why simple interest is important to use when borrowing money

Q: American Express sells a call option on euros (contract size is €500,000) at a premium of $0.04 per…

A: Here, Contract size = €500,000 Call Premium = $0.04 per euro. Exercise price = $0.91 Spot price of…

Q: 26 Asian Foods needs $110,000 for a new project. The firm has a target capital structure of 30…

A: Capital structure refers to a combination of various financing method available for a company to…

Q: Cash conversion cycle = (Inventory Days + Accounts Receivable Days – Accounts Payable Days). Which…

A: Solution:- Cash conversion cycle is the time period taken by a firm to convert its investment in…

Q: Suppose withdrawals of 10,000 every year starting at time 8 will be made and will go on forever. How…

A: Here we will use the concept of time value of money. As per the concept of time value of money worth…

Q: Finance Approximately how much would you need to invest today, to receive $280 in ten years, if you…

A: Future Value is $280 Time period is 10 years Interest rate is 10% To Find: Present Value

Q: Machina Corporation is financing an ongoing construction project. The firm needs $8 million of new…

A: Requirement for new capital can be met either through debt or equity or a combination of both.…

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Thanks for the Question. Bartleby's Guideline: “Since you have posted a question with multiple…

Q: Question content area top Part 1 ​(Related to Checkpoint​ 6.1) ​ (Future value of an​ annuity)…

A: A pension is an annual payment that you will receive for the rest of your life. An annuity is a…

Q: source of finance is the middle layer between equity and debt

A: Mezzanine debt is the source of finance which is the middle layer between equity and debt.…

Q: Two investment locations given different rewards for a company ocation will be selected? A] 0% <…

A: MARR is minimum attractive rate of return which any investment must achieve so that investment is…

Q: 24 The likely effect of discounting nominal cash flows with real interest rates will be to: A make…

A: Net Present value is present value of cash flow minus initial investment

Q: 6. What is the present value of a debt of P 150,000 due in 11 months at 6% simple discount? a. P…

A: A Simple Discount refers to the type of loan where the interest is being deducted at the time of…

Q: If an investment grew to $15,000 in 2 years and the interest amount earned was $1,000, calculate the…

A: Investment means engaging your funds to earn some additional money over the period. interest is a…

Q: (Expected rate of return and risk​)  B. J. Gautney Enterprises is evaluating a security. ​ One-year…

A: The expected return is calculated by multiplying the return with probability. Standard deviation is…

Q: The function that models the amount of money C that is obtained by investing P money at an annual…

A: Present value of future money is investment required today considering the interest rate and period…

Q: What APR, compounded monthly, is needed to grow a present value of $250 to $500 over 6 years?

A: As per the information provided: Present value (PV) - $250 Future value (FV) - $500 Period - 6 years…

Q: Jaleel is holding some Tesla shares (NASDAQ: TSLA) and The TSLA stocks are currently trading at $985…

A: Given, The price of the stock is $985

Q: Find the present value of ₱38,140 due at the end of 6 years and 6 months, if money is worth 9 1/2%…

A: given  FV = 38140 n= 6y6m = 13  i= 9.5%

Q: what is the par value of the bond?

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: If an insured fails to pay the premium when due, the insured's heallh policy will remain in force…

A: Health insurance is a type of insurance that helps to pays for medical costs incurred as a result of…

Q: 9. A cash flow has the following income values: $100 at end of year 2, $200 at end of year 3, $300…

A: Solution:- Present value means the value in today’s terms after discounting the future cash flows at…

Q: Microsoft invests in google by buying shares worth $50 million, this is an example of O Capital…

A: Whenever a company invests in pother company it is expanding its activity. It is making an…

Q: analyze the risk management of the company BMW. Do you have any suggestions for the improvement of…

A: Management is the process of planning, organizing, staffing, directing, and managing a collection of…

Q: Suppose the Swiss government imposes an interest rate ceiling on Swiss bank deposits. What is the…

A: The interest rate ceiling is basically  a legal phrase defining the maximum interest rate that may…

Q: One year ago you bought a $10,000, 4-year Government of Canada Treasury Bill (discount bond) at the…

A: Solution:- The current market price of a bill means the price at which a bill is trading in the…

Q: Apeng placed ₱34,400 in an investment firm. If this amounted to ₱52,540 after 4 years and 8 months,…

A: Given, The Present value is ₱34,400 The future value is ₱52,540

Q: As president of​ Young's of​ California, a large clothing​ chain, you have just received a letter…

A: Residual dividend policy Residual dividend policy refers to that dividend policy where the first…

Q: Stock Name Quarterly Dividend Price, 12/31/2022 B Burrfoot Enterprises 20.50 $ $ 23.75 4 Majere…

A: Formula to be used: Dividend Yield = Dividend per shareMarket value per share Capital Gains Yield=…

Q: 28 If the coupon rate is lower than current interest rates, then the yield to maturity will be: A…

A: When Market rate of interest is higher than the coupon rate of interest, the bond will be issued at…

Q: The McDonald Group purchased a piece of property for $1.2 million. It paid a down payment of 20% in…

A: Given, Property Price = 1.2 million Down-payment = 20% Loan taken = 1.2 million - 20% = 0.96 million…

Q: Don't answer if you already answered this. If i see the same solutions, i'll downvote you. Follow…

A: JORNALIZATION OF THE ENTRIES AS ON  31 DECEMBERTHE END OF ACCOUNTING YEAR…

Q: DeCento's is analyzing two mutually exclusive machines to determine which one it s machine is…

A: The machine having lower annual cost would be better considering the rate of return required on…

Q: A business owner may choose to use a VUL for which of the following reasons? O To provide key person…

A: VUL is a sort of whole life insurance with a built-in savings component that allows for cash value…

Q: If the MARR is 12% per year, look for the best alternative with the method: a. Net Present Value b.…

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

Q: Over the last 10​ years, a firm has had the earnings per share shown in the following​ table: Year…

A: A. Calculate the annual dividend for 2017 as follows: Annual dividend = Earnings per share *…

Q: What is the official language of the lASB?   a) © English b) © German c) © Spanish d) French

A: Solution:- International Accounting Standards Board (IASB) is an independent body at international…

Q: You are considering a 30-year, $1,000 par value bond. Its coupon rate is 10%, and interest is paid…

A: Solution:- Bond price is the present value of all the future cash flows receivable from bond in…

Q: A and 40% B. Compute the coefficient Estimate the market model equations for both stocks and

A: ERi​=Rf​+βi​(ERm​−Rf​) where:ERi​=expected return of investment Rf​=risk-free rate βi​=beta of the…

Q: One of the best known examples of how an organization can use its supply chain to achieve a…

A:

Q: Lewis Enterprises is considering relaxing its credit standards to increase its currently sagging…

A: Data given: Increase in sales =10500 -10000 = 500 units Increase in average collection period from…

Q: 1,356.95 2,618.83 5,237.66

A: The yearly cost of acquiring, running, and sustaining an project beyond its entire life is known as…

Q: Insurance companies may use all of he following sources to oblain underwriting information about an…

A: The answer is option A. A.The Medical Information Bureau (MIB)

Q: What is the value of the company's quick current assets? A. $ 164,477 B. $ 305,885 C. $ 243,146 D. $…

A: Assets that can be converted into cash in a short span are known as quick assets. Companies…

Q: Provide answers 2. What is the significance of understanding the economic role of financial…

A: A bank is a financial institution that is allowed to accept deposits and provide loans. Banks may…

Q: When compleling an insurance applicalion, a producer should A. complete as much of the application…

A: The job of the producer is to make sure that the applicant knows all the features of the insurance…

Q: An elevator system for a 15-yr old high-rise office building cost P 18M when first installed. The…

A: Double declining method of depreciation is an accelerated method of depreciation. Here the annual…

Q: Today Dante and Sharon had their first child. All of the grandparents gave them money to help out,…

A: Given:

Q: An aggregate crasher is expected to cost P60, 000 and has an estimatedlife of 5 years. Maintenance…

A: Here we will use the concept of time value of money. As per the concept of time value of money the…

Q: flows for an investment with an economic life of 5 years are as follows: k0 = -10000, k1 = k2 = k3 =…

A: The net present value is the difference between the present value of cash flow and initial…

Q: Monthly sales of storage sheds at Wallace Garden supply are shown in the following table. Using the…

A: Month Actual Sales January 10 February 12 March 16 April 13 May 17 June 19 July 15…

Types of Money Market Instruments