thomas is planing to withdraw $6000 from savings account at the end of each quarter for five years. if the payments are deferred for six years and interest is 5.38% compounded semi-annually, what amount has to be invested now into the savings account?

Q: pose the central bank wishes to increase the money supply by $500 million s so by purchasing one-yea...

A: The money supply is function of central bank and depending on the requirement of economy the central...

Q: Nominal interest rates are the rates stated or quoted in the terms or contract of a particular secur...

A: Real interest rate is the rate that shows the actual cost of borrowing to the borrower by removing t...

Q: 1

A: Arbitrage profit is generated by purchasing and selling its same securities or portfolio at price ra...

Q: All are items that can minimise credit risk, except. Guarantor  Mortagage Collateral  Pledge

A: Firms use credit risk mitigation to reduce the credit risk associated with an exposure. Credit risk ...

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A: Weighted average cost of capital(WACC) is the average or overall cost of capital of the company whic...

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A: Partnership is referred as the formal agreement through two or more parties for an operating as well...

Q: 12 A debtor borrowed P12.700 and after 4 vears, paid back the loan with an 8% interest. How much was...

A: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question in case...

Q: Why a company needs to publish the ratio analysis and financial statements of the companies

A: Ratio analysis and financial statements of the company provides a clear image on the financial healt...

Q: Orchestra Inc. is considering expanding its production capacity. This has therefore called for the i...

A: In the computation of NPV of such proposal, we should consider the annual cash flow post-tax and sho...

Q: Your company wants to raise $7.0 million by issuing 20-year zero-coupon bonds. If the yield to matur...

A: Value of Zero Coupon Bond = Face Value / (1+YTM)^nyield to maturity (YTM) = 0.06n = 20 years= 1000 /...

Q: The following data is available for three different alternatives. The do nothing is an available opt...

A: Initial cost of A (C) = $20000 Annual benefits = $6607 Annual Cost = $1000 Useful life = Infinite du...

Q: 1. What is your monthly payment if you choose 0% financing for 48 months? Round to the nearest dolla...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: Here is Miguel's credit card statement for the month of November. Transaction Date Transaction amoun...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: What approach banks may take to determine adequate capital?

A: For a bank it is highly important to ensure capital adequacy. Capital adequacy leads to stability of...

Q: 5. Portfolio Beta Portfolio beta can be computed in the same way as portfolio return was computed. I...

A: Beta is used in determining the risk premium to be expected from investment made in a asset because ...

Q: Red Company's book value per share is P25, the market to book value ratio is 1.5. If the earnings pe...

A: Answer - Step 1 - Calculation of Market Value of Shares - Market to book value ratio = Market Price ...

Q: You are an investor who is interested in purchasing AC shares which is currently trading at a price ...

A: Growth rate  (g) = 3% Required return (r) = 8% Expected dividend (D1) = P25

Q: Farm Foods Company, produces two types of pork loins . Each type of loin consists of white meat and ...

A: pork loins Problem: Selling Price of pork loins (per pound)     pork loins 1 pork loins 2 Sell...

Q: An investor is evaluating the common share of Bulldogs Inc. which has a beta of 1.8. The expected re...

A: Beta (B) = 1.8 Risk free rate (RF) = 2% Market return (RM) = 8%  

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A: Insurance refers to the protection agreement which can be purchased by a person to control or elimin...

Q: Robert owns of RPM which involve in manufacturing business The cash flow profile of RPM Enterprise i...

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Q: 1.A construction company agreed to lease payments of $536.13 on construction equipment to be made at...

A: Note: This question has two questions. The first has multiple subparts. The first three subparts in ...

Q: How much is the expected rate of return for Stock A? Use a whole number in percent form, no space, n...

A: Highly favourable probability (P1) = 0.1 Favourable probability (P2) = 0.3 Normal probability (P3) =...

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A: The Gordon growth model states that the stock is worth all future dividend payments when they are di...

Q: Bulldogs Inc. wants to establish a bond portfolio consisting only of BDO bonds which has a maturity ...

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to finan...

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A: Put option is the option which gives the right to its buyer to sell the underlying security at prede...

Q: The prices of several bonds with face values of $1,000 are summarized in the following table: . For ...

A: If bonds sell at less than its face values it trades at a discount. If bonds sell at its face values...

Q: You invest $500 today and an additional investment of $500 three years from today. You expect to rec...

A: As per the Information Given in the Question  Initial Investment $500 Additional Investment  of $500...

Q: Bulldogs Inc. has a financial break-even point at P163,500. How much is the total preferred dividend...

A: Financial breakeven deals with bottom line of company income statement. It is the level of EBIT at w...

Q: 2-year zero coupon bond has a face value of £100 and a price of £92. A three year zero coupon bond h...

A: Zero coupon bond do not have any coupon and they are traded at discount and cash out on face value o...

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A: Preferred stockholders are the shareholders to whom dividends are paid out before paying to the comm...

Q: Sammie Jo wants to begin saving for her retirement in 35 years. She researched and found an annuity ...

A: The future value is equal to the sum of the future cash flows multiplied by the future value factor ...

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A: Break-even Point: The break-even point is that level of sales at which the operating income (EBIT) b...

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Q: Bulldogs Inc., which is located in the USA, imports dog treats from Thailand Baht. Each bag of dog t...

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A: When a debt is paid in series of instalments involving principal and interest is called amortization...

Q: A couple purchased a home 20 years ago for $200,000. The home was financed by paying 10% down and s...

A: Cost  of home = $200,000 Down payment = 10% Loan amount (PV) = 200,000*(1-0.10)                     ...

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A: Solution;- Each corporation has seperate departments and each department is headed by respective man...

Q: Bulldogs Inc. has sales of P4,500,000, variable costs equal 75% of sales, and a fixed interest costs...

A: Sales = P4,500,000 Variable cost = 75% Contribution = Sales*(1-Variable cost ratio)                 ...

Q: Severn plc is assessing a new project to expand its business. It will require an investment of £20m ...

A: Investment = £20,000,000 Annual cash inflow for first 5 Years = £1,750,000 Annual cash inflow after ...

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A: We need to use PMT formula to calculate monthly payment of mortgage. PMT =PV*r1-1(1+r)n

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A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve ...

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Q: Far value is $2,000,000 Assume a three-year bond with an 8% annual coupon. If rates change from 8% t...

A: Par value = $2000,000 Coupon rate = 8% Annual coupon amount = 2000,000*0.08 = $160,000 Years to matu...

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.