Q: Is There Cash Value of No Cash?
A: Step 1 The replacement cost less any depreciation is equivalent to the actual cash value (ACV = repl...
Q: ssume the economy is experiencing low and stable inflation, averaging 2% a year. Nadia loans her goo...
A: Nominal interest rate = real interest rate + Expected inflation rate 5 % = real rate + 2 % Real rate...
Q: Assuming interest rates are at 6%, what is the fair value of this offer?
A: Fair value or present value can be calculated using the present value concept. 1. Find the value of...
Q: Credit Risk. A bond's credit rating provides a guide to its risk. Suppose that long-term bonds rated...
A: Credit Rating of Bond is the rating by which default risk of bond can be analysed. Higher the credit...
Q: he use of homemade dividends allows stockholders to change the: A. cash payout received by selling ...
A: Normal dividends are paid by company to the shareholders from the income earned by the company.
Q: You have just won the Super Duper Lotto. Although the prize is advertised as $30 million, you actual...
A: Given, the amount received today is $10 million After that $1 million is received every year. Term i...
Q: You are trying to pick the least-expensive equipment for your manufacturing operations. You have two...
A: To take the valuing decision between the two alternatives that have a different useful life, it is r...
Q: A man wants to recieve P800 immediately and pay it back in one year. The bank charges a simple disco...
A: Borrowings/Mortgage are the loan which is taken by the individual to meet its financial requirements...
Q: Determine the N PV, NAV, modified I RR, and ERR for the following cash flow diagram if the MARR is 1...
A: The capital budgeting techniques helps in the evaluation of a project and various proposals to find ...
Q: What is the monthly payment on a loan of $5,000 at APR = 6% for one year.
A: Loan amount (PV) = $5000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Number of mont...
Q: 31. Nonconstant Growth. Phoenix Industries has pulled off a miraculous recovery. Four it was near ba...
A: This is a question related to dividend discount model. According to this concept, the current price ...
Q: You are negotiating the terms of a legal settlement. You have been given several different settlemen...
A: Present Value means value of future benefits at the current date. The formula for the same is as fol...
Q: You have been given the following coupon yield curve: Maturity (years) 1 2 4 Coupon Rate (annual pay...
A: Here, YTM of 2 Year Coupon Bond is 2.31% YTM of One Year Coupon Bond is 1.5% Coupon Rate of Two Year...
Q: The Charleston Company is a relatively small, privately owned firm. Last year the company had after-...
A: The price-earnings ratio is the ratio of the market price of a stock to the earnings per share. It i...
Q: You want to buy a motorcycle for $15,500 plus freight of $155 and other delivery charges of $125. Yo...
A: Motorcycle total cost = 15500+155+125 = $15780 Down payment = 15% Loan amount (LV) = 15780*(1-0.15) ...
Q: In making a financing decision, how would a financial manager answers questions like: 1. How sho...
A: Financial manager (FM) has to make various decisions for the company related to the funds. One of th...
Q: If your trust fund promises to pay you RM25,000 on your 24th birthday (6 years from today) and earns...
A: Promised amount (F) = RM 25000 n = 6 years r = 9%
Q: Explain a flat yield curve using the segmented market theory.
A: Mаrket segmentаtiоn theоry is а theоry thаt lоng аnd shоrt-term interest rаtes аre nоt ...
Q: In five years, P18,000 will be needed to pay for a building renovation. In order to generate this su...
A: Annuity refers to equal payments made in a fund at regular intervals. The amount so deposited genera...
Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum, ...
A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = P50,000R = Rate on interest = 3%N = number ...
Q: What is the total interest paid on a loan of $5,000 at APR = 6% for 4 years.
A: Loan amount = $5000 Interest rate = 6% Period = 4 Years
Q: Given the information below for StartUp Co., compute the expected share price at the end of 2020 usi...
A: Price ratio analysis helps investors in analyzing the market value of stock as compared to sales rev...
Q: Mr. Jones borrowed P 20,000 from a lending firm and an additional P 5,000 after 2 months. He paid P...
A: Here,
Q: Assuming the bonds will be rated AA, what will the price of the AA-rated bonds be? b. How much to...
A: Face Value = $1,000 Coupon Rate = 10.2% Time Period = 5 Years AA rated yield = 9.8%
Q: Shipping and insurance delivery chart Find the total cost of five pop-up hampers at $10.00 each and ...
A: Given Five Pop Hamper @ $ 10.99 and two Non Stick pan @ $12.9
Q: What is the monthly payment on a loan of $5,000 at APR = 6% for 4 years.
A: Loan amount (LV) = $5000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 4 Yea...
Q: As the top employer at your firm you are given the following choices as your end of year bonus: (ass...
A: Present value Present value of a future amount is calculated by discounting the future amount to the...
Q: Identify the types and formats of financial forecasts and provide an example of each.
A: Financial forecasts are the forecasts which helps in the analysis of the financial information. Thes...
Q: Bond Pricing, Duration, and Convexity Using the following data from January 14, 2022, plot (graph) t...
A: Hi, Thanks for the Question. Since you asked Multiple Question, we will answer the first question as...
Q: 1. You buy a property for $170,000 down and monthly payments of $10, 450 for 5 years. What is the ca...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: Tomas Fishing Products is analyzing the performance of its cash management. On the average, the firm...
A: The question is based on the concept of the operating cycle, which is defined as time required for a...
Q: Two scheduled debt payments of $671 each are due two months and nine months from now respectively. I...
A: Amortized Loan Amortized loan is a type of loan in which the borrower would pay periodic payments th...
Q: Bell Canada issues a 20 year bond with 3% coupon rate (paid semi-annually.) Other similar Bell Canad...
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to finan...
Q: merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is ...
A:
Q: 4. Jasmine bought a laptop amounting P 45,00 in an installment basis with 1.5% annual interest. She ...
A: According to the general rules, the present value of a future cash flow is equal to its discounted v...
Q: have the following data during the coming year. What is the firm's expected ROE?
A: The return on equity (ROE) is a financial metric that is calculated by dividing net income by shareh...
Q: For a 20-year deposit, what annual rate payable semiannually will produce the same effective rate as...
A: Annual rate (r) = 8.50% e = 2.7182818284590452353602874713527 Effective annual rate = er-1 ...
Q: For insurance companies risk management is critical to the success and viability of their business. ...
A: An underwriter's risk of loss is known as underwriting risk. Underwriting risk in insurance can resu...
Q: Consider the following mutually exclusive projects, for Oz Corp, a firm using a discount rate of 10%...
A: Rules for Mutually Exclusive project:-The corporation is free to choose any of the projects if they ...
Q: $1200 is placed in an account at 4% compounded annually for 2 years. It is then withdrawn at the end...
A: Compound interest is the method of increasing interest by reinvesting it so that the total principal...
Q: Jackson Enterprises has the following capital (equity) accounts: Common stock ($1 par; 200,000 shar...
A: Whenever, stock dividend is issued, additional number of shares is issued based on the current marke...
Q: 2. HYZEL Merchandising borrowed Php 300,000 from Partner's Bank at 15% simple interest for one year....
A: Borrowed amount = Php 300,000 Interest rate = 15%
Q: If the YTM on a bond is 17.5 %, what will be the periodic rate assuming the bond is paying coupons s...
A: YTM = 17.5% Number of coupon payment per year = 2
Q: What is the value of a share of a corporation's $4.80 preferred stock to an investor who requires a ...
A: Given: Dividend = $4.8 Required return = 12%
Q: Leon's 6-month premium for auto insurance is $754.34, if he pays it all at once. If he decides that ...
A: In order to make the decision regarding the payment of insurance premium to be paid minimum, we are ...
Q: Credit Card of America (CCA) has a current ratio of 3.5 and a quick ratio of 3.0. If its total curre...
A: Current ratio = 3.5 Quick ratio = 3 Total current assets = $73500
Q: Determine the present value of a debt of $7000 due in nine months if interest at 2,% is allowed. The...
A: Maturity value (S) = $7000 Interest rate (r) = 2 2/3% = 2.666666666666667% Period (t) = 9 months = 9...
Q: A businessman bought a delivery van costing P 35,000 payable in ten semiannual payments, each instal...
A: Van cost (PV) = P35,000 Interest rate = 26% Semi annual interest rate (r) = 26%/2 = 13% Number of se...
Q: Beginning Balances for Quentin's Four Credit Cards Card A Card B Card C Card D Balance $4,134.00 $2,...
A: The value of interest payable over the term of the loan and the loan value due is equal to the total...
Q: A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The...
A: First semi annual payment = 800 Decrease in each payment = 50 Interest rate = 8% Semi annual interes...
Step by step
Solved in 2 steps with 2 images
- What is the correct answer? A. P129,000 B. P135,000 C. P112,000 D. P127,600A. P8,400,000B. P22,500,000C. P10,500,000D. P18,900,000E. Answer not givenꜰɪɴᴅ ᴛʜᴇ ᴄᴏᴍᴘᴏᴜɴᴅ ɪɴᴛᴇʀᴇꜱᴛ ᴏɴ ₱₇₀,₀₀₀ ꜰᴏʀ ᴛᴡᴏ ʏ ᴇᴀʀꜱ ᴀᴛ ₄% ᴘᴇʀ ᴀɴɴᴜᴍ ᴡʜᴇɴ ᴄᴏᴍᴘᴏᴜɴᴅᴇᴅꜱᴇᴍɪ - ᴀɴɴᴜᴀʟʟʏ ᴇᴍᴍᴀɴᴜᴇʟ ᴛᴏᴏᴋ ᴀ ʟᴏᴀɴ ꜰᴏʀ ʜɪꜱ ᴡᴇᴅᴅɪɴɢ ꜰʀᴏᴍ ᴀ ʙᴀɴᴋ ꜰᴏʀ ₉ ᴍᴏɴᴛʜꜱ ᴀᴛ ₄% ᴘᴇʀ ᴀɴɴᴜᴍ ᴄᴏᴍᴘᴏᴜɴᴅᴇᴅQᴜᴀʀᴛᴇʀʟʏ. ꜰɪɴᴅ ᴛʜᴇ ᴄᴏᴍᴘᴏᴜɴᴅ ɪɴᴛᴇʀᴇꜱᴛ ɪꜰ ʜᴇ ʟᴏᴀɴꜱ ᴀɴ ᴀᴍᴏᴜɴᴛ ᴏꜰ ₱₃₀₀.₀₀₀.
- Choose the letter of the correct answer A. P196,000 B. P204,000 C. P180,000 D. P210,0000 1 2 3 4 -1000 400 500 700 900 WACC=10% Calculate NPV IRR PB DPBᴀᴛ ᴡʜᴀᴛ ᴘᴇʀᴄᴇɴᴛ ᴡɪʟʟ ₱₁₅,₀₀₀ ᴀᴍᴏᴜɴᴛ ᴛᴏ ₱₃₀,₀₀₀ ɪɴ ₆ ʏᴇᴀʀꜱ? ɪɴ ʜᴏᴡ ᴍᴜᴄʜ ᴛɪᴍᴇ ᴡɪʟʟ ᴀ ꜱᴜᴍ ᴏꜰ ᴍᴏɴᴇʏ ᴛʀɪᴘʟᴇ ɪᴛꜱᴇʟꜰ ᴀᴛ ₈% ᴘᴇʀ ᴀɴɴᴜᴍ? ᴀ ꜱᴜᴍ ᴀᴍᴏᴜɴᴛᴇᴅ ᴛᴏ ₱₃,₂₆₇ ᴀᴛ ₇% ᴘᴇʀ ᴀɴɴᴜᴍ ꜰᴏʀ ᴛʜᴇ ᴘᴇʀɪᴏᴅ ᴏꜰ ₃ ʏᴇᴀʀꜱ. ꜰɪɴᴅ ᴛʜᴇ ꜱᴜᴍ?
- ASiithial 10) eymarta) o px s yous i odcoon, you wh o o axcumiiod $140008 s v O PAS Todots ) s o yob 1 b Wil 0oy Y3 scnconpoune o, o 15 Y W-flmmmmmflmnmhmmmmbmmmmn“ (Round 19 the nerest cont) .Present and future values of $1 at 3% are presented below: N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 Debbie has $368,882 accumulated in a 401K plan. The fund…Present and future values of $1 at 3% are presented below: N FV $1 PV $1 FVA $1 PVA $1 FVAD $1 PVAD $1 1 1.03000 0.97087 1.0000 0.97087 1.0300 1.00000 2 1.06090 0.94260 2.0300 1.91347 2.0909 1.97087 3 1.09273 0.91514 3.0909 2.82861 3.1836 2.91347 4 1.12551 0.88849 4.1836 3.71710 4.3091 3.82861 5 1.15927 0.86261 5.3091 4.57971 5.4684 4.71710 6 1.19405 0.83748 6.4684 5.41719 6.6625 5.57971 7 1.22987 0.81309 7.6625 6.23028 7.8923 6.41719 8 1.26677 0.78941 8.8923 7.01969 9.1591 7.23028 9 1.30477 0.76642 10.1591 7.78611 10.4639 8.01969 10 1.34392 0.74409 11.4639 8.53020 11.8078 8.78611 11 1.38423 0.72242 12.8078 9.25262 13.1920 9.53020 12 1.42576 0.70138 14.1920 9.95400 14.6178 10.25262 13 1.46853 0.68095 15.6178 10.63496 16.0863 10.95400 14 1.51259 0.66112 17.0863 11.29607 17.5989 11.63496 15 1.55797 0.64186 18.5989 11.93794 19.1569 12.29607 16 1.60471 0.62317 20.1569 12.56110 20.7616 12.93794 Rosie's Florist borrows $300,000 to be paid off in six…
- ᴀɴ ɪᴛᴇᴍ ɪꜱ ᴘᴜʀᴄʜᴀꜱᴇᴅ ꜰᴏʀ ᴘʜᴘ 1,250,000. ᴀɴɴᴜᴀʟ ᴄᴏꜱᴛ ɪꜱ ᴘʜᴘ 18,500. ᴜꜱɪɴɢ ɪɴᴛᴇʀᴇꜱᴛ ᴏꜰ 8%, ᴡʜᴀᴛ ɪꜱ ᴛʜᴇ ᴄᴀᴘɪᴛᴀʟɪᴢᴇᴅ ᴄᴏꜱᴛ ᴏꜰ ᴘᴇʀᴘᴇᴛᴜᴀʟ ꜱᴇʀᴠɪᴄᴇ?See image. CHOICES:a. P905,000 b. P895,000 c. P915,000 d. P900,000ᴀ ᴄᴏʀᴘᴏʀᴀᴛɪᴏɴ ʙᴏᴜɢʜᴛ ᴀ ᴍᴀᴄʜɪɴᴇ ꜰᴏʀ ᴘʜᴘ 200,000 ᴀɴᴅ ᴜꜱᴇᴅ ɪᴛ ꜰᴏʀ 10 ʏᴇᴀʀꜱ, ᴛʜᴇ ʟɪꜰᴇ ꜱᴘᴀɴ ᴏꜰ ᴛʜᴇ ᴇQᴜɪᴘᴍᴇɴᴛ. ᴡʜᴀᴛ ɪꜱ ᴛʜᴇ ʙᴏᴏᴋ ᴠᴀʟᴜᴇ ᴏꜰ ᴛʜᴇ ᴍᴀᴄʜɪɴᴇ ᴀꜰᴛᴇʀ 5 ʏᴇᴀʀꜱ ᴏꜰ ᴜꜱᴇ? ᴀꜱꜱᴜᴍᴇ ꜱᴄʀᴀᴘ ᴠᴀʟᴜᴇ ᴏꜰ 20,000. ᴜꜱᴇ ᴅᴏᴜʙʟᴇ ᴅᴇᴄʟɪɴɪɴɢ ʙᴀʟᴀɴᴄᴇ ᴍᴇᴛʜᴏᴅ.