Which one of the followings is NOT a money market financial instrument? A) Treasury Bills OB) Commercial Paper C) Treasury Bonds D) Certificates of Deposit E) Repos and Reverses

Q: Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month,…

A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…

Q: A bond with 20 years to maturity and a face value of $1000 pays semi-annual coupons at a rate of 9%…

A: Solution:- Bond price means the price at which the bond is currently trading in the market. Price of…

Q: An investment of $100,000 today will make advance quarterly payments of $4,000. If the annuity can…

A: We need to use NPER formula in excel to calculate number of periods to depleted annuity.  Formula is…

Q: If interest rates were to increase, then [select the statement that is most correct] Only long term…

A: Solution:- Interest rate means the rate of return prevailing in the market.

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 the basic difference between a forward contract and a futures contract? How important is…

A: "Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: 1. A business man wishes to set aside semiannual payments to purchase machinery after two years (two…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An article in the Wall Street Journal describes recent economic events as having "steepened the…

A: The yield curve shows the relationship between the yield to maturity and the term to maturity for…

Q: Whenever the percentage change in EBIT due to percentage change in sales is lower than the…

A: Operating Leverage defined as “firms ability to use fixed operating costs to magnify effect of…

Q: Requiring a relative short pay-back period for projects indicates a high risk avoiding propensity…

A: In capital budgeting payback period is an important tool used in capital budgeting. Payback period…

Q: You are considering investing $1 million in one of the two following bonds. The first bond is an…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: Company Z borrows EUR 1 million from the Bank at an annual interest rate of 3,5% for one year. The…

A: Tax shield Interest on the borrowed amount is a tax deductible item. So, it provides savings in the…

Q: What will be TapDance’s WACC?

A: The formula to compute WACC is shown below: = Weightage of debt × cost of debt × ( 1- tax rate) +…

Q: Find the present value of the following annuities: 1. 100 payable every month for 10 years if the…

A: Present value is referred as the current value of future sum of funds or the cash streams that are…

Q: QUESTION 2 An investor invests $40,000 today, in exchange for continuous cash flows of $15,000 per…

A: 1. Payback Period is the length of time required to recover the cost of Investment. Discounted…

Q: Walmart has issued a bond with a face value of $1000 and a coupon rate of 6.35% APR compounded…

A: Given Information :  Face value = $1,000 Annual coupon rate = 6.35%

Q: What is the bond's coupon rate?

A: Bond Coupon Rate: It refers to the yield rate paid by the issuer to the bondholder. It is estimated…

Q: Finance A dividend payout ratio of​ 75% would be typical of A.a firm in the rapid growth stage. B.a…

A: Dividend pay out  ratio measures the dividend paid in relation to net earnings. It is determined to…

Q: Assume you have a student loan that you will pay off in 10 years. How much would you save an…

A: The question is related to refinancing the loan at lower interest rate which was originally financed…

Q: What is Unsecured financing?

A: Whenever a person requires financial assistance, they may contact a financial institution and seek…

Q: Use the Dupont identity to solve the following. The ABC Inc. has sales of $10,500, total assets of…

A: Solution: Dupont analysis is a measure to compute the firm’s Return in Equity (ROE). As per Dupont…

Q: AB Division had the following information: Asset base in AB Division Net income in AB Division…

A: Economic Value Added  is net operating profit after taxes (or NOPAT) less a capital charge, the…

Q: Mr. Alex, a British arbitrageur, has the following data. The one-year interest rate offered in the…

A: Given: UK interest rate =8% Australia interest rate = 5% Spot rate = £0.3000/AUD Forward rate =…

Q: Why is reduce inventory cost is an advantage of inventory outsourcing?

A: Inventory is defined as the goods as well as materials, which has the business holding for an…

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: Is it because: a. The capital gain will be different because the dividend did not change. or…

A: Capital gain can be calculated s follows: Capital gain=(Sale price - Cost price)Cost price* 100

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: 5 Consider a relation Stocks(B, O, I, S, Q, D), whose attributes may be thought of informally as…

A: Stocks are referred as the security types, which provides the stockholder the ownership's share in…

Q: What is meant by maturity date?

A: Bonds are simply corporate debt units that are issued by firms and securitized as tradeable assets.…

Q: A zero coupon with a $1000 face value matures in 10 years.  What is the price of the bond today if…

A: Zero coupan bond valution. Zero coupan bond valued at disounting value of maturity value. The market…

Q: FarCry Industries, a maker of telecommunications equipment, has 6 million shares of common stock…

A: The following information is provided in the question: Common stock outstanding=6 million Preferred…

Q: The common stock of National Company pays a constant annual dividend. Thus, the market price of…

A: As per the dividend growth model current price of shares can be calculated using the formula given…

Q: Describe the three methods used to ensure that funds are available to redeem corporate bonds at…

A: Debt instruments issued by private and public businesses are known as corporate bonds. Companies…

Q: Related to Solved Problem 3.3] For each of the following situations, choose the equation needed to…

A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…

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: At year end, National Corporation balance sheet showed total assets of P70,000,000, total…

A: Here, Total assets = P70,000,000 Total liabilities = P35,000,000 Total preferred share capital =…

Q: Falco Inc. financed the purchase of a machine with a loan at 3.50% compounded semi-annually. This…

A: Present value of annuity Annuity is a series of equal fixed payment, made at equal interval over a…

Q: A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million…

A: The question is related to Ratio Analysis. The Net Profit Margin is calculated with the help of…

Q: Please provide working to the solution for the question below: Suppose you are 40 years old and…

A: Solution:- When an equal amount is deposited each period, it is called annuity.  We know, Present…

Q: ​(Related to Checkpoint​ 9.6)   ​(Inflation and interest rates​) What would you expect the nominal…

A: Nominal interest rate refers to the interest rate before taking inflation into account. The equation…

Q: Part 1 The nominal rate of interest would be enter your response here​%.

A: Nominal rate of interest = ((1+real interest rate)*(1+inflation rate))-1

Q: Hancock Corp has the following operating results and capital structure.  The firm is contemplating…

A: Given, Proposed debt=60% of total asset Book value per share=$ 25 Interest rate=9% combined state…

Q: What is Temporary financing?

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

Q: What is debenture bond?

A: Debenture bonds are type of corporate bonds. Corporate bonds are issued by businesses and typically…

Q: Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the…

A: Payback Period The payback period is the method that helps in calculating the time in which the…

Q: Mr. Espinoza's debt of P160,000 is amortized by making equal payments at the end of every three…

A: Since you have posted a question with multiple subparts, we will solve first three subparts for you.…

Q: MARR is 6% per year. First cost, $ Annual cost, $ per year Revenue, S $ per year Salvage value, S…

A: NPV : NPV is the method of Capital budgeting under which after calculation of NPV we can take the…

Q: Carpet Baggers, Inc., is proposing to construct a new bagging plant in a country in Europe. The two…

A: Spot exchange rate for euros is $1.45/€ Spot exchange rate for Swiss francs is SFr1.65/$ Interest…

Q: The payback period for each project The accounting rate of return for each project The net present…

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

Q: in central campus is said to have infinite life. However, due to inclement weather, maintenance has…

A: Capitalized cost is the present value of future cost that are going to occur during the life of the…