Use the sinking fund formula shown to the right to determine the monthly payment needed to accumulate $340,000 with 5% interest are compounded monthly for 21 years. p= nt 1+ The monthly invested payment is $ (Round up to the nearest cent.)

Q: Suppose you sold stock XYZ December RM8 call options for 40 sen. The price of XYZ stock on the last…

A: Solution:- Call option is a right to buy the asset if price of asset increases from the strike…

Q: Suppose that the interest rate on Treasury bills is 6%, and every sale of bills costs P60. You pay…

A: Economic Order Quantity:  The economic order quantity is the ordering level at which the storage…

Q: The balance sheet showed the following: Total current assets $3,250, accounts payable $470, 8% notes…

A: Current assets = $3250 Accounts payables = $470 Accrued wages = $180

Q: that to calculate the po The monthly payment on a 30 year $200,000 mortgage at 4.2% interest…

A: In case of mortgage, a series of equal payment is made for a specified period to pay off the…

Q: Music producer, will receive royalties over a period of 3 years for the theme song she made for a TV…

A: The present value of any amount to be received in the future is generally lesser than the future…

Q: Service Income, Customer 1-P50,000.00 Salaries Paid to Clerk – P5,000.00 Rent Expense - P3,000.00…

A: Total Expenses = Salaries paid to clerk + Utilities Expense + Rent Expense + Salaries paid to…

Q: 4/ Julieta and Eric are purchasing a home. They wish to save money for 15 years and purchase a house…

A: Solution:- When an equal amount is deposited each period, it is called annuity, We have, future…

Q: Ahmad is called in as a financial analyst to appraise the bonds of Riyadh Stores. The $1,000 par…

A: Given: Particulars   Face value(FV) $1,000 Coupon rate  10% Yield to maturity 10% Years…

Q: 22. You plan to purchase a property which has an expected NOI of $200,000. You plan to borrow…

A: DCR stands for debt coverage ratio. This ratio is used to measure the ability of a project to use…

Q: ty in Texas. To raise money for the capital projects, the corporation plans the following capital…

A: Weighted average cost of capital is considering the weight of debt and weight of equity and cost of…

Q: 24. You purchased a property at a 6% cap rate for $20,000,000. To buy the property you secured a…

A: Cost of property - $20,000,000 Cap rate – 6% LTV- 60% Debt yield - ?   Calculating NOI: NOI =cap…

Q: Which of the following statements is not true about small-cap mutual funds? Small-cap funds derive…

A: Small-cap mutual funds can be defined as those mutual funds which are invested in smaller companies…

Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…

A: A term loan is a form of credit instrument in which money is lent to someone else in exchange for…

Q: A friend, explaining his position with respect to liability insurance, states, “I don’t feel I need…

A: The concept of liability insurance refers to an insurance plan that protects an insured party from…

Q: ZCCM-IH is a major supplier of iron ore to the steel industry and the company is the 4th largest…

A: Capital budgeting tools include NPV and IRR. NPV id the difference between the present value of cash…

Q: Jack is a very successful manager. He has a management contract which grants him a lump sum payment…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Suppose a firm has $10 million in debt that it expects to hold in perpetuity. It the interest rate…

A: The following information has bee  provided in the question: Amount of debt= $10 million Interest…

Q: PROBLEM: 1. What is the current value of the Php 200 payment to be made at the end of each of the…

A:

Q: D Current assets Current liabilities

A: In finance current ratio is an important financial ratio. We use this ratio to determine the…

Q: Given the following information, calculate the weighted average cost of capital for Digital…

A: Note: It has been assumed that the second dividend preferred is given by mistake and it is actually…

Q: Statement 1. A private market is one like the Philippine Stock Exchange, where transactions are…

A: Stock exchange is a market place where the stock are traded between the parties

Q: Fil Development buys on terms of 2/15, net 60 days. It does not take discounts, and it typically…

A: Accounts payables are the liabilities which arises due to credit purchases from the suppliers. The…

Q: * EBIT is projected to equal P850 million. * Gross capital expenditures are expected to total to…

A: Increase in working capital is required to meet the targeted the free cash flow so company needs to…

Q: 20. Ron and Sandy have purchased their first house. They borrowed $174, 000 for 30 years at an…

A: Solution:- Total monthly payment will be the monthly mortgage instalment and monthly portion of…

Q: The following financial information was provided by Anya Company: Net Income 8,255,000.00 NOPAT…

A: Given, Tax rate is 35% Net income 8,255,000 EBITDA is 143,000,000

Q: Mr. Abdullah borrows $80,000 at 14 percent interest toward the purchase of a home. His mortgage is…

A: Given: Interest rate = 14% Loan = $80,000 Years = 25

Q: Suppose that a futures price is currently £30. The risk-free interest rate is 5% per annum…

A: Here, To Find: Bounds for the price =?

Q: Iggy Company is considering three capital expenditure projects. Relevant data for the projects are…

A: Here, Depreciation Method is Straight Line Method.

Q: Using the formula for YTM (yield to maturity) in the lecture, what is the rate of return for a bond…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: VIP Ltd. predicts that its next two annual dividends will decline by 5% each year, after which…

A: The Supernormal Growth Model is the model in which the value of the stock is measured through its…

Q: NCC Corporation is considering building a new facility in Texas. To raise money for the capital…

A: Here, Weight of Bond (Wb) is 40% Weight of Retained Earnings (We) is 60% Interest Rate on Bond (rd )…

Q: FRONT PAGE Treasury Prices Rise on Recession Fear Increasing fears of a recession next year brought…

A: Data given: Coupon rate = 1.75% Face value = $1000 n= 10 years     Working Note #1 Coupon amount=…

Q: 1. To save for their new child's college education, a couple places $28,400 in an account. What…

A: Present value of a future amount With periodic compounded interest rate (i), period (n) and future…

Q: 1. When you find a stock with positive alpha, you should (chapter-9 capm) • Sell the stock because…

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve…

Q: Martinez Co. borrowed $71,059 on March 1 of the current year by signing a 60-day, 5%, interest-…

A: Solution:- Interest bearing note is a short term source of finance, from which funds are raised for…

Q: All of the following affect the lahor marlkot EYCENT

A: labor market affects  social change  population shifts the economy  etc.,

Q: On average, how much “free” trade credit does the firm receive during the year?

A: Per credit cycle purchase = purchases *time =450000*60/365 =P 73972.60

Q: A 3/1 ARM is made for $250,000 at 7 percent with a 30-year maturity. Fixed payments are to be made…

A: Adustable Rate Mortgage is a type of mortgage in which the interest rate on th ortgage remians fixed…

Q: CRIA iV, N) Today you purchase a previously owned Tesla Model 3 for $40,000. You take out a 0.25%…

A: Loans are paid by the equal monthly installments and these have payment of loan amount and also…

Q: The size of the monthly payment required to pay off the loan over the 30-year period The total…

A: Here we will use the concept of compounding and the concept of time value of money. The time value…

Q: ion 9 e information below provided by Angel Baby Angel Company: 8,250,000.00 ting costs 4,725,000.00…

A: EVA is present value of net income after deductions of amount of assets invested initially.

Q: The Free Enterprise system is also known as a money market O market economic system O cash advance…

A: The free market, commonly known as capitalism, is an economic system based on supply and demand. The…

Q: An investment in another country's stocks or bonds that does not take direct control of the related…

A: Offshore financing are the schemes that invest in equities, bonds fixed income securities of other…

Q: Stock price S=$21 Exercise price K= $20 Interest rate r = 0.08 Maturity T= 180 days = 0.5…

A: Options are versatile financial products. These contracts involve buyers and sellers, who pay a…

Q: b) An APR of 5.875 produces an effective annual interest rate of 6.04% what is the compounding…

A: The effective annual rate is the actual return that the company owes to its investors.

Q: Your father offers you a choice of $105,000 in 12 years or $47,000 today. а. If money is discounted…

A: Time Value of Money: According to this basic financial concept money in the present have more value…

Q: True or False

A: Cash flow from Operating Activities: It refers to the amount of cash flow generated by the firm…

Q: Show your solution 1. For each of the following Treasury Bills, calculate the discount basis yield…

A: Here, Formula of Discount Yield and Investment Yield is as follows: Discount Yield=Face Value-…

Q: At the end of March 2019, a Zambian corporate bond had a coupon rate of 6%, a par (face) value of…

A: Given, The face value of the bond is K1,000 Yield is 4.5% Coupon rate is 6%

Q: Elearning Company would like to develop its technology process by purchasing a production equipment…

A: PV of Inflow = 32*(1+i)^-1 + 40*(1+i)^-2 + 46*(1+i)^-3 + 52*(1+i)^-4 PV of Outflow = 115 million NPV…

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.