The characteristics of customs brokers

Q: Verify the local analysis of the bond pricing equation nearr=β/α.

A: Introduction: The purpose of this analysis is to verify the local analysis of the bond pricing…

Q: Suppose a portfolio is given as follows: Securities Weight BPW CJW AJT O 6.0% O 5.0% 0.3 O 5.1% 0.4…

A: Expected return of the portfolio is calculated using following equation Expected return of portfolio…

Q: Next period a firm will be worth $56 with 10% probability, $98 with 55% probability, and $152…

A: An entity may acquire funds from various sources. The major sources are debt and equity. The mixture…

Q: Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of$120,000.…

A: In a typical loan amortization case, we need to first find the loan balance at the end of 20 years,…

Q: QUESTION 6 According to O'Reilly and Tushman, which of these best describes an ambidextrous…

A: Ambidextrous structure refers to the innovation leader that is helpful in displaying the…

Q: The Odessa Supply Company is considering obtaining a loan from a sales finance company secured by…

A: The annual financing cost is calculated by dividing the interest cost and the field warehouse fee by…

Q: What would happen to the values of the 12%, 15%, and 7% coupon bonds over time if the required…

A: Price of bond depends on coupon rate and yield to maturity  of bond and change with change in…

Q: On July 15, 2021, M.W. Morgan Distribution sold land for $49.2 million that it had purchased in 2016…

A: Answer   Cash flow from investment activities              Indirect method  Cash flow from…

Q: ratio is hig

A: But in the case of accelerated depreciation, the % of depreciation in the beginning years will be…

Q: Ratios that measure how efficiently a firm manages its assets and operations to generate net income…

A: concept. Turnover ratios are useful for evaluating efficiency with which a business utilizes its…

Q: A bond with 6 years remaining until maturity is currently trading for 97:50 per 100 of par Not yet…

A: We have a callable bond here that can be called for the first time at the end of year 4. We need to…

Q: A loan is amortized by level payments made at the end of each quarter, for 25 years: The monthly…

A: Amortization refers to the breakdown of loan payments into principal and interest portions. It…

Q: Stock X has a beta of 0.7 and Stock Y has a beta of 1.7. Which of the following statements must be…

A: CAPM would give the risk based required rate of return on the stock and quite used extensively to…

Q: (Dividend irrelevance of the timing of cash dividends) After more than 40 years of operation, the…

A: Dividend irrelevance theory describes the payment of dividends by the company should have no…

Q: You have a portfolio that is comprised of 40% of Stock A and 60% of Stock B. What is the variance of…

A: Solution: Given, Calculation of variance of portfolio  State of economy Probability (P) Return of…

Q: You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of…

A: Payback period is one of the simple capital budeting methods that are being used and it consider the…

Q: You are considering the following investment activity.  The facts are the following:…

A: Net Present Value  Net present value is the distinction between the worth of money now and when it…

Q: According to the Markowitz Model, the optimal portfolio for an investor is at the point of tangency…

A: An optimal  portfolio is one which has the highest utility. Measurement of utility-It can be…

Q: Stocks A and B have the following returns: (Click on the following icon in order to copy its…

A: Stocks are financial securities that provide returns in two ways 1. Capital appreciation 2.…

Q: On January 1, 2020, a bank have issued a 5-year term loan to a businessman. The following details of…

A: The time period of the loan is 5 years The interest rate per annum is 16% The repayment structure is…

Q: 4. Luxury Yacht company is preparing to buy a new yacht estimated to cost $750000 E equal payments…

A: The sinking funds are required to be maintained to accumulate the future liabilities and due to over…

Q: Question 2 (Consumption Capital Asset Pricing Model (CCAPM)) In the theory of CCAPM, aggregate…

A: The consumption capital asset pricing model (CCAPM) is an extension of the capital asset pricing…

Q: he Milton Company currently purchases an average of $18,000 per day in raw materials on credit terms…

A: When a company purchases goods on credit, the seller specifies the terms of payment on the invoice.…

Q: The following chart is published in a local government’s annual financial report.   Identify four…

A: A chart is given. We have to find four critical points here.

Q: Answer following statements: a) IRR and NPV always lead to same decision in mutually exclusive…

A: Net Present Value (NPV) is the sum of the present value of all expected cash inflows and outflows.…

Q: Which of the following statements is CORRECT?   Suppose the returns on two stocks are negatively…

A: Beta is a measure of systematic risk which can not be eliminated by diversification.

Q: Management of companies constantly have to manage dividend policy between the needs of the company…

A: The management of companies will be always looking for adequate management of the dividend policy…

Q: What is the value today of an investment that will pay $3,947.00 every six months for 27 years?…

A: The amount of the investment per six months is $3,947 The time period is 27 years The deferral…

Q: (Calculating project cash flows and NPV) Raymobile Motors is considering the purchase of a new…

A: Cost of Machine  $   -3,50,000.00 Training cost  $      -27,000.00 Installation cost  $…

Q: If an equal amount of risk is added to a portfolio moving along the Markowitz Efficient Frontier to…

A: A portfolio is a group of investments in which an investor has invested funds or money. A portfolio…

Q: A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8…

A:

Q: According to the CAPM, as the number of assets in a portfolio increases, the amount of unsystematic…

A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…

Q: AFN equation Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2019…

A: To maintain growth in sales there is need of additional investment and these additional investments…

Q: 0) (Annuity) Payments of $400 are to be made at the beginning of each quarter for 5 years orth 8%…

A: The future value of annuity is the amount accumulated over the time and amount of interest being…

Q: Titusville Petroleum Company is considering pledging its receivables to finance an increase in…

A: The question is related to Annual Financing Cost. The details of the same is given.

Q: PMF, Inc., can deduct interest expenses next year up to 30% of EBIT. This limit is equally likely to…

A: Interest tax shield Interest is tax deductible. Interest tax shield is the benefit that the interest…

Q: If fixed costs are a __________ percentage of __________, operating leverage is __________.   A.…

A: Solution:- Operating leverage means the use of fixed operating cost in the business.

Q: finish your engineering degree with $17,350 in student loans.  The interest rate on your loans is…

A: Loans are paid the monthly payments and these monthly payments are equal and fixed and these carry…

Q: 1.Complete the table below. TOTAL SALES P125, 000 b. P 185, 000 d. P1, 450,000 COMMISSION RATE 4.50%…

A: a. Calculate the commission as follows: Commission = Total sales * Commission rate Commission =…

Q: The management of ABC company are considering buying a new machine which would produce parts for a…

A: Machine A Initial cost  $65,000.00 Salvage Value  $  5,000.00 Cash sales  $24,000.00 Cash…

Q: A tourist boat was purchased by a local company 6 months ago for a price of KD 165,0000. The company…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: What is the advantage of using comparative statements for financial analysis rather than statements…

A: Comparative statements  Comparative statements are the financial statements over more than one…

Q: mino’s Pizza, Inc. (DPZ)’s return on equity (ROE) is closest to   A. 20.14%. B. 17.46%. C.…

A: Return on equity can be found by the Dupont equation by decomposition into three parts profit…

Q: A pension fund's liabilities has a PV01 of $200 million. The plan has $100 billion of assets with a…

A: 100 Billion

Q: go has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per…

A: Brokers gives the margin to the client so that they can purchase large amount of equity but there…

Q: A European call and a European put on a stock have the same strike price and time to maturity. At…

A: Call and Put Option: On the derivatives market, the two primary options are call option and put…

Q: The forward price of wheat for delivery in six month is $6.88 per bushel, while the spot price is…

A: We have the forward and spot prices. We need to find the implied repo rate.

Q: The clientele argument in dividend theory implies that: ● The stock of low-payout firms will be held…

A: Several statements have been given about the clientele argument. We have to find the correct one.

Q: If the Cost of Sales for Company Z is $912,500 for the 2019 year, and the Days Inventory Held is 25.…

A: Select financials are available. We have to find the value of the inventory at the end of the year.

Q: (IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction…

A: Initial Cash outlay is $7.4 million Cash flow at the end of year 1 is $3.3 million Cash flow at the…