Q: Pls help with below homework. The yield on a two-year bond is 4%. The yield on a four-year bond is 3...
A: The yield on a bond is the predicted profits created and realized on a fixed-income investment over ...
Q: For any given interest rate and compounded frequency, there is always an equivalent compounded rate.
A: Effective annual compounding rate can be calculated for any given interest rate or compounding frequ...
Q: What are the different sources of financial capital available to entrepreneurs? Discuss the advantag...
A: Sources of Financial Capital for Entrepreneurs are Equity share capital, preference share capital, p...
Q: what are hedge funds role with direct listings?
A: A direct listing is a process by which a company can go public by selling existing shares instead of...
Q: p 11, 2022 110.00 110.60 106.60 106.60 107.41 439,750 p 10, 2022 109.20 110.80 109.20 109.90 109.96 ...
A: Stock prices goes up and down according the demand in the market and from the given data we can dete...
Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...
A: Cash flow at year 0 (CF0) = $200 Cash flow at year 1 (CF1) = $200 Cash flow at year 2 (CF2) = $200 C...
Q: 1. Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid ...
A: Given: Particulars 30 years 15 years Years 30 15 Mortgage rate 5% 4.50% Down payment 20% 20...
Q: CSR342 2022 SP Week 6 Assignment Assignment 1. A. John will purchase Equinox EV ($35,000). John's cr...
A: Loan is a value which is borrowed from the external sources like banks for a certain period and this...
Q: ecovered investment is greater than the annual cash flow, the payback period is "1". If the unrecove...
A: Pay back period is the period required to recover the initial investment of the project.
Q: The furniture store offers you no-money-down on a new set of living room furniture. Further, you may...
A: To find: Present value of furniture payments
Q: Use the Black-Scholes formula to value the following options: a. A call option written on a stock se...
A: Black Scholes model is a model which uses the impact of time and other risk factors to calculate the...
Q: using only ANNUITY DUE formulasQuestion: A man bought an equipment costing P60,000 payable in 12 qua...
A: Annuity due formula for calculation of periodic payment when present value is known: Pv= P60,000, n...
Q: Horizon Communications stock pays a fixed annual dividend of $3.00. Because of lower inflation, the ...
A: Given Information : Fixed Annual Dividend = $3 Original yield on preferred stock = 12% New Yield on...
Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest pe...
A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years
Q: A contract requiring a specified future monetary payment at a specified future point in time in exch...
A: A derivative is a complicated financial security that is agreed upon by two or more parties. Traders...
Q: The corporation has current assets of P5 million, current liabilities of P5 million, net fixed asset...
A: Current ratio is an important liquidity ratio that measures the ability of the business to meet its ...
Q: You won a lottery of $1,000,000. Office offered two options: the first one you can take it today a ...
A: The series of equal payment which is made over indefinite period of time is called as perpetuity. Th...
Q: In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares out...
A: Price per share = $39.20 Number of shares = 91.33million Market to book ratio = 3.76 Book value of e...
Q: A Treasury note has 2.5 years left to maturity, a yield to maturity of 3.6 percent, and a coupon rat...
A: Par value = $1000 Coupon rate = 4.40% Semi annual coupon amount = 1000*0.044/2 = $22 Years to matur...
Q: Remerowski Corporation Inc. asks you to estimate the cost to purchase a new piece of production equi...
A: It is given that :Original Equipment:cost of similar old equipment- $10,000 Capacity- 2000 units cos...
Q: Ray Miller was looking for funds to support his company's expansion. His bank offered him a $25,000 ...
A: Discount note is one of the ways to raise the funds in the form of short term borrowings. Borrower g...
Q: Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and ...
A: WACC: It stands for a weighted average cost of capital. It is the sum total of all proportionate cos...
Q: Suppose the current USD/euro exchange rate is 1.2000 dollars per euro. The six-month forward exchang...
A: Exchange rate (ER) is a value at which two different currencies are exchanged or traded. To estimate...
Q: PBJ Corporation issued bonds on January 1, 2006. The bonds had a coupon rate of 5.5%, with interest ...
A:
Q: EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income? O $7...
A: EBIT = $12000 Interest expenses = $3000 Tax rate = 20%
Q: When the company is working at full capacity, the assets in the AFN equation is the total assets ...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: t the end of the year? 1. 1099 B. Schedule C C. 1040 D. W2
A: There are income from savings that you must show in the income tax return form and for that separate...
Q: You have a portfolio with the following: Expected Return 10% Stock Number of Shares Price W $ 54 31 ...
A: Portfolio return is the weighted average expected return of all the securities in the portfolio. Thi...
Q: Assume the total cost of a college education will be $360,000 when your child enters college in 15 y...
A: Future value required (FV) = $360,000 Present value (PV) = $58,000 Period (n) = 15 Years
Q: Faizal purchased an electric motorcycle at RM8,500 through an instalment payment. The purchase was m...
A: Motorcycle cost = RM 8,500 Down Payment = RM 1,500 Time Period = 5 Years Interest rate = 4%
Q: A solar lighting system is to be purchased and installed for 310,000. This system will save approxim...
A: The present worth of a project is the net value added by undertaking a certain project. This is comp...
Q: You buy a share of The Ludwig Corporation stock for $21.40. You expect it to pay dividends of $1.07,...
A: Dividend Yield refers to the return percentage that a selected stock provides in relation to market ...
Q: Suppose you invest $25500 for 12 years paying 2.25% annual interest. How much will you have at the e...
A: The future value is the amount that will be received at the end of a certain period. The future valu...
Q: If the support and resistance levels of a stock are $15.15 and $15.60 and there has not been a break...
A: The support level refers to the lowest level of the stock price that it has not broken in a long tim...
Q: Consider the following income statement and other information: Luther Corporation Consolidated ...
A: Earnings per share = Net income/Number of shares outstanding
Q: You have the chance to invest $100 in a Certificate of Deposit (CD) paying 6 percent annual interest...
A: The account value after 5 years can be calculated with the help of future value function
Q: A loan of Php20,000 is expected to yield a compound amount of Php45,000 at a nominal rate of 9%. Ass...
A: Loan amount (PV) = Php 20,000 Future value (FV) = Php 45000 Interest rate = 9% Semi annual interest...
Q: A Johnson and Johnson 5.65% coupon bond is yielding 227%. The current date is February 14, 2021 and ...
A: Face Value $ 1,000.00 Coupon rate 5.67% Yield 2.27% Start Date 14-02-2021 End Date 28-0...
Q: 17. Average Return and Standard Deviation. In a recent 5-year period, mutual fund manager Diana Saur...
A: Risk and return both are important factors for taking any investment decision. Return means earn an ...
Q: Question 2: Following is the Payoff table. Using the decision tree technique, choose the best option...
A: using the decision tree technique:
Q: 2. I) Identify the concept of an optimal capital structure for a business firm. II) Analyse TWO (...
A: The question is based on the concept of capacity to the borrowing of a firm based on the concept of ...
Q: 35.25 35.25 34.05 34.05 34.48 2,541,5 2022 36.10 36.20 34.80 35.25 35.24 2,491,100 2022 36.25 36.80 ...
A: Prices of stocks may go up and down according to the trend in the market. Investors buy and sell acc...
Q: An appraiser is working on an appraisal of an office building that is 50% occupied. Which real estat...
A: The real estate appraisal is also known as the property valuation or land valuation is a process of ...
Q: Moral hazard is mostly a problem in countries with universal insurance programs like the United King...
A: Moral hazard is a an example of risk which arises when one of the parties involved in a contract doe...
Q: Only two zero bonds are traded. Both zero bonds are repaid at their face value of 100 EUR. The one-y...
A: Par value of bond is EUR 100 One year Zero bond trading at a price of EUR 97.09 Forward rate for tw...
Q: The furniture store offers you no-money-down on a new set of living room furniture. Further, you may...
A:
Q: How many years are needed for P40,000 to yield P13,756.66 if invested at 6% converted semi-annually ...
A: Present value (PV)= 40,000 Interest amount = 13,756.66 Rate of interest = 6% Semi-annual interest ra...
Q: A firm is planning to replace a machine. It was put into service 4 years ago. It costed $26000. The ...
A: Replacement of a machine is better when the machines stop providing benefits to the company and lead...
Q: Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 Ibs $100 $120 $200 $240 $400...
A: Distance = 420 miles From the table given, Price per 100 lbs for 401-600 miles = $200
Q: What is Bond A's interest rate?
A: Real Risk-Free Rate: It is the rate of return expected from a risk-less investment. It is computed b...
Step by step
Solved in 3 steps
- 22 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The Vat payable shall be:Premium and Discount of a Bond or Debenture Evans & Sons, Inc. reported the following borrowings in a prior annual report:Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500. The journal entry to record the reissuance would include a credit to
- Create T accounts for the following data Date Account name debit credit Jan 1 Cash 180000 Building 630000 Land 220000 Common stock 700000 Premium on issue of common stock 280000 Jan 1 Pre paid insurance 72000 cash 72000 Feb 1 cash 150000 3yr 4% note payable 150000 Mar 1 Cash 280000 Service revenue 280000 Jul 1 cash 485000 Discount on bond issued 15000 6% 5yr 500000 Dec 31 Interest on Bond expense 15000 cash 15000 Dec 31 Interest on note payable expense 29052 5yr 6% note payable 25000 cash 54052 Dec 31 Dividend 40000 Dividend payable 40000 Dec 31 Depreciation expense 21000 Accumulated Depreciation 21000 Dec 31 Insurance Expense 36000 prepaid insurance 36000Prepare Garzon Company's journal entries to record the following transactions for the current year. Jan. 1 Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value. July 1 Receives first semiannual payment of interest from PBS bonds. Dec. 31 Receives a check from PBS in payment of principal ($44,000) and the second semiannual payment of interest. Purchases 9% bonds (as a held-to-maturity investment) issued by PBS at a cost of $44,000, which is the par value. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 1 Receives first semiannual payment of interest from PBS bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jul. 1 Receives a check from PBS in payment of principal ($44,000) and…Prepare journal entries to record the following transactions involving short-term debt investments. a. On May 15, paid $100 cash to purchase Muni’s 120-day short-term debt securities ($100 principal), dated May 15, that pay 6% interest (categorized as held-to-maturity securities). b. On September 13, received a check from Muni in payment of the principal and 120 days’ interest on the debt securities purchased in transaction a.
- Rolstone Corp issued $200,000, 8% debenture, 5 Yr bonds on Jan. 1, Interest payment dates are Jan 1 and July 1. The bonds are sold for 217,062 on Jan 1. Market rate is 6%. Prepare journal entries for the following. a. Sale on Jan 1 b. July1 entry Jan 1 entry. Yr 2 c. Oct 1 entry Yr 1 - End of Fiscal Year July 1 entry. Yr 2. Please answer compelete10 A dealer in securities has the following for the year 2018: Sale of securities held for sale in the ordinary course P4,000,000 Cost of securities held for sale in the ordinary course 2,500,000 Supplies expense, net of VAT 300,000 Rent expense, net of VAT 500,000 The OUTPUT VAT shall be:Prepare Hertog Company’s journal entries to record the following transactions for the current year. May 7 Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,270. June 6 Sells its entire investment in Kraft bonds for $10,700 cash Purchases Kraft bonds as a short-term investment in trading securities at a cost of $10,270. Note: Enter debits before credits. Date General Journal Debit Credit May 07 Sells its entire investment in Kraft bonds for $10,700 cash. Note: Enter debits before credits. Date General Journal Debit Credit June 06
- General Journal for the following: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: 20Y1 July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 20Y1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y2 June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment. 20Y3 June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization…On Thursday, July 22, 2010, you bought (traded) the FG, Inc. 6.75% corporate bonds for $101.25. The coupon payments are paid on May 31 and November 30. Using the 360-day accrual basis, calculate the invoice price of the bonds. Please use T+3 to calculate the settlement day. Group of answer choices 1023.00 1022.25 1024.10 1023.19Prepare Garzon Company’s journal entries to record the following transactions for the current year. Jan. 1 Purchases 6% bonds (as a held-to-maturity investment) issued by PBS at a cost of $40,000, which is the par value. July 1 Receives first semiannual payment of interest from PBS bonds. Dec. 31 Receives a check from PBS in payment of principal ($40,000) and the second semiannual payment of interest.