Q: Question 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share…
A: Treasury shares are reacquired common shares of company. Common share account means shares issued…
Q: 1.Calculate the nominal and effective rates of interest for the following ordinary annuity. Round to…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: 18. Given the information below, which bond(s) will be issued at a discount? Bond 1 Bond 2|Bond 3…
A: 18. Bond 1, and Bond 2 are issued at discount.
Q: After describing the main hypothesis made in the black and Scholes model explain the reasons why the…
A: BlackScholes is the price used to determine the fair or theoretical value of a call or put option…
Q: The owner of Oak Hill Squirrel Farm deposits $2,000 at the end of each quarter into an account…
A: Quarterly deposit (P) = $2,000 Interest rate = 1.5% Quarterly interest rate (i) = Interest rate/4 =…
Q: Determine which of the following two alternatives is the most efficient and which is the most…
A: Internal rate of return (IRR) of an alternative refers to the rate at which the Net present value…
Q: Given the following information; Face Value = $6,600 Bond Rate = 5.19% Coupons per year = 2…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Question 3: If the investment rate is 12%, the borrowing rate is 15%, and the MARR is 14%, what is…
A: The rate at which a company invests in a project is an investment rate of return. The minimum rate…
Q: Determine the present value and total amount of an annuity with 6 payments of P120,000 each made at…
A: Annual payment (P) = P120,000 Interest rate (r) = 15% Number of annual payments (n) = 6
Q: No money is added or removed from the savings account for 3 years. What is the total amount of money…
A: Simple Interest: It is the interest computed by the product of the daily rate of interest,…
Q: A series of equal semi-annual payments of $2200 for 3 years is equivalent to what present amount at…
A: Given, Interest rate = 12 % per annum. Semi-annual Interest rate =122 = 6 %. Time period = 3 × 2 = 6…
Q: Estimate the present value of the tax benefits from depreciation. your answer to 2 decimal places.)
A: Depreciation is a deductible business expense. Due to this taxable income of a company reduces by…
Q: Hannah wants to have $ 6500 to help pay for a new deck in 16 years. If she wants to put her money…
A: Future value required (FV) = $6500 Period of investment (n) = 16 Years Value of e = 2.7182818285…
Q: Replacing old equipment at an immediate cost of $50,000 and an additional outlay of $15,000 six…
A: Initial cost = $50,000 Additional cost in six years = $15,000 Annual savings for 7 years = $11,000…
Q: n at the end of every month and make equal payments at the time of the interest payments into a…
A: Interest payments are to be paid on the debt depending on the interest rate of debt and period of…
Q: Assume the corporate discount rate is 10 percent, please offer your recommendations by ranking the…
A: 1) Net Present Value=Sum of the present value of cash inflows-Present value of cash outflows Project…
Q: A nine-year maturity, AAA-rated corporate bond has a 6 percent coupon rate. The bond's promised…
A: Coupon rate is 6% Annual duration is 7.1023 YTM is 5.75% Time to maturity is 9 years To Find:…
Q: A building is priced at $100,000. If a downpayment of S40,000 is made, an a payment of $1,000 every…
A: Given , Price of the building = $100,000 Down Payment= $40000 Monthly Pay =$1000 Interest rate =…
Q: 2. For each of the following situation, identify whether a bond would be considered a premium bond,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: whether capital generated in the industrialized countries is finding its way to and from emerging…
A: An economy is a large set of interrelated production, consumption, and exchange activities that help…
Q: The covariance of returns between MSFT and AAPL is 0.0044. The standard deviation of the return of…
A:
Q: 17. Bond X and Bond Y are both issued by the same company. Each of the bonds has a face value of…
A: You have specifically asked to answer question 17 ,18 and 19. Since multiple questions are asked ,…
Q: Your annual contribution should be $ (Round to the nearest cent.)
A: Present Value of Annuity: It represents the present worth of the future stream of cash flows and is…
Q: man loans P112,735 on March 9, 2010 and promise to pay the amount on July 17, 2014 at simple…
A: In the exact simple interest we assume that there are 365 days in year and in ordinary simple…
Q: You are trying to value the stocks of Imaginary Inc. The company is currently involved in a very…
A: Last year EPS = $10 EPS after year 1 = $15 EPS after year 2 = $20 EPS after year 3 = $25 Growth rate…
Q: A manufacturing company is planning to install a new CO2 treatment module to the chimneys of its…
A: In the question , it is specifically stated that we can solve by any method of our own choice. Hence…
Q: The demand for Clean-Well company's product charges P30 per liter, how much revenue the company will…
A: Answer- Consumer surplus is the maximum price that a consumer of the good is willing to pay for a…
Q: 2022 QUESTION 2 (Marks: 10) You have invested your annual bonus in alone vear fixed deposit at Alpha…
A:
Q: he dividend discount model considers all dividend payments until infinity. Do we have to worry about…
A: Dividend discount model is used quite extensively in valuation of stock and we need to consider all…
Q: Briefly explain the meaning of "The 200 year PML (OEP) for a book of business is $150 million."
A: PML means Probable Maximum Loss. OEP means Occurrence Exceedance Probability and it measures the…
Q: remain dwlse
A: If the bond coupon rate is greater than YTM, the bond is trading at a premium. As the bond matures,…
Q: a. How many Brazilian reals do you get for your dollar? (Round your answer to 3 decimal places.) b.…
A: a) From the table below we cann determine that the current exchange rate is 3.484 brazilian reals…
Q: Alan Frost purchased a new split-level home for $170,000 with 20% down. He decided to use Victory…
A: Data given: Cost of new split level home = $ 170,000 Down payment =20% Rate (r) = 4.75% n= 25 years…
Q: From page 9-3 of the VLN, what are the cash flows from a bond that must be present valued back to…
A: Company requires funding for their investment which can be obtained from broadly two sources.…
Q: Requirements (a) Calculate the NPV and IRR of each project. (b) Recommend, with reasons, which…
A: Mutually exclusive projects are those available set of investment alternatives who are closely…
Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: Replacing old equipment at an immediate cost of $40,000 and an additional outlay of $25,000 three…
A: Immediate cost = $40,000 Additional outlay in three years = $25,000 Annual savings = $15000 Period =…
Q: Assume that your hotel decided to add new menu items to the restaurant's menu. This project will…
A: Year Cash flow 0 -15000 1 10000 2 3000 3 3000 4 300 5 300
Q: Soy sauce company ABC has operating profits of Rp. 100 million, taxes of Rp. 17 million, interest…
A: Given: Operating profits of Rp. 100 million, Taxes of Rp. 17 million, Interest expense of Rp. 34…
Q: a. calculate the payback period for each project. b. calculate the net present value for each…
A: Payback period is the time required to recover the cost of investment. Payback period = ((Year of…
Q: 4. Consider a 10 year semiannual bond redeemable at par that yields a nominal annual rate of 8%…
A: Solved using Financial Calculator N = 10* 2 = 20 I/Y = 8/2 = 4 PMT = 6/2 = 3 FV = 100 CPT PV = -…
Q: Faisal deposits $1,139 in a fund paying 4% annual compound interest; after 5 years the fund…
A: The future value of the account at the end of 11 years can be calculated with the help of future…
Q: A bank loaned out $7,500, part of it at the rate of 12% annual interest, and the rest at 14% annual…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: Edmund spent the following amounts for the maintenance of the machine she bought: PhP 4,000 each…
A: Concept. Equivalent uniform annual cost is used by the firms in capital budgeting decisions. Cost of…
Q: The cash flow associated with a stripper oil well is expected to be $4,000 in month one, $3,925 in…
A: Cash flow is referred as the movement of the funds that are in and out of the corporation. Funds…
Q: Suppose you are a customer in the FX market and observe the following quotes for FX spot trades of…
A: Here,
Q: Sam has her portfolio invested as indicated in the following table. Stock | $'s Invested Beta LCAV…
A: Stock $'s Invested Beta LCAV 150000 0.50 DFIB 100000 0.75 GLW 100000 0.80 DLM 50000 1.45
Q: Two public infrastructure projects have the economic profiles that follow: Option A Option B…
A: Discount rates = 10% and 5% Option A Year Capital Cost O & M Cost Benefits 0 1…
Q: 1. Determine the present value of the ordinary annuity:
A: Present value of Ordinary Annuity: It represents the present worth of the annuity payments made at…
Q: Statement No. 133 Accounting for Derivative Instruments and Hedging Activities establishes…
A: In the statement of financial position, an entity recognizes all derivatives as assets or…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- According to a company press release, on January 5, 2012, Hansen Natural Corporation changed its name to Monster Beverage Corporation. According to Yahoo Finance, on that day the value of the company stock (symbol: MNST) was $15.64 per share. On January 5, 2018, the stock closed at $63.49 per share. This represents an increase of nearly 306%. A. Discuss the factors that might influence the increase in share price. B. Consider yourself as a potential shareholder. What factors would you consider when deciding whether or not to purchase shares in Monster Beverage Corporation today?Percy Company has 15,000 shares of common stock outstanding during all of 2019. It also has 2 convertible securities outstanding at the end of 2019. These are: 1. Convertible preferred stock: 1,000 shares of 9%, 100 par, preferred stock were issued in 2015 for 140 per share. Each share of preferred stock is convertible into 3.5 shares of common stock. The current dividends have been paid. To date, no preferred stock has been converted. 2. Convertible bonds: Bonds with a face value of 100,000 and an interest rate of 10% were issued at par on July 1, 2019. Each 1,000 bond is convertible into 35 shares of common stock. To date, no bonds have been converted. Percy earned net income of 54,000 during 2019. Its income tax rate is 30%. Required: Compute the 2019 diluted earnings per share. What earnings per share amount(s) would Percy report on its 2019 income statement?Preferred Stock Dividends Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has $200,000 available for dividends in 2019, how much could it pay to the common stockholders Seashell Corporation has 25,000 shares outstanding of 8%, S10 par value, cumulative preferred stock. In 2017 and 2018, no dividends were declared on preferred stock. In 2019, Seashell had a profitable year and decided to pay dividends to stockholders of both preferred and common stock. Required: If Seashell has S200,000 available for dividends in 2019, how much could it pay to the common stockholders
- Stockholders' Equity Terminology A list of terms and a list of definitions or examples are presented below. Make a list of the numbers 1 through 12 and match the letter of the most directly related definition or example with each number Definitions and Examples Capitalizes retained earnings. Shares issued minus treasury shares. Emerson Electric will pay a dividend to all persons holding shares of its common stock on December 15, 2019, even if they just bought the shares and sell them a few days later. The accumulated earnings over the entire life of the corporation that have not been paid out in dividends. Common Stock account balance divided by the number of shares issued. The state of Louisiana set an upper limit of 1,000,000 on the number of shares that Gumps Catch Inc. can issue. Shares that never earn dividends. Any changes to stockholders equity from transactions with no owners. A right to purchase stock at a specified future time and specified price. j. A stock issue that requires no journal entry. k. Shares that may earn guaranteed dividends. 1. On October 15, 2019, General Electric announced its intention to pay a dividend on common stock.I bought AEO stock on 8/14/2018 for $28.02 and then collected $0.1375 dividend on 10/11/2018 and then sold my stock on 11/30/2018 for $20.93. What has been my annualized return from this transaction? ( Please use IRR) A)-54.24% B)-61.96% C)-84.75% D)-78.45% Please answer fast I give you upvote.9. The stockholders’ equity section of Kay Corporation at the end of 2015 showed: (see attached images for the given, someone already answer letter a to c, so please answer letter d to f. please answer it. thank you so much) d. What is the average cost per share of treasury stock? (Round to the nearest cent.) e. What is the revised retained earnings if the net income for the year is P167,000 and total dividends declared is P50,000? f. Present the shareholders’ equity.
- You have always loved ABC Corp. and its wonderful products and so have been an investor in its stock for years. In fact whenever you could you added to your stockholdings in ABC, as follows: 11/2016 – 100 shares at $18 per share (initial purchase) 04/2017 – 100 shares at $22 per share 12/2017 – 100 shares at $24 per share 06/2018 – 100 shares at $25 per share 09/2019 – 100 shares at $29 per share Needing cash for a down payment on a new house, today you sold 250 shares at $36 per share. But, distracted by the wonderful new home that you are about to own, you forgot to instruct your online broker exactly which shares you were sell-ing. What is the amount and character of your gain on today’s sale?Lord Aguilar Corp. plans to declare and distribute a dividend in December 2018. There are 20,000 shares of 7% preference shares, par value P50, and 400,000 outstanding ordinary shares, P1 par value. No dividend was paid in the previous year. 1. What is the total amount of dividends to be paid to ordinary shareholders if preference shares are cumulative and nonparticipating and the dividend declared is P100,000? 2. What is the total amount of dividends to be paid to preference shareholders if it is cumulative and nonparticipating and the dividend declared is P100,000? 3. What is the total amount of dividends to be paid to ordinary shareholders if preference shares are cumulative and nonparticipating and the dividend declared is P168,000?Michael's, Incorporated, just paid $3.70 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 4.2 percent. If you require a rate of return of 12 percent, how much are you willing to pay today to purchase one share of the company's stock? Group of answer choices $53.14 $47.44 $34.53 $98.67
- Last year, Damian Lillard paid $39.25 for shares of Gatorade. Afterwards, he received a dividend of $1.39 per share. What is Damian Lillard’s capital gains yield if, at the end of the year, Gatorade shares closed at $44.65? a. 13.76% b. 12.09% c. 17.30% d. 3.54% e. 11.49%Fiber Corporation declared a dividend of $.90 per share on April 20th to holders of record as of Monday, May1st. The dividend is payable on June 1st. You purchased 100shares of this stock on Wednesday, April 26th. How much dividend income will you receive on June 1st as a result of his declaration? A)$0 B)$2.25 C)$9.00 D)$22.50 E)$90.0015.On January 2, 2020, Howdy Doody bought 15% of Ranger's common stock for $ 54,000. Ranger's net income as of December 31, 2020 was $ 80,000. During 2020, Ranger declared and paid dividends of $ 64,000. As of December 31, 2018, the market value of Howdy Doody-owned Ranger shares had risen to $ 69,000. How much is Howdy's total effect on net income caused by investing in Ranger for 2020? Select one: a. $ 15,000. b. $ 21,000. c. $ 24,600. d. $ 9,600.