What is the effective annual rate of interest on the additional 10% of house value borrowed on the first loan?

Q: An effective method to recover water used for regeneration of ion exchange resins is to use a…

A: Answer -  Putting in Equation,    −(920+360)(A/P,10%,5) – 1.28x,3 )– 3.10x = −3850(A/P,10%,5) –…

Q: The management of Basler Corporation is considering the purchase of a machine that would cost…

A: Initial cost = $440,000 Annual savings in costs = $128,000 Life = 5 years Required return = 0.12…

Q: n June 2020, Singapore Airlines Limited undertook a renounceable rights issue of new ordinary shares…

A: Renounceable Right Issue of Ordinary Shares Under this approach a company gives an offer to its…

Q: Johan wants to buy a car on hire purchase for N$49000 at the rate of 12% p.a. repayable using…

A: Monthly payment amount for this hire purchase may be calculated through the following formula…

Q: A rich man put up a trust fund in the bank to give his son the earnings of P 400, 000 at the end of…

A: Trust fund can be defined as a legal entity that holds property or assets for a person or…

Q: Lambda Corporation has current liabilities of $450,000, a quick ratio of 1.8, inventory turnover of…

A: Cost of Goods sold: Cost of goods sold is the cost of goods which is sold by the company. The cost…

Q: ompare three alternatives on the basis of their capitalized costs at i = 13% per year and select the…

A: Capitalized cost is the present value of all cost that may occur during the economic life of the…

Q: Assume the $11,700 Treasury bill, 6% for 10 weeks. Calculate the effective rate of interest.…

A: Answer: Interest applicable = 11700 * 0.06 * 10/52                               = 135 Proceeds =…

Q: ’t bond rate is 3%; the current beta of equity is 1.5; compute the cost of equitywhat is the Cost…

A: The cost of minimum return required by a firm for an investor's portfolio, or by an individual for…

Q: 2. For each of the following compounding intervals, show the formula and the t that would be needed…

A: Interest and its types: Interest is the cost of money and is received or paid when money is lent or…

Q: a. How much money will be saved? b. How much will be owed after 2 years?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: D3) Finance Discuss optimal hedging strategies for an AAA-rated firm and a BBB-

A: AAA refers to the highest rating that can be given to the bond of an issuer by the credit rating…

Q: Six months ago, you bought a stock for $19.00 a share. You sold it today for $20.75, after…

A: To calculate the effective annual rate of return we will use the below formula   Effective annual…

Q: How does a financial manager monitor and evaluate a firm’s financing?

A: Financial management refers to the art of managing the money of the firm in order to meet its…

Q: If you have a portfolio made up of 30 percent Yum Brands, 30 percent Raytheon, and 40 percent…

A: return of Portfolio = wA * rA + wB * rB+ wC * rC   wA = 3.8% = 0.038 rA = 30%

Q: What is CAPM and how it used in portfolio management?

A: Risk and return are the two main parts of any investment and before investing in any security or…

Q: In most lending organisations, credit losses occur due to lack of credit risk monitoring. You’re…

A: Credit risk is referred as the possibility of the loss, which used to result in the failure of the…

Q: Order the expected values from smallest to largest.

A: Expected Value: It is estimated by adding all the outcomes which are weighted by their…

Q: How would you set up the function in Excel to get the IRR of an investment of $22,500 over 6 years,…

A: Internal Rate of Return:  Internal Rate of Return (IRR) is the required rate of return at which the…

Q: 4. You borrowed $10,000 on a 10% discounted loan for a period of 8 months. a. What is the loan's…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: A 15-year bond with 9% coupons paid semi-annually will be redeemed at P 6,300. The bond is bought to…

A: Given: Given: Years = 15 Coupon = 9% Redeemable value = P6,300 Yield = 7.5% Purchase price = P6,750

Q: allable bonds provide benefit to the______ and hence offer_______rate of return than non-callable…

A: Callable bonds are bonds which have options to be called before maturity at any time as per issuer…

Q: 4.4 ROE decomposition 2021  Tax Effect    Financial Cost Effect    Operating Margin…

A: ROE: It is a measure of profitability and is estimated by dividing the net income by the equity…

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Thanks for the Question. Bartleby's Guideline: “Since you have posted a question with multiple…

Q: mortisation schedule for a filling station. The loan will be paid off in 15 years. Month Outstanding…

A: Loans are paid by the equal monthly payments that carry the payment of interest and payment for…

Q: prest at 3.46% compounded monthly. If he leaves the accumulated money in the savi have saved to buy…

A: Present value annuities would give the amount required to be deposited today considering the…

Q: Your company is considering a project which will require the purchase of $635,000 in new equipment.…

A: Given: Particulars Amount Cost of asset $635,000 End value 25% Sales $224,000 Working…

Q: Suppose your given the cash flow data of 3 project alternatives in the table below with 3 years of…

A: Alpha Beta Gamma Investment Cost  $           70,000.00  $           50,000.00  $…

Q: 1. Consider a real return bond with a face value of $15,000 and a coupon yield of 5.2%. What is the…

A: Coupon payment after one year will be face value of bond multiply with adjusted coupon rate after…

Q: An elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The…

A: On the basis of the information provided:  Cost of an elevator system - P 18M Useful life (years) -…

Q: has a right to buy a security at a specific price on a specific date if he_____on this security: O…

A: The options gives the holder of option right to sell or buy the stock on specific price and on…

Q: he following is an extraction from an mortisation schedule for a filling station. me loan will be…

A: Loans are paid by the monthly payments that carry the payment of principal amount and payment of…

Q: An investor deposits €10,000 in a bank account that pays simple interest at a rate of 5. What will…

A: Principal Amount, P=  €10,000 Interest rate,r = 5% = 0.05 Time,t = 3 years Let us calculate the…

Q: Determine the present value of an annuity of $600 paid monthly for a period of 15 years at 4.50% APR…

A: To calculate the present value we will use the below formula   Present value = P*[1-(1+r)-n]/r Where…

Q: Explain on the effects of rising inflation rates on the economy. How can the rising inflation rate…

A: By boosting the prices of the products inflation generally reduces your purchasing power. Inflation…

Q: According to Kumar (2009, “Who gambles in the stock market?”, Journal of Finance), what are the…

A: Lottery type stocks are those type of stocks which are generally being preferred by individual…

Q: Technical analysis can only be profitable when:   a. The market is weak form efficient   b. The…

A: Weak form of capital market efficiency- In this form of market only the past information  about the…

Q: (a) Compute the annual net cash flow.

A: Cash Flow: It represents the movement of cash coming in and out of the business. A positive cash…

Q: if mr. rankie bought a piece of property for 100000 pesos down payment and 10 deferred semi-annually…

A: Time value of money is applied for calculation of the present value of an asset. All cash flows are…

Q: what is the par value of the bond?

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: Find i (the rate per period) and n (the number of periods) for the following annuity.

A: Rate per period: It is the rate applied for a certain period and is estimated by dividing the…

Q: The required return on a particular stock as 14% according to the CAPM. The stock's beta is 1.5.…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: Suppose the current dividends on a stock are $4.7 per share and dividends are expected to increase…

A: The proce of share will be calculated with the help of following formula (Gorden's Model)  P0 = D1 ÷…

Q: Assume that you are 30 years old today and that you are planning on retirement at age 65. Your…

A: Given: Particulars Amount Years 30 Retirement age 65 Current salary $45,000 Growth rate…

Q: pay 7% compounded. If she makes pa of each quarter, what must Elena's payments to be achieve her…

A: Future Value of Annuity: It represents the future worth of the present annuity payments and is…

Q: a) What single investment made today, earning 12% annual interest, will be worth $6,000 at the end…

A: The question is related to Time value of money. The present value is calculated with the help of…

Q: 5. A firm must decide between two designs A and B. Their effective income rate is 50%. If the…

A: Explanation : Under  Capital Budgeting technique we can take the decision whether the project should…

Q: List down the type of industries those, according to your understanding, follow working capital…

A: Working capital is that capital that a business uses in its day to day trading operations.…

Q: A two-year project has an initial investment of $38,643,310 and involves both a cash inflow and…

A: The net present value is used to measure the profitability of a project. It does so by adding up the…

Q: Alternatives A, B associated with a project have data as in the following figure, MARR=12% /year,…

A: Here, To Find: Alternative to select =?

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.