Economics Sherry has a goal of retiring with $371,060 by making weekly deposits into an investment account whose annual interest rate is 1.6%. If she will retire in 27 years, how much interest will she earn?

Q: IRQ has common stock outstanding, which is trading at $25 per share. IRQ paid a dividend yesterday…

A: Last Dividend = $2.22 Growth rate = 0.03 Current stock price = $25 Cost of common equity = ?

Q: What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to…

A: First, need to find out Yeild to Maturity  Solved using Financial Calculator  PV = -959 FV = 1000…

Q: Return on Investment and Economic Value Added Calculations with Varying Assumptions Knitpix Products…

A: Turn over ratio It measures the ability of the firm to effectively utilizing its assets and…

Q: What is credit history? A record of a person's borrowing and repayment activity used to calculate…

A: Credit history checks if the borrower has been responsible with the debt payments or not. It checks…

Q: What is the maximum amount you should pay today for an investment that pays a single future cash…

A: Future cash flow (FV) = $25000 Interest rate = 2% Semi annual interest rate (r) = 2%/2 = 1% Period =…

Q: You have decided to retire and want to sell your shares in a closely held, all equity firm. The…

A: Share repurchase is referred to as a transaction where a company buys back its own shares from the…

Q: a. Calculate the yield to maturity for a bond with a maturity of (i) one year; (ii) two years; (iii)…

A: YTM (Yield To Maturity): It is the total expected rate of return for a bondholder when all the…

Q: ana has to pay RM1,200 every month for 360 months to settle a housing loan at 4% compounded…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Why might the portfolio effect of a merger provide a higher valuation for the participating firms?

A: Portfolio is defined as the collection of the financial investment such as - commodities, stock,…

Q: Phyllis invested 49000 dollars, a portion earning a simple interest rate of 4 percent per year and…

A: Given, Amount invested is $49000 Interest earned on both the investments is $2320

Q: 1. An investor purchased a newly issued bond with a maturity of 10 years 150 days ago. The bond…

A: Given, Time of bonds maturity =10 yr150days. Coupon rate of bond= 5%(semi-annually)  Face value of…

Q: Find the compound interest earned if PhP 30,860 is deposited in a bank at 2.8% compounded monthly…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: The PC shop obtains a loan from a finance company. It is to be repaid by quarterly payments of PHP…

A: Quarterly payment (P) = PHP 50,000 First payment period = 2 Years First payment period in quarters…

Q: The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs…

A: Explanation : NPV is help in decision making if I have Calculate the NPV & it comes to positive…

Q: Blue Ram Brewing Company currently has no debt in its capital structure, but it is considering using…

A: CASE D/Cap Ratio  E/Cap Ratio D/E Ratio Bond Rating Before-Tax Cost of Debt (rdrd) Levered Beta (b)…

Q: Why are secondary market prices relevant for a firm

A: Secondary market can be defined as the market where securities which have been already issued in the…

Q: . You have a line of credit loan with Scotiabank. The initial loan balance was $6000.00. Payments of…

A: Line of credit can be determined as the predetermined credit limit. Any amount within the credit…

Q: Given the following information, what is the financial break-even point? Initial investment =…

A: The financial break-even point is the level of earnings where earnings per share are zero. In other…

Q: A.) Calculate the coefficient of variation for Project A (Format: 1.1111) B.) Calculate the…

A: Solution:- Coefficient of Variation (CV) measures that how much times is the risk in comparison to…

Q: 4. In addition to the data given previously, assume that the machine will have a $13,755 salvage…

A: The internal rate of return is the method of finding the profitability of a project by finding out…

Q: 15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a)…

A: Budget is the process by which a firm assesses truly massive projects or investments.A new plant's…

Q: 1. Distinguish between the conventional and contemporary scope of public finance in your own words…

A: The study of government receipts and payments is referred to as public finance. The term 'finance'…

Q: My question is for a synthetic call option why do we need to borrow the present value of the strike…

A: Synthetic calls and synthetic puts are the two types of synthetic options available. Both forms of…

Q: Find the cash price of an Android-based phone plan if a customer pays PhP 999 monthly for 2 years at…

A: Monthly payment is PhP 999 Time period is 2 years Interest rate is 4.4% Compounded monthly To Find:…

Q: Compute the nominal annual rate of interest compounded quarterly at which $300.00 paid at the end of…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…

A: Coupon Rate: Coupon interest rate are the rate of interest paid on the bonds. The coupon rate is…

Q: An oil-drilling company must choose between two mutually exclusive extraction projects, and each…

A: Answer 1:- NPV profile is a graph which shows the NPV of a project at different discount rates. The…

Q: The Seattle Corporation has been presented with an investment oppore yield end of year cash flows of…

A: The NPV of the investment is calculated as present value of cash inflows less initial investment

Q: 1.  What is the value of a 15-year 10% $1,000 coupon bond when the market interest rate is 15%?…

A: Solution:- Value of bond is the sum total of present value of cash inflows receivable from the bond.…

Q: Suppose that you are considering investing in a four-year bond that has a face value of $1,000 and a…

A: We need to use RATE function in excel to calculate price of bond. The formula is…

Q: Given an annual credit sales value of 365 million; accounts receivable beg. 36.5 million, cost of…

A: Solution:- Average Collection Period means the average days it takes a firm to collect money from…

Q: Mariano deposited P5,000 today in an account that pays 8% compounded semi-annually. Two years later,…

A: Amount deposited today is $50,000 Interest rate “r” = 8% compounded semi-annually "m" is the…

Q: 12. A company has agreed to pay $4.2 million in 6 years to settle a lawsuit. How much must it invest…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount invested is…

Q: A) Brock purchases equipment that has a fair value of $50,000. Brock pays $10,000 as a downpayment,…

A: Fair Value of Equipment is $50,000 Downpayment is $10,000 Principal amount of note is $60,000 Annual…

Q: Find the future value of £2000 when it grows at an annually compounded rate of 5% for 10 years. An…

A: Future Value,  FV=PV(1+i)n Here, PV (Present Value) = 2000 i (interest rate) = 5% = 0.05 n (number…

Q: The spot rate between Japan and the U.S. is ¥100.37 = $1, while the one-year forward rate is ¥99.97…

A: Interest rate parity Interest rate parity refers to the state where forward exchange rate is…

Q: Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking…

A: The net present value is the measure of profitability in which we add up the discounted cash flows.…

Q: A year-end bonus of $26,000 will generate how much money at the beginning of each month for the next…

A: Year end bonus amount (PV) = $26,000 Interest rate = 6.36% Monthly interest rate (i) = 6.36%/12 =…

Q: You borrow $364000 for the the purchase of a house at an APR of 7.52% for 15 years. Your monthly…

A: A mortgage is a loan on a property for which the property itself is the collateral.

Q: D4 Finance Bond portfolio currently has a duration of 4.7 and a value of $800,000. The price of the…

A: Given in the question,Value of bond  = $800,000  Duration of bond = 4.7Treasury price of the…

Q: Yesterday, John bought a ten-year, $50,000 coupon bond with an annual rate of 5% compounded…

A: Solution:- Coupon rate of bond shows that how much coupon does the bond is paying to the bondholder,…

Q: The yield to maturity on 1-year zero-coupon bonds is currently 5.5%; the YTM on 2-year zeros The…

A: Bonds are referred to as debt instruments that are issued by the government or corporates to raise…

Q: real life examples of systematic and unsystematic risk

A: Systematic risk - Systematic risk refers to that risk that is inherent to a market segment or the…

Q: If we no longer use the federal deficit and debt as an excuse not to pass much needed policies and…

A: In finance federal deficit refers to that situation which the spending by the government exceeds its…

Q: The following amounts were taken from the financial statements of Sheffield Company:      2020…

A: Profit margin in percentage = (Net income /Net sales) ×100

Q: Ms. Jones deposited $400 at the end of each month for 20 years into a savings account earning 6%…

A: Solution: The total amount in the saving account after twentieth year is the sum of future value of…

Q: Todd Payne, the company’s operations manager, believes that the money should be used to expand the…

A: Net Present value Present value index

Q: Suppose you want to buy a $147,000 home. You found a bank that offers a 30-year loan at 3.3% APR.…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: A wealthy donor has given $400,000 to a university and specifies that it is to be used to give…

A: Here, Present value (P0)= $400,000 Interest rate (r) = 0.055 Number of years (N) = 25 years No. of…

Q: Galindo Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $178,848,…

A: Given: Cost of asset is $178,848 Cash in flows is $36,000 Years = 8

Employer Pension Plan

An employer pension plan is a retirement benefit provided by an employer to employees before or after they retire. Over the course of the employees' working lives, the employer should invest a lump sum or make monthly contributions to investment schemes in employees' names. It is the employer's legal responsibility to provide employees with retirement plans that support them with guaranteed financial security in retirement.