Suppose that the price of a Treasury bill with 85 days to maturity and a $25,000 face value is $24,500. What is the bond equivalent yield?

Q: Spot Forex quote: EUR/USD = 1.06. A friend from France has asked you to purchase a Bobcat baseball…

A: Spot exchange rate EUR/USD = 1.06 Purchase cost in USD = $21   Cost in EUR = ?     We will use…

Q: Construct a table showing the amortization of the loan.

A: Amortization: It is the process of paying the loan amount in periodic payments by the borrower to…

Q: Management of BIC Inc, is considering an expansion in the firm’s product line that requires the…

A: Solution: The decision whether the project should be undertaken or not depends upon the rate of…

Q: ABC Corporation acquired a call option for 5,000 pieces of P1,000-face value bonds of XYZ Corp. at a…

A: A call option is an option where the buyer of the option has the right but not the obligation to…

Q: XYZ Foods is considering producing a new candy, Tira-Tira. XYZ has spent two years and P450,000…

A: NPV or net present value  is defined as the sum of the present values of all future cash inflows…

Q: The Cookie Jar bakes 80 dozen cookies at a cost of $1.08 per dozen. If a markup of 60% on selling…

A: Solution:- We know, markup stands for the percentage margin added either on cost or sales price.

Q: a. Inflation is 3%, which is 1% above the target; output growth is 4%, which is 1% above potential.…

A: According to Taylor’s equation, the proper fund's rate is to be calculated by r=p+0.5y+0.5(p-2)+2…

Q: . Finance the farm manager's personal expenses,

A: Liability refers to a future obligation that a person or a company has to pay at a future date These…

Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: Loan: It refers to the amount of credit taken by the borrower from the lender. The borrower makes…

Q: What is the required return on common stock using CAPM? % Use the retention growth equation to…

A: Required Rate of Return: It represents the expected return on common stock from the investors. It…

Q: For the reader's advantage, provide a cost-benefit analysis of the project. How can the value of a…

A: An analysis is a systematic procedure used by businesses to determine which decisions to make and…

Q: elstra announces a major expansion into Internet services. This announcement causes the price of…

A: Call option gives opportunity to purchase stock on expiration but would be no obligations to do…

Q: 123. The major difference between the PLC model and the BCG's Product Portfolio approach is that: a)…

A: The BCG matrix, also known as the Boston or growth share matrix, was created by the Boston…

Q: If US national income declined while it remained stable in Japan, then US trade deficit with Japan…

A: When a country's imports exceed its exports over a given time period, it has a trade deficit.…

Q: O Low, more

A: Corporate tax refers to the tax rate charged on the profits of the corporation. These are paid on…

Q: For example, you are a portfolio manager, and you get to select your pick of clients (individual or…

A: As a portfolio manager, the pick would be individual investor and sub class would be HNWIs. HNWIs or…

Q: These statements are True or False? Please explain. 1. The role performed by banks in which thay…

A: A bank is a type of financial institution that can accept deposits and provide loans. Wealth…

Q: B. Which of the following will NOT affect a firm's beta? 1) the choice of the market portfolio…

A: Firm beta β:  In fundamental analysis, beta is a statistic used to estimate the volatility of an…

Q: You find a bond with 27 years until maturity that has a coupon rate of 9.0 percent and a yield to…

A: Given, The face value of bond is $1000 Coupon rate is 9% term is 27 years

Q: Additional Information: (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due to…

A: While preparing an income statement, we can use ratio analysis to find out the missing figures. For…

Q: Which project below would you consider acceptable? One whose IRR is greater than the MARR One whose…

A: Solution: Internal Rate of Return (IRR) is the rate of return which the project yields ie. the…

Q: Which of the following statements is true regarding business plans:     A.  A corporation is the…

A: Business plan is a documented strategy that sets out the basic idea underlying a business and its…

Q: Silahis Trading made investments in non-trading equity securities. The cumulative “Holding Gain or…

A: Answer -    Calculation of amount required to debit to other comprehensive income account at the end…

Q: 5.5. A corporation sold a piece of equipment during the current tax year for $78,600. The accounting…

A: Gain or loss on sale of an asset can be calculated by comparing the book value of the asset with the…

Q: In the fourth and final year of a project, XYZ expects operating cash flow after taxes of P440,000.…

A: The cash flow of the year is what is received after payment of all operating expenses and all…

Q: ABC bought a piece of land in a highly developing area for a purchase price of P4,000,000. Directly…

A: Purchase Price                  P 40,00,000.00 Cots Incurred Buying                    P…

Q: Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool.…

A: Working Note #1 Calculation of sales revenue: Sales revenue = No. of units sold * Selling price per…

Q: A P150,000 Loan bears an interest of 10% compounded quarterly. To be repaid thru installments at the…

A: Annuity due can be defined as a series of equal payments at equal intervals of time, with the…

Q: School fees at a certain school are due at the beginning of the year. The fees are set at R12000 for…

A: The answer for this question can be calculated in the light of time value of money. Time value of…

Q: Mr Dela Cruz deposited ₱18,980.00 from the project you’ve earned in a time deposit account with your…

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

Q: A 7 year property class asset was purchased for $115,000. The owner took depreciation charges using…

A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…

Q: tement.  True   False

A: Cash flow statement is statement of cash at any time of the company it shows how much cash is coming…

Q: VAN DER LINDE CORPORATION have been operating since 2011 and have not issued any new shares since…

A: Gross Profit ratio can be calculated as: = Gross Profit/ Net Sales * 100 and Cost of goods sold…

Q: “If markets are semistrong-form efficient, investors would only adopt passive investment strategies…

A: The Efficient Market Hypothesis (EMH) describes a stock market that is both operationally and…

Q: $3 DIVIDEND IN ONE YEAR, YOU EXPECTA DIVIDEND OF $2.10 IN TWO YEARS, YOU EXPECT TO RECEIVE A…

A: In order to calculate the amount to be paid for stock at the given required return on the stock and…

Q: Cash inflow from the project not cash flows

A: Solution:- Cash inflow each year from the project means the net flow of cash which we get each year…

Q: Assume that USD 1 is equal to JPY 98.56 and also equal to CAD 1.22. Based on this, the CROSS-RATE…

A: The Cross rate is the foreign rate that tells us the exchange rate between the two currencies,…

Q: Suppose you purchased a stock a year ago. Today, you receive a dividend of $12 and you sell the…

A: Buying Price = ( Selling Price + Dividend)/(1 + Return)

Q: Discuss different financing alternatives based on the processing industry and market using Private…

A: The US Small Business Administration defines it as “financial support from external sources other…

Q: School fees at a certain school are due at the beginning of the year. The fees are set at R12000 for…

A: The amount that have to be invested at the beginning of year 2018 is the sum of present value of…

Q: With i = 15% and n = 10, what is the uniform annual cost if initial cost is P25k and decrease of…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: School fees at a certain school are due at the beginning of the year. The fees are set at R12000 for…

A: This question can be answered in light of time value of money. The time value of money is a concept…

Q: Suppose the current 1-year discount rate on US government bonds is 3% and the 2- year rate is at 6%.…

A: The 1-year discount rate is 3% (S). The 2-year discount rate is 6% (F). The period is 2 years (n).

Q: Briefly explain the investment assumptions that are used to calculate the current yield and yield to…

A: Current Yield refers to returns earned during the year in the form of interest or dividend as a…

Q: A coupon bond pays annual interest, has a par value of R1,000, matures in 12 years, has a coupon…

A: Par value of the bond = R1,000 Maturity period (n) = 12 Years Coupon rate = 0.11 Annual coupon…

Q: Find the future value and the interest earned for each of the following compounding frequencies.

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Changes in stock prices are impossible to predict from public information.

A: The efficient market hypothesis refers to the market which is efficient and leaves no chance of…

Q: Although most financial statements forecasting models are structurally similar, they have to be…

A: Financial statements forecasting models are made in spreadsheets in which all relevant cells are…

Q: Suppose you require a 10% return on your investments while purchasing a stock tha ently trading at…

A: For a stock investment return on investment is the quantum of net profit or benefit or gain that…

Q: Which investment will help him reach his goal faster? Approximate the time that each investment will…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…