Why are financial markets and financial institutions important?

Q: 5.31 2021 7.80 The current interest rate on new debt is 12%; Foust's marginal tax rate is 25%; and i...

A: Cost of Debt: It represents the cost of raising debt capital from the investors. The company pays co...

Q: On February 19, 2026, Anna will need P 40,000. Assume that the annual effective interest is 7%. How ...

A: The deposited amount will be the present value of amount for which withdrawal will be taken in futur...

Q: explain the benefits offered by each of the 4 criteria; payback period, discounted payback, NPV, IRR

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Q: You are a shareholder in a corporation. The corporation earns $20 per share before taxes. After it h...

A: It is given in the question that corporation wants to retain the cash after paying taxes, it means o...

Q: A rich relative has bequeathed you a growing perpetuity. The first payment will occur in a year and ...

A: Perpetuity means a series of infinite numbers of payments forever. A person will receive periodical ...

Q: Solve for the unknown interest rate in each of the following (D

A: Interest Rate: It is the rate charged by the lender to the borrower for taking a loan. The interest ...

Q: Medical Tape makes two products: Generic and Label. It estimates it will produce 404,444 units of Ge...

A: Activity based costing is a type of costing, under which all indirect costs and overhead costs are b...

Q: Sam Salverri is planning to retire in 15 years. Money can be deposited by 8% compounded quarterly. W...

A: Convert 8% compounded quarterly to its equivalent interest rate for monthly interval. Here, 'R' repr...

Q: An engineer paid P 110,000 for a P 100,000 bond that pays P 4,000 per year. In 20 years, the bond wi...

A: Here, Present Value of Bond or Price paid for Bond (PV) is P110,000 Face Value of Bond is P100,000 R...

Q: Create a data table that calculates the Future Value of a 401(k) using the following information: Fu...

A: Periodic Payment = $100 APR = 6% Future Value = $100,000

Q: in commodity can be bought in cash for $ 200,000.00. However, the agent allows to purchase the commo...

A: Compounding continuously is having more effective rate of return than other compounding. 

Q: enient in terms of timing and payment

A: Introduction : In simple words, tax refers to the amount that an individual or an entity has to pay ...

Q: A company with a required rate of return of 12 percent is considering a project with an RM40,000 ini...

A: IRR is the internal rate of return for a project. It is that rate at which the present value of the ...

Q: Use the below information to answer the following question.           Sales (1,000 units) $ 200,00...

A: The degree of financial leverage (DFL) is a leverage ratio that determines how sensitive a business'...

Q: A company wishes to have P 350,000 in 9 years from now for building renovation. The company estimate...

A: Amount needed (F) = P 350000 n = 9 years Deposit amount (D) = P 30000 Let r = Interest rate

Q: 6. A concrete pavement on a street would cost P 20,000 and would last for 5 years with negligible re...

A: Current cost (C) = P 20,000 Period (n) =  5 Years Removal cost (RC) = P 1500 Interest rate (r) = 5%

Q: Explain how securities markets provide a link between the corporation and investors.

A: Investment means engaging the funds to generate income for the future. Those who invest their funds ...

Q: Ron Inc., who has an applicable 30% corporate tax as stated on its BIR tax registration form, is try...

A: The debt ratio is the ratio that indicates the percentage of assets that the company provided by the...

Q: investor provides an entrepreneurial firm with the capital that it needs to grow. over and above pro...

A: The investors provide capital to business but alone capital is not sufficient to make business succe...

Q: How much would $9,000 t8 be received at the end of 50 years be worth today if the required rate of r...

A: Using excel, FV is 9,000 Rate = 7.5% Time (nper) = 50 years PMT = 0 PV = ?  

Q: What is the Time Value of Money (TVM)? Specifically, how do inflation and compound  interest effect ...

A: Time value of money states that a sum of money has more value today than the same sum at a future da...

Q: Which investments can provide the best protection of capital and offers low risks. * a. savings depo...

A: An investment is an asset that is brought with the intention of earning a return or profit from it.

Q: Calculate the standard time if the observed time is 0.75 min, the performance rating is 110 percent,...

A: Time study is the study in which time required in order to complete an activity will be recorded. Ob...

Q: nsider a one-period binomial model in which the underlying is at 65 and can go up 30% and down 22%. ...

A: Since multiple questions are involved , we will solve 1st question for you as per prescribed guideli...

Q: A. On the 1st of June 2011 GoodTaste purchased a new freezer for €23,000 of which €2,000 was the VAT...

A: Since multiple questions are involved , We will answer 1st question for you.

Q: Z Corporation has a cash balance of P500,000 at the beginning of the month. Based on its forecast fo...

A:

Q: The degree of operating leverage (DOL) is ___

A: Degree of Operating Leverage: It measures the change in the operating income in response to the cha...

Q: I need help

A: Present Value(PV) refers to value of sum at current date which would be received or paid in future t...

Q: A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and ...

A: Note : As per the policy, only first three parts will be solved. Kindly post the remaining parts sep...

Q: he nominal exchange rate between the Australian Dollar and the Euro in equilibrium is 0.5(1 AUD buys...

A: The covered interest rate parity: The covered interest rate parity states the relationship between t...

Q: Q1: Find the equivalent present worth of the cash flow (Shifted Series) shown below at i 8%. Please ...

A: The present worth is a method of finding the profitability of the project by discounting cash flows ...

Q: The BLE company is considering constructing a plant to manufacture a propose new products. The land ...

A: Building costs = P30,000,000 Land costs = P15,000,000. Equipment costs =P12,500,000 Working capital ...

Q: Find the savings plan balance after 24 months with an APR of 5% and monthly deposits of $250.

A: Future value of a present value is the value of that amount after taking into account the time value...

Q: 3. Find the present worth of perpetuity of P 10,000 semi-annually with an interest rate of 10% quart...

A: Semiannual payment (S) = P 10000 first payment at 5 years ( after 9 semiannual periods) Interest rat...

Q: Engr. Como decided to buy a townhouse amounting to 5N IT pald today. He is been told that he is to p...

A: As the payments are made at the beginning of each period this is a case of annuity due. 

Q: A person purchased a $140.443 home 10 year ago by payng 19% down and sigring a 30-yoar mortgage at% ...

A: Refinancing is done by borrower when interest rate are declining in market in comparison to interest...

Q: Who are the three (3) players who interact in the financial markets? Describe each and give examples...

A: By distributing resources and producing liquidity for businesses and entrepreneurs, financial market...

Q: explain the disadvantages of each criteria; payback period, discounted payback, NPV, IR

A: To determine the economic feasibility of capital investment, several capital budgeting analysis meth...

Q: Tatsumi invested Php 10,000 now for the college education of his three-year old son. If the fund ear...

A: Amount invested today (A) = Php 10000 Age of son today = 3 years He needs to withdraw for 4 years (m...

Q: grandmother 3145 unte she repays this loan in full, interest free. a. Write the model for the amount...

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Q: Sha Ico 3D

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Q: age 20 when you graduate, you start saving for retirement. If your investment plan pays an APR of 4....

A: There must be proper planning for retirement so that your retirement goes peacefully and with good i...

Q: Magnesium Corporation has a policy of retaining 75% of its income. The growth rate of the company re...

A: " Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thr...

Q: A company's current revenue is $62,272 per year. Because new competitors have entered the market, It...

A: EUAB is Equivalent Uniform Annual Benefit. It is the equivalent cost and benefit of the asset spread...

Q: A corporate bond has a $10,000 face value, five-year maturity, and an 8% annual coupon rate. If inte...

A: Price of bond is sum of the present value of coupon payment and present value of par value.

Q: You are trying to decide how much to save for retirement. Assume you plan to save $4,500 per year wi...

A: a. Use the Excel FV function with the following inputs to determine the value of investment on the r...

Q: ABC Bank pays interest at the rate of 2% compounded quarterly. How much will Ken have in the bank at...

A: Note : All the Given Options are incorrect , so we are solving the correct one for you as per the me...

Q: and B have the following data. Assuming the stock market is efficient and the stocks are in equilibr...

A: The constant growth model is used extensively to determine the price of stock and from the price of ...

Q: Stacy's Dress Shop received a $1,130 invoice dated July 16 with 2/10, 1/15, n/60 terms. On July 30, ...

A: As stated, the payment term is 2/10,1/15,n/60. It means if the customer will make payment within 10 ...

Q: Assume you are 18 years old and you were able to save php 50.00. Given what you’ve learned on portfo...

A: Portfolio diversification is the process of investing your money in different asset classes and secu...

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.