Write an essay reflecting your views on Kerron’s response. Illustrate and support your position with reference to any one Caribbean country of your choice.
Q: Give typing answer with explanation and conclusion On January 1, the listed spot and futures…
A: As per the given information: Listed spot price on January 1 - 93.8Listed spot price one month later…
Q: Seminar Questions for The Target Corporation Case, (BOOK: Case studies in Finance managing for…
A: The book presents a series of case studies that focus on different finance-related challenges faced…
Q: 2. Thor Industries finances its projects with 40% debts, 10% preferred stock and 50% common stock ●…
A: WACC stands for Weighted Average Cost of Capital. It is a financial metric used to calculate the…
Q: On January 1, Alex received an inheritance of a thirty-year annuity. Starting on the day of the…
A: Annuity refers to a fixed amount taht is to be paid at every period until the rest of a person’s…
Q: A newly issued bond with 1 year to maturity has a price of $1,000, which equals its face value. The…
A: The expected return on a bond is the weighted average of the possible returns, where the weights are…
Q: The Dahlia Flower Company has earnings of $1.44 per share. If the benchmark PE for the company is…
A: Explanation : Earning Per share : Earning per share is also known as EPS. It shown the income…
Q: On October 24, you plan to purchase a $1,200 computer by using one of your two credit cards. The…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Problem #1: For Problems 1 and 2, you can use any Excel technique explored in the last two labs.…
A: Information Provided: Loan amount = $277,000 Interest rate = 7.89% compounded monthly Monthly…
Q: Find the savings plan balance after 4 years with an APR of 4% and monthly payments of $150
A: Solution:- When an equal amount of money is invested each period, it is called annuity. We know,…
Q: Gary wants to save $555,000 in 8 ears, he currently has $225,000 in an investment. Due to financial…
A: We will calculate interest rate using RATE function in excel for accurate results as nothing is…
Q: answer problem with all necessary computation A, B and C
A: Several projects have been identified and their IRR have been calculated. The projects are up for…
Q: You've collected the following information from your favorite financial website. 52-Week Price Lo…
A: Given the following: Growth rate, g = 4% Current stock dividend, D0 = $0.50 Current stock price,…
Q: Which of the following places more pressure on ethics officers to monitor financial and sales…
A: As a direct result of the Sarbanes-Oxley Act, more of the burden for supervising the reporting of…
Q: Use logarithms to solve the problem. How long will it take $11,000 to grow to $19,000 if the…
A: Compound = monthly = 12 Present value = pv = $11,000 Future value = fv = $19,000 Interest rate = r =…
Q: You are considering investing in Ford Motor Company. Which of the following are examples of…
A: Diversifiable risk is that risk which firm specific and its impact only the price of the particular…
Q: NOT correct and its taken two of my questions now
A: Better credit card is one that results in lower interest charges.
Q: Give typing answer with explanation and conclusion A share valued at $277.60 pays quarterly…
A: Step 1 A dividend is a payment made by a corporation to its shareholders in the form of cash or…
Q: Say your gross pay is $51,212 annually. You take home 85% of it. Figure out how much you take home…
A: Take-home pay is that part of the gross pay that is given to the employees after making necessary…
Q: 3. Rita has $15000 with her and plans to only invest a certain amount of this $15000 that would give…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: 4. Refer to the data for Pettijohn Inc. What is the firm's days sales outstanding? Assume a 360-day…
A: Ratio analysis is the study of different financial data points found in the financial reports of an…
Q: Give typing answer with explanation and conclusion Madsen Motors's bonds have 24 years remaining…
A: Generally, the value of a financial asset represents a sum of the present value of all cash flows…
Q: You have an opportunity to invest $100,000 now in return for $80,000 in one year and $30,000 in two…
A: Explanation :NPV is a Capital budgeting techniques. It is defined as the sum of the present values…
Q: What is the present value of $ 3189 for 4 years at the rate of 10%? Calculate the annuity amount…
A: It is problem where the time value of money concepts will be used. There is a need to calculate the…
Q: The Global Advertising Company has a tax rate of 30%. The company can raise debt at a 12% interest…
A: Cost of Equity = [(Dividend x (1 - Flotation Cost)) / (Current Stock Price x (1 - Flotation Cost))]…
Q: Financial Accounting Borrowing oneself Into Financial Health? A condensed balance sheet for CSV…
A: Current ratio: It compares the company's current assets to its current liabilities. Current assets…
Q: Laura is planning for her retirement 34 years from now. She plans to invest $4,100 per year for the…
A: We need to use future value of ordinary annuity formula to calculate value of annuity. FVA…
Q: Kindly break down how you got terminal cashflow at the end of the project. 2. Explain how you…
A: Initial cost includes the cost of equipment, installation cost, and increase in net working capital.…
Q: In cell B7, enter a formula using relative cell references that multiply cell B6 from cell B5.
A: In an abridged version of an excel based model, an excel based formula needs to be identified in the…
Q: MPI Incorporated has $7 billion in assets, and its tax rate is 35%. Its basic earning power (BEP)…
A: The term "TIE ratio" typically refers to the "Times Interest Earned" ratio. This is a financial…
Q: A stock has an expected return of 0.12, its beta is 1.36, and the risk-free rate is 0.03. What must…
A: Expected return on stock = 0.12 Beta = 1.36 Risk-free rate = 0.03 We will use the CAPM equation…
Q: M-1" and "M-2" are two of the most well-known measures of the United States' money supply. We need…
A: To calculate the M1 or please supplier one consist of coin and currency in circulation with deposits…
Q: A stock has a beta of 1.16, the expected return on the market is 11 percent, and the risk-free rate…
A: To calculate the expected return on this stock we will use the below formula Expected return =…
Q: What is the effective cost of the following combined loan? Loan amount 180,000 40,000 220,000 Term…
A: To find the effective cost of the combined loan, we need to first calculate the total amount…
Q: The next dividend payment by Im, Incorporated, will be $3.25 per share. The dividends are…
A: Required return on stock is calculated using following equation Required return = D1P0+g Where, D1…
Q: You've collected the following information from your favorite financial website. 52-Week Price Lo…
A: Given the following: annual dividend = $2.14 52-week high price = $56.41 52-weel low price =…
Q: 4. Feast Foods is interested in calculating its weighted average cost of capital. The company's CFO…
A: To calculate the WACC, we need to first determine the cost of debt, the cost of equity, and the…
Q: Problem 1: A man deposited ABCDE.00 in a bank of 10% per annum for (A+B+C) months and (D+E) days.…
A: Simple interest refers to the interest that is charged on the borrowing which is to be calculated by…
Q: What should be the amount in an RRSP that is earning 7.50% compounded semi- annually if it can be…
A:
Q: The company you work for is considering building a new warehouse and manufacturing facility. The…
A: Capital budgeting is the process of analyzing and evaluating potential long-term investments or…
Q: Calculate the present worth for a CNC machining center that has an initial cost of $75,000, a life…
A: Present worth of the machine is the present value of all future cash outflow in today's dollar…
Q: An investor purchased stock on Sept 30th of the current year. When is the first day that this is…
A: For tax purposes, the holding period to determine if a stock investment is long-term or short-term…
Q: I need help using the present value of a bond calculator at…
A: Bond: The price of a bond is estimated by discounting the par value and the coupon payments using…
Q: The Flemings secured a bank loan of $400,000 to help finance the purchase of a house. The bank…
A: A loan is amount borrowed to meet certain requirements. The loan can be amortized over the period o…
Q: Give typing answer with explanation and conclusion the expected return on stock A is 11.35%. the…
A: CAPM stands for capital asset pricing model. It is a very important theoretical concept in finance.
Q: Find the compound interest earned if PhP 41,139 is deposited in a bank at 3.2% compounded monthly…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: WRONG AGAIN
A: Interest on credit card is generally calculated by using the average daily balance method.
Q: A tea shop owner bought a sack of tea. He kept 3/7 of the tea for his mother and gave away some of…
A: Let's start by figuring out how much tea the owner kept for his mother: If the owner kept 3/7 of the…
Q: An investor buys a three-year bond With a 8% coupon rate paid annually. The bonds yield-to-maturity…
A: A bond is a kind of debt security issued by the government and private companies for raising funds…
Q: EE printing is in the evaluation process for the acquisition of a new computer system. The total…
A: Payback period is a financial metric used to evaluate the length of time it takes to recoup the…
Q: Once Upon a Credit offers retail store credit card programs to its customers. It has an ongoing…
A: A Credit offers retail store's credit card programs to its customer , it has on going practice of…
Rhoda Rabs emigrated from the Caribbean to Toronto in her twenties to pursue employment
opportunities and have “a better life”. Rhoda has achieved her career goals in Toronto and has been
able to help support her extended family financially in the Caribbean through regular remittances
over the past 20 years. An island girl at heart, Rhoda would like to retire in the Caribbean within the
next 15 years, in this regard she has opened a deferred
Caribbean insurance company and is considering further equity and bond investments in the
Caribbean in preparation for her retirement.
During a recent family reunion trip, Rhoda shared her investment and retirement plans with her
nephew Kerron who is a second year student at the UWI faculty of Social Sciences. Kerron’s reply
was as follows:
“Aunty Rhoda I have just completed a course in Financial Institutions & Markets and I can give you
three good reasons NOT to invest in the Caribbean: (1) No one knows how interest rates are
determined in the Caribbean. (2) Caribbean banks are poorly regulated resulting in frequent financial
crises. (3) Caribbean stock markets show zero signs of
Rhoda, our financial systems in the Caribbean are weak.”
Required:
Write an essay reflecting your views on Kerron’s response. Illustrate and support your position with
reference to any one Caribbean country of your choice.
Step by step
Solved in 3 steps
- Rhoda Rabs emigrated from the Caribbean to Toronto in her twenties to pursue employment opportunities and have “a better life”. Rhoda has achieved her career goals in Toronto and has been able to help support her extended family financially in the Caribbean through regular remittances over the past 20 years. An island girl at heart, Rhoda would like to retire in the Caribbean within the next 15 years, in this regard she has opened a deferred annuity retirement account with a major Caribbean insurance company and is considering further equity and bond investments in the Caribbean in preparation for her retirement. During a recent family reunion trip, Rhoda shared her investment and retirement plans with her nephew Kerron who is a second year student at the UWI faculty of Social Sciences. Kerron’s reply was as follows:“Aunty Rhoda I have just completed a course in Financial Institutions & Markets and I can give you three good reasons NOT to invest in the Caribbean: (1) No one knows…Rhoda Rabs emigrated from the Caribbean to Toronto in her twenties to pursue employmentopportunities and have “a better life”. Rhoda has achieved her career goals in Toronto and has beenable to help support her extended family financially in the Caribbean through regular remittancesover the past 20 years. An island girl at heart, Rhoda would like to retire in the Caribbean within thenext 15 years, in this regard she has opened a deferred annuity retirement account with a majorCaribbean insurance company and is considering further equity and bond investments in theCaribbean in preparation for her retirement.During a recent family reunion trip, Rhoda shared her investment and retirement plans with hernephew Kerron who is a second year student at the UWI faculty of Social Sciences. Kerron’s replywas as follows:“Aunty Rhoda I have just completed a course in Financial Institutions & Markets and I can give youthree good reasons NOT to invest in the Caribbean: (1) No one knows how…Kelly is a diligent mother who has just finished supporting her two children, Susan, aged 23, and Randy, aged 25, through their university education. Both Susan and Randy have embarked on their careers and have moved out. Kelly wants to continue supporting them by providing financial assistance for their future endeavors, such as purchasing their first home or pursuing further education. She aims to give each of them an equal amount of money when they reach the age of 30. Currently, Kelly has $15,000 in savings, which she plans to allocate to Randy, as she will reach 30 first. She intends to provide Randy with $35,000. Kelly's investments generate a 6% return before tax, and her marginal tax rate is 35%. The inflation rate is estimated to be 3%.All savings are deposited at the end of the year.Required:(a) Calculate the annual savings Kelly needs to make to accumulate $35,000 to give to Randy when she turns 30.(b) Determine the fair amount Kelly should give to Susan when she reaches 30,…
- Kelly is a diligent mother who has just finished supporting her two children, Susan, aged 23, and Randy, aged 25, through their university education. Both Susan and Randy have embarked on their careers and have moved out. Kelly wants to continue supporting them by providing financial assistance for their future endeavors, such as purchasing their first home or pursuing further education. She aims to give each of them an equal amount of money when they reach the age of 30. Currently, Kelly has $15,000 in savings, which she plans to allocate to Randy, as she will reach 30 first. She intends to provide Randy with $35,000. Kelly's investments generate a 6% return before tax, and her marginal tax rate is 35%. The inflation rate is estimated to be 3%.All savings are deposited at the end of the year.Required:(a) Calculate the annual savings Kelly needs to make to accumulate $35,000 to give to Randy when she turns 30.(b) Determine the fair amount Inaaya should give to Susan when he reaches 30,…In 2020, Regina moved across the country from the east coast to the west coast. She was moving because the advertising agency she worked for wanted her to relocate to work with a big new client the company had landed on the west coast. Her company reimbursed $7,500 of moving expenses (her total cost for the move), and her total wages for the year were $110,000 While living on the west coast, she began volunteering for a children's hospital doing public relations for their office. She estimated her time volunteering at the hospital during the year was worth $7,000. She also paid $350 in professional ducs to the American Association of Advertising Agencies the beginning of the year, which was rimbursed by her employer. Determine Regina AG for 2020. a. None of the above. b. $117,500 c. $110.150 d. $110,000 e. $117,150Jason worked various jobs during his teenage years to save money for college. Now it is his twentieth birthday, and he is about to begin his college studies at the University of South Florida (USF). A few months ago, Jason received a scholarship that will cover all of his college tuition for a period not to exceed five years. The money he has saved will be used for living expenses while he is in college; in fact, Jason expects to use all of his savings while attending USF. The jobs he worked as a teenager allowed him to save a total of $10,000, which currently is invested at 12 percent in a financial asset that pays interest monthly. Because Jason will be a full-time student, he expects to graduate four years from today, on his twenty-fourth birthday. a. How much can Jason withdraw every month while he is in college if the first withdrawal occurs today? b. How much can Jason withdraw every month while he is in college if he waits until the end of this month to make the first…
- Raj Shah, aged 36 years, is employed with a MNC. His wife Pooja, aged 34 years, is also working part - time. The couple has two children - daughter Rima aged 7 years and son Ansh aged 4 years. Raj and Pooja require your help to make a few financial decisions. (You can make any assumptions to further build up your case)a. Raj and Pooja want to invest for their children’s higher education for the long term (over 12 to 15 years). Develop a plan so that they can accumulate a sufficient education corpus. b. Raj wants to take a Life Insurance cover of Rs 1.5 crore. Advise him whether he should go for a ULIP or a term insurance.In the late 1980s, Carsten Richter, from Germany, migrated to the United States, where he is now a citizen. A man of many talents and deep foresight, he has built a large fleet of oceangoing oil tankers during his stay in the United States. Now a wealthy man in his 60s, he resides in Aspen, Colorado, with his second wife, Gabriela, age 50. They have two sons, one in junior high and one a high-school freshman. For some time, Carsten has considered preparing a will to ensure that his estate will be property distributed when he dies. A survey of his estate reveals the following: Ranch in Colorado $1,000,000 Condominium in Santa Barbara 800,000 House in Aspen 1,500,000 Franchise in ice cream stores 2,000,000 Stock in Google 5,000,000 Stock in Wal-Mart 1,000,000 Stock in Silver Mines International 3,000,000 Other assets 200,000 Total Assets $14,500,000 Does Carsten really need a will? Explain why or why not? What would happen to his estate if he were to die without a will?Christina, a 50-year-old American, is married to a Singaporean, and the couple has 2 children who are Singapore citizens. The eldest is studying at an overseas university while the younger child is attending school in Singapore. For the year 2021, Christina earned the following employment income: (i) Salary of $236,000(ii) Bonus of $34,000(iii) Net rental income of $10,800 What is her total the child relief claim (QCR and WMCR) for the Year of Assessment 2022?
- tim is living with his spouse in California when he finds out that his wife is having an affair. Tim packs his bags and leaves the state to move to Indiana, intending on filing separately. Tim and his spouse cohabitated until June. He earned $50,000 during the year, $30,000 of which was in California. She earned $60,000 during the year. How much wage income does Tim have on his California return and from whom? (Remember, the return is being filed separately) He has $50,000 in state wages from his pay only, since he's no longer in a community property state. He has $45,000 in state wages, with $15,000 from half of his state-sourced pay and $30,000 from her half of pay. He has $55,000 in state wages, with $25,000 from half of his total pay and $30,000 from her half of pay. He has $30,000 in state wages from his state-sourced pay.a). Akua intends to save 1,000 a year for her retirement until she is 55 years old, at this age, she will stop paying into the account, though she will retire at 65. If the retirement account earns 10% interest per year, how much will Akua have saved at age 65? She is 35 years at the moment. b). Financial markets and its institutions are seen as the central nervous system of an economy and must be regulated at all times. Discuss the key roles played by financial markets, and outline two (2) reasons why they must be regulated. c). Explain the difference between money market and capital market and mention two (2) securities traded in each of these markets. d). MTN was able to raise only GH¢1.15billion out of the expected GH¢3.48billion from its Initial Public Offering which lasted from May 29, 2018 to July 31, 2018. Even though the share sale exceeded the minimum of GH¢348million or 10 percent of the total required for the offer to be declared successful, it still represented only 32.97…Julie paid a day care center to watch her two-year-old son while she worked as a computer programmer for a local start-up company. What amount of child and dependent care credit can Julie claim in 2023 in each of the following alternative scenarios? A. Julie paid $6,150 to the day care center, and her AGI is $50,600 (all salary).
