Q)suppose your child is 10 years old now and you decided to start an education fund your child next year. You plan to contribute $2,500 to this fund in the 1st year and increase the annual contribution by 5% every year. The last payment will be made when your child goes to university at the age of 18. You expect to earn an 8% nual return on this fund. How much do you expect to be the value of the fund when the child goes to the university

Q: A corporation has a taxable income of $7,356,401.  At this income level, the federal income rate is ...

A: Given that: Total Income=$7,356,401 Local Tax= 13% State Tax= 21%  federal income rate =46%    

Q: ar Colfs tree cash fows are expected to grow by 8.% per year, what is the market value of s equity l...

A: EBIT = $22 Million Capital Expenditure = $6 Million Depreciation Expense = $3 Million Corporate tax ...

Q: Mr. Reyes borrows P600, 000 at 12% compound the loan in 15 equal annual payments. How muc unpaid aft...

A: Loans are paid by the periodic payments that are paid equally annually and they carry payment of int...

Q: Simtek currently pays a $3.5 dividend (D0) per share. Next year’s dividend is expected to be $4 per ...

A: Stock price is defined as the maximum price that an investor is ready to pay for a stock. It is calc...

Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 12% per year, payable...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...

A: 1.Compounding and discounting are similar concepts. Discounting uses a discount rate to bring a futu...

Q: PROBLEM 1: A man borrowed P3 000 to be paid after 18 months with interest at 12% compounded semi-ann...

A: First borrowed amount (B1) = P 3000 after 18 months (3 semiannual periods) n1 = 3 semiannual periods...

Q: explaining how much an investment of

A:   Future value shows the value of assets presents today on some future date on the basis of the assu...

Q: A credit card company offers an annual 2% cash-back rebate on all gasoline purchases. If a family sp...

A: Solution:- Rebate means the discount or cash back offered by the company to its seller.

Q: compounded monthly for any deposits made in the next month. If they deposit $10,000, then how much w...

A: Future value: It represents the future worth of the present sum of money. The future value is compu...

Q: You put 280,000 dollars in a bank which gives you 0.75% interest compounded daily. If you leave that...

A: The amount of interest earned can be computed with the help of future value function

Q: Q1. Tom Fong Music Inc., has an outstanding bond callable at $1,340. The total value of the bond is ...

A: Solution : C : $ 40.20 Millon

Q: Gamma Corporation has 250,000 ordinary shares issued and outstanding during the year. It has annual ...

A: Number of shares = 250000 Sales = P 1750000 Share price = P 21 Sales per share of similar firm = P 1...

Q: A private rank and file employee working in a remote tower station of Convulge Internet Company rece...

A: 13th month pay                        72,000.00 Performance bonus                        15,000.00...

Q: A firm has just paid (the moment before valuation) a dividend of 88C and is expected to exhibit a gr...

A: Price of stock can be found from variable growth rate of dividend discount model and value can be fo...

Q: Purple Corporation just purchased a call option for 10,000 Red Corp. ordinary shares at a strike pri...

A: Market value per share us P534 Volatility is 10% Risk free rate is 3% Strikr price is P489 Time peri...

Q: A certian stock pays dividends continuously at a rate of 6 per year. The current price of the stock ...

A: Current stock price = S Dividend yield rate = δ r = Risk free rate F = Forward price n = Duration

Q: Compute the cost of equity for this project   Compute the relevant cost of debt for this project.  ...

A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all th...

Q: You decide to originate the loan, but move at the end of 5 years. What is the remaining balance you ...

A: Loan Amount  $                   3,00,000.00 Time Period 30 Years Interest Rate 7.20%

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He...

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts a...

Q: 18. A man will deposit 200 with a savings bank at the beginning of each 3 months for 9 years. If the...

A: Question 18 pertains to annuity due. Annuity due is that annuity in which payments are made at the b...

Q: Undeclared dividends (in arrears) to cumulative preferred stockholders must be filed to. in the note...

A: Solution:- As we know, the preferred shares are paid dividend prior to common shares. There is a typ...

Q: Ryan's and Troy's incomes are taxed at 25%. Ryan contributed $245 per month to an HSA. His earnings ...

A:   Ryan's Troy's Monthly Payment  $                                   245.00  $                    ...

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into...

A: Future value is the amount accumulated on the deposit made along with interest earned on the deposit...

Q: ingalls Engineering is a manufacturer that produces bracket assemblies. Demand for bracket assemblie...

A: In the given case ,  X is a bracket assembly which company manufactures. Various items A B C D E F G...

Q: Kolby's Korndogs is looking at a new sausage system with an installed cost of $695,000. This cost wi...

A: Installed Cost is $695,000 Life of project is 5 years Initial Investment in net working capital is $...

Q: Proposal 1 requires dredging the canal. The state is planning to purchase the dredging equipment and...

A: Annual Worth (AW) is easy to understand by anyone familiar with annual amounts because for example, ...

Q: You recently went to work for Allied Components Company, a supplier of auto repair parts used in the...

A: Here, Discount rate = 10% To Find: IRR of each project =? Payback Period =?

Q: An investment has an initial cost of $3.2 million. This investment will be depreciated by $900,000 a...

A: The average accounting return or average rate of return is an accounting metric which helps in calcu...

Q: A car lease of $12613 is to be repaid by making payments at the beginning of each month for 3 years....

A: Car Lease Amount = $12613 Time Period = 3 Years Interest Rate = 3%

Q: Nector is a company that sells bee keeping supplies and connects beekeepers all over the world to se...

A: Solution:- Taxable income means the income which is subject to tax, after deducting all the deductib...

Q: (b) A trader buys one May2022 futures contracts on frozen orange juice. Each contract is for the del...

A: Margin call is made in a situation where due to change in market price, the margin balance falls bel...

Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...

A: Concept. Present value is calculated by formula Pv = Fv ÷[ ( 1+ r) n ] Where Pv = present value  Fv ...

Q: Assume that the interest rate on 1 year t-bill in Canada is .60% and the interest rate for similar p...

A: Time Period = 1 Year Interest Rate of Canada = 0.60% Interest Rate of US = 1%

Q: Which one is LEAST likely to be considered in developing financial strategies? a. Investment and gr...

A: Financial strategy of a company or an organization is concerned with the procurement of funds and th...

Q: Which medium has the lowest cost per thousand (CPM)?

A: Lowest cost per thousand can be found by dividing the cost of Ad by audience size and then multiplyi...

Q: Assume that 40% corporate tax rate and expected EBIT is Tk. 15 lakhs. You are required to calculate ...

A: Earnings Pwer share= Earnings Available for equity / Number of equity shares

Q: 3. Peter Parker and MJ decide to buy a one-bedroom condo in Manhattan. Determine the monthly payment...

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

Q: Explore the amount $1 is discounted for different compound interest rates across time. The graph sho...

A: Given, PVN=1FVN=$11+iN

Q: A couple plans to purchase a vacation home. The bank requires a 10% down payment on the s210,000 vac...

A: We need to use PMT equation to calculate monthly payment. The equation is PMT =P*i1-1(1+i)n where  P...

Q: Pls Briefly explain these four.  1. The process of assessing overall risks can be difficult and bal...

A: The process of identifying, analyzing, and accepting or mitigating uncertainty in investment decisio...

Q: You sold a stock for $75 that you purchased eleven years earlier for $40. What was the holding perio...

A: The required return on the stock represents the total return earned on the stock. This return is con...

Q: A U.K importer has future payables of DM 20,000,000 in one year. The importer must decide whether to...

A:   Deposit Rate Borrowing rate Sterling 8% 9% DM 6% 7% Spot rate  £ 0.74 =DM1     One y...

Q: 15. Zoom has Quick ratio of 2x, sales of $120,000, in addition it has current assets of $170,000 and...

A: Quick ratio = 2x Current assets = $170,000 Current liabilities = $50,000 Inventory = Current assets-...

Q: ntentious issue with Internal Service Fund is the distribution of losses to various

A: Internal service fund has surplus account the amount is provison to loss usage.

Q: What is LVMH's capital structure? If it has debt, will it be able to generate the future required ca...

A: With all the analysis, we can conclude that LVMH is harmless. Its market value is said to be rising ...

Q: Risk-weighted assets increase Risk-weighted assets decrease

A: Step 1 Risk assets are calculated by adding the amount of risk to the appropriate risk weight of the...

Q: Supposing we the contract entered in is at the price of $285. We would like to evaluate our position...

A: Here, Spot price = $285. Time of contract = 4 months Forward price = $293.15. To Find: Gain or loss ...

Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: Twelve months ago, you purchased the shares of a no-load mutual fund for $22.35 per share. The fund ...

A: Given in the question, The purchase price of the share =  $22.35 per share  Cash dividends = $0.70 C...