Construct a sample problem of External Rate of Return (ERR).

Q: Distinguish between the activities of retail and investment banks and discuss how this has an impact…

A: Retail banks and investment banks serve distinct clients and fulfill different responsibilities.…

Q: a. Outline the three main forms of business organisation and critically discuss the benefits  and…

A: Thanks for Questions “Since you have asked multiple question, we will solve the first question for…

Q: It is likely that airplane tickets will increase 5% in each of the next 5 years. The cost of a plane…

A: Data given: Cost of a plane ticket at the end of the first year = ₱10720. Increase in airplane…

Q: Your boss asks you to review an option to lease an equipment storage facility that the firm needs.…

A: Present value of the annuity due Annuity due is a series of equal payment at equal interval,…

Q: easons in favour of forecasting exchange rate

A: Exchange rates refer to the currency of a country for the objective of conversion in the currency…

Q: The following information pertains to Havana Corporation's defined benefit pension plart 2021 2022…

A: We can calculate the service cost in the year 2021 by applying the required formula by taking the…

Q: find the inventroy turnover for pepsi co. for year 2019, 2020, 2021

A:

Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…

A: The yield on the bond will reflect the rate of return at which the PV of all future cash flows is…

Q: 4. Which of the following is not a way to cope in times of financial difficulty? a. reduce use of…

A: The answer is Option (d). Rely on others for financial needs Relying on others for financial needs…

Q: 10. Scott bought a $5,975 boat on the installment plan. The agreement included a 20% down payment…

A: In the installment purchase system, part of the price is paid upfront called 'Down payment'. Rest is…

Q: can afford a monthly payment of $1,000. He wants to take out a $60,000 loan at 8% interest rate.…

A: Loans are paid by the equal monthly installments these installments carry the payment for principal…

Q: Profitability Ratio for pepsi CO

A: The profitability ratio shows the efficiency of a company in making a profit. The profitability…

Q: On April 1, 2022, Pink Company signed an agreement to operate as a franchisee for a franchise fee of…

A: Data given: Initial payment =P 2,000,000 Balance payable in  six (6) semi annual payment  = P…

Q: LExplain what happens to the bond price and interest rate and why. i) i1) ii1) Expected inflation…

A: A bond's price is the present discounted value of its future cash flow. It denotes the total of the…

Q: How much will you have saved after 6 years by contributing $1200 at the end of each year if you…

A: Future value refers to the value that an amount would assume at a future time period after…

Q: Suppose that $10,000 of a 6-year fixed-principal Treasury note with a coupon rate of 6.5% is…

A: Treasury notes: Treasury notes are fixed principal coupon paying bonds that pay a semi-annual…

Q: A $1000 bond with a coupon rate of 6.5% paid semiannually has eight years to maturity and a yield to…

A: Bond Current Price  = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount  Mv = Maturity…

Q: 1) The finance manager is required to look into the financial implications of every decision in the…

A: True. The financial manager has to look into every decision that has financial consequences. He/she…

Q: What is the present value of $44,100 to be received in 10 years; i = 7%. Present value %24

A: Present value = Future Value / (1+i)n Where i = Interest or discount rate n = Number of years

Q: A company with EBIT of $5,000,000 is considering two financing alternatives. The first alternative…

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, as per authoring…

Q: Nuka Cola has a beta of 0.85. If the risk-free rate of return is 4% and the expected return on  the…

A: Beta = 0.85 Risk free rate of return = 4% Market return = 9%

Q: Compute the book value at the beginning of year 5 of an equipment purchased at P1 350 000 if it has…

A: Depreciation per annum  = ( Asset Value - Salvage Value)/Useful life = (1350,000 - 600,000)/10 =…

Q: Travellers Inn (Millions of Dollars) Cash $ 10 Accounts payable $ 10 Accounts 20 Accruals 15…

A: To determine the WACC of the company first the weights of each component of financing is calculated.…

Q: Master Machines, Inc. 2017 2018 Sales $1,240 $1,385 COGS 820 910 Interest 25 20 Dividends 25.50…

A: Operating cash flow is cash flow available after the payment of all operating expenses including the…

Q: Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal.…

A: Evaluating projects is the vital factor in investing in a new project because without evaluating and…

Q: Which of the following correctly describe a role played by a member of the estate planning team?…

A: Solution:- Estate planning means all the procedure to sell assets of a person in event of his death.

Q: John Doe is considering investing some money that he inherited. The following payoff table gives the…

A: Forecast of the economy is the important process of prediction of economy in the future, As we know…

Q: s a chance to work at one of two firms. Scantor will give him a salary of 700 a month, a commission…

A: The companies gives the commission to sales personals to motivate them for sales but also give them…

Q: Clara wants to go on a cruise in 5 years. She plans on putting $25 every week into an account that…

A: Data given: Payment (pmt)= $25 N=5 years nper=5 years *52 = 260 Interest rate = 2.4% (compounded…

Q: D. Conaider E CRA)= 20%0 E CRe) : 30% a port folio of 2 risk = 10% 8:20% assets A &B where =0:4 A,B…

A: Solution:- Minimum Variance Portfolio is that portfolio in which the weights of securities are such…

Q: what is the difference between the e

A: The exchange rate is rate at which one currency is exchanged with currency of other country and some…

Q: a. What is the bond’s price today, if today’s market interest rate for bonds of comparable maturity…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: following table shows the nominal returns on Brazilian stocks and the rate of inflation.    Year…

A: Nominal Interest rate = Real Interest rate + Inflation Real Interest rate = Nominal Interest rate -…

Q: True or False. 1. Financial independence is the same as financial self-reliance. 2. Financially…

A: Financial independence is defined as the status for having an enough wealth or income for paying off…

Q: The Nunal Corporation finds that it is necessary to determine its marginal cost of capital.  Nunal’s…

A: The Weighted Average Cost of Capital (WACC) refers to the financial ratio that calculates the…

Q: Which one of the following represents the highest effective interest rate per year

A: Effective interest rate is different from the annual percentage rate. This is because effective…

Q: Explain why traditional banking has been on the decline in recent years.

A: Traditional banking refers to banks that have a physical presence and are licensed to operate in the…

Q: The Tamaraw Corporation is trying to determine the effect of its inventory turnover ratio and DSO on…

A: Answer -  Part 1 - Cash Conversion Cycle - Inventory conversion period + average collection period…

Q: Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount…

A: Here, To Find: Part A. Conversion rate to current dollar =? Part B. Present value of investment…

Q: 1. Find the ordinary interest and exact interest of the given data: A Php15,000 loan at 21% p.a made…

A: Interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed or…

Q: The cost price of 35 pairs of sport shoes was $350 per pair. AG Sport Center plan to sell all the…

A: Concept. Gross profit = selling price - cost of goods sold. Hence , Selling price = gross profit +…

Q: . The average daily balance on Crandall's credit card is $4,637.23. His APR is 22%. What is his…

A: Annual percentage rate (APR) : It is rate of return calculated for 12 months return. It is given…

Q: What is the present value of a 12 year lease arrangement with an interest rate of 7.5% that requires…

A: As per the information provided:  C= Cash flow = $4,250i = Interest rate = 0.075n = Number of…

Q: Question 2 A project that costs $21,500 today will generate cash flows of $7,700 per year for seven…

A: As per formula of payback period   Payback period = Initial project cost/Annual cash inflow Where…

Q: I, III, and IV

A: The gross estate refers to the term which is to define the dollar value of an individual's assets at…

Q: pany sold a P9,500,000 issue of 20-year bonds with a total face value of P10,000,000. The bonds pay…

A: For payment of bonds there is need to create the sinking fund required semiannually so that bonds…

Q: Upper Hutt Bakery Warehouse uses specialized ovens to bake its bread. One oven costs $1,000,000 and…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: See the "Madoff Securities" case for this question. Professional auditing standards discuss the…

A: GAAS are a set of principles that auditors follow while analyzing a company's financial records.…

Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: First we need to calculate monthly payment by using excel PMT function.The formula is…

Q: Andrew wants to open an account for his grandson that he hopes will have $30,000 in it when he turns…

A: Given,  Amount required at end of 21 years = 30,000 Interest per month = 2.5/12 = 0.20833% Time…