s funded by both debt and equity with a debt to equity ratio of 100%. If Gs Co. has a retained earnings breakpoint of P1,225,000, the additions to the retained earnings during the year amounts to

Q: the correct answer. 1. Which of the following is not among the risks that need to be evaluated in…

A: There are many types of risk involved in life that need to be covered by financial planning and risk…

Q: If the annual interest rate is 12.9% and the dollar amount compounds daily, you would ( a. multiply…

A: Data given: Annual Interest rate=12.9% compounded daily. (Annual means N=1 year)

Q: (2) In the context of project management, why is it important to manage risks?

A: A Risk is any untoward incident that can lead to failure of a project. A project  involves…

Q: Which of the following statements is true about broker markets? Group of answer choices Brokers…

A: In broker markets, brokers does the trade on behalf of their clients. Brokers do not have right to…

Q: You are a personal finance advisor at the BQ bank, and you receive in your office a young couple who…

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

Q: Data for two alternatives are as follows: Alternatives A B Investment P35, 000 P50, 000 Annual…

A: NPV is the difference between the Present Value of Cash Inflows and Initial Investment. A project…

Q: If we have an inflation ratio (f) of 5.0% and a market interest (i) of 1.0%, how much is the…

A: A market interest rate is also called market nominal rate. This rate does not take account of…

Q: A firm has an net operating profit of P300,000, interest of P35,000, and a tax rate of 25%. The firm…

A: WACC = (Ke*Wk) + (Kd*(1-t)*Wd) Where Ke  = Cost of equity Kd  = Cost of debt  Wk = weight of equity…

Q: Liquidity Ratio You have the following info on Marco's Polo Shop: Total Liabilites and equity…

A: Fixed assets = Total liabilities and equity-Current assets Where Total liabilities and equity = $211…

Q: Compute the present value of a perpetual investment that would pay P25,000 every year if the…

A: To calculate the present value we will use the present value of perpetuity formula as follows:…

Q: Rho Ltd. has just paid a dividend of $0.25 on its stock. They expect dividends to grow at a rate  of…

A: Dividend = $0.25 The growth rate for first two years = 6% Growth rate thereafter = 3% Required rate…

Q: analysis? What are identified as possible risks associated with cost

A: Definition: A technique for calculating the costs related to a business prospect or proposal, as…

Q: 2. (a) Let the following be observed for the stock price of ZPZ-Bank this day: P = £5.50 (The…

A: Here, To Find: Part a. Fair value of three-month call option =? Part b. Fair value of three-month…

Q: What was the total percentage return on this investment? Answer as a percentage (e.g. 0.01 is 1.0%)…

A: Total return refers to a method which shows the relationship between the total return and current…

Q: direct-financing lease

A: A lease refers to the contract between two parties in which one party gives another the right to use…

Q: What is the portfolio beta?

A: Portfolio beta = (W1*B1) + (W2*B2) + (W3*B3) Where W1 = Weight of stock 1 W2 = Weight of stock 2 W3…

Q: True or False. 1. Financial independence is the same as financial self-reliance. 2. Financially…

A: Financial independence is defined as the status for having an enough wealth or income for paying off…

Q: Melvin availed a loan from a bank that gave him an option to pay Php 25,700 monthly for 2 years. The…

A: In this Question, we have information i.e. Melvin availed a loan from a bank and he can repay the…

Q: A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of…

A: The common-size balance sheet financial statements are the statements that show the company's…

Q: Find the interest eaned on $10,000 invested for 4 years at 6% interest compounded as follows. a.…

A: Compound Interest: It refers to the interest earned on an investment or paid on loan and is…

Q: Speculating with Currency Call Options. ABC Inc.,  purchased 75,000 units call option on British…

A: Net profit is the total profit earned by the company after paying interest and tax , In this all…

Q: (3) What are the basic steps in risk manaqement? Briefly describe each.

A: In finance we make investments and manage our money with the objective of generating a return.…

Q: Find the IRR of the project.

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Question Owing to perennial complaints by students about the lack of accommodation problems on…

A: Before investing in new projects, profitability of the project is evaluated by using various methods…

Q: In theory, only systematic risk matters for the required return of a stock. Why does non-systematic…

A: Systematic risk refers to those which impacts the whole market rather than on particular stock…

Q: Refer to the table to answer the following questions: Question Answer What was the closing price for…

A: a. The closing Price for Mckesson on July 7, 2016 is 191.20 b. The high for McKesson per share for…

Q: What is the present value of a 5-year annuity of $4,900 with the first payment to be received 3…

A: As per formula Present value = [P+[P*{1-(1+r)-(n-1)}/r]]/(1+r)t Where P - Annual payment i.e. $4900…

Q: getting rich. 2. In evaluating alterna

A: Financial planning helps a person in achieving goals of one’s life by selecting the best alternative…

Q: Assume a borrower is purchasing a property for USD 100,000 and faces two possible loan alternatives.…

A: CPM mortgages: CPM mortgages are Constant Payment Mortgages where the amount paid each month towards…

Q: The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000,…

A: IRR signifies the rate of return at which the NPV is zero. This signifies what rate of return is…

Q: a. What is the debt/equity ratio for this firm in book value terms? In market value terms? b. What…

A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…

Q: 16. Puan Siti intends to borrow from a bank to finance the cost of buying a house at Banting with a…

A: Present value of Annuity With periodic interest rate (r), total period (n) and annuity (P), the…

Q: Hail and Sons operates for 240 days in a year. It has been offered credit terms of 4/30 net 90 days.…

A: If company provide credit than it is cost to company so company provide discount to the customers to…

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: Annual Worth: It  is  the  equivalent uniform yearly worth of all estimated  receipts  and costs…

Q: If you invest a lump-sum amount of P25,000 at an interest rate of 12%, compounded annually, how much…

A: Future Value = Present Value (1 + Interest Rate)Number of years Present Value (PV) = 25,000 Interest…

Q: eristics?

A: Step 1   Risk is defined as an occurrence that harms financial performance and/or reputation as a…

Q: BURNER Co. is considering two mutually exclusive projects, Project A and Project B. The projects…

A: Net Present Value: It is a technique for adjusting the current value of all future cash flows…

Q: Becky is a corporate account manager at a company that sells athletic equipment to other businesses.…

A: Bonus is the part of remuneration paid to employees in addition to the basic pay. Bonuses are paid…

Q: A homeowner just obtained a 30-year (360-month) mortgage for $120,000. The mortgage has a fixed…

A: Loan amount (P) = $120,000 Monthly interest rate (r) = 0.00666666666666667 (i.e. 0.08 / 12) Monthly…

Q: Suppose that P dollars in principal is invested for t years at the given interest rates with…

A: In case of continuous compounding the assumption is that interest is constantly accruing. Here the…

Q: The interest rate is 5% per year. Year Cash flow, $ 150 150 + G 150+2G Year 4 5. Cash flow, $ 150+3G…

A: The present value of both cash flow must be equivalent to each other considering the time and…

Q: Future Value for Various Compounding Periods Find the amount to which $700 will grow under each of…

A: Initial investment (I) = $700 Period = 5 years Interest rate = 12% or 0.12       Future value is the…

Q: a factory savings plan, a workman deposits P 25 at the beginning of each month for 4 years, and the…

A: The amount being deposited at each month and that money grow with time and interest and period of…

Q: Choose the correct answer. 4. Financial goals are classified as to duration as follows, except a.…

A: Financial Industry Regulatory Authority (FINRA) defines the three types of duration for  financial…

Q: The stock price is $25. A company has reported earnings per share (EPS) of $4.60 and has a dividend…

A: Stock price per share of a company is the value placed by the investors on a stock. Earnings per…

Q: Scenario D: Six months later your credit card is carrying a balance of $500. You decide that you…

A: APR is annual percentage rate is yearly generated of interest which is paid by borrower or given to…

Q: An investment opportunity will pay £100 with a 10% probability, £50 with a 40% probability, or will…

A: Expected value can be calculated as follows = Investment return x Probability There is certain…

Q: Determine the PW (Present Worth) at 7% of the given cash-flow diagram. Use MS Excel

A: Here, Discount Rate is 7%

Q: Describe how the 2008 financial crisis, when analyzed alongside the fall of LTCM, provides evidence…

A: The 2008 financial crisis occurred due to the burst in housing bubble that was fueled by subprime…

Q: Kelly invested in two stocks. She put 22 % into stock A, which has an expected return of 7.3%, and…

A: As per formula we will add weighted returns of each stock to calculate the expected return of her…