Related to Checkpoint​ 9.3) ​(Bond valuation)  Calculate the value of a bond that matures in 14 years and has a $1,000 par value. The annual coupon interest rate is 12 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 16 percent.

Q: You have just purchased a share of stock for $21.11. The company is expected to pay a dividend of…

A: Required return means the percentage return required over the amount invested. So, required return =…

Q: João, owner of a small clothing store, found that his company's cash needed funds in the form of…

A: Given: Amount required for payment to employee : $35000 Amount held in duplicates =$42000 Number of…

Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…

A: Unpaid balance method is the method in which finance charge is calculated on the previous balance…

Q: In December 2017, an American investor buys 1,000 shares in a Mexican company at a price of 500…

A: Total number of shares purchased are 1000 Purchase price is 500 pesos Selling price is 550 pesos…

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

A: To calculate the monthly payment of loan we will use the below formula   Monthly payment  =…

Q: What is the accumulated value after five years of payments of $20000 made at the beginning of each…

A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…

Q: what is the best alternative?

A: Present Value: It is the present value of the future stream of cash flows. It is estimated by…

Q: A division of Raytheon owns a 5-year-old turret lathe used to manufacture fabricated metal products…

A: Incremental Analysis: Incremental analysis is a technique that is used to compare different projects…

Q: What is debenture bond?

A: Debenture bonds are type of corporate bonds. Corporate bonds are issued by businesses and typically…

Q: What are the advantages of financing through the sale of stock?

A: The sale of stock refers to the amount which the buyer purchases from the shareholder’s who are…

Q: Assume that the mortgage is a 20-year adjustable rate mortgage. a) Use the table to find the monthly…

A: We will take reference from the table to calculate the monthly payment using an 8% rate then we will…

Q: The employee credit union at State University is planning the allocation of funds for the coming…

A: Projected Total Annual return is the sum of investment return which is invested in various project.…

Q: According to your research, the growth rate in dividends for SIR for the next five years is expected…

A: Given: Current dividend = $2.05 Required return = 12% Growth rate = 5.25%

Q: A retail coffee company is planning to open new coffee 95 outlets that are expected to generate…

A: Solution:- Net Present Value (NPV) means the net value in today’s terms after adjusting initial…

Q: ABC Medical has invested RM2 million in a Health Diagnostic Support system. To maintain the system,…

A: The return earned by the company on the initial investment expressed in percentage is known as…

Q: Peter purchased a furniture set with 15% downpayment and end-of-month payments of $80 for 4 years at…

A: Present value refers to the value of future cash flows which is present today based on the…

Q: A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is…

A: Here, To Find: Present Worth =?

Q: What is venture capital? An angel investor? A private placement?

A: Following the current economic crisis, financial management has become more methodical. Following…

Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…

A: NPV is the method under Capital budgeting which help in taking the decision of project feasibility…

Q: A person deposits a sum of Rs. 20,000 at the interest rate of 18% compounded annually for 10  years…

A: Given: Deposit amount=Rs 20,000=P interest rate=18% compounded annually =I duration=10 years=N To…

Q: A hospital just purchased upgraded software for the Electronic Medical Record surgical dashboard.…

A: We first will calculate the present value of uniform payment for 8 years by applying the formula,…

Q: A company has the following items for the fiscal year 2020: Revenue = 10 million Net income = 4…

A: Note: Since the Value of Stock Price per share is given in dollars, it has been assumed that the net…

Q: Suppose you observe the following direct spot quotations in New York and Toronto, respectively: USD…

A: First, we will convert the rate of Toronto to match the quotation in Newyork. Then we will look…

Q: Truffles Chocolate Factory has decided to expand. Last year, the company paid TCC; a marketing…

A: NPV is a technique under Capital budgeting which help in decision making on the basis of future cash…

Q: omeone who is currently 47 wants to retire when they are 65 years old with the amount of 520,000.…

A: Solution:- When an amount is invested, it earns interest. The amount initially deposited is called…

Q: Several years ago a gold mining company purchased the drilling rights for an area of northern…

A: Sunk cost: Sunk cost is the cost which is already incurred and it is not relevant for decision…

Q: Kyle secured a lease on a machine by paying $2,000 as a down payment and then $700 at the beginning…

A: Down payment is of $2,000 Monthly payment beginning of every month is $700 Time period is 5 years…

Q: OC) 0.1105

A: Price weighted index value refers to the price per share compared with the weights of the…

Q: If the market adheres to the strong form of the efficient market hypothesis, what is the implication…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: According to MM propositions, at what debt-equity ratio the cost of equity should be lowest? Zero if…

A: MM proposition II:-  Defines cost of equity . Any firm in a given risk class , the cost of equity is…

Q: Explain the mortgage bond.

A: Mortgage bonds are type of corporate bonds. Businesses issue corporate bonds, which normally have…

Q: OMEGA Hotel provides a type of rooms with a sale price of 50 euros. Its total fixed cost amounts to…

A: Dead Point : Dead point is also known as break even point of sale at which company will not earn any…

Q: An audit plan should include Audit criterial O Audit scope O Audit date and time O all the above.

A: The audit plan is the plan and guidelines to be followed when the team conducts the audit of the…

Q: If Sam can afford payments at $390 per month for 6years. what is the price of a car that she can…

A: Here, Monthly Payment (PMT) is $390 Time Period (n) is 6 years Interest Rate (r) is 6.6% Payment…

Q: I $1216 P $7600 r 4% t years

A: Simple interest is the interest earned on a principal balance for a period of time at a specified…

Q: A6) Finance An investor invests $111,000 in a managed fund at the beginning of Year 1. Over the…

A: IRR is technique of capital budgeting under which we will the know the actual rate of return from…

Q: ​Enterprise, Inc. bonds have an annual coupon rate of 9 percent. The interest is paid semiannually…

A: Given: Coupon rate=9% Par value=$1000 Yield to maturity=16% Duration =13 years To find: Value of…

Q: At year end, National Corporation balance sheet showed total assets of P70,000,000, total…

A: Here, Total assets = P70,000,000 Total liabilities = P35,000,000 Total preferred share capital =…

Q: Last year, Bread City had sales of 70,000 loaves resulting in revenues of $350,000. Variable costs…

A: Solution:- Profit means the surplus of revenue over the incurred costs.

Q: Peter purchased a furniture set with 15% downpayment and end-of-month payments of $80 for 4 years at…

A: Purchase price refers to the amount of money that someone should pay for buying something like a…

Q: Give a brief analysis of the data found in the chart created

A: Data given: Quarter Sales Interest Investment Income Other Q1 35000 11400 18475 15000 Q2…

Q: Is it because: a. The capital gain will be different because the dividend did not change. or…

A: Capital gain can be calculated s follows: Capital gain=(Sale price - Cost price)Cost price* 100

Q: what is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of…

A: NPV refers to net present value. It is an important capital budgeting tool that is used to determine…

Q: woman invests $1,900 at a rate of 4%. Find the time in vears that it takes her investment to double…

A: We need to use compound interest formula to calculate time to double investment FV=PV(1+i)n where…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

Q: Aftertax salvage value=

A: Initial Cost of Asset = $690,000 Life of asset = 8years  Life of Project = 5years Salvage Value…

Q: Your Investment Advisor faxed you the following information for a semi-annual coupon bond that he…

A: Bonds are debt instruments. The issuing entity has to pay periodic interest to the bond holders.

Q: er year, how much could you afford to spend for a higher quality heat exchanger so that these annual…

A: Present value of the the future cost considering the inflation and cost of capital would give the…

Q: Southern Pole is developing a special vehicle for Antarctic exploration. The development requires…

A: Solution:- Net Present value (NPV) means the net value in today’s terms after adjusting present…

Q: Use the unpaid balance method to find the finance charge on the credit card account for August. The…

A: Finance charge It is basically the interest charge on the unpaid balance. With unpaid balance (P),…