second year will represent repayment of principal?

Q: Suppose the stock price is $83 and the continuously compounded annual interest rate is 7%. If the 6-...

A: Stock price or spot rate is $83 6 month forward price is $85  To Find: Forward premium

Q: Q1:Compare the alternatives below using future worth analysis at i = 8% %3D per year using LCM. P Fi...

A: P : First Cost = -23,000 Annual Cost = -4,000 Salvage value = 3,000 N = 3 years   Q: First Cost = -3...

Q: Mountain Peaks applies overhead on the basis of machine hours and reports the following information:...

A: Since you have posted a question with more than three sub-parts, we will solve the first three for y...

Q: 5. A man takes out a loan of P150, 000 from a credit cooperative, which charges interest at the rate...

A: The amount of each payment contains the principal amount of loan as well as the interest component. ...

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group o...

A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the rat...

Q: Find the present value of an investment that will have a future value of Php350,000 if it is investe...

A: Present Value: It is the current value of cash flows or an amount of money that is expected in the f...

Q: The garden supply company is also considering taking out a loan and buying a small truck to save cos...

A: Cost of Truck is $60,000 Estimated after tax selling price of truck is $18,000 Project life is 4 yea...

Q: What is the shape of the yield curve given the term structure below? What expectations are investors...

A: Yield Curve: The yield curve plots the different interest rates and maturities of bonds. It acts as ...

Q: If we use future value rather than present value to decide whether to make an investment, A) we wil...

A: Future Value is the value of cashflows in some date in future.  Present value is the Discounted valu...

Q: The board of directors of SSS Inc., have declared a dividend of P18,000,000. The company has 40,000 ...

A: Dividend declared = 18,000,000 Number of preferred shares = 40,000 Dividend per preference share = 6...

Q: of loss Payment $million 25% $5 50% $15

A: The number of entities in the portfolio, their credit ratings, the notional amount and recovery of e...

Q: Pete's Wheels n' Spokes has a rate of markup on cost of 20% on a model of bikes. This represents a m...

A: Markup on cost = 20% Markup amount = $56

Q: You won a lottery of $1,000,000.  Office offered two options: the first one you can take it today a ...

A: The series of equal payment which is made over indefinite period of time is called as perpetuity. Th...

Q: ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investmen...

A: Since you have posted a question with multiple sub parts, therefore as per the guidelines we will be...

Q: Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; ...

A: Income before tax means net income of the business after considering all operating and non operating...

Q: You have the chance to invest $100 in a Certificate of Deposit (CD) paying 6 percent annual interest...

A: The account value after 5 years can be calculated with the help of future value function

Q: In capital budgeting, risk can be measured from three perspectives. Explain THREE (3) measures of a ...

A: Risk is an important element of capital budgeting and a company selects  a project after doing a com...

Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he ...

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper...

Q: The stock price is currently trading at Php 50 and the annual stock price move factor is u=1.3 and U...

A: Since there are multiple questions , We will solve 1st question for you as per prescribed policy .

Q: If you save that money with interest rate of 10%, how much will it be after 20 years?

A: Future Value: It is the future worth of the present sum of money or stream of present annuity paymen...

Q: 6. Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and wit...

A: In the book value method, we find the book value of the firm, which is considered as the value of th...

Q: Michael has a bank account that is worth $80,550. (a) Find the overall ROR if he had deposit...

A: a) Calculation of overall rate of return is calculated using the following formula: Compound annual ...

Q: CSR342 2022 SP Week 6 Assignment Assignment 1. A. John will purchase Equinox EV ($35,000). John's cr...

A: Loan is a value which is borrowed from the external sources like banks for a certain period and this...

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time  

Q: Suppose you invest $25500 for 12 years paying 2.25% annual interest. How much will you have at the e...

A: The future value is the amount that will be received at the end of a certain period. The future valu...

Q: Elgin Battery Manufacturers had sales of $1,000,000 in 2015 and their cost of goods sold is $700,000...

A: Income taxes is the amount of taxes and obligations which needs to be paid by the individual or busi...

Q: 15. Scarlet Knight Corporation's bonds have a face value of $1.000 anda 9% coupon paid semiannually:...

A: The current yield of the bond is the Annual return paid by the bond divided by its current market pr...

Q: Evan wants to start using a budget to curb spending and begin saving money. His estimates on income ...

A:

Q: Sunny Co. recently reported sales of P100 million, and net income of P10 million.  The firm has P80 ...

A: The increase in retained earnings can be calculated as increase in net income after dividend payouts...

Q: Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit mar...

A: Gross Profit ratio = [(Sales - Cost of goods sold)/Sales]

Q: A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assum...

A: Ordinary interest = Principle * Interest rate * Number of days of loan taken / 360 days in a year

Q: Accumulate $2000 for 3 years at 7% simple interest. O I = $420; F = $2420 %3D %3D O 1= $4200; F= $64...

A: Amount (P) = $2000 n = 3 years r = 7%

Q: At 6% simple discount, find the present value of $300 which is due at the end of 90 days. What is th...

A: Discount rate (d) = 6% Amount (P) = $300 n = 90 days

Q: 7. Rodrick invested 2M to an account that earns 8.3% compounded continuously. Determine the amount o...

A: Investment (PV) = 2,000,000 Interest rate (r) = 8.3% Period (t) = 17 years Mathematics constant (e) ...

Q: Which of the following would not be classified as a current asset? Prepaid expenses Plant, property ...

A: Current assets are those assets which are already in cash or can be converted into cash into short p...

Q: You can earn $59 in interest on a $1,000 deposit for eight months. If the EAR is the same regardless...

A: Effective Annual Rate: It refers to the annual real rate taking into account compounding effects. He...

Q: What is the possible negative consequence of the food business having a long average age of inventor...

A: Days sale of inventory refers to the average age of inventory. It computed using the formula: days s...

Q: not use of the excel Q)You plan to purchase a new TIG welder for your company. It will cost $2,800 ...

A: Cost now = 2800 Cost at end of 3rd year = 60 Cost at end of 4th year = 130 Sale value at end of 5th ...

Q: Your best taxable investment opportunity has an EAR of 4.9%. Your best tax-free investment opportuni...

A: Given Information :  Effective annual interest of taxable opportunity = 4.9% Effective annual intere...

Q: Ifyouare in Vietnam, please quote direct and indirect rate from Tha i Baht for Cash and both Buying ...

A: The question is based on the concept of foreign exchange quotation. Foreign exchange quotation uses ...

Q: Navistar Electric issued 1000 debenture bonds 5 years ago with a face value of $5,000 each and a bon...

A:  A Bond is an instrument that represents the loan that is made by the investor to the company and af...

Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest pe...

A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years

Q: The current price of a stock is $20 per share. You have $10,000 to invest. You borrow an additional ...

A: Margin call is a function of initial margin and maintenance margin

Q: Mrs. Pores invested ₱150,000 in a bank that pays an 13% interest converted monthly. If her account b...

A: Invested amount is P150,000 Account balance today is P168,900 Interest rate is 13% converted quaterl...

Q: For your area finance evaluate how appropriate the executive performance measures and incentives are...

A: The question is based on the concept of performance link incentives for top-level managers. The exec...

Q: Your firm has the following income statement items: sales of $50,250,000; income tax of $1,744,000; ...

A: Sales = $50,250,000 Income tax = $1,744,000 Operating expenses = $10,115,000 COGS = $35,025,000 Inte...

Q: How will a decrease in time preferences affect the loanable funds market?   A.   There will be an...

A: Decrease in time preferences tells us that individuals in the economy are more patient and more incl...

Q: Main Content Net Revenue Years 1 Investment You are thinking about buying a new Hot Dog cart for $7,...

A:

Q: The Uptowner has 11,000 shares of stock outstanding with a par value of $1 per share and a market va...

A: The net income earned by the company's shareholders on its invested capital is known as a dividend. ...

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

A: The term "perpetuity" refers to an endless stream of financial flows. Money's value depreciates over...