what is the present value of all your profits over the next 5 years? SHOW A “ROUGH” CASH FLOW DIAGRAM SHOW YOUR WORK ON HOW YOU CAME TO THE ANSWER (i.e. Equation)  Answer _____________________ Work ---→

Q: Accumulate ₱27,390 for 115 days at 11.125 % simple interest

A: Answer-  Accumulated value means accumulated amount or cash value, is calculated as the sum or total…

Q: calculate the cost of the preference share

A: Cost of preference share = Annual dividend/Current price

Q: Explain Target Return on Investment?

A: Investments are done to get the return on the same. Generally, investments are done when an…

Q: Jabari is planning for his retirement in 5 years’ time. He plans to deposit $200,000 immediately…

A: In this question, we have to calculate the future value of given annuity. Future value of annuity is…

Q: (Related to Checkpoint 5.4) (Present value) Sarah Wiggum would like to make a single investment and…

A: a) Present Value = Future Value/(1 + r)n Where r = Interest rate n = time period  Present Value =…

Q: A 30,000, 6% bond with coupons payable quarterly is redeemable at par at the end of 8 years. The…

A: Face value = 30,000 Coupon rate = 6% Quarterly coupon amount = 30,000*0.06/4 = 450 Years to maturity…

Q: 3. For payments shown in the following table, and assuming the interest rate (10%), what is the five…

A: Present value is the discounted value of money considering the interest rate and time of annual…

Q: What is the price of floating rate bond that is at its reset date?

A: Floating rate Bond : It is the bond where there is  variable coupon payment to  investor. Interest…

Q: Find the value of a bond maturing in 11 ​years, with a ​$1,000 par value and a coupon interest rate…

A: Semiannual coupon amount (s) = $55 (i.e. $1000 * 0.055) Semiannual required return (r) = 0.075…

Q: Ezy Fixit Ltd has been asked to quote a price for a special job that must be completed within one…

A: Relevant cost is those cost that helps in taking managerial decisions. Changes in these kinds of…

Q: Mr John Week borrowed $ 2,400 at 1% per month payable in 24 equal end-of-the month  payments. How…

A: The loan amount which is unpaid is needed to be paid in installments. If this amount will not paid…

Q: The first bank advertises a nominal rate of 7.1% compounded semiannually. A second bank advertises a…

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

Q: rrowed on margin to $10K to buy 40,000 shares of NVM stock when it was trading at 45 cents a share.…

A: Broker gives margin to the clients so that they can increase the trading volume and they can trade…

Q: Rashmi has heard about shares and debenture but she is confused in between both terms as you are…

A: Shares represent ownership of the company. The company gets capital but in return provides the…

Q: Define negative working capital. Is a negative working capital a sign of illiquidity or of…

A: Working capital is amount of temporary cash available for companies for timely payments of company…

Q: Finance. Suppose that $6,000 is invested at 3.8% annual interest rate, compounded monthly. How much…

A: To calculate the future value we will use the below formula   Future value = PV*(1+r/m)t*m Where PV…

Q: How can she earn the time premium? I am very confused. How can she sell it without buying first?

A: Deep in the money is the option where expercise price is very lower than the the spot price. Time…

Q: Jodan received an amount of GHc 1000 from his grandpa as a birthday gift. He decides to invest the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: A family takes out a $168,500 mortgage at 6.5% interest compounded monthly with monthly payments for…

A: Solution:- When some amount is borrowed, it can either be repaid as lump sum payment or in…

Q: Calculate the value of a bond that matures in

A: Bond: It is a debt instrument issued by the firm to raise debt capital and is valued by discounting…

Q: How much will P54,200 be in 24 months at 4-% compounded monthly? 4 A) P388,579.66 B) P59,590.33 C)…

A: The time value of money concept is to determine the future value and present value of a single…

Q: Huai takes out a $3300 student loan at 6.6% to help him with 2 years of community college. After…

A: Consider the following student loan: • First he takes out a loan of $3300. • The interest rate for…

Q: All the following constitute unfair methods of competition under California law EXCEPT providing…

A: Unfair commercial practices are frequently observed in consumer purchases of products and services,…

Q: (Inflation and interest rates​) What would you expect the nominal rate of interest to be if the real…

A: The formula to calculate nominal rate of interest is: (1 + Nominal rate of return) = (1 + Real rate…

Q: The following data were gathered from the annual report of Tom Products:  Market price per share…

A: Book value per share  is calculated by dividing a company's common equity by the number of shares…

Q: Find the sticker price and dealer's cost for the MT-5 Sedan with a base price of $10,600.00. Options…

A: The amount that an auto manufacturer charges the client to bring the car from the factory to the…

Q: Find the present value of $1000 eight years. Interest is given by n annual effective interest rate…

A: Present value can be calculated based on the effective interest rate and time period of the cash…

Q: Suppose, on a certain day in February, a speculator observes the following prices in the foreign…

A: The following information has been provided in the question: GBP/USD spot=1.6465 March…

Q: The development economics is concerned with

A: The development economics is concerned with economic, social, and political institutions, efficient…

Q: 10. Individual C invested in a project with a payback period of 6 years. The project brings $18,000…

A:

Q: Question 4 of 9 The maturity value of a savings account that belonged to Peach Company was…

A: The concept of the time value of money states that the same amount would be worth more today than in…

Q: Perit Industries has $135,000 to invest. The company is trying to decide between two alternative…

A: Calculations are done in excel, so there is no intermediate rounding PV of Outflow = $135,000 PV of…

Q: rizona Company is considering an investment in new machinery. The annual incremental…

A: NPV is an investment appraisal method. It is the estimated increase in wealth of shareholders of the…

Q: If he deposits 2000 at the end of every year into a special account for seven years and the bank…

A: This problem can be solved in light of annuity and future value. Total amount in the deposit account…

Q: The following interest rate structures are on offer by three independent banks: Tree Bank: 16%…

A: Let i denote effective annual interest rate and i(1) compounded annually interest rate (1+i) =…

Q: luation)  Assume the​ following:   •   the​ investor's required rate of return is 12.5 ​percent, •…

A: There are two methods of valuation of equity one is P/E multiple based and other is constant growth…

Q: Degree of financial leverage of 1.5 implies that: Select one: Increase in revenues by 2.5% would…

A: Degree of financial leverage measures the change in the earnings per share or net income of the…

Q: Boehm Incorporated is expected to pay a $2.20 per share dividend at the end of this year (i.e., D1 =…

A: Data given: D1 = $2.20 Growth rate (g)= 8% Required rate of return (r) = 15%   Required:  Estimated…

Q: What is the value of a preferred stock

A: Preferred stocks is a type of equity. The holders of preferred stock will get preference over common…

Q: Which of the following statements is False regarding the payback period method: DA Use as a tool in…

A: Statement -D is false.As payback period method is Non- discounting cash flow criteria…

Q: A 20,000, 1 ½% bonds with annually coupons are priced to yield 4 ½% converted annually. If it is…

A: Face value = 20,000 Coupon rate = 1.50% Yield rate = 4.50% Redemption to face value ratio = 104%…

Q: ​Pioneer's preferred stock is selling for ​$44 in the market and pays a ​$3.10 annual dividend.   a.…

A: Selling price of the stock = $44 Annual dividend (D) = $3.10   a.  Required yield (r) = 0.08 Fair…

Q: Provide an evaluation of two proposed Investments which are expected to provide cash flow forecasts…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: a Let A, be the balance of the loan after n months. find series expression for An

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

Q: Jadon received an amount of 1000.00 from his grandpa as birthday gift. He decides to invest the…

A: Principal Amount, P = 1,000 Interest rate, r = 10% = 0.10 Time,t = 5 years Future Value, FV = P…

Q: Explain and define deeply the three (3) types of electronic payment. Cite some situational examples.

A: An electronic payment is that payment which is made digitally and in which there is no involvement…

Q: QUESTION 21 Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year fully…

A: Time value of money is used in determining the monthly installments to be paid for the loan amount…

Q: Discuss the methods of financing of retail business and the manner in which it will be raised.

A: Customers purchase things or services from retail firms for consumption, usage, or for their…

Q: For the following ​$1,000​-par-value ​bond, assuming annual interest payment and a 26​% tax​ rate,…

A: The cost to maturity of a bond can be calculated using the approximation method. Under this method,…

Q: CIS is evaluating two programmes. Both programmes will require an initial invest GH1,300,000. Funds…

A: The term payback period refers to the time it takes to recover the cost of an investment. Simply…