Your current account balance is $7,500. You invested $6,300 5 years ago. What rate of return did you earn on this investment? Question 8 options: 3.95% 3.55% 1.25% 4.12% 2.65%
Q: a) 9.0% b) 12.0% c) 10.5%
A: The weighted average cost of capital is considering the weight of equity and weight of debt also.
Q: It is January 2nd and senior management of Chester meets to determine their investment plan for the…
A: Face value is referred as the nominal value, which is referred as the coin value, stamp or fund that…
Q: Summarize the process of planning for financial management.
A: Financial management comprises planning, organizing, directing, and managing the financial…
Q: You are putting together a portfolio made up of four different stocks. However, you are…
A: Asset Beta First Portfolio Second Portfolio A 2.5 10% 40% B 1 10% 40% C 0.5 40% 10% D -1.5…
Q: Answers the days of Working capital based on the information below:…
A: Given: Particulars 2020 2021 Trade receivables $260,000 $285,000 Inventories $350,000…
Q: A:If I lend you $ 1500, at % 8 per year, what is the simple interest to be paid at the end of two…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: 10. Mary Canfield purchased the All-Canadian Compound bond fund. While this fund doesn't charge a…
A: When an investor purchases an investment the broker company charges a commission known as a…
Q: The current yield curve for default-free zero-coupon bonds is as follows: Maturity (Years) Spot…
A: Spot rates for the 3 years have been provided in the question, we will use the same to calculate the…
Q: What are the company motives for declaring dividends or stock repurchase programs? 2. How would you…
A: Because you have asked multiple questions, we will solve the first question as per the policy of…
Q: (CAPM and expected returns) a. Given the following holding-period returns, LOADING... Month…
A:
Q: a) What is the annual dollar amount of interest that you receive from your bond investment? b)…
A: Bond Price: The price of the bond is computed by discounting the par value of the bond and the…
Q: Period Project Cash Flows n A B C D 0 - $6,000 -$2,500 $4,800 -$4,100 1 $5,800 -$4,400 - $6,000…
A: The estimated future value of the cash flow series of projected cash flows is known as net future…
Q: You are a conservative investor who is considering investing in “Fly Away Films”, a small film…
A: Weighted average cost of capital (WACC) With weight of common stock (WE), weight of bonds/debt (WD),…
Q: A stock has an expected return of 13 percent, its beta is 1.35, and the expected return on the…
A: A risk-free rate of return is the return that an investor earns by investing in securities that have…
Q: What are the three main reasons for regulating financial markets and institutions? Also list the…
A: Financial market is referred as the market, where the people used to trade the financial securities…
Q: xtended a 5,000,000, 10% loan to a borrower. The principal is due in 4 years time but interest is…
A: A financial responsibility might be a contractual obligation to give cash or something comparable to…
Q: a. The going rate on student loans is quoted as 8 per cent APR. The terms of the loans call for…
A: As per Bartleby Honor Code, when multiple independent questions are asked, the expert is required…
Q: A loan of P47,300 is to be amortized by equal payments each month for 6 months . If interest is 12%…
A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…
Q: Assume that the DPI of a 10-year fund at the end of its 4th year is 1.1x and that, by that time,…
A: Two and twenty (or "2 and 20") is a fee structure that is widespread in hedge funds, as well as…
Q: o help open up a jewelry store, Kaitlin borrowed money from her credit union. She took out a…
A: Time value of money is used to calculate the monthly instalments, rate of interest, total amount to…
Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…
A: Resource Transformers buy protections from companies, make common subsidizes out of the protections…
Q: additional amount of funds
A: The time value of money shows the amount which is more worthful now as compared to the money will…
Q: 8-year bond issue selling for 99 percent of par that pays an annual coupon of 8.05 percent. What…
A: The before tax cost of debt can be computed by calculating the yield to maturity of the bond. Ytm =…
Q: years and a t for the firs 201
A: On a financial statement, a capitalised cost is an item that is added to the cost base of a fixed…
Q: For a business firm, what type of activities does financial management involve?
A: Financial management refers to the process of planning,organizing , directing and controlling the…
Q: You and your spouse are in good health and have reasonably secure jobs. Each of you makes about…
A: DINK method refers to a method which is used by the household for the purpose of computing their…
Q: The pricing efficiency of financial markets can be expected to decrease if the cost of skillful…
A: Skilled financial manpower is very important in financial sector and valuation of assets in…
Q: exchange rate regime,
A: The exchange rate refers to the price of the money of a country and relates to the value of…
Q: (Calculating rates of return) The common stock of Placo Enterprises had a market price of $9.96…
A: Solution:- Rate of return means the percentage of extra amount earned on initial amount invested.
Q: Two payments of $9,000 and $5,300 are due in 1 year and 2 years, respectively. Calculate the two…
A: Payment due in Year 1 is $9,000 Payment due in year 2 is $5,300 Interest rate is 9% Compounded…
Q: One year ago, your company purchased a machine used in manufacturing for $110,000. You have learned…
A: Initial Cost of old machine = $110,000 Initial Cost of new machine = $150,000 Depreciation for old…
Q: 8. a. What is the annual interest amount for a $2,000 bond that pays 7.5 percent interests? b.…
A: Annual interest amount on bond With the par or face value of bonds (FV) and annual interest rate…
Q: 1) Mrs. Teresa bought P45.80 worth of groceries and P27.75 vegetables. How much change did she…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: Aldi has $823,000 in sales. The profit margin is 3.9 percent and the firm has 7,500 shares of stock…
A: The Price Earnings Ratio is calculated with the help of following formula Price Earnings Ratio =…
Q: Period Project Cash Flows n A B D 0 -$6,000 -$2,500 $4,800 -$4,100 1 $5,800 -$4,400 -$6,000 $1,000 2…
A: Net Present Value : It is the difference between the present value of all cash inflows and cash…
Q: What will the value of your account be 4 years from today?
A: Future Value of Annuity: It is the future worth of the present stream of cash flows. It is…
Q: Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market.…
A: Patent purchased = $46,000 n = 5 years Straight-line depreciation is calculated by : Bn -…
Q: what formula did you use to calculate PVIFA?
A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…
Q: With an interest rate of 5 percent per year, what is the present value on December 31, 2020 of…
A: Present value= amount/ (1+r)^n Therefore, Present value = 400/(1.05)^1 + 400/(1.05)^2 +…
Q: Current Position Analysis The following items are reported on a company's balance sheet: Cash…
A: Current ratio = Current assets/Current liabilities
Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its…
A: WACC can be calculated as: = (Weight of equity * Cost of equity) + (Weight of debt * Cost of debt)
Q: A stock has a beta of 1.05, the expected return on the market is 14 percent, and the risk-free rate…
A: Stock Beta is 1.05 Expected return on market is 14% Risk free rate is 7.7% To Find: Expected return…
Q: Mr Ahmad wants to borrow $30,000 for a delivery Van for his Bakery business, which is rovided by…
A: Amount to borrow is $30,000 Interest rate is 9% per year Compounded monthly Time period is 5 year To…
Q: A High Torque DC Motors manufacturer estimated that the permanent magnet component will cost $95,000…
A: Cost per year is $95,000 Time period is 5 years At year, manufacturer mistakenly spends $55,000…
Q: yellow Fire had Net Income for the year just ended of $1,850, and the firm paid out $500 in cash…
A: Net Income is of $1,850 Cash dividend paid are $500 Common shares out standing are 10,000 Current…
Q: Amalgamated Industries has Sales of 3,500, COGS of 1,500, and EBIT of 600. If Depreciation is 400,…
A: Here, Sales is 3,500 COGS is 1,500 EBIT is 600 Depreciation is 400 Interest Expense is 200 Taxes is…
Q: Green Fire, Inc., has sales of $60 million, total assets of $42 million, and total debt of $18…
A: The return on assets is reflective of profitability ratio which will help in finding out the rate of…
Q: Q1(a) Create simple examples to illustrate the following concepts. i. Time value of money ii.…
A: Effective interest rate With stated interest rate (r) and number of compounding in a year (m), the…
Q: Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfolio…
A: Here, Expected Return $ Value Treasury bills 2.5% 90,000 …
Q: e detail about The weighted average cost of capital up to the point when retained earnings…
A: Since retained profits are more costly than debt and preferred stock, the cost of capital will…
Your current account balance is $7,500. You invested $6,300 5 years ago. What
Question 8 options:
|
|
3.95% |
|
|
3.55% |
|
|
1.25% |
|
|
4.12% |
|
|
2.65% |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
- How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You invested $4,800 into an account. Your balance is now $14,400. Your compound annual rate of return was 4.65%. How long ago did you open the account? Question 4 options: 25.1 years 26.4 years 24.2 years 27.6 years 28.1 years
- You have been investing $350 a month for the last 8 years. Today, your investment account is worth $43,262. What is annual rate of return? Group of answer choices 6.15% 7.87% 9.69% 7.15% 6.88%Five years ago, you invested 8,050.77. If you earned a compound annual rate of return of 3.50%, how much is your investment worth today? Question 4 options: 10,878.34 9,561.79 9,233.54 10,242.32 8,619.74You want to have $300,000 in 8 years. You want to start investing today in an account that pays compound interest, but does not know how much you need to invest. Determine the amount of money you need to invest today at a semi-annual rate of interest of 4%. answer choices 293,822 218,534 250,699 160,172
- You invest money in a fund that paid 9% simple interest paid annually. If it is worth $21,200.00 in 11 months, a) what is the present value? $ b) What is the rate of return? (answer as a percent 2 decimal places)Solve the following two cases (the cases are independent). 1. If you invest $4,000 today at 10% interest, what is the value of the investment at the end of 5 years? 2. If you invest $1,000 at the end of each of the next 5 years and the investment earns 10% interest, what is the value of the investment at the end of 5 years? FV factor at 10% at year 5 is 1.6105 (Table A-1 Future Value Interest Factors for One Dollar Compounded) FV annuity factor at 10 for 5 years is 6.1051 (Table A-2 Future Value Interest Factors for a One-Dollar Annuity) Requirement: Solve the above two cases (the cases are independent). What is the accounting rate of return? (Ignoring taxes) Hints and Reference: Lecture and reading material of Capital Budgeting Part-2 and related MS excel file.You are considering an investment that is expected to pay 5 percent in year 1, 7 percent in years 2 and 3 and 9 percent in year 4. If you invest $2,000 today, what will this investment be worth at the end of the fourth year? A. $2,620.68B. $2,693.71C. $2,713.04D. $2,501.42