Parents have set up a sinking fund to have $180000 in 15 years for their child's education. How much should be paid monthly into the account paying 5.2% compounded monthly?

Q: For items 16-30, when asked about an amount of money (interest, discount, present value, future valu...

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...

Q: (Common stock valuation) Abercrombie & Fitch's common stock pays a dividend of $1.75. It is currentl...

A: Dividend amount (D1) = $1.75 Stock price (P0) = $37.65 Required return (r) = 11% Growth rate = g

Q: 6. DIVIDEND VALUATION MODEL (2) The Advantage Food Corporation paid a dividend of $1.36 last year an...

A: Solution:- As per dividend discount model (DDM),  Cost of retained earnings = (D1 / P0 ) + g Where D...

Q: WMT’s bonds currently sell for $1,190. They pay a $192 semi-annual coupon payment, have a 31-year ma...

A: Yield to call is a return on the bond which is redeemed before the maturity also known as the callab...

Q: a. What are the NPWS of Projects I, II, III and IV with interest rate 15% compounded quarterly and t...

A:  Net Present worth is sum total of present values of cash flows of an Investment. One should go with...

Q: how the capital structure, cost of capital, and dividend decisions are related?

A: A dividend is a distribution of a portion of a corporation's earnings to a class of shareholders sel...

Q: Who can issue repurchase agreements?

A: Repurchase agreements are also known as a repo loan.

Q: Provide the FOUR main definitions of FinTech. Critically appraise,which is the best and why?

A: A financial transaction is a contract between a buyer and a seller to exchange products, services, o...

Q: 2. Suppose the current market values of Bull market, Normal Market and Bear Market is 100 Pesos and ...

A: Expected rate of Return is the rate which investor anticipates to earn from the investment based on ...

Q: Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate b...

A: Given,  Three bonds. Bond A, Bond B and Bond C.  

Q: Explain the best way for a finance manager to establish good relationship with the managers from oth...

A: Financial managers oversee the finances of large enterprises, government organizations, and everythi...

Q: How many semi-annually payments will it take for $550.00 deposited at the end of each half year to a...

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the cas...

Q: How does discretionary income affect your choices for wants and needs?

A: After taxes and personal necessities such as food, shelter, and clothing have been fulfilled, discre...

Q: Large Industries bonds sell for $1,065.95. The bond life is 9 years and the yield to maturity is 7%....

A: Given, The price of bond is $1065.95 Life of bond is 9 years Yield to maturity is 7%.

Q: dentify the term being referred to: A type of bond that is secured by the issuing entity’s equipme

A: Bonds are debt instruments and there are many types of bonds in the world of finance. 

Q: You are given the following information: The price of a one-year zero coupon bond with par value of ...

A: Spot rates can be calculated from forward rates using the below formula: 1+spot rate2- year2=1+spot ...

Q: Assess the following statements: I. If the yield curve is upward sloping, some investors may attempt...

A: Riding the yield curve is a strategy of trading in which the investors buy bond which has longer mat...

Q: 1. Present Value and Multiple Cash Flows Fox Co. has identified an investment project with the follo...

A: Let CFn be the cashflow in year n. CF1 = $570 CF2 = $430 CF3 = $840 CF4 = $1230 r = Interest rate

Q: The risk-free rate of return is 1 percent, and the expected return on the market is 7.1 percent. Sto...

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...

Q: explain in etail the penalty for failure in furnish a return or statement (section 182) and penalty ...

A: Financial statement fraud is the intentional manipulation of a company's financial statements to dec...

Q: Solve using Rate of Return Method

A: The rate of return method or ROR method is the return which can either be in the form of gain or los...

Q: ng an important business activity? How does it affect th

A: Step 1   The purpose of financial planning is to determine how the company will be able to meet its ...

Q: a new restaurant. The initial cost ( investment) is 750 000 TL. The forecasted cash flows that you...

A: Net present value is the difference between the current worth of cash inflows and withdrawals over a...

Q: Explain the similarities and the differences between the lockbox system and regional collection offi...

A: Both the lockbox system and the regional collection offices have some similarities and some differen...

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: 4) The interest rate on conventional 1-year Treasury bonds is 7% and the interest rate on 1-year TIP...

A: The one-year treasury bond and the one-year TIPS: The one-year treasury bond is usually sold at a di...

Q: If the risk-free rate is 7.0%, the market risk premium is 11.0%, and the expected return on Security...

A: Beta is the value used to denote riskiness of a security with the market level of returns. It is det...

Q: 7) Consider a 10-year 10% annual coupon bond with par value of $1,000 and a yield to maturity of 9%....

A: The convexity of a bond displays the relationship between bond price and bond yield.

Q: Suppose that today's one-year interest rate is 5%. Consider the following one-year interest rates ex...

A: Here, Today's One Year Interest (r1) is 5% One year interest rate one year from now (f1 ) is 6% One ...

Q: Suppose I would like to buy a new oven for my bakery so that I can make pretzels. Based on my expert...

A:           1. Depreciation per year = 90000 ÷ 3 = 30000  

Q: Ali, Ahmad and Sam shared and bought a Play Station III for RM1500. Each of them took turns to keep ...

A: In partnership each partner have equal rights and equal responsibility and shared equally among all ...

Q: An investor with a required return of 16 percent for very risky investments in common stock has anal...

A: Stock A:Last dividend = 2.3 Rate of return = 16% Growth rate  = 5% Current earnings = 2.4 Current ma...

Q: BTS Co. just issued ten- year bonds that make annual coupon payments of P50. Suppose you purchased o...

A: Coupon (C) = P 50 Par value (P) = P 1000 YTM = r = 6% n = 10 years

Q: Two mutually exclusive investment projects are under consideration. It is assumed that the cash flow...

A: Present worth of a project is the present value of all cash inflows and outflows of a project. A com...

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: You are given a loan on which interest is charged over a 4-year period, as follows: i. an effective ...

A: Let the annual effective interest rate = r 1st year discount rate = 6% 2nd year discount rate = 4% q...

Q: in a Statistical sense, the Single Index Model is best characterized by: the Capital Market Line The...

A: The single index model is the security pricing model which shows the relationship between security's...

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is 500,...

A: Sales volume = 500,000 pieces Selling price = P0.50 Annual fixed expense = P80,000  

Q: A Php 13,601 was loaned at an interest rate of 0.061.  6 annual payments has to be settled, the fir...

A: As per the given information, we have to calculate the interest for two years and then calculate the...

Q: A 90-day Commercial Paper (CP) is trading at 7%. CP yield is usually quoted to a rear-end basis and ...

A: Given: Period = 90 days Yield = 7% Assumed: Number of days in a year = 365 Face value = $100  

Q: you bonow $1000.00 on May 1, 2018,12% compounded sem The due deleie Round down t nearest day)

A: The due date, also known as the maturity date, is the date when certain accruals become due. The due...

Q: Find the accumulated value of P3,000 in 4 years if it is invested at 12% compounded quarterly.

A: Future value = Present value(1 + Rate)^Time where, Present value = P3,000 Rate = 12% / 4 = 3% Time =...

Q: Compute the size of the final payment for the following loan. Periodic Payment Interval Payment Made...

A: Sometimes, periodic payment includes both interest component and a part of principal amount. So, aft...

Q: Compute the equity dividend rate for the following investment: • Acquisition price $1,500,000 • Firs...

A: Here, Acquisition Price is $1,500,000 Potential Gross Income (PGI) is $300,000 Vacancy and collectio...

Q: ​Enterprise, Inc. bonds have an annual coupon rate of 13 percent. The interest is paid semiannually ...

A: The annual coupon rate of the bond is 13%. The maturity is 14 years. The face value of the bond is $...

Q: 8. Calculating Annuity Values For each of the following annuities, calculate the future value. Annua...

A: a) Annual payment (A) = $2100 r = 8% n = 10 years

Q: The work finance is defined as, except:   a. The money management and the process of acquiring neede...

A: We know, the finance manager has the following functions:- I) Financing Decision II) Investing Decis...

Q: 11. Calculating Perpetuity Values In the previous problem, suppose Larry's told you the policy costs...

A: Annual payment (A) = $25000 Policy cost = $645000 Let r = Interest rate

Q: 4. Suppose portfolio P's expected return in 12%, its volatility (standard deviation) is 20%, and the...

A: Solution:- Sharpe Ratio measures the excess return over risk free return, per unit of risk taken ie....

Q: True or false I. Floating/ variable rate bonds is one in which the interest payment changes with th...

A: 1. Floating / variable rate bonds- Such bonds  pay a variable coupon depending on the prevalent mark...