You are going to invest P20,000 in a portfolio consisting ofassets X, Y, and Z, as follows: Probability 0.50 0.25 Asset X Beta 1.2 1.6 Proportion 0.333 0.333 0.333 Annual return 10% 8% 16% Y 0.25 2.0

Q: m for a corporation has decided to move forward with a project that will cost $82 million and now…

A: Weighted Average Cost of Capital = Cost of equity * Weight of equity +Cost of debt * Weight of debt.

Q: Economics i=15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a)…

A: Payback Period = Initial investment / Cash flow per year Payback Period of A = 100/26 = 3.85 years…

Q: How is your borrowing power affected when you are considered a "high risk"? O There is a good chance…

A: A high risk individual is the one who has bad credit history and who has defaulted payments in the…

Q: A stock has a 15 percent change of moving either up or down per period and is currently priced at…

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first…

Q: The following perpetual sequences of revenues and costs are predicted for an acre of bare,…

A: The present value method is used to find the profitability of a project by adding up discounted cash…

Q: You plans to withdraw $150,000 at the end of every year from this accout.To prevent overwithdrawal…

A: First requirement is to calculate the Return of amount in risky fund which will be Invested in…

Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…

A: Here,

Q: If 1-year interest rates for the next three years are expected to be 6, 4, and 5 percent, and the…

A: The liquidity premium theory is one of the theories that attempts to explain the term structure of…

Q: duration of this bond?

A: A zero-coupon bond has a price of $350 with a face value of $1,000. The maturity period is 9.55…

Q: You own all the equity of R.G.C. I Ltd. The company has no debt.  The company’s annual cash flow is…

A: Here, Annual cash flows (EBIT) = GH¢900,000 Tax rate = 35% Exchange of equity = 1/2 5% bonds =…

Q: Critically discuss over-investment and under-investment problems due to debt usage. What kinds of…

A: Capital structure means the amount of debt and equity which the firm has as its capital. The company…

Q: How long would it take money to triple if it is invested at 6% compounded semi-annually

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: gs in common stock dividends each year. a. If Daher earns €4 million in 2015, how much common stock…

A: Common Stock: Common stock is a financial security that represents part of the ownership of an…

Q: Computing EPS: Convertible Preferred Stock Charter Company earned net income of $48,000 in 2020. The…

A: Earnings per share is a method to evaluate the profitability of a company. It is one of the investor…

Q: What are the strengths and weaknesses for establishing base pay in international contexts for home…

A: In the home country based approach the pay compensation is based on the payment levels of the home…

Q: Normal backwardation maintains that, for most commodities, there are natural hedgers who desire to…

A: Futures options are a type of asset that allows traders to buy and sell futures contracts at…

Q: You have an opportunity to make an investment that will pay ​$200 at the end of the first​ year,…

A: Present value of stream of cash flows can be calculated by discounting each cash flow to the…

Q: Inflation and unemployment are twin problems that every government attempts to address. Elucidate…

A: Inflation is the decline in the purchasing power of a currency over time. By tracking the average…

Q: 12. A company has agreed to pay $4.2 million in 6 years to settle a lawsuit. How much must it invest…

A: Future value required = $4,200,000 Interest rate = 6% Number of compounding per year = 12 Period= 6…

Q: An individual wishes to purchase a house that is selling for $200,000. The person has $50,000 they…

A: Value of house = $200000 Down payment = $50000 Term for amortization "n" = 10 years or 10*12 = 120…

Q: Name two reasons that requiring more disclosure in the securities market is helpful.

A: Disclosure means making the information or facts about the company known to the public, customers…

Q: Suppose that a man lends $1000 for four years at 12% per year simple interest. At the end of the…

A: Future value with simple interest With principle amount (PV), period (n) and simple interest rate…

Q: Question 15 Which of the following answers was not one of the lending rules proposed by Walter…

A: Walter Bagehot was a British journalist, businessman. He wrote extensively about economics and…

Q: Scooter wishes to sell a bond that has a face value of $1,075. The bond bears an interest rate of…

A: Face value (FV) = $1075 Coupon rate (C)  = 9.85% Coupon payments per year (Q) = 4 Yield rate =…

Q: Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash…

A: To find: Incremental earnings Freecash flow

Q: ROUN How much will $10,000 grow to in 3 years, assuming an Interest rate of 9% compounded quarterly?

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only the solve…

Q: new engine was installed by a textile plant at cost of P and projected to have a useful life of 15…

A: Capitalization describes the practice of depreciating the expenses of acquiring an asset throughout…

Q: Personal Savings Principle B. Personal Spending Principles C. Personal Investing Principles

A: Guiding principles refer to the principles which guide an organization in the whole life and in all…

Q: 8. What is a payback period?

A: Payback Period: It is the period in which the initial investment cost is recovered. It can be…

Q: After graduating from Baruch, Amal plans on investing $8,000 every year beginning age 25 to…

A: Note: assuming payments are made at the end of age 25 till end of age 64 then value at the beginnig…

Q: The face value of the note was $116,500, with interest of 8%. The firm made a partial payment of…

A: Here, Face Value of Note is $116,500 Interest Rate is 8% Issue Date is 11 Feb Maturity Date is 25th…

Q: On January 1, 2019, Gurl Company purchased as a long term investment P5,000,000 face amount of Lulu…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: You are interested buying a business and the current owner is asking $180,000 for it. You require a…

A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…

Q: It costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If…

A: The question is based on the concept of the present value of money. The present value is calculated…

Q: Suppose Federal National Mortgage Association sells mortgage-backed securities (MBS) backed by a…

A: Here,

Q: RCISES . The management of Sisa Fitness Center is planning to replace an old P30,000. The old…

A: Given: Particulars Year 0 Initial investment           -50,000 Installation           -10,000…

Q: The Shell Corporation has a 34% tax rate and owns a piece of petroleum-drilling equipment that costs…

A: Explanation : NPV is help in decision making if I have Calculate the NPV & it comes to positive…

Q: Consider the following two securities X and Y. Security Retum Standard deviation Beta 1.5 20% 10%…

A: The systematic risk of the portfolio is a measure of the beta of the portfolio

Q: per year. Triple Crown's discount rate is 12%. What is the net present value of this investment…

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

Q: 21. Aluminum maker Alcoa has a beta of about 1.9, whereas Hormel Foods has a beta of 0.37. If the…

A: First, we will calculate the Cost of Equity by applying the required formula for both companies and…

Q: Galindo Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $178,848,…

A: Given: Cost of asset is $178,848 Cash in flows is $36,000 Years = 8

Q: Describe the following stakeholders’ objectives and what a financial manager needs to be mindful of…

A: A stakeholder is someone who has a vested interest in a company and has the ability to affect or be…

Q: Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking…

A: The net present value is the measure of profitability in which we add up the discounted cash flows.…

Q: The following amounts were taken from the financial statements of Sheffield Company:      2020…

A: Profit margin in percentage = (Net income /Net sales) ×100

Q: If we no longer use the federal deficit and debt as an excuse not to pass much needed policies and…

A: In finance federal deficit refers to that situation which the spending by the government exceeds its…

Q: g factory has been offered a contract to produce a part for a new printer. The contract would last…

A: Solution:- Internal Rate of Return (IRR) means the rate of return the project is yielding. At IRR,…

Q: 1. Mabuhay Corporation manufactures special types of furniture and fixtures for the use of luxury…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: I need an answer for this specific question please LCT Computers is listed on the Alternative…

A: Given, Working of cost of equity by applying :-( part 1) Model of Constant (Dividend) Growth…

Q: MAD for method A is 5, MAD for method B is 7, MAD for method C is 4, and MAD for method D is 2.…

A: MAD mean absolute deviation tells that how much is deviation of data from mean of the data and so it…

Q: discuss Volkswagen deciding to go for a Foreign Direct Investement with Ghana

A: Volkswagen is the flagship brand of the  Volkswagen Group, is a German motor vehicle manufacturer…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.