pension fund

Q: Tinsley, Incorporated, wishes to maintain a growth rate of 12 percent per year and a debt-equity…

A: Data given: Growth rate per year= 12 %  Debt-equity ratio = .50 Profit margin = 5.4 % Ratio of total…

Q: Question 3 B a) Determine the growth rate. a) Determine the required rate of return. b) Compute the…

A:

Q: Financial assets in the economy include all but which one of the following?

A: A financial asset is a liquid asset whose value is derived on a legal claim or ownership interest.…

Q: onsider the pricing of a futures contract on copper. What would you expect to happen if storage…

A: Future contracts are to be settled after some period of time but they derive their value from the…

Q: Y3K, Incorporated, has sales of $6,389, total assets of $3,005, and a debt-equity ratio of 1.60. If…

A: Information Provided: Sales = $6,389 Total assets = $3,005 Debt-equity ratio = 1.60 Return on…

Q: INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) Net sales Costs…

A: Free Cash flow Free cash flow is the cash that is left over from operation of the company after…

Q: The Jackson Company have R200,000 to invest. Their target portfolio return is 9.35% and they have…

A: We have to design a portfolio that achieves its target return. We have to design the allocation in…

Q: Find the effective annual rate associated with an 8% nominal rate when interest rate is compounded…

A: The effective annual rate is referred to as the true interest rate on any interest-paying investment…

Q: All of the following is a source of cash except:   Group of answer choices decrease in inventory…

A: There are many sources of cash available in the company but some time money comes from one source…

Q: The one year spot interest rate is 4%. The two year spot rate is 5% and the three year spot rate is…

A: A series of spot rates has been given. And then a swap rate has been given. We have to first find…

Q: A. an agreement between a private sector entity and a contractor for the supply of goods or services…

A: Contractor  A contractor can be an individual or a company that will undertake to do specific work…

Q: The following spot rates are observed in the market t (years) is (%) 1 6.50 2 6.68 3 6.84 4 6.95 5…

A: An interest rate swap is a derivative where two parties agree to exchange the net of interest…

Q: What was the closing price of AMZN stock on June 10, 2022? Look it up online. Include 2 decimals. $…

A: Closing Price as on June 10, 2022 = 109.65 USD

Q: Consider the following information:     Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300…

A: We calculate payback period by dividing the cost of the investment by annual cash flow until the…

Q: c). If the father decides to deposit a single amount now instead of K300 at the end of each month,…

A: Data given: FV= k 24,500.90 [as computed in (a) ] r=12% p.a. (assumed compounded annually) n= 17-12…

Q: Which of the following statements is most correct? Group of answer choices The value of a perpetuity…

A: Time value of money: Time value of money is the concept that a sum of money is worth more right now…

Q: An underlying has a current price of $31. The premia on 3 month European put and call options on…

A: First, we need to check if the there is an arbitrage opportunity using Put - Call Parity.If there is…

Q: Brand B car costs $79,000 and has a life of 8 years. It costs $2,500 a year in  insurance, and $525…

A: given Cost of Brand B $79000 and Brand M us $67000 Life of Brand B is 8 years and life of Brand M is…

Q: Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $ 11,000   Cost of goods sold…

A: Dividend is the declared portion of the net profit which is distributed among the shareholder and it…

Q: A bank charges you, the credit card holder, 13.24% compounding monthly. Imagine that you have…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Mala Prohibita Inc. is evaluating a proposal to acquire a new equipment. The equipment would equire…

A: Cost of capital(k) will be the yield to maturity(YTM) after tax. Yield to maturity(YTM) is the rate…

Q: Below are two potential investment alternatives:   Initial capital investment…

A: Net Present Value(NPV) refers to one of the concepts from the modern techniques of capital budgeting…

Q: Answer the following questions by including the appropriate cash flow diagrams, solution, and final…

A: The concept of the TVM states that between the same amount of money received now or at a later date,…

Q: Which of the following is NOT a reason why financial institutions complete annual reviews on a…

A: Financial Institutions such as banks, credit agencies and financial services check the financial…

Q: . Define the Myopia Problem and Discuss 2 solutions to the myopia problem? ****Pls note tyhis…

A: Myopia is common problem in the finance and management in which is commonly observed now days among…

Q: non-dividend paying financial asset has a price of $200 and a oneyear future on this asset has price…

A: Arbitrage is risk less profit that can be earned in two markets due to mispricing in two markets and…

Q: 1. Your company wants to bring outdoor ice-skating to Palm Springs, California and must choose…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Capital structure of Sun Ltd., as at 31.03.2003 was under: Particulars Equity share capital 8%…

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Q: Chooanne D' Sexy invested in a four-year project and expect a rate of return of 10%. Information…

A: Net present Value of the project is P100,000 Interest rate is 10% Cash flow in year 1 is P400,000…

Q: What are the expected return, risk premium., standard deviation, and ratio of risk premium to…

A: Information Provided: y = 0.60 (Weight of risky asset) Rf (Risk free rate) = 2% Rp (Return on risky…

Q: The future value of $900 saved each year for 10 years at 8 percent. (Round your discount factor to 3…

A: C = Annual cash flow i.e. $900 r = Interest rate i.e. 0.08 or 8% n = Period i.e. 10 years FV =…

Q: The profit P, in thousand of dollars, that a manufacturer makes is a function of the number N of…

A: The break-even point is the production level where the costs of production and the revenues from…

Q: Determine the Cost of Capital (k)

A: Information Provided: Coupon rate = 7% semi-annually Par value = 1000 Bond price = 932.04836 Bond…

Q: Mala Inse Co. is evaluating the purchase of a P500,000 machine. The cash inflow from the investment…

A: Purchase price of Machine is P500,000 Cash inflow per year is P145,000 Time period is 5 years To…

Q: A).How can we use capital markets to achieve both financial inclusion and financial literacy?…

A: Capital markets-It is a place where stocks, bonds, derivatives and commodities  are traded i.e., a…

Q: Please show excel formulas.

A: According to the time value of money, the value of money obtained today is greater than the value of…

Q: Mala Inse Co. is evaluating the purchase of a P500,000 machine. The cash inflow from the investment…

A: The internal rate of return is rate of return at which present value of cash flow is equal to the…

Q: Compute without using z score. Must use another formula. Fund- Super Big Fund Objective: ROR 13%…

A: P(X<-5%) = 1- P(X>-5%) P(X>-5%) = 1 - P(Z<-(-5%+13%)/18%)…

Q: A businessman wishes to borrow an amount of K4 million for a term of 3 years. The agreed rate of…

A: The loan schedule statement reflects the information related to the principal portion, the interest…

Q: A company must pay a $309,000 settlement 3 years. (a) What amount must be deposited now at 6%…

A: As per the honor code of Bartleby we are bound to give the answer of first three sub part, please…

Q: Griffins Goat Farm, Inc., has sales of $671,000, costs of $333,000, depreciation expense of $77,000,…

A: Total Dividend Paid  $   44,500.00  No. of Shares       28,000.00 Tax Rate 24% Sales…

Q: The following represents the stockholder's equity account of Security Data Company: R Preferred…

A: A stock dividend will keep the total value of the shareholders' equity at the same level but there…

Q: Assume you are given the following information for firms A and B:   A B D $1,563,400.00…

A: Replication strategy refers to the process of trading to compute the value of the asset on the…

Q: You are looking at two investment options, A and B. Investment A is a 13-year annuity that needs an…

A: Compounding: Compounding is the method through which interest is added to both the principle balance…

Q: Problem 3-10 Sustainable Growth Rate The Iron River Company has an ROE of 14.6 percent and a payout…

A: ROE = 0.146 or 14.6% Payout ratio = 0.30 or 30% Sustainable growth rate = ?   Sustainable growth…

Q: Griffins Goat Farm, Inc., has sales of $670,000, costs of $332,000, depreciation expense of $76,000,…

A: Income before tax = Sales - Cost -Depreciation - Interest expenses    = 670000 - 332000-76000-48000…

Q: s there any portfolio that can be constructed with stocks 1, 2, and risk-free security that will…

A: Portfolio and the purpose of constructing one! An amount intended for investment may be invested in…

Q: Explain to your Aunt Betty the relationship between call value and time-to-expiration of the option.…

A: Your answer:   QUESTION 1. The call value of an option is affected both directly and inversely by…

Q: Consider the following information:     Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300…

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

Q: . Jane Muyaule has been given an opportunity to receive K20,000, six years from now. If she can earn…

A: B) In this question we are given Future value which is the amount Jane will receive after 6 years as…