Discuss the role of the financial manager or the Chief Finance Officer (CFO) in making decisions as to the function in the financing, investing, operating, and dividend policies. Illustrate or give a concrete example or scenario on each said function.

Q: A mixer was purchased for $33,000 that has an estimated salvage value of $5000 and an expected life ...

A: It is given that Initial investment P = $ 33000 Salvage value S = $5000 Time n- 3 yrs Interest i = 8...

Q: Q4.026. Growing perpetuities Mark Weinstein has been working on an advanced technology in laser eye ...

A: Growing annuity:  A stream cash flow which grows at a constant growth rate is known as growing annui...

Q: All of the following affect the balance of the capital account except?

A: Answer 1. Purchase of government and corporate securities. Explanation Capital account is affected b...

Q: 9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a tota...

A: Salary = $80000 Annual deposit = 80000*10% = $8000 Annual growth = 5% Period = 30 Years Interest rat...

Q: Stacy's Dress Shop received a $1,130 invoice dated July 16 with 2/10, 1/15, n/60 terms. On July 30, ...

A: As stated, the payment term is 2/10,1/15,n/60. It means if the customer will make payment within 10 ...

Q: Felix is a property claims adjuster for a large property insurer. Janet is a policyholder who recent...

A: The above is the case of Insurance. Insurance refers to the policy which is received by an individua...

Q: A high school student received from his wealthy ant $15,000. He decided to put it in an account whic...

A: Here, Amount Received today (PV) is $15,000 Amount Required (FV) is $25,000 Interest Rate (r) is 5.5...

Q: Shahrul is considering an investment that will generate cash flows of RM800 in the first year, RM500...

A: Interest rate = 10% Year Cash flow 1 800 2 500 3 400 4 700

Q: To help buy her new condominium, Mai is taking out a $163,000 mortgage loan for 30 years at 3.4% ann...

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments ...

Q: On January 1, 2020, ABC Corporation invested in P2,000,000 bonds of DEF Company that will mature on ...

A: We have invested today 2000000 on which we have received interest at 10% for the next three years. I...

Q: Assume you are 18 years old and you were able to save php 50.00. Given what you’ve learned on portfo...

A: Portfolio diversification is the process of investing your money in different asset classes and secu...

Q: True or False Please answer both. 1. High cash flow is generally associated with a higher share pric...

A: Statement 1 : High cash flow is generally associated with a higher share price whereas higher risk t...

Q: ACB Products has a bond issue outstanding with 8 years remaining to maturity, a coupon rate of 10 pe...

A: Par value = $1000 Coupon rate = 10% Coupon amount = 1000*0.10 = $100 Years to maturity = 8 Years Pri...

Q: you are 18 years old and you were able to save php 50.00. Given what you’ve learned on portfolio div...

A: Portfolio diversification means investing in different asset classes and securities in order to mini...

Q: A bond currently trades at P975 on the secondary market. The bond has 10 years until maturity and pa...

A: The yield to maturity of the bond can be calculated with the help of RATE function of Excel

Q: r creates a bear spread by selling a six-month put option with a $25 strike price for $2.15 and buyi...

A: Call gives the the opportunity to buy and put give opportunity to sell the stock. Both give the both...

Q: Mike Macalino owns a note for P 45,000 due in 5 years and 6 months. How much should a buyer pay now ...

A: Given, The amount owed P 45,000. Term 5 years and 6 months Interest rate 2 1/4%.

Q: Mariam borrows RM67,000 from you today and agrees to repay RM183,229 with a 9 percent annual interes...

A: Loan amount (PV) = RM67000 Repayment (FV) = RM183229 Interest rate (r) = 9%

Q: What is the value of the bond?

A: Bond: It is a debt instrument issued by the company from the investors to raise capital for the purp...

Q: You found that opening your own cake shop is a worthwhile project. After scouting around you found o...

A: Capital Budgeting is required to evaluate whether to continue with an investment decision or not. Th...

Q: KK Corporation is analyzing its option to restrict its credit terms. Current sales level is P6,000,0...

A: Credit Policy Evaluation is calculated using total cost incurred under different scenarios and the f...

Q: $27,831.47 $29,851.84 E S29,083.89 $30,729.84

A: The present value of money is the money without including interest that is the discounted value of m...

Q: You are looking to invest in your company's 401(k) for your retirement. Their conservative plan boas...

A: The two-way data table: The two-way data table can be used to assess the impact of various combinati...

Q: . Mr. Formento pays at the end of every month for a loan that charges 5% inter ompounded quarterly. ...

A: There are many types of annuities depending on the payment at the end or beginning or whether it is ...

Q: Question 6: Part C 2 of 3 JICA has let a shop in the subway redevelopment scheme to Ayala Malls a co...

A: Value of lease is the present value of rent paid over the period of 12 years. So lease value is pres...

Q: Briefly tell us how you approach problems from a quantitative and qualitative perspective. ( Financi...

A: As a financial management intern I have to look into aspects of budgeting (making different types of...

Q: JAcad Steel has sold 1,500,000 worth of steel to Megawide Construction. Megawide Construction has pa...

A: Bill of Exchange is the instrument used by entities to have short-term finance where one company def...

Q: If you take out a bank loan of $11500 now, what will the monthly payment be if you have to repay the...

A: Loan Amount = $11,500 Time Period = 5 Years Interest Rate = 9% compounded monthly

Q: You want to invest in a project in Canada. The project has an initial cost of C$1.6 million and is e...

A: Net Present Value(NPV) is the difference between current value of inflows and outflows related to an...

Q: A, B, C and C have a capital of 5 000 000 where the first is with company capital, the second has 30...

A: The debt-to-equity (D/E) ratio is derived by dividing a company's total liabilities by its sharehold...

Q: To expand its business, the ABC factory would like to issue a bond with par value of P1,000, coupon ...

A: The value of the bond is calculated as present value of cash flows. 

Q: Hazli borrows an education loan from Usaha Bank for RM24,000. The payments will be made in installme...

A: Loan amount (PV) = RM24,000 Interest rate (r) = 10% Number of annual payments (n) = 5

Q: What is the yield to maturity of a bond with the following characteristics; all have a maturity of 1...

A: Face value (F) = 10000 Coupon (C) = (4% of 10000) / 2 = 200 n = 10 years = 20 semiannual periods r =...

Q: First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City ...

A: Compound interest is the additional interest earned on the reinvested amount. It is interest on inte...

Q: uys a koi fishpond (and fish to put in it) for his wife on their anniversary. He pays $8000 for the ...

A: In the add on interest method we calculate the total interest for given period and add to the loan a...

Q: Kunal Nayyar from California, had $50,000 in investments at the beginning of the year that consisted...

A: Weighted average cost of capital WACC gives the firms combined cost of capital, including the equity...

Q: Find the present value of an annui P6,000 a year for 8 years that is def or 2 years, if the money is...

A: Deferred annuity means that it will start later that means so will be having slightly less value tha...

Q: From http://finance_yahoo.com/ the following current financial information for Apple Inc (AAPL), in...

A:

Q: Commercial letter of credit are?     customarily required by importers of their suppliers.     n...

A: A commercial letter of credit  A commercial letter of credit is written on behalf of the customer wh...

Q: ABC company has 11% expected return on assets and pays 7% on its debt. The company debt represents 4...

A: Given, Return on assets is 11% debt to total assets is 40%  

Q: Which of the following statements is most correct?

A: Current Ratio: It is a measure of liquidity and the capability of a firm to pay its short-term oblig...

Q: loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate ...

A: Effective Annual Rate = [(1+ Annual Periodic rate /n)n] -1  Annual Periods = 12 months     

Q: Determine whether or not the following situation describes an annuity.  If it is an annuity, determi...

A: An annuity is any plan which gives a fixed payment for a predetermined period of time. It is primari...

Q: mpute for the NET PRESENT VALUE of the following project. You found that opening your own cake shop ...

A: Net present value is the difference between the current worth of cash inflows and withdrawals over a...

Q: What are the upper and lower bounds for these projections?

A: Revenue: It is the amount received from the firm's normal operations. Revenue involves the sale of ...

Q: Warren Buffet, a novel financial expert has provided different investment principles and theories. H...

A: Investing is the process of allocating resources, usually money, in the expectation of profit or rev...

Q: Sam Salverri is planning to retire in 15 years. Money can be deposited by 8% compounded quarterly. W...

A: Convert 8% compounded quarterly to its equivalent interest rate for monthly interval. Here, 'R' repr...

Q: a(ii) What are differences between Financial Services Act (FSA) 2013 and Islamic Financial Services ...

A: A Finance Act is a piece of fiscal legislation passed by the different government to give effect to ...

Q: Rank the following from highest present value to lowest present value. Assume they all have the same...

A: Lets assume that the rate of interest is 10% Lump sum - $1000 Time – 10 yrs r- 10% Present Value  ...

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded s...

A: Present value (PV) = $3100 Period = 17 Years Number of semiannual periods (n) = 17*2 = 34 Interest r...