present

Q: Consider two bonds, a 3-year bond paying an annual coupon of 6.80% and a 10-year bond also with an a...

A: a. Compute value of 3 year bond as: Interest=1000×6.80%=$68VB=Interest×PVAFi%,time+PB×PVFi%,time=68×...

Q: What is the effective annual interest rate that she will pay on this loan? The effective annual inte...

A: The real interest that an investor earns on the investment and a borrower pays on loan after conside...

Q: Last year Gray Corp. had net sales of $325,000 and a net income of $19,000, and its year-end assets ...

A: Given, Sales = $325,000 Assets = $250,000 Net Income = $19,000 Debt-to-total-capital ratio = 45%    

Q: Does the interest rate on a T-bond include a default risk premium? Explain.

A: Treasury bonds (T – Bonds) are the bonds which are issued by the U.S. Federal Government in form of ...

Q: TaiGueiLe Corp has issued 4.2% annual coupon bonds that are now selling at a yield to maturity of 6....

A: SOLUTION:- Coupon Rate 4.20%   Yield Rate 6.00%   PMT $42   Face Value $1000   Price= $72...

Q: 6. It costs 12,500 yen (Japanese currency) for a small piece of Kobe Beef. What is the cost in dolla...

A: Exchange Rate shows rate at which one currency can be exchanged with other currency. There is variat...

Q: What is net present value (NPV) method?

A: Capital budgeting can be defined as the decision making process employed by businesses wherein, a bu...

Q: John won a $45 million lottery today. The payout is the following: John gets $1.5 million today and ...

A: Calculate net amount of lottery as below: Resultant Table: Hence, amount available after tax is $8...

Q: Southeastern IT Systems has the following balance sheet and the income statement. The company had 10...

A: In case of common size values for balance sheet items, we take total assets as the base So, Total As...

Q: eBook Chapter 7Financial Planning Exercise 6Calculating monthly installment loan payments Using the ...

A: Given information: Loan amount is $1,000 Number of periods is 30 Annual interest rate is 12%

Q: If the future value of an ordinary, six-year annuity is $8,500 and the interest rates are9.5 percent...

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two type...

Q: Define assignee (in informal liquidation)

A:   The large corporate may face failures each year due to economic factors like weakness of the indus...

Q: The stock price of Alps Co. is $53.60. Investors require a return of 14 percent on similar stocks If...

A: The given information are: Stock price = $53.60 Rate of return = 14% = 0.14 Dividend that firm is pl...

Q: Turn back to Figure 20.1 , which lists prices of various IBM options. Use the data in the figure toc...

A: Options are the strategies opted by investors in which investors have a right but not a commitment t...

Q: A stock is expected to pay a dividend of $1.76 at the end of the year. The required rate of return i...

A: The dividend growth model will be used to calculate the stock price. This model values a company's s...

Q: The number 2 question was not properly answered! there is no answer for disaggregate ROCE solution. ...

A: Rate of return on equity is the return which shareholders get from the equity. Rate of return on equ...

Q: We'll not play LLC had 1,000,000 average shares outstanding during all of 2017. During 2017, WNP als...

A:   For the purpose of computing diluted earnings per share, share to be used in the denominator in 20...

Q: Evaluating Annie​ Hegg's Proposed Investment in Atilier Industries Bonds Annie Hegg has been conside...

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you. ...

Q: The New Fund had average daily assets of $3.9 billion last year. The fund sold $540 million worth of...

A: Turn over ratio is the ratio of total fund sold to average daily assets. It is used to calculate the...

Q: Not Excel! Turn back to Figure 20.1 , which lists prices of various IBM options. Use the data in the...

A: An option are a form of derivative financial instrument in which two parties contractually agree to ...

Q: Alana Olsen borrowed $5,000 for 90 days from First Bank. The bankdiscounted the note at 7 percent.a....

A: Borrowed amount=$5000Discount rate=7%Time period=90days

Q: The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50per share ...

A: a) Formula:

Q: 11. Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled wh...

A: A sunk cost is the cost that is already incurred and is not recoverable. This type of cost is not ta...

Q: Scenario 2John and Mary, both Finance students at The University of the West Indies, want to make an...

A: if compounded annually for 3 year we would found the value of this fund after 3 year and the less th...

Q: Define conservative approach (for short-term financing)

A: Companies which adopt a conservative approach to manage their working capital can reduce their short...

Q: An open-end fund has a net asset value of $13.40 per share. It is sold with a front-end load of 6%. ...

A: Offer price is the price at which securities are offered to general public through underwriters.    

Q: Your boss is back. This time he/she provides you a partial model to a bond valuation. This bond is a...

A: Step 1 Introduction “Since you have posted a question with multiple sub-parts, we will solve the fir...

Q: What is current stock price?

A: Stock means equity part of the company. Companies’ capital structure may contain debt, equity, and p...

Q: A General Power bond carries a coupon rate of 10.0%, has 9 years until maturity, and sells at a yiel...

A: a). Assuming the Bond Face value = $1000 Annual Interest payment = Coupon rate x Face value of the B...

Q: What is initial public offering (IPO)?

A: Primary market is the market where the securities will be sold initially. Public buy the securities ...

Q: FastBus Inc. FastBus Inc. offers low-cost bus transportation between Philadelphia and New York City....

A: Return on invested capital (ROIC) is the measure utilized to estimate the productivity of the firm i...

Q: using formula sheet only  no excel answer should be b

A: Discounting is a technique in which we find the PV of future cash flow. In this question future cash...

Q: Define risk

A: Risk can be defined as whenever there are chances that the investments’ actual outcomes are differen...

Q: Your firm sells for cash only, but it is thinking ofoffering credit, allowing customers 90 days to p...

A: Given information: Nominal interest rate is 9% Number of days in a year is 360 Credit period is 90 d...

Q: Defi ning total asset turnover as revenue divided by average total assets, all else equal, impairmen...

A: The term asset turnover refers to the ratio of sales revenue to average of assets. This ratio is use...

Q: ou deposited some amount of money to the bank at the annual interest rate of 0,1% being compounded q...

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM (tim...

Q: Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank quotes € 1 = US$1.1758.BNZ Bank quotes€ 1 = NZ$1.77...

A: Given: Money has been quoted by different banks as Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank ...

Q: Morris Corporation has current liabilities of $800 million, and itscurrent ratio is 2.5. What is its...

A: Liquidity ratios are calculated to analyze the liquidity of the firm. There are various ratios which...

Q: Lynn Parsons is considering investing in either of two outstanding bonds. The bonds both have $1,000...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.4% × ser...

A: Here, Salary in 2018 is $86,000 Salary at Retirement is $260,000 Span of Retirement is 18 years Inte...

Q: Two banks are offering different investment opportunities. Bank A offers an account that pays 3.3429...

A: Calculate APY of Bank A as: APY=1+rnn-1where, r=rate of interestn=number of periods Bank A=1+0.03342...

Q: Solve this early and correctly.  But not explain in excel works. Typed pr handwriting image onlys.

A: Given  The cashflows from year 0 to year 8. The rate of interest is 7%.

Q: Why are U.S. Treasury bonds not riskless?

A: A bond is a debt instrument with which a shareholder credits cash to an entity, which can be a gover...

Q: Rentz Corporation is investigating the optimallevel of current assets for the coming year. Managemen...

A: Given information: Sales were $2,000,000 Fixed assets total of $1,000,000 Debt to assets ratio is 60...

Q: A three-year bank CD paying 7.02 percent compounded quarterly. Calculate effective annual interest r...

A: The interest that an investor earns on the investment and a borrower pays on loan after considering ...

Q: What are the general desirability among users to lease rather than own the space they need in their ...

A: Leasing is a method through which person can hire fixed asset or place for certain period of time by...

Q: After tax cost of interest deals with the fact that interest is deductible for tax purposes. Therefo...

A: Interest expenses are the expenses which are related to borrowings raised by the company. The intere...

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.