What are the five practices that makes a financial model a good mode

Q: A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of benef...

A: Benefit to cost ratio helps in understanding the relationship between the cost and benefit of a proj...

Q: Consider the stock table below a. What is the current price of the stock? b. What are shareholders t...

A: The stock tables provide trading information such as current stock price, bid price, ask price, beta...

Q: On June 25, 2021, the futures price for the June 2021 bond futures contract is 118- 23. What is the ...

A: Data given: Bond maturity = January 1, 2034 Coupon = 10%  ( assumed semi annual compounding) Yield t...

Q: Sayang Selasih Berhad is given the following quotes: Spot rate                                    US...

A: In order to get the covered interest arbitrage (CIA) opportunity, one should take advantage of the i...

Q: Consider a geometric series of cash flows whose first cash flow occurs at time 15 and continues thro...

A: We will apply the required formula assuming that the increase rate has a geometric gradient of @10% ...

Q: Assume you are purchasing a new bond today which has a three-year maturity, a principal of $10,000, ...

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

Q: Ve are to choose the dividend payment policy in the company in such o maintain the current market va...

A: There are two methods of valuation of stock one is fixed dividend and other is constant dividend gro...

Q: Karen obtained a $36,000 loan at 3.5% compounded semiannually. a-1. What monthly payment will repay ...

A: Here, Loan amount = $36,000 Interest rate = 3.5% compounded semi-annually Time = 8.5 years To Find: ...

Q: Please answer both. What is the present value of annuity of Php 15, 000.00 at the end of 10 years co...

A: The current value of a future sum of money or stream of cash flows given a specified rate of return ...

Q: 11. Calculating Perpetuity Values In the previous problem, suppose Larry's told you the policy costs...

A: Annual payment (A) = $25000 Policy cost = $645000 Let r = Interest rate

Q: If a borrower lives in a recourse state and defaults on a mortgage note that contains an exculpatory...

A: Hi student Since there are multiple questions, we will answer only first question. 

Q: My company sells products that are a complement to the products sold by Grapefruit Electronics. When...

A: The question is based on the concept of hedging of risk by use of derivatives. Investing with the go...

Q: John Barton is both excited and amazed. Excited because on graduating from college one year ago at a...

A: Cash flow statements is a statement which helps in calculating the cash inflows and cash outflows in...

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different c...

A: Portfolio beta = weighted average beta of all stocks in the portfolio.  

Q: This isn't a graded question. Its a practice question, any ideas?

A: As per the guidelines in case of multiple questions were supposed to answer the first 3 parts only, ...

Q: Tuxa inc . Produces an average 40 chairs / day. Labor costs average $ 570, material costs are typic ...

A: Profit also called as productive can be found out from the revenue and cost and from that we can fin...

Q: Compute the equity dividend rate for the following investment: • Acquisition price $1,500,000 • Firs...

A: Here, Acquisition Price is $1,500,000 Potential Gross Income (PGI) is $300,000 Vacancy and collectio...

Q: What is the present value af these investments if the interest rate is 10% per year compounded annua...

A: Present Value: It represents the present worth of the future amount and is computed by multiplying ...

Q: Martha bought a home in 1988 at a cost of $100,000.00. She put 20% down and financed the remainder b...

A: Equity and debt are two options for raising funds to satisfy financial obligations. Owned funds are ...

Q: The Petit Chef Co. has 10.6 percent coupon bonds on the market with ten years left to maturity. The ...

A: Given,  The bond that pays 10.6% with the par value of $1,000 The current price of bond is $1,152.27...

Q: A municipal refuse-collection truck can be purchased for ₱2,400,000. Its expected useful life is six...

A:

Q: Galvanized Products is considering purchasing a new computer system for their enterprise data manage...

A:

Q: ngs life of the project. The project has a first cost of P and a salvage value equal to zero at the ...

A: We know that annual worth is the equivalent annual series of cash inflows and outflow  which is dete...

Q: If the interest rate on a one year bond is currently 12% and the interest rate on one year bond 12 m...

A: The Expectations theory is a theory by which investors can predict the short-term interest rates in ...

Q: Reston Inc.'s annual sales normally equal $17,000,000. Ten (10) percent of Reston's sales are cash p...

A: Days Sales Outstanding shows the Average number of days the company takes to recover its accounts Re...

Q: Tacomas population in 2000 was about 200 thousand, and has been growing by about 8% each year. If th...

A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value = 200,000r = rate of grow = 8%n = numbe...

Q: 1. Present Value and Multiple Cash Flows Fox Co. has identified an investment project with the follo...

A: Let CFn be the cashflow in year n. CF1 = $570 CF2 = $430 CF3 = $840 CF4 = $1230 r = Interest rate

Q: Let say, the spot rate of Swiss franc is $0.88 and the Canadian dollar is $0.35. The value of the Ca...

A: 1 Swiss Franc = $0.88 1 Canadian dollar = $0.35

Q: A supplier is offering your firm a cash discount of 2 percent if purchases are paid for within ten d...

A: We will have to compute the effective rate of cash discount being offered by the supplier. 

Q: Shares of stock that have been issued by the corporation at their par or issued value of the shares,...

A: The capital of a corporation is contributed by many number of persons and same is accounted in books...

Q: Ssing ratios and fill in the blanks on the row for the Sharpe ratio in the alone table, Briefly expl...

A: You have asked solution for part f 1,2.  Answers are as follows:-

Q: Cook Manufacturing (US): (Account Payable: Pay 10,000,000 Yen, 90 days from now)   Spot rate : 100...

A: This is a concept of money market hedging. In this, we have to create an asset at present for liabil...

Q: dentify the term being referred to: A type of bond that is secured by the issuing entity’s equipme

A: Bonds are debt instruments and there are many types of bonds in the world of finance. 

Q: You can _____ a euro call and ______ a euro put if you expect the euro to depreciate. A. buy; buy  ...

A: Call option gives its holder option not obligation to buy a underlying securities at specified price...

Q: A designer bag is worth P 2 million. If inflation is at rate of 5%, what will be the cost of the bag...

A: Inflation rate is a value at which the value of a product increases with the time. This follows the ...

Q: Mr. Cruz wanted to buy a house and lot worth P5M ten years from now so he decided to invest his mone...

A: Compounding is a method of charging interest in which Interest is charged on the amount including or...

Q: Your employer, a midsized human resources management company, is considering expansion intorelated f...

A: The dividend discount model (DDM) is a mathematical method for predicting a company's stock price ba...

Q: An annual deposits of A1=$1,500 in a saving account is made for 6 years starting year 1. In year 9, ...

A: Given: A1 = $1500 n1 = 6 years In year 9 - OTD - $3500 In year 11 - OTW - $2500 From year 12: A2 = ?...

Q: What is the present value of a perpetuity that pays 1,000 per year beginning 1 year from now if the ...

A: The perpetuity is the annuity that happens for a perpetual period. In other words, it is the equal a...

Q: Identify the term being referred to: An example of this dividend policy is when dividend of P1 per s...

A: Under dividend policy, a firm decides on how to distribute the earnings as dividends. There are 4 ty...

Q: a loan, secured by a collateral, that the borrower is obliged to pay at specific terms. O Loan Busin...

A: A loan is referred as the funds through which one or more company, individual, or some other entity ...

Q: Required information As indicated, some of the cash flows are expressed in future (then-current) dol...

A: Given : Real interest rate = 10% Inflation rate = 6%   Working Note #1 Calculation of inflation adju...

Q: Jamilah and Alexis have $500 to invest. The bank offers an interest rate of 6% compounded annually. ...

A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value r = rate of interest n = number of peri...

Q: What are the benefits of government setting and managing bank fees and rates to depositors?

A: Government used to deal with the citizens as well as deliver the public as well as social services, ...

Q: Assume i=0%, beta=1. Consumer has income of 80 in year 1, 100 in year 2.  Without gov't interventio...

A: Beta =1 Income in year 1 = 80 Income in year 2 = 100 Interest Rate (i) = 0%  

Q: Calculate the accounts receivable period, accounts payable period, inventory period, and cash conver...

A: Cash Conversion Cycle: It represents the time it takes for a business to transform its investments ...

Q: 1.   While she was travelling, Zainab took advantage of the convenience of cash withdrawals on h...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: Compare and contrast the following: A.  Dow Jones Industrial Average and S&P 500 as stock market in...

A: Dow Jones Industrial Average and S&P 500 are the stock market indices used to show the stock mov...

Q: The aggregate expenditure for a simple economy in 2016 was $9 million. The table below shows spendin...

A: First, we will calculate the aggregate expenditure of the government which includes Consumption, Inv...

Q: You plan to retire at the age of 65 and be able to live for 30 years paying yourself $80,000 per yea...

A: Time period after retirement is 30 years. Required Retirement income is $80,000 per year. Interest r...