Which of these will increase the present value of an amount to be received sometime in the future?   Group of answer choices Increase in the discount rate. Increase in the time until the amount is received. Decrease in the interest rate Decrease in the future value

Q: 9. Bonds with a face value of $500,000 and a quoted price of 97% have a selling price of a.…

A: Face value = $500,000 Quoted Price = 971/4 = 97.25

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Business day to day working is also financed by means of trade credit. trade credit is the credit…

Q: A stock has an abnormal retum of-0.8% per month. What is the annualized abnormal return? The answer…

A: Abnormal return per month = -0.8%

Q: Samsun company operates with two divisions, sam and sun. The results of the operations last year…

A: Divisional income statements are prepared to review and analyse segment performance. Segment margin…

Q: Explore what happens when you make a payment to your credit card at a different time. You will use…

A: Credit cards are used now common and used by common man but there are heavy charges on that and they…

Q: You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The…

A: Net present value is the total of discounted cash flows for the life of the project less initial…

Q: The common stock of Royal Ranch House is selling for $19.17. The firm pays dividends that are…

A: FV = A * (1+r)n where , FV = future value A = current stock price r = growth rate n =time period.

Q: After a retiring from a successful business career, you would like to make a donation to your…

A: Given: Donation made at (T=0) = $2500000 Expected return = 5.5% Inflation rate = 2%

Q: Wax Engineering Inc. (WEI) has the following capital structure, which is considered to be optimal:…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: total

A: Based on the information provided, here are the calculations for your liability insurance, collision…

Q: NPV profile of two mutually exclusive projects. Moulton Industries has two potential projects for…

A: NPV is calculated to determine the profitability of the projects by discounting cash inflows less…

Q: Provide a review of the most important risk measures available for assessing the risk of a…

A: Identification and management of hazards related to a group of investments held by an individual or…

Q: A man deposits $10,000 at the beginning of each year for 15 years in an account paying 6% compounded…

A: It is important for investors to carefully consider their investment options and seek advice from a…

Q: The balance sheet and some other information for Meig Inc. is provided below. Assets Current assets…

A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…

Q: A couple is saving for retirement with three different accounts. The table below shows the current…

A: It represents the current value of the future expected cash stream. Thus, it's estimated by…

Q: Suppose you invest $4100 in an IRA at the end of every quarter for 13 years, what is the total…

A: The IRA refers to the savings account where the account holder makes periodic deposits for…

Q: Basic bond valuation   Complex Systems has an outstanding issue of ​$1,000​-par-value bonds with a…

A: Par value = $1000 Coupon rate = 15% Years to maturity = 14 years Bond yield = 11%

Q: Bozo finds the following information online: the 10-year US treasury note is yielding 3.8%, and the…

A: The Capital Asset Pricing Model (CAPM) is a model is used to calculate Required return establishing…

Q: 3.) Michael Perez has a total of $2000 on deposit with two savings institutions. One pays interest…

A: Let the deposit amount in a institution that pays 8% a year = a Therefore, deposit amount in a…

Q: A STRIPS traded on April 30, 2020, matures in 18 years on May 1, 2038. Assuming a yield to maturity…

A: STRIPS stands for Separate Trading of Registered Interest and Principal Securities refer to the debt…

Q: Counts Accounting's beta is 1.5 and its tax rate is 25%. If it is financed with 17% debt, what is…

A: Any positive or negative benefits acquired by incorporating debt into the company's capital…

Q: In a financial market a stock is traded with a current price of 50. Next period the price of the…

A: An option is a type of financial instrument that is based on the value of underlying securities,…

Q: Amy Hall purchased a bedroom set for $5450, paying $1000 down. The balance was financed for 23 equal…

A: The amount financed refers to the actual amount that is required to be paid to the lender. It…

Q: A stock has a fairly stable dividend. It just paid a dividend of $1.06 and it has a stable dividend…

A: Intrinsic Value of share is the value of share which is affected by the internal factors affecting…

Q: 10 Year Treasury Note Futures contract is purchased at a price of 103 per contract. The initial…

A: To calculate the margin excess or call, we need to compare the current account equity to the…

Q: Cohen Brothers Fixers R Us is a small company specializing in emergency home repairs. They are…

A: Introduction: Net present value or NPV  is defined as the sum of the present values of all future…

Q: Juniper Corporation is considering two alternative investment proposals with the following data:…

A: Payback period = Investment/estimated annual net cash inflows for n years.

Q: Assuming PepsiCola, Atlanta is considering of giving its main rival a strong competition, in the…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: consider a bond which pays 6% coupon semi annually which has a face value of 8000and has 6 years…

A: Compound = semiannual = 2 Coupon rate = 6 / 2  = 3% Face value = fv = 8000 Time = t = 6 * 2 = 12…

Q: You are looking to buy a home in San Marcos. The bank offers you a fifteen-year loan with a 6.0% APR…

A: Here, Particulars Option A Option B Loan amount (PV)  $ 3,30,000.00  $ 3,30,000.00 Time…

Q: HCB, Inc.free cash flows for next year (FCF1) are expected to be $5 million. Free cash flows are…

A: The intrinsic value of a share can be referred to as the fundamental or essential value of the…

Q: The firm gets 100% of its capital from common stock. The equity holder’s required rate of return is…

A: A set of cash flows that happen at various dates are considered to have a net present value. The…

Q: SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the…

A: Cost variance is an important measure in project management, as it can provide valuable information…

Q: floating rate is tied to the annual LIBOR. The previous 1-year LIBOR rate, set 6 months ago, is…

A: To calculate the present value of the fixed and floating legs of the swap, we first need to…

Q: You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The…

A: Capital budgeting is an important process for companies as it helps them allocate their financial…

Q: In a financial market a stock is traded with a current price of 50. Next period the price of the…

A: An option is a type of financial instrument that is based on the value of underlying securities,…

Q: What is the monthly payment on a mortgage of $275,000 with a 6.75% interest rate that runs for 25…

A: Compound = monthly = 12 Present Value = pv = $275,000 Interest rate = r = 6.75 / 12 = 0.5625% Time =…

Q: You must analyze two projects, X and Y. Each project costs $1,000, and the firm’s WACC is 10%. The…

A: Initial Cost = $1000 WACC = r = 10%

Q: The following schedule of assets and liabilities relates to Kona Enterprises. Their year-end is 28…

A: Current Asset - Current assets are the assets  Which are expected to be realize or converted into…

Q: Chen is 65 years old and about to retire. She has $805.000 saved to supplement his pension and…

A: Amount present = $805,000 Period of withdrawal = 13 years Interest rate = 5%

Q: in 2000, the value of the consumer price index was 171.20 and the price of gasoline (per gallon) was…

A: Inflation is the rate at which the prices change. It is the rate of increase in the prices of the…

Q: An investment offers the following: a series of $1000 annual payments, starting one year from now,…

A: To find the present value of the investment , we have to discount each of the 12 annual payments…

Q: Wax Engineering Inc. (WEI) has the following capital structure, which is considered to be optimal:…

A: before tax Return on Bond = 10% Bond risk premium = 4%

Q: Q.2: The Electrical Industries Company is considering the replacement of its old machines with new…

A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…

Q: Albemarle is trying to choose between the following two mutually exclusive design projects: Cash…

A: Two projects with their year wise cash flows have ben provided. The capital budgeting parameter…

Q: Which company better manages its receivables, inventories, and payables?

A: 1. High  days payable outstanding  is always favorable for company because High  days payable…

Q: Should you refinance your mortgage? If you have an adjustable rate mortgage and plan on keeping your…

A: A mortgage refers to a loan that has been taken out to purchase real estate. The real estate being…

Q: Shapland Inc. has fixed operating costs of $350,000 and variable costs of $45 per unit. If it sells…

A: Fixed operating costs = $350,000  Variable coats = $45 per unit  Selling price = $80 per unit    The…

Q: Payoff table: Large Investment Medium Investment Small Investment Probabilities Strong Demand…

A: An expected value is a criterion that helps investors to choose investment alternatives based on…

Q: 3. David has a personal injury protection policy that covers each person in, on, around, or under…

A: Insurance is a contract in which an individual or entity receives financial protection or…