What is the name principal future value a. b. Ob

Q: Why might Apple have needed to hold on to so much cash in excess of what it needed to operate? What…

A: Besides being known for its popular products like the i-phones, i-pads, etc. Apple is also popular…

Q: Consider a home mortgage of ​$225,000 at a fixed APR of 3​% for 25 years.   a. Calculate the monthly…

A: In case of a home mortgage fixed monthly payments are made. The fixed monthly payment consists of…

Q: You are given the following information about a firm. The growth rate equals 8 percent; return of…

A: Return on assets is one of the measure which shows how much net income or earnings are generated on…

Q: A​ bond's market price is ​$1,175. It has a ​$1,000 par​ value, will mature in 8 ​years, and has a…

A: Here, To Find: Yield to Maturity (YTM) =?

Q: What is the relationship between present value and future value?

A: Future Value : FV is that value which will be received in near future. Present Value : PV is that…

Q: Q)Of the basic types of economic evaluation methodology , which of them addresses the following, and…

A: Economic methodology is defined as the study of the methods basically the scientific method, which…

Q: ed to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1,000 bonds pay 8…

A: A yearly return is used to represent YTM which provides us with the projected total return from a…

Q: Roller Inc. has just paid an annual dividend of $0.8. Analysts expect dividends to grow by 8% per…

A: Data given: D0= $0.8 For next 9 years , g=Growth=8% per year  Beyond 9 year g= Growth = 1.5% per…

Q: Leon and Heidi decided to invest $2,500 annually for only the first eight years of their marriage.…

A: Amount invested annually “PMT” = $2500 Number of years of investment “n” = 8 Annual rate “r” = 8%…

Q: (a) A savings and loan association has offered him a 6-year car loan at an annual interest rate of…

A: Loan Payments: These payments consist of both interest and principal payments. These payments are…

Q: (Yield-To-Maturity) for $990. You have just bought a 5% coupon $1,000 face-value bond with 3 years…

A: Given: Particulars   Years(NPER) 3 Coupon rate 5% Par value $1,000 Current Price (PV)…

Q: ​Enterprise, Inc. bonds have an annual coupon rate of 9 percent. The interest is paid semiannually…

A: Given: Coupon rate=9% Par value=$1000 Yield to maturity=16% Duration =13 years To find: Value of…

Q: Amount $70,000 a. Calculate P 1 + A = b. Calculate B= A c. Let R= B Time Rate 2% 30 years n r P ( ₁…

A: The time value of money concept is used to determine the amount of money that will be received in…

Q: Ant Ltd is a profitable manufacturing company. After evaluation of the budget for the coming…

A: NPV: Net Present Value is the technique of Capital budgeting under which we will calculate the…

Q: You have $10,000 to invest for five years. - How much additional interest will you earn if the…

A: Given Information : Amount invested - $10,000 (Present value) Rate of interest (r) - 5%/4.5% Time…

Q: What is Financial leverage?

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: João, owner of a small clothing store, found that his company's cash needed funds in the form of…

A: Given: Amount required for payment to employee : $35000 Amount held in duplicates =$42000 Number of…

Q: The construction market is suffering from a short-term economic recession, and one of the investors…

A: NPV is the one of the method in Capital budgeting for help in taking the decision on the basis of…

Q: Consider a loan of $2 million that is paid quarterly over a period of 10 years. Calculate the dollar…

A: In case of loan payments a fixed amount is paid in each period. While the amount of each payment…

Q: According to MM propositions, at what debt-equity ratio the cost of equity should be lowest? Zero if…

A: MM proposition II:-  Defines cost of equity . Any firm in a given risk class , the cost of equity is…

Q: Consider a loan of 800,000 which is to be amortized by 60 monthly payments. The interest rate is 12%…

A: To calculate the monthly payment of loan we will use the below formula   Monthly payment  =…

Q: A student borrows $6000 at 10% for 6 months to pay tuition. The total amount due after 6 months is $…

A: To calculate the interest amount we will use the below simple interest formula   Total amount due =…

Q: 2. Judge whether the following price terms are correct or not. If not, make corrections (1) RMB55…

A: Although market corrections may be difficult, and a 10% decrease can be devastating to many…

Q: A government bond with a par value of R1000, maturing in 5 years, offers an annual coupon of 9.5%,…

A: Given: Coupon rate = 9.5% Face value = R1,000 Yield to maturity = 11.5% Year = 5

Q: please anwer all the questions i have mentioned below : - A company has the following items for the…

A: Formula for Current Ratio and Quick ratio is given below Current Ratio = Current Asset / Current…

Q: Kyle invested money in a mutual fund for ten years. The interest rate on the mutual fund was 3%…

A: Accumulated Value at the end of 10 years "FV" is $41,788.50 Interest rate for first 5 years is 3%…

Q: Sweden (krona) SEK 8.4976 8.4388 8.3886 8.2836

A: Compute cost of covering of liability to pay Swedish kronor to a Swedish company after one year by…

Q: Suppose that the annual expected rates of inflation over each of the next five years are 5 percent,…

A: The Average Expected rate of Inflation is calculated with the help of following formula  Average…

Q: You review the characteristics of a recent corporate bond issue and notice that the issuing firm's…

A: Bond rating- are ratings issued by rating organization like Standard & Poor's (S&P) ,…

Q: Find the APR of the loan given the amount of the loan the number and types of payment in the add-on…

A: Annual percentage rate (APR) : It refers to the yearly generated interest by a Principal amount that…

Q: A small northern California consulting firm wants to start a recapitalization pool for replacement…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: gn and institutional investors to diversify its funding base. The prevailing market sentiment of…

A: As per answering guidelines, if there are multiple sub parts are given then we do only first three.

Q: On January 1, Zonoz, Inc. issued a 10-year semiannual bond with a face value of $590,000 that pays…

A: As asked in the question to calculate using excel, so we will use the formula in excel and the snip…

Q: Suppose that the relevant equilibrium model is the CAPM with unlimited borrowing and lending at a…

A: a) Security Market Line (SML) is the graphical representation of the Capital Asset Pricing Model…

Q: what is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of…

A: NPV refers to net present value. It is an important capital budgeting tool that is used to determine…

Q: Use your own words to answer the following questions: Write the formula for the P/E ratio and what…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Card

A: Discover refers to the customer credit card brand which is known for the purpose of cashback…

Q: A JBH share has just paid a dividend of $1.25 per share. This dividend is expected to grow at a rate…

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

Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they…

A: To calculate the deposit amount we will use the present value formula as follows:   Deposit amount =…

Q: carlos invests $6000 in a 24 month CD that has a 4.75 interest rate. use the formula to find how…

A: Given,   P(Principal)= $ 6,000 r(rate of interest)= 4.75% or 0.0475 per year   0.0475/12  per…

Q: Using the unpaid balance method, find the current month's finance charge on a credit card account…

A: Unpaid Balance Method: It is the method where finance charges are calculated based on previous…

Q: Mahtab wants to buy a car and is offered two payment options: (#1) cash payment of $26,899 + HST or…

A: Cash  $                     26,899.00 HST 13% (assumed) Periodic Payment  $…

Q: Suppose the spot rate and the 90-day forward rate on the Brazilian real are 3.3054 and 3.3263,…

A: Given: Spot rate: 1$=3.3054 brazilian real 90 days forward rate=3.3263 brazilian real 3-month…

Q: On what factors do the interest rate and repayment terms for term loans based?

A: Loan refers to the lending of money  by one ore more individuals  or organizations . The recipient…

Q: With a $100,000 investment in a new injection moulding machine, A-Design Inc., a company specialized…

A: The payback period is the span of time necessary to repay the cost of an investment. Simply…

Q: What is Temporary financing?

A: There are various sources of temporary financing which are as follows: a) Commercial paper b) Bank…

Q: Consider the following data: Expected Return Standard Deviation Russell Fund 16% 12% Windsor Fund…

A: Given: Particulars Return Standard deviation Russell Fund 16% 12% Windsor Fund 14% 10%…

Q: A project proposal requiring P840,000 initial investment will result to annual cash return as…

A: Here, To Find: Part A. Net Present Value (NPV) =? Discounted payback period =? Part B. Payback…

Q: 1. Corn is an essential commodity in a small Central American country and the government intends to…

A: Solution:- Subsidy means the benefit granted by the government by decreasing the price, while by…

Q: You are a real estate agent thinking of placing a sign advertising your services at a local bus…

A: To calculate the payback period we will use the below formula   Payback period = Initial cost/Equal…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.