There is $500,000 to invest. U.S is offering a 60-day interest rate of 6 percent per annum, while Malaysia is giving 12 percent per annum for a tenure of 60 days. The spot rate of Ringgit Malaysia (RM) is $0.110 and the forward rate is $0.108. Ignoring all the tax effects, Would an American investor or Malaysian investor benefit from this arbitrage?

Q: Power Development Incorporation is expecting earnings before interest and taxes of P2 million for th...

A: In residual dividend theory, the dividend paid by the firm should be view as residual. The dividend ...

Q: In four years of employment, John was able to save P250,000 after he had invested on purchasing a mo...

A: The stock market is a location where traders may purchase and sell equities,investors can invest in ...

Q: Tony's Pizzeria plans to issue bonds with a par value of $1,000 and 10 years to maturity. These bond...

A: Par value of bond = $1000 Semi annual coupon amount = $45 Market price = $937.79 Years to maturity =...

Q: lolanda purchased a Treasury bond with a coupon rate of 2.62% and face value of $100. The maturity d...

A: Treasury bonds pay semiannual coupons Face value (F) = $100 Coupon (C) = (2.62% of $100) / 2 = $1.31...

Q: Melissa wants to retire with $45,000 per month.she needs $4,500,000 in principal at the time she ret...

A: Simple interest is computed by multiplying the daily interest rate by the principal and  later by nu...

Q: How much new long-term debt financing will Esther’s need this year to finance its expected growth?

A: Long Term Debt Financing: It refers to the financing of funds taken by the company in form of long-...

Q: at the end of each of the following 6 years (t= 5, 6, 7, 8, 9, and 10). Their investment account is ...

A: Annuity is a series of equal instalments at equal intervals of time. The present value of an annuity...

Q: = Homework: Homework 3 Question 15, 8.2.5 Part 1 of 3 An investor purchased a 182-day, $100,000.00 T...

A: Original Yield on the T-Bill is the annualized return earned by an Investor if the bill is hold till...

Q: In the year 2020, the stock market fell because of COVID-19. You started investing from the year 200...

A: Future value (FV) with compounding other than annual With number of compounding in a year (m), total...

Q: calculate the net present value; Initial capital investment                                        ...

A: Net present value is the sum of all the discounted cash flows during the tenure of the investment. O...

Q: QUESTION ONE (1) Fresh Company produces a well-known perfume. The standard manufacturing cost of the...

A: A standard cost is an expected expense that generally happens during the manufacturing of a product ...

Q: What is the micro-stop store's gross profit, if the total sales is P125,750.00 and the cost of sales...

A: Total sales = P125,750.00 Cost of sales ratio = 42.25%

Q: The stock price of Alps Co. is $54.80. Investors require a return of 14 percent on similar stocks. I...

A: Stock price is $54.80 Required return is 14% Dividend next year is $4.05   To Find: Expected growth...

Q: Cash flows cannot be added together unless

A: The concept of time value of money states that value of money and hence value of cash flows changes ...

Q: Ratios:  Which of the following ratios is not considered to be a test of profitability?   Long-Term...

A: Profitability ratios are a group of financial indicators that are used to evaluate a company's abili...

Q: Bello, Inc., has a total debt ratio of .87.   a. What is its debt-equity ratio? (Do not round interm...

A: Debt ratio =(Total debt)/(Total assets)  

Q: The present value of a 7 year lease that requires payments of $600 at the beginning of every month i...

A: Lease: A lease is an agreement between two parties under which one party agrees to provide the asset...

Q: Suppose you get a loan of $2000 from UNO FCU for 2 years. The loan requires semianmual installment p...

A:

Q: A pharmaceutical company announces that it has received Federal Drug Administration approval for a n...

A: We know the principle of technical analysis. Market Discount everything- What information is availa...

Q: Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase...

A: Here, Price per Carton is $50 Cost Per Carton is $40 Old Units of Sale is 1,000 New Units of Sale is...

Q: Francorp has a break-even point of $175,000. Ifactual sales are $225,000 then what is the margin of ...

A: The margin of safety is an investment idea that states that an investor should only buy assets when ...

Q: a) Gerry likes driving small cars and buys nearly identical ones when- ever the old one needs replac...

A: Given, Cost of the car = $15,000 Depreciation rate = 30% (declining balance is used) Average Repair ...

Q: Ir¥1000-Rs 984 then convert ¥550000 into Ripees.

A:

Q: Floatation or issuance cost of new securities are present in an imperfect economy.     True False

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...

Q: What is the compound amount and interest if Php 10,000 is invested at 3.6% compounded monthly for 2 ...

A: we know that, A=P(1+rn)n×t now, A= amount after time + (future value) P= principal amount (initial v...

Q: Shawn made equal deposits at the beginning of every 3 months into an RRSP. At the end of 10 years, t...

A: Compounding of interest means, interest is received on principal as well as the earned interest amou...

Q: Biarritz Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the ne...

A: The question is related to Dividend. The Current Share Price is calculated with the help of followin...

Q: List the credit bureaus and list information that is contained in a person's credit report.

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

Q: Would it be better for the business to have a lot of cash on hand? Why or why not?

A: A business should always have an appropriate amount of cash on hand – i.e. neither too much cash nor...

Q: If the required return on the stock is 10 percent, what is the current share price?

A: Share price: It represents the current market value to buyers and sellers. The price of a share can...

Q: ome recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as...

A: Profit margin = Net Profit/ Net Sales   Return of Assets = Net profit/ Average total assets   Return...

Q: Both Bond Bill and Bond Ted have 9.4 percent coupons, make semiannual payments, and are priced at pa...

A: Given Two bonds bond Bill and bond Ted par value of bonds $1000.

Q: Consider 1-factor model and assume that the price of a certain fixed income security P(y) for y=9% 9...

A: To Find: DVO1 Duration Convexity

Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25...

A: An annuity is a series of payments that are all the same size and are made at regular intervals over...

Q: A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, ...

A:

Q: Assume the $12,480 Treasury bill, 5% for 15 weeks. Calculate the effective rate of interest. (Use ca...

A: Treasury bill par value is $12,480 Interest rate is 5% Time period is 15 weeks To find: Effective r...

Q: You consider purchasing bonds today. There are three future time periods, t = 1, 2, 3, where bonds c...

A: Arbitrage is the simulataneous purchase and sale of an asset in different markets to exploit tiny di...

Q: What happens when N (d2) of the Black Scholes Morten Model is in the negative figure? What does this...

A: Following a lengthy search by financial economists for a viable option-pricing model. A formula for ...

Q: If the agency relationship is undisclosed, the agent is liable to the third party if they fail to pe...

A: Yes, the statement is true that the agency relationship is undisclosed, the agent is liable to the t...

Q: Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hi...

A: Present value can be calculated by discounting the cash flow at an appropriate discounting rate. In ...

Q: A coin sold at auction in 2017 for $1,252,000. The coin had a face value of $5 when it was issued in...

A: Rate of Return can be calculated as the net gain or loss earned by an investment divided by the net ...

Q: Topic: Cost of Funds Solve the following cases using the Gordon Growth Model of determining the cos...

A: 1. Given, Return on Equity =  15% Payout rate = 30% Current dividend on ordinary share = p8 Dividend...

Q: Are the following capital budgeting or financing decisions?

A: Capital budget involves evaluation and comparison of costs and benefits from a project. Capital budg...

Q: Natalie started a fund that would pay out $2,400.00 every month in perpetuity. The fund earns 5.52% ...

A: Given: Particulars Amount Payment $2,400 interest rate 5.52%  

Q: Consider a home mortgage of $125,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly pa...

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv], [type]...

Q: Did the company paid portion of long term liabilities in year 2020? How much?

A: Note :- Only the first requirement can be answered with the given information.

Q: Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets a...

A: We need to use the following formulas for ratio Total debt ratio =Total liabilities/total assets Deb...

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000 pa...

A: Focal date is after 1 year (12 months) Payment 2 years (24 months) ago (P1) = $657 Payment today (P2...

Q: Starting in 3 years, you want to be able to withdraw P7,308 every three months for 8 years. You want...

A: Quarterly amount to withdraw (Q) = P 7308 n = 8 years = 32 quarters Interest rate = 5.25% monthly co...

Q: I am trying to figure out dollar dividens per share of a company. I am using yahoo finnace.  Divide...

A: A dividend is a distribution of profits by a company. The company pays dividends to its shareholders...