Participants contributed 100,000 MAD to takaful Funds that will be managed based on hybrid model. According to the conducted contract between the participants and the operator, this latter is entitled to a fixed Wakal fee of 10% as a Wakil. The operator divides the funds into PAS and PA based on the following ratios 50:50. PA generated a profit of 15%. The estimated cost of claims and its related operating expenses is 30,000 MAD. Participants and Takaful operator agreed to share any surplus according to the following ratios: 70:30. How much would the participants and the operator get by maturity date?
Q: A company would like to figure out if a 9-year project is worth it. The company is in the 40% income…
A: A company's capital structure includes the proportionate funds acquired from multiple sources. The…
Q: 11. An investor will place one-third of his money into security 1, one-sixth into security 2, and…
A: To find the expected return of the portfolio, we need to calculate the weighted average of the…
Q: One invests 100 shares of IBM stocks today. He expects that there couldbe five possible opening…
A: Standard Deviation: It represents a dataset's dispersion measure relative to the average or means.…
Q: It is often difficult to draw a distinctive line between mergers and takeovers, and the terms tend…
A: A merger occurs when two businesses with roughly equal ranks join together under the agreement of…
Q: f the current yield-to-maturity is 3.5% semi-annually, what is the price of the bond? B) Recalculate…
A: Price of the bond is the present value of the coupons and par value discounted at the YTM. The…
Q: Assuming the following quotes: Citibank quotes U.S. dollars per pound at $1.5400/£ National…
A: The arbitrage opportunity is referred to as the opportunity that arises when the rates are not…
Q: (a) An annuity immediate has semiannual payments of P 10,000 for 10 years at a rate of 6% convert-…
A:
Q: A property investor purchased a retail property in London with a market value of £250.0 million. The…
A: Solution to Part - a Debt Service Coverage Ratio = Annual cash flow / Total Debt Service = 14.85 /…
Q: Cushing Corporation is considering the purchase of a new grading machine to replace the existing…
A: According to bartleby guidelines, if question involves multiple sub parts , then 1st sub 3 parts…
Q: a. Calculate the growth rate if the return on equity is 12 percent. b. Calculate the cost of capital…
A: Growth Rate = Return on Equity x Retention Ratio Market Price = Expected Dividend /(Cost of…
Q: 5-6 Determine the new balance 5 6 Your balance was $89.75 on May 23. Your May 30 deposit was…
A: The question requires the determination of the new balance starting from the opening balance and…
Q: An election for a new treasurer was held at a recent trade conference. In the election, Jamal…
A: Data given: Jamal received 40% of the votes Tran, received 4,320 votes Working Note#1 % of votes…
Q: What does IRR stand for? Explain what this means in practical terms and why it is useful to any…
A: Internal Rate of Return: It refers to the rate at which the investment or a project will yield a…
Q: Describe one of the many financial applications of the time value of money e.g. capital project…
A: Time value of money also referred to as present discounted value rests upon the idea that the sum of…
Q: Consider a stock with a price of $50 that is expected to increase by 6% or decrease by 8% each month…
A: A put option is a derivative that gives the holder the choice to purchase the underlying asset at…
Q: (1) RM 1,000 1 2 RM 3,000 6 F-? RM 1,500 Figure Q2(b) Determine the amount in the account (year 8)…
A: We can determine the value of the fund in 8 years by using the Future Value formula for each of the…
Q: 6 Trey James sold his bike and received a check for eighty-five dollars and 50 cents. What is the…
A: The total deposit is the sum of all forms of money deposited in the account. This may be in the form…
Q: Rudolph Corporation showed retained earnings of $400,000 on its balance sheet for 2016. In 2017,…
A: Retained earning net profit earned by the company after deducting dividends paid to the…
Q: A family has taken out a mortgage of £350,000 to purchase a house on 1.1.2022. The mortgage is…
A: A mortgage is a covered loan that is taken out to purchase a property. The property itself acts as…
Q: When the market rate of interest was 12%, Halprin Corporation issued $247,000, 11%, 10-year bonds…
A: The price of a bond is the PV of its future coupons and par value. This can be determined with the…
Q: QUESTION 2 Over the past five years, a stock produced returns of 15.5%, -10.5%, 21.45%, 13.5%, and…
A: Solving Q2 Formula to be used: Mean= ∑X̄ /n Variance= ∑(X-X̄)^2/(n-1) Standard Deviation =…
Q: The seller of the legal tech’ software states in its advertising material that a typical law firm…
A: The IRR is a capital budgeting tool used to measure the maximum return for which a project remains…
Q: Derive upper and lower bounds for European call and European put options on a non-dividend paying…
A: A contract that allows the buyer to purchase or sell the underlying in the upcoming time at the…
Q: Creating a retirement fund Personal Finance Problem To supplement your retirement, you estimate that…
A: a). Annual deposit amount is calculated using following equation Annual deposit = FV×i1+in-1 Where,…
Q: An article in the Wall Street Journal quoted an anonymous billionaire investor as asking: "Has there…
A: In order to broaden their investment portfolio, investors frequently invest in both stocks and…
Q: The January 2023 S&P 500 cash index is 3950 points while the S&P 500 futures March 2023 index is…
A: The question posted by you has 5 sub parts. Only the first three sub parts have been answered.…
Q: Your client, who is in poor health, is considering selling her business to her daughter using a…
A: We have about the estate tax implication provided the seller doesn't survive the entire term of the…
Q: Lucca is grocery shopping, and is trying to save money. He is trying to find the best deal. He finds…
A: Two questions appear on the board. In the first once, a choice has to be made between two…
Q: A. Suppose, Company ABC is U.S. based company and has a British subsidiary. It is expected that the…
A: A cash-settled over-the-counter deal between two counterparties where the buyer borrows (and the…
Q: Badlands has current assets of $4800, net fixed assets of $27,500, current liabilities of $4200 and…
A: Accounting equation is one of the important concept used in accounting. Three elements of accounting…
Q: You are the party paying pounds and receiving euro and wanted to get out of a swap that you entered…
A: Forward Contract: A forward contract represents a customizable contract between 2 parties for the…
Q: Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile…
A: Market share is a rate of sales which says from the total business of the market how much sales is…
Q: The most recent financial statements for Mandy Company are shown below: Balance Sheet $ 39,000 Debt…
A: Formula for internal growth rate: Internal growth rate=(ROA *Retention Ratio)[1-(ROA *Retention…
Q: Using the constant dividend growth model, determine the price change in a share when the required…
A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…
Q: A zero-coupon bond pays no interest during its lifetime. Upon maturity, the investor receives face…
A: A bond is a debt instrument that is used to raise capital from investors. A zero-coupon bond does…
Q: For each of the following annuities, calculate the annuity payment. Note: Do not round intermediate…
A: An annuity is a constant and fixed sum of money that is paid or made on a periodic basis. We are…
Q: Who is the check below written to?
A: Check is a financial instrument that instructs the bank to pay the written amount to the bearer or…
Q: Question two a) You go to the banks and you are given these quotes . You can buy a euro for 14 Pesos…
A: note:- According to bartleby guidelines , if multiple questions are asked , then 1st question needs…
Q: (a) An annuity immediate has semiannual payments of P 10,000 for 10 years at a rate of 6% convert-…
A: In case of an immediate annuity, the periodical payments start immediately, and the first payment is…
Q: I. What do we call this rate II. How much did the company profit /loss Part two: suppose the company…
A: “Since you have posted multiple questions with multiple sub parts,we will provide the solution only…
Q: What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2…
A: Given, Debt-Equity ratio = 0.6 Return on asset = 7.5% Total Equity = $486,000
Q: Financial information relating to Ethan Plc is as follows: Number of ordinary shares 4,000,000…
A: The percentage of total earnings that a firm must distribute to each issued share is known as…
Q: QUESTION B1 An investor is holding a portfolio which comprises £4 million of Bond A and £6 million…
A: Value at Risk is a statistical tool which is used to determine the risk in underlying assets at a…
Q: In its most recent financial statements, Nessler Inc. reported $60 million of net income and $600…
A: Data given: Net income= $60 million =$ 60,000,000 Retained earnings=$600 million = $ 600,000,000…
Q: (a) A lecturer borrows £10,000 from a bank with an effective interest rate of 3.5% per annum. She…
A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…
Q: Using the constant dividend growth model, determine the percentage price change in a share when the…
A: The dividend discount model (DDM), a mathematical technique for predicting the price of a company's…
Q: Mr. Sam buys RM8000 worth of home furnishings from the KingQueen House Deco. He pays RM1000 down and…
A: To solve this question, we first need to determine the monthly payment Mr. Sam makes to the…
Q: Table 1: Check Register Date Amount 10/5/2008 10/7/2008 10/11/2008 10/13/2008 10/16/2008 10/18/2008…
A: A check register is a piece of writing that lists all check payments' date of payment, number of…
Q: a. The current price-to-earnings (p/e) ratio of Manchester United plc is 20, against an average for…
A: As dividends are paid out of the earnings, here we are to assume that the incremental growth rate in…
Q: Find the APR, or stated rate, in each of the following cases. Note: Do not round intermediate…
A: Please refer to formula used to calculate the effective annual rate ( EAR ).EAR = ( 1 +…
Step by step
Solved in 4 steps
- US Corp. is charged with determining which small projects should be funded. Along with this assignment, she has been granted the use of $15,000 for a maximum of two years. She is considering three projects. Project A costs $7,500 and has cash flows of $4,000 a year for Years 1 to 3. Project B costs $8,000 and has cash flows of $3,000, $4,000, and $3,000 for Years 1 to 3, respectively. Project C costs $2,000 and has a cash inflow of $2,500 in Year 2. What decisions should she make regarding these projects if she assigns them a mandatory discount rate of 8.5 percent? Find NPV and IRR.Dwayne has four independent vendor proposals to contract the nationwide oil recycling services for the Ford Corporation manufacturing plants. All combinations are acceptable, except that vendors B and C cannot both be chosen. Revenue sharing of recycled oil sales with Ford is a part of the requirement. Develop all possible mutually exclusive bundles under the additional following restrictions and select the best projects. The corporate MARR is 10% per year. Write both the hand solution PW relations and spreadsheet functions necessary to perform the analysis. (a) A maximum of $4 million can be invested. (b) A larger budget of $5.5 million is allowed, but no more than two vendors can be selected. (c) There is no limit on spending. Initial Life, Annual Net Vendor Investment, $ Years Revenue, $/Year A −1.5 million 8 360,000 B −3.0 million 10 600,000 C −1.8 million 5 620,000 D −2.0 million 5 520,000In 20x1, Salamagi Co. entered into a contract with a customer. The contract stipulates the following: Contract price of ₱20,000,000 5% mobilization fee due upon signing of the contract, to be deducted from the final billing 10% customer retention on all subsequent progress billings, to be paid to Salamagi on completion of the project. Salamagi Co. estimated a ₱5,000,000 gross profit from the project. The percentage of completion method will be used. In 20x1, Salamagi billed the customer for 50% completion of the project. The customer accepted all the billings, except one for 10% which was accepted on January of the following year. All the accepted billings were collected during the year except an 8% billing which was due January of the following year. What is the amount of profit recognized from the contract in 20x1? 2,500,000 c. 2,720,000 2,650,000 d. 2,900,000 What is the total amount of collections from the billings in 20x1? 5,760,000 c. 6,760,000 6,400,000 d.…
- ADIB has Restricted Investment Account (RIA) based on Mudaraba with profit sharing percentages of 12% for RIA and the remaining profit kept by the bank. Hospitality industry financing is one of the investments categorized under RIA contract. ADIB invested AED 158,015 with a reputable hospilatality industry company for one year with the agreement to share the profit of 62% (ADIB) and the remaining profit going to the hospitality industry client. At the end of the year the real estate company earned AED 40,105 as profit. What is the rate of return for RIA holdersIn a cost center, the manager has responsibility and authority for making decisions that affect a. costs b. investments in assets c. both costs and revenues d. revenues Keating Co. is considering disposing of equipment with a cost of $68,000 and accumulated depreciation of $47,600. Keating Co. can sell the equipment through a broker for $27,000 less 8% commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $46,000. Keating will incur repair, insurance, and property tax expenses estimated at $10,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is a. $11,160 b. $7,812 c. $16,740 d. $13,392 If sales are $828,000, variable costs are 68% of sales, and operating income is $278,000, what is the contribution margin ratio? a. 64% b. 36% c. 68% d. 32%Winett Corporation is considering an investment in special-purpose equipment to enable the company to obtain a four-year municipal contract. The equipment costs $106,000 and would have no salvage value when the contract expires at the end of four years. Estimated annual operating results of the project are as follows. Revenue from contract sales $ 323,000 Expenses other than depreciation $ 217,000 Depreciation (straight-line basis) 26,500 243,500 Increase in net income from contract work $ 79,500 All revenue and all expenses other than depreciation will be received or paid in cash in the same period as recognized for accounting purposes. Compute the following for Winett’s proposal to undertake this contract.a. Payback period. b. Return on average investment. (Round your percentage answer to 1 decimal place (i.e., 0.123 to be entered as 12.3).) c. Net present value of the proposal to…
- ABC Co. delivered 150 portable gas stoves to DEF Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that ABC Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following Information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How much is the amount remitted by DEF to ABC for the first month?ABC Co. delivered 150 portable gas stoves to DEF Co. on consignment. These stoves cost P2,700 each and could be sol for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignmen contract stated that ABC Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompant the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered at Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Deliver Expense P3,375 and Commission P10,135. How much is the amount remitted by DEF to ABC for the first month?Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,130,000 in cash immediately.2. Pay $402,000 immediately and the remainder in 12 annual installments of $90,000, with the first installment due in one year.3. Make 12 annual installments of $132,000 with the first payment due immediately.4. Make one lump-sum payment of $1,720,000 six years from date of purchase. Required:Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7% interest rate. Option1 PV ? Option 2 PV ? Option 3 PV ? Option 4 PV ?
- Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. How many units were sold by Sarah during the first month? a. 15 b. 20 c. 25 d. 30 How much is the amount remitted by Sarah to Basti for the first month? a. 67,500 b. 20,250 c. 22,950…Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. The consignment profit (loss) to Basti is 16,875 6,750 10,125 20,250Basti Co. delivered 150 portable gas stoves to Sarah Co. on consignment. These stoves cost P2,700 each and could be sold for P4,500. The consignee is to be allowed a commission of 15% of the selling price. The agreement for the consignment contract stated that Basti Co. would draw a sight draft on the consignee for 60% of the cost of the stoves and the advance shall be recovered periodically by monthly deductions (in proportion to units sold) from the remittances which accompany the account sales. All expenses of the consignee are to be deducted monthly as incurred. The consignee rendered an Account Sales at the end of the first month showing among others, the following information: Advertising P6,750; Delivery Expense P3,375 and Commission P10,135. 2.How much is the amount remitted by Sarah to Basti for the first month? 22,950 67,500 20,250 47,250