= sinking fund formula, calculate the

Q: Motorhed Inc is currently trading at $8 per share with 2.5 billion shares on issue. It announces a 2...

A: Current price -$8 No of shares – 2.5 billion Total value of shares = 2.5*8 = $20 billion   Right iss...

Q: Compute the unlevered beta corrected for cash for each firm. B. Using the unlevered beta corrected ...

A: Unlevered beta  It is the value of firm's beta without getting the impact of debt while levered beta...

Q: The following table summarizes the prices of various default-free zero-coupon bonds (expressed as a ...

A: Here,

Q: To be able to take her dream vacation, Maya decides to save for 4 years. She opens a savings account...

A: We need to use simple interest formula to calculate simple interest Simple interest =Principal*Rate*...

Q: Required: Calculate the quick ratio in each of the above cases and select the case which is in the b...

A: Quick Ratio: It is a measure of the firm's short-term liquidity and shows the ability of the firm t...

Q: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year ...

A: Honor Code: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answ...

Q: The effective cost of the preference share is closest to * a. 8.40% b. 7.50% c. 9.40% d. 5.88%

A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in...

Q: A man has purchased a new automobile. He wishes to set aside enough money in a bank account to pay t...

A: When a number of equal payments are made at equal intervals, it is called annuity. If the payments a...

Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return...

A: Capital structure decisions refer to the arrangement and combination of sources of funds required to...

Q: Please explain why this is the formula. Problem to this solution: Suppose the yield on a 10-year T-...

A: MRP stands for Maturity Risk Premium. It is the extra returns required by the investors for keeping ...

Q: The financial breakeven point of Soil Inc. is P90,000, while the tax rate applicable to the company ...

A: At financial breakeven point, EBIT level is such that net income is zero. EBIT = P 90000 Tax rate = ...

Q: * Erika Lagliva borrows 35,000 to be repaid for 9 years. (1) Find the total annual cost under the fo...

A: Loan Repayment: A loan once taken can be  repaid either by  making constant periodic payments throu...

Q: Use the compound interest formula to compute the balance in the following account after the stated p...

A: We need to use compound interest formula to calculate balance in the account after 14 years A =P(1+i...

Q: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the...

A: Given Forward dividend = $2.08 1T Target Est = $105.28 Required return = 11.5%  

Q: cost of capital f

A: The current cost of capital refers to the amount of return which company required in order to achiev...

Q: Analyse the Assets-to-equity ratio of 1.87 in 2019 and 1.67 in 2020

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...

Q: IRRs

A: IRR stands for internal rate of return is a process of computing the percentage of return over inves...

Q: Bob has been investing $4,000 in stock at the end of every year for the past 8 years. If the account...

A: Future value of an annuity is calculated by multiplying the regular payment by Annuity factor which ...

Q: Perform the calculation for each ratio, and provide an explanation of the result. a. Return on equi...

A: Given: Particulars Amount Net income -$522,000 Accounts receivables $300,000 Current assets...

Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was purc...

A: Par value (FV) = $14,500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 = $420.5...

Q: What is the equivalent simple interest (yield) for an investment of 8 % compounded quarterly? Round ...

A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of intere...

Q: Stock Shares Stock Price $94 8,000 33,000 C 4,600 80,500 81 12 If there are 54,000 shares of the mut...

A: Here,  

Q: A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted b...

A: The discounted value of future cash flows equals the present value of money. The temporal value comp...

Q: Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has id...

A: Payback period is the period up to which initial cost of the investment is recovered. It is calculat...

Q: ared borrowed Charging 3.6 070 cONpornded Monthly interest.

A: Loans are paid by equal monthly payments that carry the payment of principal amount and payment of i...

Q: stock. The required return on this stock is 13 percent. What will your capital gain and capital gain...

A: The capital gain is the increase in price of stock due to the dividend and dividend growth rate and ...

Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years fo...

A: The required return on the stock represents the total return earned on the stock. This return is con...

Q: The real risk-free rate (r*) is 2.8% and is expected to remain constant. Inflation is expected to be...

A: Given: Real risk free rate = 2.8% Inflation rate for 3 years = 7% Inflation after 3 years = 6% Liqui...

Q: The CFO of the company believes that an appropriate annual interest rate on this investment is 6.5%....

A: An annuity is usually a series of even cash flows. There can also be cases of a growing annuity in w...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Formula's Calculations:

Q: firm considering the installation of an automatic data processing unit to handle some of its account...

A: The equipment can be purchased by cash payment but may be leased also by payment of lease which give...

Q: (b) A trader buys one May2022 futures contracts on frozen orange juice. Each contract is for the del...

A: Margin call is made in a situation where due to change in market price, the margin balance falls bel...

Q: Frank plans to set aside money for his young daughter's college tuition. He will deposit money in an...

A: This is a case of ordinary annuity. It means that deposits are being made at the end of the relevant...

Q: 9% b. 20% c. 26% d. 22

A: IRR is a rate at which present value of cash inflows is equal to present value of cashoutflows.

Q: Kevin is 25 years old and just finished taking a Personal Finance class.  He wants to start a invest...

A: 7a) Future value needed (F) = $1000000 Years to accumulate (n) = 30 r = 12% per annum Let the one in...

Q: 6. I plan to borrow $350,000 from a bank to buy an apartment. The interest rate is a nominal 4% comp...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...

Q: What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year? Ass...

A: Amount payable at the end of each year is $2,000 Interest rate is 10% compounded quaterly Quaterly r...

Q: On January 1, Year 1, you are considering the purchase of Niko Enterprises' common stock. Based on y...

A: The purchase price can be found using the Gordon Model. As per Gordon Model, the price of stock toda...

Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price ...

A: Par value = $1000 Coupon rate = 6% Coupon amount = 1000*0.06 = $60 Years to maturity = 24 Years Pric...

Q: Regarding cumulative preferred share dividend payments by corporations, which of the following is ty...

A: Cumulative preferred share dividends can be defined as those dividends paid to preference shareholde...

Q: We understand that the market will be inefficient at times, and we can try to beat the market by loo...

A: Dividends are the distribution of a portion of a company's earnings to its shareholder class, as det...

Q: On January 1, Year 1, you are considering the purchase of Nico Enterprises' common stock. Based on y...

A: Current value of common stock can be calculated as the summation of present value of dividend paymen...

Q: Bond Price Bond Par Value 1,000 Coupon rate Yield to Maturity 5% 7% Term in Years 7 Bond Price Bond ...

A: We need to use PV formula in excel to calculate bond price and RATE function to calculate YTM.   For...

Q: active fund management and passive fund management,

A: Managed fund refers to the situation in which investment is pooled together with other investors for...

Q: Consider the following investment options. Option 1: invest $5000 for 7 years at 10% compound annual...

A: FV= PV*(1+r)^n   Where, FV= Future Value PV = Present Value r = Interest rate n= time pe...

Q: cost of debt is determined by taking the present value of the interest payments and principal times ...

A: Cost of capital refers to the rate of return which is required by the company in order to achieve th...

Q: Discuss three key characteristics of active fund management and three of passive fund management, fo...

A: Fund management refers to management of funds in such a manner that the funds provide the highest po...

Q: Return on equity b. Total assets turnover c. Return on assets

A:   “Since you have posted a question with multiple sub-parts, we will solve the first three subparts ...

Q: William's student loan of $24,500 at 3.22% compounded quarterly was amortized over 6 years with paym...

A: The present value of loan is equal to the sum of the present values of all future monthly installmen...