Why is it the same company can be a saver and a user of funds?

Q: ou invest $5000 at time t=0 and an additional $2000 at time t=1/2. At time t=1/2 you have $5300 in…

A: Time weighted rate of return Time weighted rate of return is calculated as shown below. Time…

Q: Complete the table with the alphas below: (Round to one decimal place.) Expected Return Volatility…

A: According to CAPM approach, k = Rf + beta (Rm - Rf) Where , k = rate of return Rm =  market return…

Q: Case Amount of annuity $1,500 500 30,000 11,500 AUDH B Interest rate 8% ga 14 Deposit period (years)…

A: Future value The value that an investment will have at a certain time in the future is known as the…

Q: Sally receives the following information on her project: PV=100, AC=75, EV=100. How well is the…

A: We have certain metrics of tracking the project in terms of value and cost. We have to find the…

Q: A bond offers a $50 coupon, has a face value of $1,000, and 4 years to maturity. If the interest…

A:

Q: What’s the present value of a perpetuity that pays $1500 per year if the appropriate  interest rate…

A: Cash flow per year is $1500 The interest rate is 15% To Find: the present value of a perpetuity

Q: How much money would you need to deposit today at 7% annual interest compounded quarterly to have…

A: Given: Future Value of deposit "FV" = P16000 Annual interest rate = 7%  Number of compounding "m" =…

Q: Project A Project B 0 F -$20 -$13 1 $5 $8 million a. What are the projects' NPVs assuming the WACC…

A: Capital budgeting Investing decisions for long-term investment can be taken with the help of capital…

Q: For XYZ Corporation, the book value per share at the end of .1, and earnings per share for 2022 (at…

A: Residual earnings are the earnings available after doing payment for the cost of capital that amount…

Q: You have been appointed as a financial consultant by the directors of Cochin Holdings. They require…

A: The cost of capital refers to the minimum profit that needs to be generated by the company. It is to…

Q: If an investor believes that the expected return is lower than the required rate of the return, the…

A: Expected return -It is the expected outcome from an investment that is based upon known past data on…

Q: A Sunfish bond is paying 10 percent interest for 20 years on a semiannual basis. Assume interest…

A: Given: Particulars   Years 20 Coupon rate 10% Yield to maturity 6% Yield to maturity 14%

Q: growth stocks proxy preemptive right

A: Stocks are shares of a company and is essentially representative of the ownership in a company.…

Q: lynn ally, owner of a local subway shop, loaned $57,000 to pete hall to help him open a subway…

A: The amount of the Loan, "PV" is $57,000 The time period is 10 years The interest rate is 6%…

Q: A company purchases mechanical equipment worth 350,000 euros for the manufacture of a product. The…

A: The Residual Value of the Equipment is 30,000 The price of the Equipment is 350,00euros The discount…

Q: A company has a property insurance policy with an annual premium of $1130. And recent months the…

A: A range of alternatives to traditional business insurance has developed due to market fluctuations.…

Q: 1. If money is worth 9.25% compounded annually, calculate the present value of a 6,820 annuity that…

A: Given: Interest rate = 9.25% annuity amount = 6,820 Years = 10 Deferred for = 4 Years

Q: Complete the following: Invoice Jan. 26 Date goods are received Terms 4/10 EOM Last day of discount…

A: The time between the final day that the discount terms are still in effect and the date when the…

Q: You have taken a loan of $64,000.00 for 26 years at 4.7% compounded quarterly. Fill in the table…

A: Here, Particulars Values Loan Amount  $ 64,000.00 No. of years  26.00 Interest rate 4.700%…

Q: hat is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a first…

A: The annuity is the amount of uniform equal payments that are paid at equal uniform intervals and…

Q: $ 60,000.00 Length of time needed from today 4 Interest

A: by the appropriate discounting rate that is semiannual, and also adjusting the number of the…

Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 7 percent coupon rate.…

A: A bond is used by companies to raise capital from investors rather than traditional institutions. It…

Q: I. Complete the Table. Principal Amount or Present Value (P) Php 9 000 Php 4 200 Nominal rate (r) 6%…

A: The idea behind the time value of money is that money today is worth more than money tomorrow.…

Q: If your portfolio includes 35 percent of X, 40 percent of Y and 25 percent of Z, answer the…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: What happens to the compounding periods for the entire investment term when both the number of…

A: We have to assess the impact of doubling the conversion periods per year and the term of investment…

Q: For the second mortgage application, calculate the percentage of appraised value and the potential…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: An entrepreneur will open a wet seasoning business. The required investment is Rp 77,500,000.00 at…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Consider a project with a net investment of $40,000 and the following net cash flows: Annual Cash…

A: The discount rate is the rate of return necessary to assess the success of a long-term enterprise.…

Q: Norris has a deductible of $1,000. He damages his car in a accident and it will cost $3,300 to…

A: concept. " Deductible amount " means the amount paid by policy holder out of his own pocket before…

Q: 23. Duc has a credit card with a $1000 credit limit. His outstanding balance is currently $800. What…

A: concept. Credit limit is the maximum amount of credit made available by the lender or financial…

Q: Consider the sale for which the lender quoted a mortgage capitalization rate at 9.0%. If the equity…

A: Given: Mortgage capitalization rate at 9.0% equity capitalization rate is 15.0% Loan-to-value ratio…

Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently…

A: Here, Supplier's Bid Option In-House Production option Particulars Year 1 Year 2 Year 3…

Q: The price of a stock, which pays no dividends, is $30 and the strike price of a two-year European…

A: The risk-free rate "r" is 8% Compounded continuously  The strike price is $25 The stock price is $30…

Q: 4. Masunurin borrows a loan of 20,500 and promises to pay it back monthly for a period of three…

A: Here, Particulars Values Loan amount (PV) 20500 Interest rate  10.00% Time period  3.00…

Q: Consider the following information about the various states of economy and the returns of various…

A: State of the economy Probability T-Bills Philips Pay-up Rubber-Made Market Index Recession 0.2 7%…

Q: a) How much is the loan amount going to be? b) What will your monthly payments be? c) How much…

A: Loan payments can be paid off in periodic payments. To understand the periodic payments the loan…

Q: analys the risks related to financial business decisions.

A: The financial business decisions are all such decisions associated with raising of finance in the…

Q: Kristen's credit card APR is 25.4% compounded daily. What is her actual interest rate per yea O…

A: The actual interest rate will be the effective annual rate (EAR). This takes into consideration the…

Q: LG 2 (PS-4) Future values For each of the cases shown in the following table, calculate the future…

A: Future value is calculated when investors want to know how much their investment will be worth after…

Q: earnings

A: from one data to other. The most practical ways of measuring average - mean, median, and mode, Take…

Q: The spot price of an investment asset is $35 and the risk-free rate for all maturities is 5% with…

A: Given: Particulars Amount Spot price $35 Risk free rate 5% First year income $2.00 Second…

Q: the annuity factor is 3.7908

A: Data given n=5 rate%=10%

Q: e basis is defined as the spot price minus the futures price. A trader is hedging the sale of an…

A: Short selling is selling without own the stock but need to buy later on the expiration of period.…

Q: Jane is a builder. Interest rates are high, so, to sell her newly developed properties faster, she…

A: A buy-down offer is a loan agreement via which the lender offers the borrower to pay interest on a…

Q: Assume that a lender offers a 30-year, $154,000 adjustable rate mortgage (ARM) with the following…

A: A variable-rate mortgage is one with an interest rate that changes over time; as a result, your…

Q: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a…

A: Beta of one stock = 1.24 Total no. of stocks in the portfolio = 3 Weights of each stock = 1/3 =…

Q: The price of a European call option on a non-dividend-paying stock with a strike price of $52 is $4.…

A: Call and put option values must be at break-even in order to prevent arbitrage associated with…

Q: R10 000 000, financial lease due in 5 years and the current yield-to-maturity is 10%. Prepare a…

A: Given Lease amount R10 000 000 Rate is 10% Term is 5 years

Q: sunurin borrows a loan of 20,500 and promises to pay it d of three years in equal installments. What…

A: The loans are paid by the equal and fixed monthly payments because it make easy to pay the loan in…

Q: a. P1,320 b. P1,440 C. d. P2,640 P2,880

A: Given in the question

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.