tax treatment of dividend income versus capital gains income affect the managers’ decisions to disburse cash via dividends versus stock repurchases

Q: Define the term financial ratio.

A: Financial ratio : Financial ratio used to determined the performance of business by comparing two…

Q: A corporate bond is currently quoted at a price of $1197.93 and carries a 10 percent annual coupon…

A: Bonds are debt instruments issued by companies. Bond pays periodic fixed coupon payments.

Q: 9. Which of the following statements is FALSE? A) A conclusion of the CAPM is that investors should…

A: CAPM assumes that all investors can buy and sell all securities at competitive market prices where…

Q: A stock that pays no dividends is worth So = 50 curos today. The risk-free interest rate with…

A: The binomial options pricing model is used to find the price of the option when there is no clarity…

Q: A loan of P47,300 is to be amortized by equal payments each month for 6 months . If interest is 12%…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t =…

A: Operating cash flow (OCF) refers to the amount of cash flow (CF) generated by the company during a…

Q: Finance 1.In the US Balance of Payments accounts, a sale of euros by the US treasury should be…

A: Balance of payment is the record of all international transactions i..e.,  payments and receipts,…

Q: An investor buys an 8% annual payment bond with 3 years to maturity. The bond has a…

A: The sensitivity of a bond's whole price (including accrued interest) to changes in the bond's…

Q: is this statement true or false? and why?  Requiring a relative short pay-back period for projects…

A: In this question, we would evaluate whether the below statement stands True or False.  Requiring a…

Q: 8. Assume that the CAPM is a good description of stock price returns. The market expected return is…

A: Solution:- Expected alpha of a stock means excess return of a stock over the market.

Q: How to calculate r value

A: The interest rate: The rate that is used to compute the simple or compound interest is known as the…

Q: 17.  Which of the following is an example of information intermediary?   Select one: a. Internal…

A: Individuals and groups who gather, analyze, and interpret data and report their results to others.…

Q: You are looking at an investment that will pay $1200 in 5 years if you invest $1000 today. What is…

A: Here, Investment Amount (PV) is $1,000 Accumulated Amount (FV) is $1,200 Time Period (n) is 5 years

Q: You purchase a washing machine and dryer for P750. You pay 20% down and agree to repay the balance…

A: The time value of money concept is applied in the case of the calculation of interest. Compounding…

Q: Organica Ltd. generates $350,000 cash flow each year. The cost of equity capital is 18% and the…

A: The question is related to the theories of Capital Structure. As per Modigliani and Miller…

Q: an investment has been made to an account at a simple interest rate of 12.122% and is expected to…

A: Here, Simple Interest rate (r) = 12.122% Total Interest = P 350,475 Time period (n) = 8 years and 5…

Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…

A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: Dylan contributed $700 at the end of every 3 months, for 4 years, into a Registered Retirement…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Be sure your inputs are set to the following: Plant Cost $4,000,000 year 0 Sales (units) 80,000 year…

A: First, we will calculate the cash flow after tax thereafter we will make the cash flow equal to the…

Q: A retail coffee company is planning to open 105 new coffee outlets that are expected to generate…

A: For the calculation of NPV of this expansion we will use the below formula   NPV of expansion =…

Q: The asset turnover measures how effectively a business is using its assets to generate sales O True…

A: Asset turnover = Net Sales/Total Assets

Q: if the simple discount rate is 20.041%. waht is the Future value of P 51,703 after 4 years and 8…

A: Future Value is calculated as: = Present Value * (1 + rate) ^ (number of years)

Q: Milton Industries expects free cash flows of $4 million each year. Milton's corporate tax rate is…

A: As per MM Approch the Value of firm is calculated with the help of following formula  1.…

Q: You graduate and receive a $3,000 cheque from your grandparents. You decide to save it toward a down…

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: Monroe Milk Company has a gross margin of 31.7% on net sales of $9,865,214 and total assets of…

A: Days sales outstanding is one of the calculation made in ratio analysis of the company. This is used…

Q: Explain why Fannie Mae and Freddie Mac are an example of moral hazard and based on that critically…

A: Fannie Mae and also Freddie Mac are defined as the moral hazard, which are backed by the home…

Q: The database is mentioned in the attachment: Ques) Draw a profit diagram for an investor in a call…

A: Call Options: Call options give an individual the right but not the obligation to purchase the…

Q: 8. An annuity of $5,000 payable every 3 months for 5 years is deferred for 2 years. If money is…

A: Amount of annuity is 5,000 Payment mode Quarterly Time period is 5 years Deferral period is 2 years…

Q: Calculating the geometric and arithmetic average rate of​ return) Marsh Inc. had the following​…

A: (a) Annual Rates of Return for each year Annual Rate of Return defines the amount earned during an…

Q: A manufacturing company is considering two types of industrial projects that require the same level…

A: Incremental IRR:  The incremental IRR, also well-known as the incremental internal rate of return,…

Q: Let's say we have two credit cards from two different people. The first user's credit card has an…

A: As per the given information, we have to calculate the amount owed more in a year by two users on…

Q: Carry out the PESTLE analysis for GERMANY.

A: PESTLE analysis is referred as the study of the key external factors like - political, economic,…

Q: Which one of the following would NOT result in incremental cash flows and thus should NOT be…

A: Incremental cash flow refers to the change in a project or a company’s cash flow due to a decision…

Q: The “Logistics and Transportation Star” Ltd is considering its alternative investments comprising…

A: Cost of Capital is 10% To Find: NPV IRR Payback period

Q: Find the yield to maturity on a semi-annual coupon bond with a face value of P 1,000, a coupon rate…

A: Yield to maturity is the expected annual yield earned when the bond is held till  maturity. It can…

Q: Why is the quick ratio considered by some to be a better measure of liquidity than the current…

A: The answer is option B. It leaves out the least liquid current asset from the numerator of the…

Q: Rachel has a $15,000, 36 month loan with an APR of 8.25%. a. What is the monthly payment? $

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: Is the following statement correct, wrong or partially correc? Why? "If the volatility of Stock A is…

A: This statement is CORRECT.

Q: Relion Insurance Solutions (RIS) borrowed from Farm Credit Services of America (FCSA) for their…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Stock XYZ is currently trading at $150. One-year futures contract price on XYZ is $152. XYZ is…

A: Arbitrage Free Valuation: It is the method  where financial instrument  or asset  is valued depend…

Q: Greater Findlay Development Consortium is preparing to open a new retail strip mall and have…

A: Discount rate is 12% To Find: NPV PI IRR

Q: The maintenance costs of a new boiler are estimated as follows: P 600 per year for the first 3…

A: As per question , we are provided : Future value of all maintenance = P20000 Compounding rate = 6%…

Q: Company BSM has total assets with a market value of $100 million financed by debt and equity. The…

A: Given: Face value of debt = $60 Million Risk free interest rate=5%

Q: Suppose Autodesk stock has a beta of 2.17​, whereas Costco stock has a beta of 0.71. If the​…

A: Autodesk beta = 2.17 Costco beta = 0.71 Risk free rate = 6% Market return = 11.5% Autodesk weight =…

Q: 5.  Which of the following technique is used to disclose a firm's's  financial performance and…

A: A firm has to disclose its financial performance and financial position as is required by law. This…

Q: PLS ANSWER ASAP The source of funds for capital investment, which would hold true for all…

A: Solution:- Minimum Acceptable Rate of Return (MARR) or cost of capital is the rate of return…

Q: company’s weighted average cost of capital.

A: The weighted average cost of capital is the average cost of attracting investors, whether bonds or…

Q: An organization has current assets of $365,725,000 and current liabilities of $131,339,000. Note:…

A: Question 10 a) Working capital=Current assets-Current…

Q: Starting next year you plan to deposit $1000 each year into an account earning 9.25% effective…

A: As per the given information: Deposits made each year - $1000  Effective annual return - 9.25%…

Q: Starting next month, I plan to invest $500 per month for 10 years to reach my goal of $100,000.…

A: The rate of interest is used in the calculation of the interest amount on the principal value. The…