Solve the following and draw the cash flow diagram From the given cash flow diagram, find the future value of the geometric gradient with unknown constant rate f at i = 0.111 compounded annually -rate of increase should be rounded of by 5 decimal places and final answer to 2 decimal places -the value in the graph is 5000 and 9900

Q: You decided to speculate in the market and sold 7 platinum futures contracts when the futures price…

A: Total profit or loss on settlement date = Number of contracts*Contract size*(Futures selling price -…

Q: 11. The following companies have different financial statistics. Growth rate in sales and earnings…

A: Growth rate and cash as % of total assets, have been provided for two firms. Appropriate dividend…

Q: You are looking to buy a car. You can afford $340 in monthly payments for five years. In addition to…

A: Monthly Installment is that which is paid by the borrower to lendor every month for taking the loan…

Q: Bill started saving for his retirement when he was 37. Each month he depo $100.00 into an annuity…

A: Future value of amount includes the amount being that is deposited and amount of compounded interest…

Q: A couple plans to save for their child's college education. What principle must be deposited by the…

A: The concept of time value of money will be used here. Money invested in an account grows due to the…

Q: Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $5 per…

A: The value of a share of common stock is equal to the present value of all future cash flows…

Q: A couple plans to save for their child's college education. What principle must be deposited by the…

A: Amount required (FV) = $39,000 Quarterly interest rate (r) = 0.0175 (0.07 / 4) Quarterly period (n)…

Q: Fleetwood Mac (FM) uses only debt and equity in its capital structure. The value of FM's debt is…

A: Weighted Average Cost of Capital (WACC) is the weighted average cost of various sources of finance…

Q: Risk-adjusted rates of return using CAPM Centennial Catering, Inc., is considering two mutually…

A: Risk adjusted rate = Rf + beta × ( Rm - Rf) Risk adjusted rate ( Project X ) = 7.40% + 1.19 × (…

Q: (Payback and discounted payback period calculations) The Bar-None Manufacturing Co manufactures…

A: Payback period is the time required to recover original investment.

Q: Suppose there is a commodity in which the expected future spot price is $60. To induce investors to…

A: Investors and traders can also utilise futures contracts to make predictions about the future price…

Q: Calculate the missing information for the stock. (Round current yield to the nearest tenth of a…

A: Earning per share = EPS = $6.49 Annual Dividend = d = $1.30 Current price per share = p = $58.41

Q: You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a…

A: Here, Particulars Values Purchase price of land  $54,000 Time period (in years) 10.00…

Q: Samsun company operates with two divisions, sam and sun. The results of the operations last year…

A: Divisional income statements are prepared to review and analyse segment performance. Segment margin…

Q: The following data were taken from a company’s latest financial statements: Annual sales $2,433,332…

A: Payables deferral period means number of days in which payment for accounts payable will be made.…

Q: Muna, Mulemba and Mutinta are lawyers and want to start a business in their field of study. Explain…

A: Muna, Mulemba, and Mutinta will need to adhere to a particular procedure and acquire particular…

Q: The estimated sales volume of Product A is 30 000 units for July 2023 and 50 000 units for August…

A: Sales budget is that budget which shows estimated sales revenue for the business along with expected…

Q: 5a. Consider the data in the table below. The inflation rate is 6% and the before-tax market…

A: Real interest rate refers to the rate that defines the preference on the basis of time for the…

Q: Albemarle is trying to choose between the following two mutually exclusive design projects: Cash…

A: Two projects with their year wise cash flows have ben provided. The capital budgeting parameter…

Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner…

A: Scanner costs = $3,500,000 Lease amount = $1,025,000 Borrowing rate = 7.5% Tax = 34%

Q: 6. Consider the decision tree below. Find its expected NPV. The cost of capital is 9.0%. Year a. b.…

A: A capital budgeting project has probabilistic cash flows. The quantum and timing of cash flows…

Q: Lotsa Lenses pays a dividend of $1.17 last year and plans a dividend growth rate of 3.40%…

A: Given, Last paid Dividend D0 = $1.17 Growth rate g = 3.4% Current price of stock P0 = $13.94

Q: If a firm earns $375 billion in profits for the year and they retain $218 billion, what is the…

A: Profit = $375 billion Retained = $218 billion   Retention rate = ? Dividend payout rate = ?   After…

Q: There are two alternatives for the place where a factory will be constructed. For the 1st…

A: While evaluating capital projects, least common multiple approach is used if the useful life of…

Q: You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The…

A: Initial Cost = $1000 WACC = r = 10%

Q: 3. Suppose a $1,000 EOY loan payment was made today for money that was borrowed in 2021 (two years…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Finanace Filer Manufacturing has 8,104,146 shares of common stock outstanding. The current share…

A: P0= Current share price = $65.08 D0= Current dividend= $1 g=Growth rate= 0.03 Required:  Filer's…

Q: In a financial market a stock is traded with a current price of 50. Next period the price of the…

A: An option is a type of financial instrument that is based on the value of underlying securities,…

Q: Question 1 The payback period is often used to make capital budgeting decisions because it is…

A: Payback period is a capital budgeting technique which is used to determine number of years in which…

Q: Complete the first three lines of an amortization schedule for the following loan. Assume monthly…

A: Loan amount = $3,000 Interest rate = 18% Period = 18 months or 1.5 years

Q: You deposit $3375 today in a savings account that pays 6.25% interest, compounded annually. How much…

A: The value at the end of 26 year is calculated as the future value using following equation Future…

Q: aura’s grandparents helped her purchase a small business to make extra money during her five college…

A: A set of cash flows that happen at various dates are considered to have a net present value or net…

Q: A man deposits $10,000 at the beginning of each year for 15 years in an account paying 6% compounded…

A: It is important for investors to carefully consider their investment options and seek advice from a…

Q: For each year from 2014 to 2017, determine the annual inflation rate in percent to two decimal…

A: Annual inflation rate = ((CPI index value in the current year - CPI Index value in the previous…

Q: ment for $55,000 with payments due at the end of the following questions. (Hint: See Table 19-1.)…

A: a. The initial lease liability is calculated as the present value of the lease payments, which is…

Q: Assume that you are a consultant to Broske Inc., and you have been provided with the following data:…

A: Next dividend (D1) = $0.67 Current market price (P0) = $42.50 Growth rate (g) = 0.08   Cost of…

Q: in 2000, the value of the consumer price index was 171.20 and the price of gasoline (per gallon) was…

A: Inflation is the rate at which the prices change. It is the rate of increase in the prices of the…

Q: PA11-1 (Algo) Calculating Accounting Rate of Return, Payback Period, Net Present Value, Estimating…

A: The payback period represents the period in which the project will recover the cost of the initial…

Q: Suppose Olivia has $6,660 in credit card debt on the VB credit card which has annual interest rate…

A: A credit card outstanding is subjected to annual interest rate of 18.2% on the first card, and 0% on…

Q: Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at…

A:

Q: Cunningham Company has a bond issue of $1000 par value bonds with a 6% annual couponinterest rate.…

A: Here, Particulars Values Par value (FV)  $1,000.00 Coupon rate 6.00% Time to maturity…

Q: The firm gets 100% of its capital from common stock. The equity holder’s required rate of return is…

A: A set of cash flows that happen at various dates are considered to have a net present value. The…

Q: Question 3 You are the treasurer of a mid-cap company and you are analyzing two equity opportunities…

A: To evaluate which investment to choose, we can use the net present value (NPV) method to determine…

Q: K- Decision analysis. After careful testing and analysis, an oil company is considering drilling in…

A: Expected return is that amount which is earned by investor from the project. It is not the fixed…

Q: 2. Brad has 100/300 Bl liability insurance. He loses control of his car and injures 22 children in a…

A: In many countries several insurance company given insurance coverage on the basis of 15/25 , 100/300…

Q: There are four bonds, each with $1,000 face value and 10 years to maturity.  Bond A has a 5% coupon,…

A: There are four bond with same face value and years to maturity. They have different coupon rates.…

Q: Occam Industrial Machines issued 188,000 zero coupon bonds 8 years ago. The bonds originally had 30…

A: Compound = semiannually = 2 Number of bonds = n = 188,000 Time = t = (30 - 8) * 2 = 44 Yield to…

Q: The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28…

A: Current Asset - Current assets are the assets  Which are expected to be realize or converted into…

Q: 1. The average daily balance for Maggie Mae's last credit card statement was $1,634.28, and she had…

A: Monthly interest rate refers to the rate to be charged on the outstanding balance every month until…

Q: Explore what happens when you make a payment to your credit card at a different time. You will use…

A: Here, Balance of Credit Card on May 12 is $378.50 Charge on 13th May is $129.79 Payment on 15th May…