you many upvotes
A: In capital budgeting we use several different tools to determine the financial feasibility of a…
Q: Consider the following: today's interest rate for a 15-year bond is 8%; today's interest rate for a…
A: The interest rate for bonds with comparable maturities and risk levels can be obtained through…
Q: o. Denive Lu uhere symbols have their usual meonings
A: F=1+in-1iAF = Future valuei = interest raten=number of periodA=Annuity amountFuture value…
Michaela Marie invested in Home Development Mutual Fund (HDMF) Pag-IBIG MP2
worth Php 300,000 for five (5) years. What is the total account value of her
investment at maturity? (Total Dividends Earned at 6.96%)
Topic: Principle of Finance
Step by step
Solved in 2 steps
- Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?Richard invested $750,000 in a hedge fund with a 2/20 fee structure. The fund had a total of $15 million of assets under management and it returned 12% and 19% in the first and second years, respectively. Assume that management fees are paid at the beginning of each year and performance fees are paid at the end of each year in which they are applicable. How much will Richard pay in performance fees for the first two years, respectively?Give typing answer with explanation and conclusion Jessica had 600 shares of G Fund on January 1. The shares had a value of $22.35. During the year she received $1,080 in dividends and $1,620 in capital gains distributions. Jessica used the funds to purchase new shares at an average price of $18 per share. By the end of the year the shares declined to $15.83 per share. What is her percentage rate of return?
- Suppose you invested $100 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $3 today and then you sold it for $96 What was your dividend yield and capital gains yield on the investment? OA. 3%, -4% OB. -3%, 4% O C. 4%, 3% OD. 3%, 4% SITEAn investor purchases 1000 shares of a company at GHS20 per share using his own equity of GHS10,000 and borrowing the rest from his broker at 20% per annum. If all the shares were sold one year later at GH¢28.50, calculate (a) the amount of money borrowed from the broker (b) the return on his equity taking into consideration all brokerage fees paid amounting 2.5% of the value of investment both for buying and selling of investment. (c) Return on his investment.You purchased 500 shares of The New Century Fund at NAV of $23.56 last year. The fund distributed $4.35 in dividends at the end of the year and the current NAV is $21.78. What is the adjusted closing price of your purchase? Please show how to solve in excel
- You purchased 1,000 shares of a fund at a price of $20 per share at the beginning of the year. The fund charges a front-end load of 3%. The securities in which the fund invests increase in value by 10% during the year. The fund's expense ratio is 1.3%. What is your rate of return if you sell your shares at the end of the year?You purchased 1,000 shares of the New fund at a price of GHS20 per share at the beginning of the year. You paid front-end load of 4%. The securities in which the fund invests increase in value by 12% during the year. The fund’s expense ratio is 1.2%. What is your rate of return on the fund if you sell your shares at the end of the year?You are given the following data: EBIT : OMR 500,000 Shareholders funds : OMR 1200,000 Non current liabilities : OMR 800,000 Then return on capital employed is
- a)Assume that the following data is extracted from the financial statements of Richy-Rich bank: equity is $350 million, interest expense is $115 million, provision for loan loss (P) is $35 million, noninterest income is $30 million, noninterest expense is $50 million and a tax rate is 33%. What is the minimum total interest income required to give a return on equity (ROE) of 20%? Show workings when necessary. b) Be-smart Bank reported an equity multipler ratio of 6.5 at the end of year 2021. If the bank’s total debt at the end of year 2021 was $5 million, how much of its assets were financed with equity? Show calculations when necessary. c) What are the main sources of funding for commercial banks? Using bullet points, classify these sources and briefly describe each category.Last year David McCullough of La Junta, CO, bought the XYZ mutual fund, which has total assets of $240 million, liabilities of $10 million, and 15 million shares outstanding. a) What is the net asset value?Nienge Bank has the following balance sheet (in millions) with the risk weights in parentheses.AssetsCashOECD Interbank depositsK3Mortgage loansConsumer loansTotal Assets(0%) K20(20%) K25liabilities and EquityDepositsSubordinated debt (2.5 years)K175(50%) K70(100% K70K185Cumulative preferred stockEquityTotal Liabilities & EquityK5K2K185In addition, the bank has K30 million in performance-related standby letters of credit(SLCs), and K300 million in six-year interest rate swaps. Credit conversion factors follow:Performance-related standby LCs50%1-5 year foreign exchange contracts5%1-5 year interest rate swaps0.5%5-10 year interest rate swaps1.5%d.Discuss the major shortcomings of the Basle I accord.