What do "threat," "vulnerability," and "risk" really mean?

Q: With respect to issues related to the cost of capital: Multiple Choice an increase in the debt ratio...

A: Cost of capital refers to the percentage that shows the proportion of total financed amount includin...

Q: The SF/S 180-day forward exchange rate is SF1.30/S and the 180 day forward premium is 8 percent. Wha...

A: The spot rate is the exchange rate on immediate purchase in the current market. The forward rate is ...

Q: You bought a car and borrowed $25,067 for 48 months. If the rate is 3.56%, what is your monthly paym...

A: Loan amount (L) = $25067 n = 48 months r = 3.56% per annum = 0.29667% per month X = Monthly payment

Q: Net present value (NPV) is one method that can be used evaluate the financial viability of potential...

A: Data given:: Initial investment           = $ 190,000 Annual  cash flow           = $ 58,000 n      ...

Q: Consider the following information: State of Economy State of Economy if State Occurs Recession Boom...

A: Expected return =Summation of Probability of state of economy×Rate of return if state occurs

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

A:

Q: How many years are needed for P40,000 to yield P13,756.66 if invested at 6% converted semi-annually ...

A: Given,  Interest rate 6% compounded semi annually  So, Interest rate per semi annual = 6%/2  = 3%   ...

Q: Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The effecti...

A: Interest rate (r) = 12% Number of compounding per year (m) = 4

Q: The formula below tells us how to obtain the maturity value on a simple discount loan if we are give...

A: Simple discount rate = 7.56% How many years for debt to double? Assuming Debt = 100 Future Value = 2...

Q: Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $20,000 $330,000 $450,000 $750,000 The CFO of the compan...

A: Calculate the present value of the cash flows of $100,000, $20,000, $330,000, $450,000 & $750,00...

Q: Suppose Capital One is advertising a 60​-month,5.85% APR motorcycle loan. If you need to borrow $7,1...

A: Loan amount (PV) = $7100 Interest rate = 5.85% Monthly interest rate (r) = 5.85%/12 = 0.4875% Period...

Q: Your firm has the following income statement items: sales of $52,000,00%3; income tax of $1,880,000;...

A: Cash flows from operations means all cash inflows and outflows generated from the operations of the ...

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...

A: Given: Future Value “FV” = Php5,500,000 Present Value “PV” = Php3,500,000 Number of years = 13 Numbe...

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...

A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...

Q: 14.) The Virginia Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $6...

A: The current price of a projected amount of money or series of payments with a predetermined rate of ...

Q: Briefiy explain (in one or two sentences) what the meaning is of the calculated AS/SFR ask

A: Step 1: A cross exchange rate is the rate of exchange between two currencies that are inferred by th...

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: The furniture store offers you no-money-down on a new set of living room furniture. Further, you may...

A: This is an example of amortization in which the loan amounts are repaid in equal installments over a...

Q: A telemarketing company bought a new office space for Php720,000 downpayment and monthly installment...

A: Down payment (DP) = Php720,000 Monthly payment (P) = Php40,000 Period (n) = 42 Months Interest rate ...

Q: Ifyouare in Vietnam, please quote direct and indirect rate from Tha i Baht for Cash and both Buying ...

A: The question is based on the concept of foreign exchange quotation. Foreign exchange quotation uses ...

Q: safety net to safeguard the world financial system from the Asia-type o nternational Monetary Fund (...

A: Introduction : In simple words, financial crisis refers to the situation in which the assets of any ...

Q: + Explanation of Time Needed for Payback with uneven cash flows Note: For each year in which the unr...

A: The payback period is the amount of time that is required to break even, i.e., to recover the initia...

Q: You are provided with the following quotes: AUDIS 1.4873 - 79 Yen/s 111.4771 - 77 Calculate the $/AU...

A:

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: Fiat money has an intrinsic value based on the full faith and trust in government institutions.   ...

A: Fiat money - This type of money is not backed by any commodity such as  gold or silver , but such mo...

Q: ABC Corporation will be issuing serial preference share. A piece has a par value of 6000, coupon rat...

A: Par value = 6000 Coupon = 14% of 6000 = 840 n = 3 years r = 15%

Q: Which technique is expected to be most accurate in the valuation of an operating retail shopping cen...

A: The analytical process of determining the current (or future) worth of an asset or a firm is known a...

Q: A project requires an initial investment of 19,000 dollars. The lifetime of the project will be 10 y...

A: Savings to investment ratio (SIR) is the ratio of present value of positive cashflows to present val...

Q: Maria takes out a 30-year fixed rate mortgage at 5% to buy a house that costs $450,000. To avoid pay...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: Selected information from the comparative financial statements of AppleVerse Company for the year en...

A: Receivables turnover ratio measures the number of times in a year the company collects its overdues....

Q: Asset W has an expected return of 13.6 percent and a beta of 1.37. If the risk-free rate is 4.62 per...

A: Return and Beta of portfolio can be calculated as: Portfolio Return = ∑(weight of assets * return of...

Q: discussion on six assets included in a decedent’s gross estate. List and discuss three valuation dis...

A: Decedent’s gross estate is the gross value of all the assets owned by an Individual at the time of h...

Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibr...

A: To calculate the value of project, it is required to calculate the net present value of Project usin...

Q: Ultravision Inc. anticipates sales of $460,000 from January through April. Materials will represent ...

A: Cashflows means movement of cash, it can be positive or negative. Positive cashflows means cash infl...

Q: 1. Laura James just won the lottery of $2.5 million dollars. She is given two options to receive her...

A: Discounting is a technique which is used to compute the present value (PV) of future amounts by usin...

Q: A Johnson and Johnson 5.65% coupon bond is yielding 227%. The current date is February 14, 2021 and ...

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Q: Brief Exercise 3-5 Determine accrual-basis and cash-basis net income (LO3-1, 3- 2) Rebel Technology ...

A: Under cash basis accounting, only cash received and cash payments will be considered for calculation...

Q: ou found the following stock quote for DRK Enterprises, Inc., at your favorite website

A: a. Stock price = Dividend / Dividend yield = $0.83 / 0.0140 = $59.29  

Q: What is the difference between a fixed rate and an adjustable rate money market instrument?

A: Money Market instruments are the financial instruments available to the investor for the short term ...

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time  

Q: 'ou are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibr...

A: Here, Cost of Project is $24 millions Net Income of Project is $4.732 million Depreciation is 2.400 ...

Q: Accumulate $2000 for 3 years at 7% simple interest. O I = $420; F = $2420 %3D %3D O 1= $4200; F= $64...

A: Amount (P) = $2000 n = 3 years r = 7%

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: 5 factors contributing to the financial Crisis and why each helped to bring on the crisis.

A: Financial crisis is a situation which leads to the decline in the asset , businesses , consumers, an...

Q: 15. Scarlet Knight Corporation's bonds have a face value of $1.000 anda 9% coupon paid semiannually:...

A: The current yield of the bond is the Annual return paid by the bond divided by its current market pr...

Q: For what reasons is it a wise policy to keep credit appraisal and sanctioning from the work out func...

A: Credit appraisal refers to a bank's investigation/assessment of a project's commercial, financial, a...

Q: For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amount...

A: Loan is a value which is borrowed from third party like banks for a certain period and this amount i...

Q: on gives the right to sell an asset at any time prior to or at maturity? * A. European Put B. Americ...

A: Options gives the opportunity Buy or sell the stock on or before maturity of stock. But there is obl...

Q: A portfolio is invested 24 percent in Stock G, 39 percent in Stock J, and 37 percent in Stock K. The...

A: Information Stock Weight Return G 24% 10.5% J 39% 13.0% K 37% 18.4%

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of 1...

A: Time Value of money states that each dollar has earning capacity hence a dollar today is worth more ...

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.