s to retire in 5 years. To supplement his pension he would like to receive $150 every months for 20 years. If he is to receive the first payment a month after his retirement and interest is 4.2% p.a. compounded monthly, how much must he invest today to achieve his goal?

Q: 470 - 34 you have concluded that the following relationships are possible next year: economic…

A: Probability Rate of return 0.15 -5% 0.60 5% 0.25 15%

Q: 4. When her granddaughter was born, Melax invested P 20 000 at 12% compounded quarterly. How much…

A: To calculate the amount at the end of year 18 we will use following formula   Future value =…

Q: A 20-year loan of 20, 000 may be repaid under the following two methods: i. amortization method with…

A: given that: Loan Amount=20000 Loan period= 20 years The excel formula is:

Q: The market portfolio's historical returns for the past three years were 10 percent, 10 percent, and…

A: Average market return = Sum of returns / number of returns   Risk free rate of return = 0.04…

Q: Long Life Floors is expected to pay an annual dividend of $6 a share and plans on increasing future…

A: Any investor is willing to pay the present value of all future payments discounted at his required…

Q: You have 1 account:   The balance owed is $625 and a $2500 credit limit.   What is your…

A: Debt-to-credit ratio = Debt availed/Credit limit

Q: Show your work for the following  A firm's equity beta is 1.2 and its debt is risk free. Given a…

A: Equity beta = 1.2 Debt/equity ratio = 0.7 Asset beta = ?     Asset beta is systematic risk over…

Q: Company A's historical returns for the past three years are 6 percent, 15 percent, and 15 percent.…

A: The capital asset pricing model is a financial concept that is widely used. In this model, the…

Q: A Student loan totals $30,000 at graduation. The nominal interest rate is 12% compounded monthly,…

A: Total payments= 32 Total amount of loan (L)= 30000 Rate of interest (r) = 12%/12 = 1.0% per month…

Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…

A: The Earnings per Share is calculated by dividing Earnings available to equity shareholders by number…

Q: Your Company is considering a new project that will require $2,000,000 of new equipment at the start…

A: Solution:- Depreciation is a tax deductible expense and therefore companies get tax shield on…

Q: Cadillac Company is evaluating an investment that would have an eight-year life and would require a…

A: The payback period is the time it takes an investor to repay the cost of an investment, or to reach…

Q: What will be the value of the investment after three years?

A: Future Value: It represents the future worth of the current sum amount. It is computed by the…

Q: ) Reported annual total returns (%) of Vanguard FTSE Emerging Markets Index Fund ETF Shares for the…

A: To Find: Average growth rate which takes effect of compounding is 1.59%

Q: A stock has a dividend growth rate of 2% and a required rate of return of 5%. Bad news reduces the…

A: Existing growth rate = 0.02 New growth rate = 0.01 Rate of return = 0.05   Lets assume next dividend…

Q: differences in bond interest rates reflect differences in default risk True or False . Expl

A: Each bond have different rate of return depending on nature of bond and period of bond and maturity…

Q: list and explain three internal and at least three external sources of finance that are available to…

A: Sources of Finance: It refers to the places from where a firm or business can obtain money to fund…

Q: You have 4 types of assets in your portfolio: Corporate bonds shares are valued at $250 and make up…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5% for the…

A: Future value of the invested value may be calculated using following formula   Final Amount…

Q: Joey Espinoza has $1,000 in cash, he deposits the total amount in Legion Banc. Legion Banc lends the…

A: The banks have to deposit certain amount of money with central bank depending on the deposit made in…

Q: Can I get a breakdown on how this is done all I'm seeing is a bunch of numbers

A: In the solution provided present value of all the coupon payments and future value is done to…

Q: “Financial reporting plays a key role in facilitating informed business decision making and…

A: Financial reporting refers to the financial results and financial statements of a company or an…

Q: Provide an evaluation of the two proposed projects whose cash flow forecasts are found below:…

A: Capital Budgeting is the process of assessing long-term decisions made by management in order to…

Q: Which of the following statement(s) is/ are correct? Select one or more: Portfolio standard…

A: Portfolio is the combination of different securities. Portfolio Standard Deviation is a measure of…

Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

A: Future Value = Present Value*(1+Interest rate)n Where n = Time period

Q: What is idiosyncratic risk? How does it differ from market risk?

A: Idiosyncratic risk or unsystematic risk or specific risk is that risk which belongs to specific…

Q: An insurance company must make payments to a customer of £10 million in one year and £4 million in…

A: Bonds are the long-term financing measures to create debt. Interest (coupon) is paid periodically on…

Q: purpo Badgeting 3. Keeping track of all income and expenses is very important to achieving your…

A: Financial objectives plays a vital role in the economy , As if we maintain our finances then we will…

Q: Albreit Doghut, a portfolio manager of the Danielson Financial Group meets with Kristina Teqward, a…

A: Investment policy statement:- Investment policy statement(IPS) is an official or formal document…

Q: explain what is mutual funds

A: Mutual Fund an indirect vehicle for the investor investing in capital markets. It is an investment…

Q: You borrow $22947 to buy a car. You will have to repay this loan by making equal monthly payments…

A: In an annuity payment, the present value of all future annuity payments is calculated using the…

Q: Employees in 2020 pay 6.2% of their gross wages towards social security (FICA tax), while employers…

A: Federal Insurance Contributions Act tax is a payroll tax that covers both the salaried and…

Q: GSM Inc. STOCK RETURN YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25…

A: Here, Total Return =? Average Return =? Standard Deviation =?

Q: Ali will perform the pilgrimage in 10 years. Estimated ONH for the next 10 years is IDR 50,000,000.…

A: Here, To Find: Part A. Annual Payments =? Part B. Present value =?

Q: ote a price for a custom-designed doughnut machine to be delivered by the end of 2018. Once it is…

A: The minimum return on investment expected by the company is known as the required rate of return. It…

Q: nager is faced with an investment proposal of Rp. 100,000,000, - with a period of 4 years and cash…

A: The net present value is the difference between the present value of cash flow to the initial…

Q: Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6.…

A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…

Q: A person try to buy an apartment five years from now , assuming that the first deposit was ( $ 3000…

A: Accumulated value after 5 years =  3000*(1+i)^4 + 3300*(1+i)^3 + 3600*(1+i)^2 + 3900*(1+i)^1 + 4200…

Q: Ritter Sports Industries has preferred stock outstanding with a par value of $100. The stock pays a…

A: To calculate the nominal rate of return we will use the below formula   Nominal rate of return =…

Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

A: Final Amount (Principal+Interest) = P (1+r/n)nt Where P = Principal Amount r = rate of interest n =…

Q: Technique commonly used when an uncertain single factor determines the selection of an altenative of…

A: Alternative Analysis: An alternative analysis is a comparison of the numerous paths that can be…

Q: what is the card's EFF%? Select the correct answer. a. 9.33%b. 3.73%c. 6.53%d. 17.73%e. 12.13%

A: Effective Rate of Return: It is the effective annual rate on an investment or loan and takes into…

Q: Why would a company's ROA be positive and its ROE negative

A: ROA refers to return on assets. ROE refers to return on equity.

Q: dust Telecommunications, Inc has the following target capital structure, which it considers to be…

A: Weighted average cost of capital is the weighted cost of equity, preferred stock and debt to be used…

Q: A firm earns $3550 million in profits and pays $2480 million in dividends for the year. The firm…

A: Dividends for the year = $2480 Number of preferred stock = 175 million Preferred stock dividend per…

Q: 2. A loan is being repaid with 20 annual payments of P1,000 at the end of each year. Atter the tenth…

A: Here, Annual Payment is P1,000 Number of Payments is 20 Semi Annual Payments after 10 payments is X…

Q: Ruth bought an insurance for 66,000 at 6% to receive an annuity for 16 years. Find the specified…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: After learning the course, you divide your portfolio into three equal parts (i.e., equal market…

A: Here, Beta of Market Index is always 1 Beta of Treasury Bills is always 0 Beta of Mutual Fund is 0.8…

Q: You have an account with a $1000 credit limit that charges 12.25% interest using the average daily…

A: In credit cards they are charged based on the daily balance and there is need of daily balance and…

Q: what is the present worth (PW) for the following cash flow?. Use (i=6%) Annual payment= $100 per…

A: Present worth of a future amount can be calculated as: = Future amount * Present Value Factor (i%, n…