The company’s usage of the Baumol model in cash management involves trade-off. A decrease in the optimal transaction size would more likely result from     Decrease of debt to asset ratio Increase of return on marketable securities None of the choices is correct Increase in the annual demand for cash

Q: SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.6...

A:

Q: e has its choice between long-term debt and eq

A: In business we need finance but there are different method of finance each method have cost and adva...

Q: ensure adequate liquidity

A:   Adequate liquidity refers to the sufficient amount that a business should have to meet its liabili...

Q: Suppose that money can be invested at 10% compounded annually. Accumulate ? 5,000 for 10 years ; Dis...

A: Present Value refers to the value of cash flows today which is to be received at some future time gi...

Q: must she

A: An installment that is paid on monthly basis is called PMT. A fixed amount of interest is to be char...

Q: How many years will be required for a given sum of money to be 8 times the principal amount, if it i...

A: Let Present value be $100 So, future value will be = $100 * 8 = $800 Rate = 7.80%

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

A: Given: Cost of machine = $80 Million Working capital = $20 Million Tax rate = 30%

Q: How can effective APR differ from nominal interest? A. Effective APR takes loan fees into account, w...

A: Nominal interest rate is the stated interest rate on a loan. It is the interest rate which does not ...

Q: Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2...

A: Year Cash flow 0 -34000 1 13600 2 18100 3 11000

Q: Fill in the blank with the correct answer. ( Simple Interest) Amount/Maturity Principal Interest Rat...

A: You have asked to answer row 3.   Concept :- In simple interest , no compounding of interest is done...

Q: Find the amount (in $) of interest and the maturity value of the loans. Use the formula  MV = P + I...

A: Given, The Principal value is $145000 Rate is 15 1/2% Time period is 5 months  

Q: Compute the principal (in $) for the loan. Use ordinary interest when time is stated in days. Princi...

A: Data given: Rate = 7% Time= 112 years = 32years Interest = $ 735   Required:: Principal (in $)   For...

Q: in the main characteristics of variable coupon and index-linked bonds. Discuss how they help to off-...

A: Step 1 An index-linked bond's payout of investment profits is tied to a certain price index, most of...

Q: O s28 million O $12 million O Zero

A: Cost of acquisition is the amount paid above the value of company.

Q: The option is currently a.) In-the-money b.) At-the-money c.) Out-the-money 2.) In/At/Out- the m...

A: For a put option if the Strike price is more than the underlying or current stock price then the put...

Q: Mr. Daniel also ask you to evaluate the potential of developing several hundred stores into new stor...

A: Since question involves multiple sub parts , We will answer 1st sub 3 parts for you as per prescribe...

Q: Investment Proposals for Orio Coffee House Daniel Jackson, CEO of OCH, has approached you to work o...

A: Net Present Value: It is the difference between the the present value of cash outflows and present v...

Q: Given a mortgage of $48,000 for 15 years with a rate of 11%, what are the total finance charges?

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its financia...

Q: Suppose portfolio mean return is 25% and standard deviation 30%. Find the 2 standard deviation range...

A: We will find out the value of  5% VaR and will check whether it is below -30% or above.

Q: If the interest rate is 9 percent compounded monthly, what is the value today of each option?

A: Present Value: It represents the present worth of the future sum of the amount or future annuity ca...

Q: A management is faced with the problem of choosing one of three products for manufacturing. The pote...

A: Solution:- Decision regarding choice of product should be on the basis of expected value. The produc...

Q: The following alternatives are mutually exclusive.Which one should be selected if MARR is 12% per ye...

A: MARR = 12% Time Period = 5 Years

Q: A home worth $ 1,000,000.00 will have a 70% loan at an annual mortgage rate of 8%, with the remainin...

A: Concept :- Cash on cash return It is a rate of return which calculates cash income earned on cash in...

Q: 37) In Walker's taxonomy identification with a company's annual financial results affecting all empl...

A: AS per Walker'sTaxanomy, the company's financial results of the company affects the Team incentives....

Q: A proposed relaxation of credit standards of Bulldogs Inc. will increase the balance of accounts rec...

A: Solution:- Average collection period means the average days to recover money from debtors. We know, ...

Q: A stock has had the following year-end prices and dividends:   Year Price Dividend 1 $ 65.13   —   2...

A: Investment means engaging your funds to generate income in the future. Stock is one of the alternati...

Q: Inc. currently fills mail orders from all over the country and receipts were received in its head of...

A: Answer -  Calculate the net reduction in A/R:Current A/R = $2,500,000. New A/R with 20% reduction:$2...

Q: A 10-year, 12% semiannual coupon bond with a par value of $1,000 may be called in 4 years at a call ...

A: Given, The face value of bond is $1000 Coupon rate is 12% paid semi annually Time to maturity is 10 ...

Q: 23. A company is considering two mutually exclusive projects. Both require an initial cash outlay of...

A: The NPV(net present value) and IRR are the values determined for comparing the available projects fo...

Q: Reddie, Mcdonald & Griffiths Inc. has a risk-free rate of 5% and a market risk premium of 8%. The co...

A: Given, Two investments X and Y The risk free rate is 5% and market risk premium is 8%.

Q: Based on SME’s financial statements, what is its average collection period or DSO

A: Receivables days means the average number of days a company takes to collect receivables from its cr...

Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two ...

A: We need to calculate present value of both options by using present value of ordinary annuity formul...

Q: SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.6...

A: Price to earning ratio measures the price of stock relative to its earning. It cam be calculated Pri...

Q: Bridgette Inc. has forecasted that its net income will be P400,000. The company has debt ratio of 30...

A: Given Information : Net Income = P400,000 Debt ratio = 30%Project Investment = P500,000 Number of sh...

Q: Your broker offers to sell for $1,060 a AAA-rated bond with a coupon rate of 5 percent and a maturit...

A: We need to use excel PV function to calculate bond price. The formula is =-PV(RATE,NPER,PMT)

Q: Urgently need

A: Price of Bond refers to the is the present discounted value of future stream of cash flows. In other...

Q: hat single payment now is equivalent to a uniform series of $1000 per year for 20 years, beginning 6...

A: The present value of annuity considering the interest rate and period would give the single payment ...

Q: C) Present Worth Cost Method D) Equivalent Uniform Annual Cost Method

A: Out of all the available investment options a company will either choose the one that maximizes bene...

Q: how much must she pay each month?

A: Mortgage Payments: Mortgage payments are made to the lender by the borrower for taking a loan. Thes...

Q: If you live in a state that needs to collect $18 million in property taxes and has a tax rate of 2.7...

A: Property tax amount = $18,000,000 Tax rate = 2.77%

Q: el, and September futures are trading at $5.66 per bushel. What approximate purchase price per bushe...

A: The goal of using futures as part of a hedging strategy is to reduce the risk of losing money owing ...

Q: Analyze the following accounts and satisfy the requirements given below. Accounts payable Accrued ex...

A: First we need to prepare balance sheet from these figures. The concept of balance sheet is Total ass...

Q: Why this Strategic, Tactical and Operational decision classification more relevant than classic clas...

A: We know that a manager has to take various decision in achieving the goal set the by management. Her...

Q: Both Bond Tony and Bond Peter have 10 per cent coupons, make semi-annual payments, and are priced at...

A: Given, Coupon rate is 10% Bond Tony has 3 years time to maturity Bond Peter has 20 years time to mat...

Q: The Quick-time Company stock is currently selling for $32. There is a put option on the stock rith a...

A: Stock Price 32.00 Strike Price 29.00 Variance 0.0625 Risk Free Rate 0.02 Time Period 6 Month...

Q: Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate th...

A: The value of money changes over time. For example, the value of $1000 today will not be the same as ...

Q: Jeffrey received a $32,950 loan from a bank that was charging interest at 5.75% compounded semi-annu...

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments ...

Q: Tomorrow Co is financed entirely by equity that is priced to offer a 14% expected return on equity. ...

A: r[E] = r[A] + Debt /Equity * ( r[A] -r[D] )

Q: mplete the table below by computing the unknown component of annuity. R No. r A Php 900 6% 6 4 yrs M...

A: Since you have posted a multiple question therefore we will be solving the first question only as pe...

Q: Suppose the interest rate is 7.7% APR with monthly compounding. What is the present value of an annu...

A: Interest rate = 7.7% Monthly interest rate = 7.7%/12 = 0.641666666666667% Three monthly payment  = $...