The capital asset pricing model (CAPM) The constant–growth model Compute forward-looking expected return and risk Risk premiums

Q: Chupapi Inc. has a gross profit ratio of 16.67 % for the year 2020. If Chupapi Inc. has gross profit...

A: 2021 Gross profit = P1,090,000 Net sales = P6,000,000

Q: your required return is 7.32% how would adding ETFS with average annual returns that are expected to...

A: ETFs or exchange traded fund  is a pool of securities like bonds, stocks, commodities, etc. ETF or e...

Q: Which of the following losses can be considered as operational risk losses? a) A counterparty going ...

A: Operational risk is defined by the Bank for International Settlements (BIS) as the risk of loss caus...

Q: Machine M Machine N $ 25,000 5 years $3,000 $25,000 4 years $4,000 $11,000 $3,500 Initial Cost Estim...

A: Net present value is calculated to determine the profitability of the project. In case of different ...

Q: Marvin industries Inc. operates as a diversified software company worldwide. Its Digital Media segme...

A: AFN equation Additional fund needed (AFN) equation is mentioned below. AFN=A0S0×∆S-L0S0×∆S-M×S1×RRHe...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Given, Dividend next year is $4 Market price $500 Growth rate is 9%

Q: Identify the following if it is an example of COMMERCIAL BANK, THRIFT BANK, GOVERNMENT BANK, PRIVATE...

A: Banks is referred as the financial institution, which helps in accepting the deposits from public as...

Q: On January 1, 2013, Janet buys a bond for $10,000 that makes coupon payments of $600 after each of t...

A: Here, Coupon Payment is $600 Face Value of Bond is $10,000 Time to maturity remaining at Feb 1, 2014...

Q: Optival’s stock is currently trading at $60 per share with a historical volatility of 20%. The risk-...

A: Given: Particulars   Spot price $60.00 Standard deviation 20% Risk free rate 4% Exercise ...

Q: 2.Brian invests $15,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the...

A: Investment (PV) = $15500 Interest rate = 6% Semi annual rate (r) = 6%/2 = 3% Period = 2 Years Semi a...

Q: The present value of Rp100 million in three months is Rp97 million. Compute the simple interest rate...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...

A: In finance we often use the average collection period as one of the financial metrics.  This metric ...

Q: You got asked to analyze a 5-year project for your firm. The project produces an annual revenue of $...

A: Initial Investment  $  20,000.00 Annual revenue  $  28,500.00 Labor and materials cost  $    5,0...

Q: An investment has the following annual cash flow 1st year-Php50,000 2nd year- Php 65,000 3rd year- P...

A: NPV is the difference between present value all cash inflows and initial investment. NPV =pv of all ...

Q: What is the difference between a coupon rate, yield to maturity, and current yield? What is Fisher e...

A: Concept coupon rate, yield to maturity, and current yield All the above terms are associated with bo...

Q: Imagine you work for a company that uses gainsharing. Do you think you would like it? Why or why not...

A: Gainsharing is a management system that encourages employees to improve their performance by involvi...

Q: Leila takes out a loan for her college tuition from a bank that charges simple interest at an annual...

A: We need to use simple interest formula to calculate interest amount of loan. The formula is Simple i...

Q: Assume that a UK family visits Spain every summer. Last year, the hotel room where they stayed was p...

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...

Q: 5.11 At 10 pcrcent annual intercst rate, which of the following has the largest present valuc: u) $2...

A: As you have asked multiple questions, we will answer the first question for you. Please post questio...

Q: A car lease of $12613 is to be repaid by making payments at the beginning of each month for 3 years....

A: Car Lease Amount = $12613 Time Period = 3 Years Interest Rate = 3%

Q: 5. You are the proud parent of a baby girl. Youlestimate that the cost of her college education 18 y...

A: The concept of the time value of money states that the same amount is worth more today than in the f...

Q: What is the role of the Finance Manager of a company? What is their biggest value to a company? How ...

A: One of the most significant and difficult operations of a corporation is its financial activity. As ...

Q: рауm parents agree to lend her money at an annual rate of 5%, charged as sir interest. They lend her...

A: Simple interest is plain simple and there is no interest on interest and so there is no compounding ...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Cost of equity with constant growth rate in dividends forever With next year dividend (D1), current ...

Q: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an av...

A: Risk can be compared on the basis of coefficient of variation. Higher the coefficient of variation, ...

Q: 1.Find the total number of compounding periods and the interest rate per period for the investment. ...

A: Term = 9  Years Interest rate = 4% Number of compounding per year = 4  

Q: Developing countries can achieve higher productivity per unit of capital because they can use techno...

A: A developing nation is a sovereign state with a less developed economic base and a lower Human Devel...

Q: 4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% conve...

A: Here, Monthly Payment is $800 Interest Rate is 12% Compounding Period is Monthly i.e. 12 Interest on...

Q: You are planning to accumulate P2.5M in your personal savings account by the time you retires at 60....

A: Each year deposit earn the some portion of interest and it is compounded annually. 

Q: Keisha is taking out an amortized loan for s85,000 to open a small business and is deciding between ...

A: Data given: Loan amount = $85,000   a) n=10 years r=9.3% p.a. Required: Monthly payment.   b) n=8 ye...

Q: Consider a fixed-payment security that pays P100 at the end of every year for the three years. If th...

A: Per year payment = P = P100 Number of payments = N = 3  Discount rate = I = 10%

Q: Mick plans to start saving money for retirement. By taking 10% of monthly gross income. Mick is able...

A: We can use the concept of time value of money here. As per the concept of time value of money the wo...

Q: Identify methods for using and analysing working capital cycles

A: Working capital is the capital that a business needs and uses for the purpose of its day to day trad...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Capital Budgeting:  It is the planning process which  is undertaken by business to analyse  potentia...

Q: A Canadian company is considering the purchase of a $7000 machine for their shop. The machine belong...

A: Present worth is the sum total of all the present value of net cash outflows and inflows discounted ...

Q: What is the net asset value of an investment company with $9,600,000 in assets, $610,000 in current ...

A: The difference between the assets and liabilities is known as the net assets, net worth, or capital ...

Q: What is the price of the first bond (and the second bond) and Calculate j.

A: Bond valuation refers to a method which is used to compute the current value or present value (PV) o...

Q: ABD Co. manufactures textiles. ABD's manufacturing costs last year included the following salaries a...

A: The wages and salaries paid to the workers directly involved in the production are known as direct l...

Q: You want to create an endowment income of $35,000 per year for Oxfordshire Charity, bit the first pa...

A: The amount that should be invested today is the present value of all future endowment payments. Sinc...

Q: Tom Fong Music Inc., has an outstanding bond callable at $1,340. The total value of the bond is $100...

A: Bonds that can be called anytime before maturity are known as callable bonds. Yield to maturity is c...

Q: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each ...

A: Data given: Coupon payment = P 600  Maturity value = P 10,000 Rate = 6% t= 2 years New interest rate...

Q: The Colemans bought a s234,000 house. They made a down payment of $41,000 and took out a mortgage fo...

A: Mortgage:  A mortgage could be a contract between you and a lender that gives the lender the proper ...

Q: how much is in the account at the end of 45 years? (Round your answer to the nearest cent.)

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: Paul and Donna Kelsch are planning a Mediterranean cruise in 3 years and will need $6,500 for the tr...

A: We need to use future value of annuity formula to calculate quarterly payment PMT =FV*i(1+i)n -1 whe...

Q: At the end of one year, Angelique had $8,456 in her HSA. This year, she has used 75% of that amount ...

A: The savings amount which is specifically maintained by individually to meet their high healthcare de...

Q: Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage...

A: Housing expense ratio compares housing expense of a person, an individual or a family to its pre-tax...

Q: ABD Company's manufacturing overhead is 20% of its total conversion costs. If direct labor is PhP2,2...

A: Manufacturing overhead is referred as an indirect costs, which incurs at the time of production proc...

Q: You have RM9,000 that you plan to invest in a compound interest bearing instrument. Your investment ...

A: Amount to be invested is RM9,000 Case -1 Interest rate is 8% Compounded semi-annually Case-2  Intere...

Q: Identify methods for using and analysing working capital cycles ( max. 300 words )

A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...

Q: A $10,000 note with 6% interest payable quarterly is purchased for $8,000. The note matures in 5 yea...

A: Par value = $10,000 Coupon rate = 6% Quarterly coupon amount = 10000*0.06/4 = $150 Period = 5 Years ...

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.