Determine the present worth of a geometric gradient series of Contract A at an interest rate of 8% per year and has a cost of Php 10,000 in year 1; costs will escalate at a rate of 4% per year for 10 years.
Q: 6. Free cash flow Accounting statements represent a company's earnings, but this is not the real cas...
A: Free cash flows is the cash generated after adjusting for any operational cost and capital assets. F...
Q: Fixed Assets Turnover Ratio
A: Fixed asset turnover ratio is helpful in computing the return on investment on assets like plant, bu...
Q: List the various factors that influence the cost of money.
A: Cost of Money: Cost of Money represents the price paid or used for doing some financial activity li...
Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return...
A: The appropriate arrangement and combination of sources of finance required to manage the company wit...
Q: MacElroy Trucks recently purchased a new rig costing S130,000. They financed this purchase at 12 per...
A: An annuity is a sequence of payments to be paid at equal intervals. An annuity is a type of long-ter...
Q: As Financial Manager what would be your decision on assets and investment matters to meet profit max...
A: Profit maximization is considered as a goal of financial management. It aims at getting higher profi...
Q: Find the compound amount and compound interest in Php62,000 at the end of 3 years at 8% compounded q...
A: As you have asked multiple questions, we will solve the first question as per the policy presented b...
Q: Leah invested $875 at the end of every month into an investment fund that was earning interest at 3....
A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher...
Q: A $40,000 new car loan is taken out with the terms 12% APR for 48 months. How much are monthly payme...
A: New car loan = $40,000 APR = 12% Time period = 48 Months
Q: 3. The required rate of return, assuming no inflation, is 12%, the sales price of a particular p...
A: Solution:- We know, nominal discount rate is the discount rate after the effect of inflation in the ...
Q: A power plant is planning an expansion worth $4 million now. What uniform revenue every six months w...
A: Investment now (X) = $4 million Let the revenue every six months = A Interest rate = 12% monthly com...
Q: What is the debt ratio at the optimal capital structure of XYZ Inc.?
A: Capital structure which maximizes the share price is the optimal one. Let D1 = Expected dividend EPS...
Q: Paul wants to accumulate P150,000 in order to make the down payment for a new car. He plans to inves...
A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Npe...
Q: After the spoilt, what is the pae value of the share?
A: Reverse Stock Split: A reverse stock split occurs when a company decides to replace or exchange some...
Q: The simplest form of business ownership is a: O Corporation. O Cooperative. O Partnership. Proprieto...
A: Proprietorship is also known as individual entrepreneurship. In this , enterprise is owned and run b...
Q: Explain three different features between Islamic and conventional bank?
A: A bank may be a sort of financial organization that's permitted to simply accept deposits and supply...
Q: Find the present value of the following ordinary deferred annuity. Periodic Made Payment Period Peri...
A: A deferred annuity: A series of finite, constant receipts/payments made at fixed intervals is known...
Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective ...
A: We will find the interest rate by applying the requisite formula where we can use the amount 8000 an...
Q: What will be the interest rate per interest period if convert to compounding monthly? 1.9967% ...
A: Effective annual rate (EAR) refers to the rate of interest which is an outcomes of compounding inter...
Q: How is EPS calculated? a) Operating profit divided by the average number of common stock shares...
A: Solution:- Earnings per share (EPS) means that how much amount of profit the company has earned for ...
Q: Suppose you find stock A with positive alpha and stock B with an equal but negative alpha. Which of ...
A: Alpha measures the return of the security as compared to the market index. It is an important term u...
Q: If you
A: Number of years: Number of years is the time period to take the present value of an invested amount ...
Q: What should be the balance in a Registered Retirement Income Fund (RRIF) that will provide $2,000 at...
A: The balance of the fund is equal to the sum of the present values of all future receivables. The for...
Q: On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from ...
A: Monthly Deposit is $105 First Deposit starts on 1st August Closing of Account on 1st December Deposi...
Q: Differentiate annuity dues and deferred annuities.
A: An annuity can be divided into two types: Annuity due: Unlike a regular annuity, annuity due paymen...
Q: Describe Schneider and Shiffrin’s experiment that demonstrated automaticprocessing. What are some re...
A: The situation can divide one's attention. The level of attention divided is determined by the tasks ...
Q: S00 $2,400 $2,200 $2,000 $1,00 $1.600 $1,400 $1,200 $1,000 Monthly Wage Rate
A: Equilibrium level is the level where the demand and supply is equal to each other. It is the balance...
Q: Differentiate between voluntary and involuntary liquidation of a company and outline the circumstanc...
A: Meaning and difference of voluntary and involuntary liquidation . Voluntary liquidation. It is not ...
Q: You consider purchasing bonds today. There are three future time periods, t = 1, 2, 3, where bonds c...
A: Arbitrage is the simulataneous purchase and sale of an asset in different markets to exploit tiny di...
Q: ted and his partners have contracted to purchase the franchise rights, worth $60000, to open and ...
A: Present Value = $60,000 Time Period = 2 Years Interest Rate = 11.45% compounded annually Deferred pe...
Q: 3. If banks heeded Shakespeare's admonition “Neither a borrower nor a lender be", what would happen ...
A: If banks had noted Shakespeare's rebuke, the circular flow of the economy will become much smaller. ...
Q: he dividend per share was 27 last year while the current market price of the shares is 135. The grow...
A: The return required by a business for an investment or project, or by an individual for an equity in...
Q: A premium bond is a bond that sells for less than its par value. O True False
A: A bond can be a premium bond or a discount bond. This depends on the price of the bond at which it i...
Q: Trade off Theory states that:
A: The capital structure of a company can be defined as the proportion of debt and equity used by a com...
Q: Prepare a schedule for the following bond, including calculations, yearly income, end-of-year accumu...
A: Given:
Q: Francorp has a break-even point of $175,000. Ifactual sales are $225,000 then what is the margin of ...
A: The margin of safety is an investment idea that states that an investor should only buy assets when ...
Q: Corporation. Cooperative. Partnership. Oropriotorchin
A: Introduction : In simple words, the given question relates to the multiple forms of business ownersh...
Q: What is the total interest paid to the nearest cent if the car costs $36,915, your down payment is $...
A: A credit score is a metric which shows the ability of a person or an organisation to repay its debt ...
Q: Everything else equal, an industry with more leverage will have a: higher return on assets. higher r...
A: More leverage means more use of debt and less use of equity.
Q: Does the president of a firm have a right and obligation to use corporate profits for social program...
A: APA means American Psychological Association Association.
Q: Since Charles is a good boy, his mother plans to give him pocket money three times: S100 today. S100...
A: Here, Amount received today is $100 Amount received after a year from today is $100 Amount received ...
Q: Suppose that 6-month, 12-month, 18-month, 24-month, and 30-month aero rates are 4 42 4.4% 4.6, nd 4....
A: Answer - Bond price is the present discounted value of future cash flows i.e. coupon amount and Mat...
Q: You purchase a 8 - year bond at $ 97 per $ 100 par value that pays a 7.3 % coupon per annum . Furthe...
A: Coupon per period = (Coupon rate / No of coupon payments per year) * Par valueCoupon per period = (7...
Q: A pump is required for 10 years at a remote location. The pump can be driven by an electric motor if...
A: Interest Rate = 7% Time Period = 10 Years First cost = $3,400 Annual operating cost = $1,200 Annual ...
Q: The table shows some Price Real price beef prices (1982-1984 cents per (cents per pound) and the CPI...
A: Let P = Nominal price CPI = CPI index R = Real price
Q: The present value of a 7 year lease that requires payments of $600 at the beginning of every month i...
A: Lease: A lease is an agreement between two parties under which one party agrees to provide the asset...
Q: dependent capital investment project requires an initial cash outflow at time 0, followed by cash in...
A: NPV is net present value that is difference between present value of cash flow and initial cash flow...
Q: A couple borrows $300,000 at an APR of 4.8% compounded monthly on a 30-year mortgage with monthly pa...
A: Given, P = $ 300,000 r = 4.8% = 4.812×100= 0.004 M = $1574 n = 30 years × 12 = 360
Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...
A: Days in Inventory outstanding is used to determine the conversion of inventory in the cash cycle and...
Q: Q2. Given: Revenues/Total assets 13.5% Return on assets (ROA) 1.72% Return on equity (ROE) 18.20% Ca...
A: Solution:- We know, leverage multiplier how much times the company is operating its business from th...
show complete solution
Step by step
Solved in 2 steps
- The spot price of an investment asset is $50. The asset pays sure income of $5 in 6 months and the annual effective risk-free rate is 3%. What is the three-year forward price? a. $46.35 b. $54.63 c. $$49.25 d. $60.02 e. None of the aboveDetermine the present worth of a geometric gradient series of Contract B at an interest rate of 8% per year and has a cost of Php 10,000 in year 1; costs will escalate at 6% per year for 11 years. O a. P 93296 O b. P 92926 O c. P 93000 O d. P 92296D3) Finance Calculate the price of an FRA (Forward Rate Agreement) that starts in 30 days and ends in 60 days (30F60), the 30-day rate is 8.50%, and the 90-day rate is 9.50%. Mathematically check that it is equivalent to invest 100 pesos for 60 days vs. Invest 100 pesos for 30 days at the 30-day rate and the result is to invest 30 days plus the Forward rate.
- i will 10 upvotes urgent An investment of 100000 pesos yields 36238.49 pesos at the end of the 3rd year, 43774.27 at the end of 6th year, and 75085.50 pesos at the end of 10th year. What is the rate of return on the investment?Find the PV and FV of an investment that makes the following end-of-year payments. The interest rate is 8%. Year Payment 1 100 2 200 3 400 Rate = 8% To find the PV, use the NPV function: PV = Year Payment x (1 + I )^(N-t) = FV1 100 1.17 116.64 2 200 1.08 216.00 3 400 1.00 400.00 Sum = ?PV = ?FV of PV = ?We have purchased a security with the following payment schedule: Year 1 2 3 Payment $100 S150 S400 If the present value of this investment is $580.59, what is the rate of return (or interest rate) ?
- An alternative with an infinite life has a B/C ration of 1.5. The alternative has benefits of P50,000 per year and annual maintenance costs of P10,000 per year. The initial cost of the alternative at an interest rate of 10% per year is closes to which value? Select one: O a. P233,000 o b. P23,300 o c. P85,400 o d. P146,100How much willan investment of GH< 20.000 be worth in 10 years at an interest rate of 10%% per annum payable semi-annually? A) GH¢ 54,304.89 B) GH 67,980.98 C) GH¢ 53,065.95 D) GH¢ 69,603.44 E) GH¢ 65,056.59Redbird Company is considering a project with an initial investment of $265,000 in new equipment that will yield annual net cash flows of $45,800 each year over its seven-year life. The companys minimum required rate of return is 8%. What is the internal rate of return? Should Redbird accept the project based on IRR?
- Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?Assume that you are preparing an amortization table for a three-year note with a stated and yield rate of 12% and 10%, respectively. The amount for cell C4 is computed by a. E3 x 10% b. E3 x 12% c. E3 x 5% d. E3 x 6%Finance Assuming we have the following immediate interest rates in the market: 1M - 2.5%, 2M - 2.8%, 3M - 3%, calculate the FRA 1v2 rate. Assume that each month has 30 days and a year has 360 days. If the investor has purchased this contract at the FRA rate calculated above and the interest rate in the market at the time the contract is settled is 3.2%, then in which direction the settlement flows (between the buyer and seller of the contract)? (please use the formula to solve it, thank you)