What size monthly payments should occur when $10.000 is borrowed at 6% per year compounded monthly and the loan is repaid with 24 equal monthly payments?

Q: A company is expected to pay a dividend of $6.73 in the following period. If the expected growth rat...

A: D1 = $6.73 Growth rate (g) = 4% r = 11%

Q: Your cousin has asked for your advice on whether or not to buy a bond for $995, which will make one ...

A: Here, Buying Price of Bond is $995 One Time Payment after 5 years is $1,200 Time Period is 5 years

Q: How is investment banking different from retail and corporate banking? Explain in a flowchart.

A: Retail Banking is the type of Banking which provides banking services or financial services to the c...

Q: In March 2018, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under ...

A: The rate of return which is estimated to be earned each year is called as annualized return. It is u...

Q: An asphalt road requires no upkeep until the end of 2 years when P60,000 will be needed for repairs....

A: As you have asked multiple questions, we will solve the first question as per the policy presented b...

Q: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%, ...

A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month

Q: This exercise is designed to be solved using technology such as calculators or computer spreadsheets...

A: Loan is a value which is borrowed from external sources like banks and this amount is repaid later i...

Q: 2. I) Identify the concept of an optimal capital structure for a business firm.  II)  Analyse TWO (...

A: The question is based on the concept of capacity to the borrowing of a firm based on the concept of ...

Q: Examples of Current liabilities includes accounts payable, accruals and other short-term liabilities...

A: Current Liabilities are the liabilities (payments) that the company has to pay within a year. These ...

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

A:

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: A publicly listed traded company is in financial distress. It is projected to stop paying dividends ...

A: There are various valuation methods that can be used to value a comopany like discounted cash flow m...

Q: You have the chance to invest $100 in a Certificate of Deposit (CD) paying 6 percent annual interest...

A: The account value after 5 years can be calculated with the help of future value function

Q: During the month of May, direct labor cost totaled $13,560 and direct labor cost was 40% of prime co...

A: Direct labor cost = $13,560 Direct labor cost = 0.40 × Prime cost Total manufacturing cost = $81,800...

Q: If the stock market is at least semistrong efficient then, O A. trading on information that you read...

A: Semi strong form of efficiency in a market says that investors and traders in the stock market will ...

Q: EL CC CORPORATION MONTHLY SALES REPORT - MARCH Emp No. S101 Sales Amount PHP 2,500.00 Comission Tota...

A: Here we will use the different functions in excel like "sum", 'average', max, min etc. to find the r...

Q: Current Assets Cash Php 25,000 Php 30.000 Marketable Securities 40,000 10,000 Accounts Receivable 60...

A: Current ratio of an organisation is a measure to calculate the organisation’s ability to pay off its...

Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he ...

A: Future value required (FV) = Php1,000,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1...

Q: How much should an investor be willing to pay now for 10%, P 50, 000.00 bond that will mature in 25 ...

A: Given: Face Value of bond = 50,000 N = 50 semi annual periods (25 years) Interest rate = 12%/2 = 6% ...

Q: O a. International banks serve retail cients, corporations or individuals with forex transactions. O...

A: International banks provide the major platform of the Foreign exchange market. It provides a platfor...

Q: Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit mar...

A: Gross Profit ratio = [(Sales - Cost of goods sold)/Sales]

Q: roups that use financial ratio analysis. Who are these groups and what are the primary concerns of e...

A: Step 1   Managers want to assess performance metrics for employees, stores, assets, and more. Sales ...

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: True or False   One of the factors responsible for globalization of financial markets and institut...

A: Deregulation is the removal or decrease of regulations that impede free competition, enabling market...

Q: You bought a car and will pay back $378 per month for 48 months. If the rate is 3.46%, how much did ...

A: The amount borrowed is calculated using the Present Value of Annuity formula.

Q: Ray Miller was looking for funds to support his company's expansion. His bank offered him a $25,000 ...

A: Value of simple discount loan is $25,000 Interest rate is 10% Time period is 90days To Use: 30/360 ...

Q: It measures the performance of company managers in term of generating profit from operations.

A: Profit from operations refers to the profit that a business or a company earns by selling its goods ...

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 amount of an ordinary annuity of Php18,450 payable quarterly for 3.5 years at 12% compounde...

A: Answer -    The future value annuity formula calculates the value at the end of given period i.e. n ...

Q: ecovered investment is greater than the annual cash flow, the payback period is "1". If the unrecove...

A: Pay back period is the period required to recover the initial investment of the project.

Q: How would describe Rothschild and Co's  relationship with its history ? How valuable is it ??

A: A bank is a type of financial institution that is allowed to take deposits and provide loans. Financ...

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: t lump sum of money must be deposited into a bank account at the present time so that $500 per month...

A: Future withdrawal monthly depends on the monthly interest rate and period of withdrawal for which wi...

Q: Peter Sheffield has Euros (E) amounting to €500,000 and is provided with the following quotes: Bank ...

A: To determine whether an arbitrage opportunity exists or not, it is required to analyze the buying an...

Q: You are provided with the following exchange rate quotations: American Terms Bank quotations British...

A: Bid on (€/£) = 1/ Ask ($/€) Ask ($/€) = $1.4742 Bid ($/£) = $1.9712

Q: An all equity corporation has net income of $63,313and a required rate of return of 0.14%. What woul...

A: Given: Net income = 63313 Require rate of return = 0.14%

Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6% compoun...

A: Borrowed amount (PV) = P12000 Interest amount = P4650.70 Future value (FV) = 12000+4650.70 = P16650....

Q: Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021....

A: a) Year Revenue Pv factor @ 12% Discounted value 2022 5000 0.8928 4464 2023 6000 0.7971 4783 ...

Q: Assume that the real interest rate is 2% per year, the default risk premium is 3%, the liquidity pre...

A: Given: Real interest rate = 2% Default risk premium = 3% Liquidity risk premium = 1%

Q: Presented below are financial statements (except cash flows) for two not-for-profit organizations. N...

A: Answer -    Part 1 -  Program Expenses Ratio -  = Total Program Service Expenses / Total Expenses.  ...

Q: The cash price of a motorcycle is Php325,000. A fixed amount is to be paid at every end of the month...

A: Cost (PV) =Php 325000 Interest rate = 9% Monthly interest rate (r) = 9%/12 = 0.75% Period = 1.5 Year...

Q: Bob has $2,500 invested in a bank that pays 1% annually. How long will it take for his funds to doub...

A: Given, 2500 invested now Amount doubled = 2500 + 2500 = 5000 So, Maturity Value = 5000

Q: When the return on sales (also known as net profit margin) is negative, what does this mean? Group o...

A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the rat...

Q: " "vulnerability," a

A: Threat : A declaration of purpose to cause someone pain, harm, damage, or other hostile action as re...

Q: At 6% simple discount, find the present value of $300 which is due at the end of 90 days. What is th...

A: Discount rate (d) = 6% Amount (P) = $300 n = 90 days

Q: An investment that will give you monthly payments for 14 years costs $146,897. If your required retu...

A: An annuity is a series of cash flows that involve equivalent periodic amounts at equal time interval...

Q: Assume a hedge fund has a fee structure of 4 plus 25%. What return is the hedge fund required to gen...

A: Hedge funds are also known as the actively managed funds that uses various non - traditional and ris...

Q: Negative net working capital, is when current assets exceed current liabilities     True False   Mar...

A: The net working capital refers to the difference between the current assets and current liabilities....

Q: A contract requiring a specified future monetary payment at a specified future point in time in exch...

A: A derivative is a complicated financial security that is agreed upon by two or more parties. Traders...

Q: If average inventory is P80,000 and the inventory turnover ratio is 20, how much is the cost of good...

A: Calculate the costs of goods sold (COGS) by multiplying the average inventory which is P80,000 with ...

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.