the present value will be infınite the present value will be zero O the present value will be unknown No answer text provided.

Q: You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of...

A: Amount available to invest = $ 10000Return of X = 12.4%Return of Y = 10.1% Desired return from portf...

Q: #2 John is saving for his retirement by making annual end of year deposits for 30 years into a bank ...

A: The value of an annuity: The value of an annuity or one growing at a constant pace at the end of an ...

Q: In year 2018, the real rate of interest was 9 percent and infation was meesured at 3 perbent Whet wa...

A: Real Rate of Return = 9% Inflation = 3%

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: 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: What perpetual amount will you receive annually starting next year if you were  able to deposit 130,...

A: Here, Amount Deposited five years ago is 130,000 Interest Rate is 10.5% Compounding Period is Annual...

Q: Financial analysts forecast GDY Inc.’s growth for the future to be 5%. GDY's recent annual dividend ...

A: The stock value can be calculated with the help of dividend growth model

Q: What is the bond’s yield to maturity? (Do not round intermediate calculations. Enter your answer as ...

A: Yield to maturity refers to the total return generated by a bond until it matures. Yield to maturity...

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: no preferred stock. The yield to at the company's WACCs 12.60% What is Pearson's cost of common equi...

A: Weighted average cost of capital is the cost o capital considering the weight of the different compo...

Q: firmrecently paid a dividend, D0, of $1.25. It expects to have nonconstant growth of 13% for 2 years...

A: Horizon value or continuing value is the present value of all cash flows beyond the explicit forecas...

Q: Frank is a widower. He has a $15.3 million estate consisting primarily of undeveloped real estate an...

A: Life insurance policies are the ones that an individual buys to use the funds invested for his illne...

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: Consider the following information about three stocks: Rate of Return If State Occurs Probability of...

A: Hi There, Thanks for posting the question. As per Q&A guidelines, the solution for first three s...

Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this accou...

A: Money that is invested today earns interest. This makes the future value of money more than present ...

Q: Q7-5. Can an ordinary annuity table be used to determine the present value of a three-year investmen...

A: Answer:- No EXPLANATION:- The cash flow given above is uneven. the present value of an uneven cash f...

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at...

A: Year Annual payment 1 to 7 50000 8 to 12 85000 13 to 18 200000 Interest rate = 17%  

Q: On January 1, 2021, Canada Corp. purchased 4-year bonds with a face value of P7,300,000 and a stated...

A: Bonds that are held till maturity are recorded at cost including associated cost. Any discount or pr...

Q: What is the covariance of returns between stocks A and B? Year Retum A Retum B 2017 60% 35% 2016 20%...

A: Here, To Find: Covariance =?

Q: Q7-8. Is it possible to convert a present value of an ordinary annuity table to the present value of...

A: Let r = Interest rate Periodic payment = P Duration = n  

Q: 700 Solve: 2. G00 EOQ i- 5% co. monthly Show your work below and put the answer in the yellow box. D...

A: The value of all future cash flows discounted at required rate of return constitutes the present val...

Q: Suppose you are an investor with a choice between three securities that are identical in every way e...

A: Solution : If we invest in any security than we will firstly calculate the return on that investment...

Q: You expect that four years from​ today, Sanibel Corporation will begin its​ first-ever dividend of​ ...

A: Share price: Share price is the current market price of the share. It is the price of the share at w...

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

A: Cashflows means movement  of cash it may be inflow or outflow. For the purposes of capital decision,...

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: What are the arithmetic and geometric returns for the stock?

A: Geometric return is annualized return found by taking individual return. This return is calculated b...

Q: 6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 Archie buy...

A: Interest is compounded semiannually, which means it is compounded once every six months. As a result...

Q: To start a new business Beth deposits $1000 at the end of each six-month period in an account that p...

A: Semi annual deposit (P) = $1000 Interest rate = 7% Semi annual interest rate (r) = 7%/2 = 3.50% Peri...

Q: overnment increases government spending and Central Bank conducts expansionary monetary policy, what...

A: Government and federal bank carry out the market operations and increase or decrease the money suppl...

Q: nnual report of 2019 which shows an EBITDA of P5,000,000 and a total liability of P15,550,000. Evide...

A: Corporate valuation is a process of evaluating the worth of a company entity in the realm of finance...

Q: You are financing a car worth $29039.30 including tax. The interest rate is 10.8% compounded daily. ...

A: Loan amount (L) = $29039.30 - $1700 = $27339.30 Interest rate = 10.8% daily compounding (m = 365) n ...

Q: . What is the present worth of 4100 deposited at the end of every three months for 5years if the int...

A: The future value is the amount deposited and interest accumulated over the period of time. The prese...

Q: Paccar’s current stock price is $48.20 and it is likely to pay a $0.80 dividend next year. Since ana...

A: Required return can be calculated as: = (Dividend to be paid next year / current stock price) + grow...

Q: Lamar is taking out a mortgage for $146,000 to buy a new house and is deciding between the offers fr...

A: The present value of loan is equal to the sum of the present value of all its future monthly install...

Q: Pearce's Cricket Farm issued o 15-year, 10% semiannual bond 4 years ago. The bond currently sells fo...

A: Book value of primary debt = $60 million Book value of secondary debt = $35 million Market value of ...

Q: The display cases above were purchased at the beginning of the month and are being depreciated at a ...

A: A financial plan is a forecast of a company's cash flows over a set period of time  that is weekly, ...

Q: Referring to the table below is the information about three RM1000 par value bonds and each of which...

A: Given Three bonds Bond 1, Bond 2 and Bond 3.

Q: Karen obtained a $25.000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay ...

A: The monthly amount will be found using excel’s PMT function. It is the minimum amount that must be p...

Q: Calculate the total amount paid for Mortgage A. Calculate the total interest paid for Mortgage A. Ca...

A: Home loan mortgages are paid on a  monthly basis.  During the initial years interest amounts are hig...

Q: 21.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round y...

A: The present value and compound interest can be calculated as per the function of present value

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or pr...

Q: What payments must be made at the end of each quarter to an RRSP earning 7.5% compounded annually so...

A: Interest rate  = 7.5% Quarterly interest rate (r) = [1+0.075]1/4-1                                  ...

Q: A logistics firm is planning to acquire a winching machine which costs $85000 having life span of 6 ...

A: Present value of future amount With interest rate (r), period (n) and future value (FV), the present...

Q: A bond sells for $894.17 and has a coupon rate of 6.20 percent. If the bond has 13 years until matur...

A: Bonds are defined as financial instruments used by companies to raise additional funds from the mark...

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

A: Present value of bond can be calculated by using this equation Present value =C1/(1+r) +C2/(1+r)2 +C...

Q: Crane Corp. management is considering purchasing a machine that will cost $117,250 and will be depre...

A: Working Note #1 Calculation of depreciation: Cost of machine = $117,250 Useful life = 5 years Formul...

Q: Seagated Corp Sdn Bhd is considering two projects of machinery that perform the same task. The requi...

A: Net present value is the difference between Present Value of cash Inflows and Initial Investment.  H...

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: Atlantis Fisheries issues zero coupon bonds on the market at a price of $537 per bond. Each bond has...

A: Yield to Maturity for zero coupon Bonds  =(Face value)/Present value)1/n- 1)   

Q: 1. If Ysabelle borrowed money from Nina with a simple interest rate of 12%, determine the present wo...

A: The simple interest is the interest without the compounding that means there is no interest on the i...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.