What is the firm value

Q: me balance in a Registered Retirement Income - the beginning of each m +

A: Registered retirement income fund refers to the fund related to the annuity in which income is to…

Q: You've collected the following information from your favorite financial website. 52-Week Price Div…

A: Given Information:  Price of Palm coal = 14.50 Dividend yield = 2.9%Growth rate = 4%

Q: Which one of the following is the mostly cited reason for leasing instead of buying? 100 percent…

A: Which one of the following is the mostly cited reason or leasing instead of buying? 100 percent…

Q: An investor buys a $1000 face value bond paying a semi-annual coupon at 9% APR compounded…

A: We need to use RATE function in excel to calculate realized  Formula is =RATE(NPER,PMT,-PV,FV)

Q: HaidiKho Allams has 1,750,000 shares of authorized common stock, each having a $1 par value. Over…

A: Common stock is one of the important source of financing being used by business. Shares are being…

Q: A zero-coupon bond with 20 years remaining to maturity has a duration of ____________ years, and a…

A: Solution:- Duration is the immunization period, where price effect becomes equal to reinvestment…

Q: Whenever the percentage change in EBIT due to percentage change in sales is lower than the…

A: Operating Leverage defined as “firms ability to use fixed operating costs to magnify effect of…

Q: Stephen deposited $1,200 at the end of every month into an RRSP for 8 years. The interest rate…

A: Amount deposited at the end of every month is $1200 Time period is 8 years Interest rate for first…

Q: Sally is 25 years old and has decided to start a retirement program. Beginning in exactly one year,…

A: We need to use future value of ordinary annuity formula to calculate total saving value at the time…

Q: Sarge invested $10,000 per year in his RRSP each year for 20 years. If interest is 4% compounded…

A: We will apply the concept of time value of money here. As per the concept of time value of money the…

Q: Which of the following statements is true? OA. When a large proportion of income is spent on a…

A: To find: We have to answer in this question which of the statement is true.

Q: Kyle was supposed to pay Cassandra $5,200, 6 months ago, and $1,880, 5 months from now. If he wants…

A: Amount supposed to pay 6 month ago is $5200 Amount needs to pay 5 months from now is $1,880 Simple…

Q: Just for clarification purposes, is the 50 000 a sunken cost and should it have been accounted for…

A: Sunk cost - is a  cost that has already been incurred. Such cost cannot be recovered.

Q: If a bond is issued with a 6% coupon when the competitive yields are 6% it will sell at ( fair value…

A: Bond Price: It is computed by discounting the future coupon payments and the par value by the…

Q: Face value=$1000 Annual coupon payment=$60 (First payment due in 1 year) Internal yield to…

A: Solution:- Macaulay’s Duration measures the immunizing period i.e. the period where price effect is…

Q: In what circumstances might a large corporation sell stock rather than bonds to obtain long-term…

A: A Bond refers to a type of security where the issuer owes the holder a debt and has an obligation to…

Q: Weber Interstate Paving Co. had $450 million of sales and $225 million of fixed assets last year, so…

A: Solution:- When an asset is sold, there is cash inflow due to sale proceeds. On the other hand, when…

Q: a. In the above table, find the Treasury bond that matures in May 2044. What is the asked price of…

A: Par Value of Bond = $1,000 Current time period = May 2019 Maturity date = May 2044 Rate at 2044 =…

Q: O Between $184,561 and $184,699

A: Net present value refers to the amount used for the calculation of the current total value of the…

Q: What is venture capital? An angel investor? A private placement?

A: Following the current economic crisis, financial management has become more methodical. Following…

Q: Kyle invested money in a mutual fund for ten years. The interest rate on the mutual fund was 3%…

A: Accumulated Value at the end of 10 years "FV" is $41,788.50 Interest rate for first 5 years is 3%…

Q: National Corporation shares are selling for P50. Earnings for the last 12 months were P3 per share.…

A: Solution:- Price Earnings (P/E) Ratio means that how much times is the price of the entity, in…

Q: PLEASE DO THIS TYPEWRITTEN AND SKIP IT IF YOU HAVE ALREADY DONE THIS, OTHERWISE DOWNVOTE. I WILL…

A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…

Q: Toy plc is expected to record earnings per share of £7.00 next year and is expected to maintain its…

A: We will use Dividend discount model for calculation of value of share. In Dividend discount model,…

Q: As an investment advisor, you have been approached by a client called Ramesh, who wants some help in…

A: Future value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: A student borrows $6000 at 10% for 6 months to pay tuition. The total amount due after 6 months is $…

A: To calculate the interest amount we will use the below simple interest formula   Total amount due =…

Q: Use the unpaid balance method to find the finance charge on the credit card account. Last month's…

A: Unpaid balance method is the method in which finance charge is calculated on the previous balance…

Q: A machine with a purchase value of (150,000) dollars and the useful life of the machine is 7 years.…

A: Deprecation is that amount which is charge on assets every year after put to use due to wear and…

Q: Explain the sinking fund.

A: A Loan refers to the amount of money taken by one party named borrower from the other party named…

Q: On 31 March 2021 a company has the following capital structure in the capital employed section of…

A: The composite or over-all cost of capital of a firm is the weighted average of the cost of various…

Q: You have just purchased a share of stock for $21.11. The company is expected to pay a dividend of…

A: Required return means the percentage return required over the amount invested. So, required return =…

Q: An annuity with a minimum APR of 3.4% into which you invest a lump sum of $12,500.

A: Annuity refers to the process in which a series of payments should be made as long-term investments…

Q: Which of the following is an advantage of a sole trader as a form of business organisation? Select…

A: Sole proprietor is the only owner of the business and all the expenses and profit belongs only to…

Q: (Yield to​ maturity)  ​Fitzgerald's 15​-year bonds pay 8 percent interest annually on a ​$1,000…

A: Given: Particulars   Years 15 Coupon rate 8% Par value(FV) $1,000 Current Price (PV) $875…

Q: PLEASE DO THIS TYPEWRITTEN AND SKIP IT IF YOU HAVE ALREADY DONE THIS, OTHERWISE DOWNVOTE. I WILL…

A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…

Q: What is the basic difference between a forward contract and a futures contract? How important is…

A: "Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Explain why there is a cost associated with retained earnings

A: Retained profits are the organization's undistributed accumulated profit. It is the profit after…

Q: At the end of 3 years, what is the balance?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: 3. Compute for the following: Required: Payback period, payback reciprocal, accounting rate of…

A: The question is related to Capital Budgeting. 1. Payback Period is the length of time required to…

Q: in has a beta of 5.the total value of your portfolio is $200000and you decide to invest another…

A: Beta of portfolio depends on the beta of individual stocks in portfolio and weight of stocks in…

Q: The management of Penfold Corporation is considering the purchase of a machine that would cost…

A: The Net Present value is excess of Present value of Cash Inflow over Present Value of Cash Outflow…

Q: If the market adheres to the strong form of the efficient market hypothesis, what is the implication…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: QQ Company's book value per share at the end of last year was $60, its earnings per share for the…

A: The Price Earnings Ratio is calculated by dividing Current Market Price per share by Earnings per…

Q: A6) Finance An investor invests $111,000 in a managed fund at the beginning of Year 1. Over the…

A: IRR is technique of capital budgeting under which we will the know the actual rate of return from…

Q: OC) 0.1105

A: Price weighted index value refers to the price per share compared with the weights of the…

Q: A bond that has an embedded put is more valuable at ( higher/lower)Over this region on the…

A: An embedded option is referred to as a feature or provision of fixed-income security which lets…

Q: ABC Medical has invested RM2 million in a Health Diagnostic Support system. To maintain the system,…

A: The return earned by the company on the initial investment expressed in percentage is known as…

Q: Ann and Tom want to establish a fund for their grandson's college education. What lump sum must they…

A: To calculate the deposit amount we will use the present value formula as follows:   Deposit amount =…

Q: 5. Given below is the principal owed on a student loan last month, the annual interest rate, and the…

A: Data given: Principal = $27600 Annual rate = 9% Method for calculating minimum monthly payment =…

Q: The National Corporation pays annual dividends P7 on the cumulative preferred stock. What is the…

A: To calculate the current value of stock we will use the below formula   Current value of stock =…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.