Which of the following presumption is correct about the reliability of audit evidence

Q: Calculate the company’s w.a.c.c.

A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…

Q: Stock W has the following returns for various states of the economy: State of the Economy…

A: The expected return is the weighted average return that an investor will get for their investment.…

Q: Assume that the risk-free rate is 4% and the required return on the market is 11%. What is the…

A: Risk free rate = 4% Market return = 11% Beta = 1.39

Q: Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital…

A: IRR is the Internal rate of return. It is that rate at which the NPV of a project is zero ie: the…

Q: Your company is considering purchasing an expensive plece of equipment. The manufacturer of the…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: accumulate P24,500 at 9% compounded monthly? 16. How much monthly deposit must be made for 7 years…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: The following data are accumulated by Geddes Company in evaluating the purchase of $120,000 of…

A: Net Present Value=Sum of the present value of cash inflows-Present value of cash outflows Present…

Q: o be well-capitalized, a Philippine bank must have a leverage ratio of at least ____________ percent…

A: In Philippines, the Bangko Sentral ng Pilipinas (BSP) is responsible for setting and implementing…

Q: You are trying to save for retirement and want to have $500,000 (fv) when you turn 65 years old…

A: In order to find the periodic payment to be made at regular interval to reach the retirement goal,…

Q: What is the Rate of Intere

A: Given  Annuity =5000 Perpetuity =10000 Time n=1 year

Q: An investment in equipment with a 5-year MACRS property class is being considered. The operating…

A: Here

Q: If you were given a chance to invest your money what is your preference Simple or compound interest?…

A: Solution:- In simple interest, the interest is calculated on the principal amount. While on the…

Q: GIVE AN INTERPRETATION OF THESE RATIOS CONCLUSIVELY Acid test ratio = (total current asset –…

A: After calculating the required ratios it is very important to interpret the results of it.

Q: 11.1 Expected Return and Standard Deviation This problem will give you some practice calculating…

A: Portfolio management is the branch of finance that deals with managing multiple assets and…

Q: What is a derivative and what is its purpose? Give an example of how a firm might use a derivative…

A: A derivative is a type of financial contract whose value is determined by the value of an underlying…

Q: What profit or loss did Security Brokers incur if the issue were sold to the public at $8 / share?…

A: Underwriting refers to the contract or agreement between the two parties; one is company and second…

Q: Over the period of 1926-2017, which one of the following had the highest volatility of returns? U.S.…

A: Of all the investmenst, i,e long and short bonds, shares, small company stock are more volatile as…

Q: controlling translation exposure?

A: Translation exposure refers to the change in the value of assets and liabilities which is affected…

Q: The following information relates to the acquisition of M plc by D plc:   Recent dividend of M…

A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…

Q: Using the sinking fund formula or a financial calculator, complete the following: (Do not round…

A: The payment amount can be calculated with the help of future value of annuity function

Q: Valerie refinanced her home loan. The new loan of $103,000.00 has an interest rate of 5.9%…

A: Here, Loan amount = $103,000.00 Interest rate = 5.9% compounded monthly Term of loan = 21 years To…

Q: Pluto's has 14,000 shares of stock outstanding with a par value of $1 per share. The market value is…

A: Retained earnings account after the dividend will be retained earning balance minus stock dividend…

Q: Find the periodic payment for each sinking fund that is needed to accumulate the given sum under the…

A: FV = $1,000,000 r = 5.8% Number of compounding per year (m) = 2 Period (t) = 30 Years

Q: Explain the advantage of saving early?

A: Money received today is worth more than money due at a later date, according to the time value of…

Q: n the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…

A: Future Value(FV) is ascertained to know the expected value of current amount that will be invested…

Q: Accounts receivable turnover is 4. What is the average collection period assuming annual data are…

A: Accounts receivable is the amount, which the customer has paid later on. This is the money, which a…

Q: It is known that a firm’s Net Operating Profit After Tax (NOPAT) is $58,000 and its Economic Value…

A: We need to use EVA equation below to calculate WACC EVA =Net Operating Profit After Tax (NOPAT)…

Q: Question 4 Anne Murray is planning to buy a rental property, in addition to the family home she and…

A: Return on investment is the financial analysis , which helps to determine the profitability in the…

Q: Your company has two​ divisions: One division sells software and the other division sells computers…

A: Given: Particulars Common stock Debt Beta 1.25   Risk free rate 4.20%   Market value…

Q: Time-share sales provide an opportunity for vacationers to own a resort condo for 1 week (or more)…

A: Cost of 3-bedroom condo us $21,873 Down payment is 10% Time period is 15 years Interest rate is 17%…

Q: Determine the weights of a portfolio with a standard deviation of 7% created by combining T-Bill and…

A: Expected Return on Portfolio: It is estimated by adding the individual security returns that are…

Q: Ernie's has 3,500 bonds outstanding with a face value of $1,000 each and a coupon rate of 8.5…

A: The interest tax shield is the amount of rebate granted from taxable income because of the tax…

Q: Stock W has the following returns for various states of the economy: State of the Economy…

A: State of the Economy Probability Stock W's Return Recession 0.15 -10% Below Average 0.2 5%…

Q: 5. Dewyco has preferred stock trading at $54 per share. The next preferred dividend of $5 is due in…

A: Annual dividend = $5 Price of preferred stock = $54

Q: 8. Growth​ Company's current share price is $20.00 and it is expected to pay a $1.30 dividend per…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account…

A: Economic profit is calculated by subtracting explicit costs and opportunity costs from the revenue…

Q: The NZ Equity market is illiquid, both in the primary and secondary markets. What does market…

A: An equity market is a market where companies' stock is issued and traded, either through exchanges…

Q: If you want to earn 15% annual simple interest on an investment, how much should you pay for a note…

A: Maturity amount = $6750 Interest rate = 15% Period = 10 months

Q: Which one of the following dates is the date on which the board of directors votes to pay a…

A: Record Date is the date used as a reference to understand which shareholder will get the dividend…

Q: d) Semi-annual payments of 60,000 for 3 years that will start 5 years from now. e) Payments of 3,000…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity is…

Q: Find the future values of the ordinary annuities at the given annual rate r compounded as indicated.…

A: PMT = $340 r = 4.5% Number of compounding per year (m) = 2 Period (n) = 20 Years

Q: BFC is an agribusiness with a highly variable cash flow, but where the risks tend to be related to…

A: Risk and return  are the two important factors of an investment. There is a positive relation…

Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…

A: Loan is a borrowed amount of money for a fixed time period. The fee for borrowing the funds is…

Q: a. Calculate the NPV and IRR with mitigation. Enter your answer for NPV in millions. For example, an…

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: 3.1.1 An amortized loan has 10 annual payments at the end of each year starting one year from now.…

A: Here,

Q: Directions: Match the terms in Column A with the correct definition in Column B. You may choose more…

A: Investment is sacrifice of present worth of money in order to gain return in future.

Q: Which type project is one whose acceptance or rejection does not directly eliminate other projects…

A: Under capital budgeting project one or more projects are evaluated based on their NPV, IRR and other…

Q: Directions: Read the following annuity problem. Fill in the blanks in the statements th follow. A…

A: The loans are paid by equal monthly payments these monthly payment carry the payment for the…

Q: Clark and Lana take a 30-year home mortgage of $125,000 at 7.6%, compounded monthly. They make their…

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

Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…

A: Any cashflow of equal instalments can be called as an annuity. A loan with equal repayments at equal…