Suppose you invest $8,000 in a mutual fund in one year and $9,500 in two years. If the fund pays 7% annual interest, how much will you have in three years? How much will you have in 7 years if you make no further deposits?

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Semiannual interest rate (r) = 0.06 (i.e. 0.12 / 2) Number of deposits (n) = 20 Semiannual period…

Q: Total assets of 689400. Long term debit of 198375, total equity of 364.182, net fixed assets of…

A: Current Ratio: The current ratio contrasts the total current assets and liabilities of a business.…

Q: why are Overconfidence and cognitive bias, Representatives heuristic, loss aversion, herding bias,…

A: Behavioral finance is that area of finance which deals with the influence of psychology and the…

Q: Little Lemon Co. is identifying the value of its equity using the enterprise value approach as they…

A: Enterprise Value: The enterprise value of a company is the market value of a company's operations.…

Q: A portfolio invests in 35% in a stock S1 and the rest in another stock S2. The expected return and…

A: Portfolio refers to a combination or collection of financial instruments or securities stocks,…

Q: If an investor buys 1,000 shares at $50 and the initial margin is 60% and the maintenance margin is…

A: Initial margin is the margin amount the investor pays up at the initial stage of the share purchase.…

Q: A company is considering an investment with the Bollars. The general inflation rate (7) during this…

A: The cash flows are in constant dollars. Constant dollars means that the dollar (or the cash flow)…

Q: ently, the spot exchang annum in the U.S. and 5.84% per annum in the U.K. Assume that you can bor e…

A: Arbitrage risk less profit available due to the mispricing in the two market and it is short term…

Q: 6. Find the monthly amortization for a loan of Mr. Frederick Dizon amounting to P750,000 to be paid…

A: a. Periodical rate of interest: Since the loans will be paid off in EMIs, the monthly interest rate…

Q: A new tablet computer from the R&D department will earn $20,000 in revenue in one year, which will…

A: A typical capital budgeting project is there. We need the quantum and timing of cash inflows. We…

Q: Analyze the financials for Wal-Mart and its competitor(s) in the online market in 2012 and 2016.…

A: Analysis of top line growth: Description                         Walmart…

Q: Brown Mack Ltd currently has two large manufacturing divisions that share a single plant. Brown Mack…

A: Overheads are the indirect expenses that are incurred in the business. They are allocated on…

Q: A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The…

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: A man wishes to have P10,000.00 when he retires 20 years from now. If he can expect to receive 4%…

A: Information Provided: Interest rate = 4% Future value = 10,000 Total number of annual payments = 20…

Q: Explain why the return associated with an investment includes both the income paid by the issuer and…

A: An investment is a possession or thing bought with the intention of making money or appreciating in…

Q: A company would like to have $400,000 in 6 years. How much should be invested semiannually into an…

A: Information Provided: Future value = $400,000 Period = 6 years Interest rate = 3.6% compounded…

Q: Marginal Incorporated (MI) has determined that its after-tax cost of debt is 9.0%. Its cost of…

A: A firm will have to switch from the internal accruals to external equity if the internal accruals…

Q: Using margin, a trader bought 100 shares of a $150 stock. The initial margin was 35 percent and the…

A: Number shares = 100 Stock price = $150 Initial margin = 35% Price after drop = $125

Q: You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You…

A: Amount of mortgage is $480,000 Time period is 16 years APR is of 2.5% Compounded semi annually To…

Q: What is the Current Yield of a Bond selling at $897 and has a Coupon Rate of 5%?     5.57%…

A: Solution:- Current Yield means the percentage of coupon amount to the current market price of bond.…

Q: If a certain stock sells for 626.659 dollars on the NYSE, how much will it sell for, in dollars, on…

A: 1) If a Stock trades at more than one stock exchange, then the price at all the stock exchanges will…

Q: Eliza in the middle of analyzing of her portfolio of Brex stock and Columbus stock. Brex Bhd. has…

A: A portfolio that is created with the ideal ratio of risk to return is said to be optimum. The best…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest K700 a…

A:

Q: Jane wants to have $200,000 in an account in 20 years. If her account earns 11 percent per annum…

A: In this case we are provided with the future value amount and we have to compute the periodic saving…

Q: An abnormal return occurs:   Only when the actual return is lower than the expected return. Only…

A: A market is said to be efficient, if intrinsic Value of the Security is equal to Market price of the…

Q: Assume that expected rates of inflation over the next 5 years are 4 percent, 7 percent, 10 percent,…

A: Average inflation rate = ((1+i1)*(1+i2)*(1+i3)*(1+i4)*(1+i5))1/n-1 Where i1 = Inflation rate year 1…

Q: Draw the Cash Flow Diagram for your car (or on of your family member's car). Assume the following:…

A: It indicates that core operations are bringing in revenue and that there is sufficient cash on hand…

Q: Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if…

A: Amount = P500 Time Period = 4 Years Nominal Rate = 5% Compounded Continuously Rate = 5%

Q: ireRock Wheel Corp is evaluating a project in which there is a 40 per cent probability of revenues…

A: Expected revenue = (0.40 * $ 3 million) + (0.60 * $ 1 million) = 1.2 million + 0.6 million = 1.8…

Q: Lassiter Industries has annual sales of $220,000 with 12,000 shares of stock outstanding. The firm…

A: Price earning Ratio - In simple words we can say how much money investor pay for the stock to earn…

Q: Which of the following efficient market hypotheses assumes that all information is cost free and…

A: A market is Considered as efficient if: Intrinsic Value= Market Price Or A price of security fully…

Q: An $9,000 note dated 06/22/2020, matures on 12/22/2020 at 8.15%.  (Banker’s Rule) In how many days…

A: As per the banker rules the Interest is paid from the date of notes issued to the date of…

Q: Suppose that 10-month interest rates in Canada and Europe are 3.2% and 1.3%, respectively. In…

A: We have to decide on the arbitrage action for the euro. Spot rate and interest rates are available.…

Q: You had a balance of $2,100 last month after your payment on your credit card. You charged one pair…

A: Adjusted balance method: Total Balance due    = Beginning balance - Payments paid  + Monthly…

Q: Pepa Madrigal has operated a very successful bakery for 30 years, and has accumulated investment…

A: The word "income tax" refers to a category of tax that governments levy on revenue produced by…

Q: Which of the following statements is correct? Financial institutions perform complex asset…

A: Asset transformation-It is a process of transforming bank liabilities, usually mobilized funds like…

Q: A firm has contracted to supply 500,000 gallons of propane fuel for​ $1.49 million to the local…

A: Given,  Number of gallons supplied are 500,000 Total price is $1.49 million

Q: A firm deposits some funds in a special account at 4.8% compounded monthly. What effective rate will…

A: The effective interest rate is the rate that is provided after the effects of compounding are taken…

Q: The 2017 balance sheet of Dream, Inc., showed current assets of $1,320 and current liabilities of…

A: Here, To Find: Change in net working capital =?

Q: Suppose you made a 90-day investment with a maturity value of $18,000. Find the present value of the…

A: The maturity value is the future value. We need to determine the present value of this. For that we…

Q: Given the following information, compute accounts receivable turnover: Gross sales…

A: Gross sales = $150000 Net sales = $135000 Opening accounts receivable = $18,000 Ending accounts…

Q: ou have been asked by the president of your company to evaluate the proposed acquisition of a new…

A: Operating Cash Flow: The net amount of cash that a company generates from its operating activities…

Q: If debt creates additional expense without enough benefit through cost savings, income or capital…

A: We know that Debt is the cheaper source of finance, because in income tax interest on debts is…

Q: warning signs associated with development of problem loan

A: Problem loan means lender is not able to recover the principal and interest from borrower & is…

Q: Which of the following change in regulations is most likely to improve internal market efficiency…

A: Market is considered as efficient only if: Intrinsic Value = Stock price Stock prices fully relects…

Q: The higher the firm's tax rate, the lower the firm's after-tax cost of debt and WACC will be (other…

A: WACC depends the cost of debt and cost of equity and their weight in the capital structure of the…

Q: Critically evaluate how hearding  influences investment decision-making.

A: Herding behaviour will be reflective of behavioural bias in which the market participants are…

Q: Determine how much is her maximum loanable amount using the Fixed obligation to income ratio. Show…

A: First let us list the formula to calculate the Fixed Obligation to Income Ratio.FOIR = Loan…

Q: You have just purchased a car and taken out a $42,000 loan. The loan has a five-year term with…

A: Given Loan taken is $42000 term of loan is 5 years APR is 6.4%

Q: Behavioral finance is an area of study focused on how psychological influences can affect market…

A: We have to discuss about behavioral finance here and how psychological influences can affect market…