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A: Bonds are the debt securities which are issued by the corporates or the government to raise the fund...
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A: Share price: Share price is the current market price of the share. It is the price of the share at w...
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A: Fist we need to calculate expected rate of return by using CAPM equation rs =Rf +Beta(Rm-Rf) where r...
Q: 4. Mr. Torres borrows P 150,000 and agrees to pay it with interest at 16 % compounded quarterly inst...
A: Loan amount (PV) = P150,000 Interest rate = 16% Quarterly interest rate (r) = 16%/4 = 4% Quarterly p...
Q: What would be the principal of the loan if you chose Option 1? (Hint: don’t forget the down payment....
A: Loan Payments: These payments represent the payments made to pay off the loan and this process is c...
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A: Before investing in a new project or assets, profitability of the project is evaluated by using vari...
Q: 22.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round y...
A: Compound amount (FV) = $26,500 Period = 18 Months Semi annual period (n) = 18/6 = 3 Interest rate = ...
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A: The concept of the time value of money states that the same amount of money is worth more today than...
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Q: Quèstion 12 What is the covariance of returns between stocks A and B? Expected retum of A is 30% and...
A: Data given: Expected return of A =30% Expected return of B = 23.333333% Year Return A Return B ...
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A: Cost of project = $ 67,775Expected net cash flow per year = $ 10,000WACC = 8% NPV = Present value of...
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A: Year Cash flow 0 -1050 1 400 2 400 3 400 4 400
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A: Hai There! Thank you for the question. Post has multiple sub parts, as per company authoring guideli...
Q: 2. You invested $39,000 in Yug Industries at an annual interest rate of 5% compounded continuously. ...
A: Formula Future value = PV*ert Where PV - Investment amount i.e. $39000 e - Euler's number i.e. 2.718...
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A: In finance we often use the average collection period as one of the financial metrics. This metric ...
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A: Given, Stock A has 1000 shares at $22/share Stock B has 750 shares $11.50/share Bond $25000 Money ma...
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A: Effective interest ratee is the interest considering the impact of the compounding on the interest a...
Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 p...
A: Annual deposit (A) = P 400 n = 12 payments r = 8% Let the accumulated value = X
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Q: •Assume that you have saved money for a down payment on your dream house, but you still need to borr...
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A: P = D/(r-g), P is current price, D is the next expected dividend g is Expected growth rate in the...
Q: Is the present value of an ordinary annuity more valuable than an annuity due? Explain.
A: Annuity is a series of even cash flows for a specified duration. It involves regular cash outflow or...
Q: What is TRUE about the Future Value general growth: I. For a given interest rate: the longer the tim...
A: The present value (PV) and future value (FV) of money indicate how much its worth has shifted over t...
Q: What are Critical success factors of the investment sector or banking sector?
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A: The present value and compound interest can be calculated as per the principles of time value of mon...
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A: Corporate valuation is a process of evaluating the worth of a company entity in the realm of finance...
Q: A quoted rate of interest is a “nominal” rate because it includes inflation expectations. a) True ...
A: Answer:- True. The nominal interest rate comprises of the real interest rate and a premium for inf...
Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this accou...
A: Money that is invested today earns interest. This makes the future value of money more than present ...
Q: pay out period.
A: The payback period refers to the amount which is required to cover its initial investment in the r...
Q: Over the last several decades, Hong Kong has gradually established itself as the most important fina...
A: Following China's surrender of Hong Kong to the British under the Treaty of Nanking in 1842, the col...
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A: Data given:: Loan amount = R 550 m Expected loss = R 16.5 m Recovery rate = 23% Required:: Probabi...
Q: Mr. Cruz agreed to settle a debt by making 12 quarterly payments of P 450 each. If he failed to make...
A: Quarterly payment (Q) = P 450 n = 12 payments r = 8% per annum = 2% per quarter Let X = Debt amount
Q: On January 1, 2013, Janet buys a bond for $10,000 that makes coupon payments of $600 after each of t...
A: Here, Coupon Payment is $600 Face Value of Bond is $10,000 Time to maturity remaining at Feb 1, 2014...
Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded semi-...
A: Answer a:- The future value of an investment is calculated using the following formula:- Future valu...
Q: Compute the cost of equity for this project 2. Compute the relevant cost of debt for this proje...
A: Cost of Equity: It represents the cost of raising equity capital from equity investors. The equity ...
Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...
A: Year 2020 2021 Net income 200000 225000 Net sales 5050000 7000000
Q: P= P1,000 r= 5% t=5 years m=2 What is the present value of an annuity due?
A: Payment (P) = P 1000 r = 5%, m = 2, hence semiannual compounding Effective interest rate (r) = (1 + ...
Q: A Treasury bond that you own at the beginning of the year is worth $1,055. During the year, it pays ...
A: Dollar return is calculated as: = (Price at end + Dividend) - Price at beginning Percentage return i...
Q: Mr. Cruz deposited P150,000.00 now, so that his 2 years old daughter will receive 5 equal amounts of...
A: Deposit (P) = P150,000 Interest rate (i) = 12% Period (T) = 15 Years Number of payments (N) = 5
Q: Compare three alternatives on the basis of their capitalized costs at i 14% per year and select the ...
A: Capitalized cost is the present worth of the annual cost over the tenure of the project or alternati...
Q: 21.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round y...
A: The present value and compound interest can be calculated as per the function of present value
Q: If Going Merry Inc. has a net income of P 200,000 and a net sales of P 5,050,000 during 2020; and a ...
A: Year Net income Net sales 2020 200000 5050000 2021 225000 7000000
Q: a. Suppose an investor is appraising an investment under the following conditions: Forecast NPV Pi 0...
A: Given: Forecast Pi NPV 1 0.15 $30,000.00 2 0.15 $20,000.00 3 0.5 $15,000.00 4 0.2 $10,000...
Q: Chupapi Inc. has a gross profit ratio of 16.67 % for the year 2020. If Chupapi Inc. has gross profit...
A: Gross Profit Margin = Gross Margin for the year/Net Sales for the Year
Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan a...
A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 = 0.545...
List and explain four (4) or more reasons why the online payment method is important.
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