Suppose you receive $10,000 and have an opportunity to earn a real rate of return of 10% (assume known and constant forever). Using the definition of income proposed by John Hicks, what is your annual sustainable income? In other words, what amount can you spend every year forever?   b) What is the present value of an annual payment of $10,000 forever, assuming a 5% real discount rate?   $9,523.80   $200,000

Q: Natalia , Oshane , Latoya and Shanice are being contradicted by Shavane , Gillian and Shienne to…

A:

Q: A company can buy one of five machines to increase its production. Considering that the useful life…

A: The IRR method is the method of finding out the profitability of the project by finding the…

Q: example

A: There are many organisation who employing an financial investment strategies to mitigate risk

Q: While buying a new car, Monica made a down payment of $900 and agreed to make month-end payments of…

A: Down payment (D) = $900 Month end payment (m) = $240 Monthly period of repayment (p) = 56 (i.e. 4…

Q: For the year ending December 31, 2017, sales for Company Y were $62.91 billion. Beginning January 1,…

A: As per the given information: Sales for Company Y ending December 31,2017 - $62.91 billionAmount…

Q: What is the present value of a constant perpetuity of $17 per year if the discount rate is 10…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

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: traditional debt and alternative financing instruments f

A: Entrepreneurs refer to a person who is establishing a business for taking financial risks and…

Q: Following is information on two alternative investment projects being considered by Tiger Company.…

A: The NPV method is used for measuring the profitability of a project by using the concept of the time…

Q: You determine in the marketplace that the average price for milk is R 14 per litre and that the…

A: The average price for milk = R 14 per litre Farmer gets = R 7 per litre Mark-up on cost = 20%

Q: FED

A: Monetary policy refers to the policy adopted by the authority of a nation whether the interest…

Q: Papermate Company is a supplier of office products. The company is e grow at a constant rate of 7%…

A: Value of company operations can be found as the present value of cash flow and present value of…

Q: Serbanika Limited has issued share capital of 2 million common shares, par value $1.00. The board of…

A: Ordinary shares = 2,000,000 Right issue =1:4 shares Cost of Issue = $50,000 Par value = $1 Issue…

Q: Marty Corp is issuing a perpetual bond today that will pay $100 per year starting in 3 years. If…

A: Given: Particulars Amount Amount paid $100 Years 3 Cost of capital 5%

Q: Calculate the amount of simple interest payable if a person borrowed $25 500 at a simple interest…

A: Simple interest is the method of calculating interest when the interest earned does not get…

Q: Harvey Gorman expects earnings of $92.5 million at the end of the year (at t=1) and to pay dividends…

A: Dividend discount model It is used to calculate the value of equity. The sum of the present value of…

Q: how all work to estimate your answer in the Excel tab for this and all related questions. With the…

A: NPV is a capital budgeting techniques which help in decision making on the basis of future cash…

Q: Suppose someone wants to accumulate $40,000 for a college fund over the next 15 years. Determine…

A: Given, The required amount is $40000. Term is 15 years

Q: principal balance at the end of the first year, prior to make the lump sum payment? b. By how much…

A: The amortization period refers to the time taken to pay off the full loan amount on the basis of…

Q: Your insurance policy has matured today. Your Insurance company offers two options: (a) 500000 today…

A: When cash flows occur at different points of time, they have to be brought to the same point of time…

Q: when a house is purchased there is extra costs. land transfer tax 0.9% mortgage loan insurance…

A: When house is purchased there are many costs involved that are to be paid by the purchaser of the…

Q: if you purchase a 13 year bond at 1300 that has a coupon rate of 6.5 what would your yield to…

A: Price of bond is 1300 Term to maturity is 13 years Coupon rate is 6.5%

Q: Show the answer on excel and how you did it: Puppet is evaluating two alternative, mutually…

A: Cash flows for both the options are tabulated below and the incremental Cash flows are computed Cash…

Q: Which one of the following is not resulted in capital formation? Mr. X buys the bonds of a company…

A: Capital formation is meaning is that the value of assets grow with the time and increase in value of…

Q: 6. Andy borrowed $800 from his father to purchase a mountain bike. Andy paid back $1,200 to his…

A: Given Amount borrowed $800 Amount paid back is $1200 Term is 5 years

Q: What is the net income from the following incor

A: Net Sales = Sales - Sales return = 12800 - 360 = 12440

Q: lem 9 The financial statement of mythical Reliance Inc. show that in 2012, its beginning inventory…

A: Inventory turnover tells us that how much is inventory have been rolled out during the year.…

Q: If a Company has 50% of its capital structure in debt with an interest rate of 5% and 50% in equity…

A: Weighted average cost of capital = After tax cost of debt * Weight of debt + Cost of equity * Weight…

Q: If the cost of a telecommunications share is $285.55, calculate the end of quarter dividends that it…

A: Cost of share (P0) = $285.55 Dividend rate = 0.055 Quarterly dividend rate (r) = 0.01375 (i.e. 0.055…

Q: grow under each of the following conditions. Do not round intermediate calculations. Round your…

A: *Answer:  Initial investment (I) = $350 Period = 5 years Interest rate = 6% or 0.06       Future…

Q: b) List TWO (2) basic classifications of the Malaysian financial system.

A: Financial system - It is comprised of a  set of institutions  like banks, insurance companies, and…

Q: Gordon growth growth rate for Kaskad? 23. Analysts are projecting that Halyk Bank will have earnings…

A: Price earning ratio is the ratio of market price of the share to the earnings per share of the…

Q: Explain how inflation impacts capital budgeting analysis.  Why do we care? How is NPV impacted if…

A: Nominal rate and inflation rate are related to each other through real rate as shown below. Nominal…

Q: 1) Suppose that you are given the following information Total population Working age population,…

A: Labour force participation rate   = Labour force / Working age population X 100 Given data in the…

Q: An analyst gathered daily stock returns for February 1 through March 31, calculated the Fama-French…

A: The Fama French 3 factor model is an asset pricing model that calculates an investment's expected…

Q: Keith deposits 10,000 into a bank account at time 0. The bank credits interest at an annual nominal…

A: Given: Principal = 10,000 Interest rate annual = i% Semi-annual rate = i%/2 For simplicity let us…

Q: You expect inflation next year to be 6%. If you buy a one-year bond with 4% yield to maturity, you…

A:

Q: Lucas opens a bank account with 10000 and lets it accumulate at an annual nominal interest rate of…

A: Here, Lucas: Deposit amount = 10,000 Annual nominal interest rate = 6% convertible monthly Danielle:…

Q: THE AMERICO OIL CO. CONSIDERING MAKING A BID FOR A SHALE OIL DEVELOPMENT CONTRACT TO BE AWARDED BY…

A: Decision tree is a technique used for analysing sequential decisions involving risk. The decision…

Q: O $418 922.48

A: Present value refers to the current value of an asset of the future stream of payments in a…

Q: a) Compute and interpret the following ratios of "MAYE HOT" Company Limited for each of the years.…

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

Q: CASE STUDY Mr. Ramon Kwong, a businessman, was looking into some business ventures wherein he could…

A: Data given: Description Venture A Venture B Revenue for  account services 750000 1200000…

Q: Ms. Callan, a citizen of the United States who resides in the country, wants to invest in a UK…

A: Investment in a foreign country is exposed to the foreign exchange rate risk that may reduce the…

Q: What is the final amount of $2696 payable every three months for 5 years and 9 months, if money is…

A: Here, Quarterly Payment is P2696 Time Period is 5 years and 9 months Time Period in Quarters  (n)…

Q: If the firm declares a 5 percent stock dividend, what will be the impact on the firm’s equity…

A: Information Provided: Common stock = $1,440,000 Contributed capital = 1,500,000 Retained earnings =…

Q: What is the contribution margin per unit? 8.2 What is the contribution margin ratio? 8.3 If sales…

A: Information Provided: Sales = $48,000 Variable expenses = $32,000 Contribution margin = $16,000…

Q: Pillows Incorporated was considering an investment in the following project: Required initial…

A: Initial Investment  $    10,30,000.00 Net annual after-tax cash inflow  $     1,73,000.00 Annual…

Q: Problems P 3-1 Corvallis Corporation owns 80% of the stock of Little Harrisburg, Inc. At December…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: AYAYAI Ltd. had earnings per share of $5 as of December 31, 2022, but paid no dividends. Earnings…

A: As per the given information: Earnings per share as of December 31, 2022 - $5 Growth per year for…

Q: Bisa is leasing a vehicle worth $20,000, with a down payment of $1000 and equal payments at the…

A: The concept of the time value of money states that the money earned earlier is more precious than…