Find the present value of an investment that is worth $19,513.75 after earning 3% simple interest for 5 years.

Q: 5. Portfolio Beta Portfolio beta can be computed in the same way as portfolio return was computed. I...

A: Beta is used in determining the risk premium to be expected from investment made in a asset because ...

Q: We have all heard of Return on Investment or (ROI). Please research and describe five other business...

A: To determine the success of a business plan and of the business that has been operational because of...

Q: Beryl's Iced Tea currently rents a bottling machine for $50,000 per​ year, including all maintenance...

A: Current rent of machine = $50,000 a) Purchase price of current machine = $150,000 Maintenance of cur...

Q: The average return for the line is %. (Enter as a percentage and round to two decimal places.)

A: Average Return: The average return is computed by summing the product of the security probability a...

Q: A man bought a condominium unit worth ₱3.9M a pay a down payment of ₱1.5M and agreed to pay the rema...

A: Present value of future value of money to be received in future is value of money without the intere...

Q: gage debt service ratio? O 70.27% O 62.51% O 90.25% O 56.41%

A: Mortgage debt services ratio is quite extensively used in granting the mortgage loans. That show pay...

Q: Please show full working a. What is the portfolio mean & variance (arithmetic only): i. For an equal...

A: Given: Date YUM ZTS AAPL Market 31/01/18 84.59 76.73 87.3 1251.42 28/02/18 81.38 80.86 75.74 ...

Q: Compare the Logistics Performance Index (LPI) measured by the World Bank in Canada to that of   th...

A: The Logistics Performance Index (LPI) was created by the World Bank as an interactive benchmarking t...

Q: 1. Financial Forecasting vs. Financial Modelling. Explain the difference.

A: In finance we often use financial forecasting as well as financial modelling. Though both financial ...

Q: t is the purpose of publishing the financial statements for companies and the ra

A: The companies are owned by shareholders but managed by the managers and it is mandatory to publish t...

Q: You are a manager at Percolated​ Fiber, which is considering expanding its operations in synthetic f...

A: Net present value is the most important capital budgeting technique which helps in the decision maki...

Q: National Co. provides consultancy services to various corporate clients in luzon. The growth rate is...

A: Residual income is the amount of income left after covering the equity charge. The equity charge is ...

Q: Upon receiving the 10 percent stock dividend the value of his shares is?

A: Dividend refers to that portion of the net income of the company which the company paid to its stock...

Q: Mr. Tom promises to find a job for Mr. Martin in a public company. Mr. Martin promises to pay 1000 O...

A: A contract is a written or oral agreement with precise terms between two or more people or entities ...

Q: City Debt Debt February March April June First Half Total Debt Percent of Total Debt January $107,30...

A: Data given: City Debt Debt January February March April May June First Half Total Debt Percent ...

Q: Consider the two risky investments below: Scenario Asset 1 Asset 2 Probability | Returns 0.1 Probabi...

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

Q: Determine how much is in each account on the basis of the indicated compounding after the specified ...

A: As per the guidelines we are allowed to solve the first three parts only The account value can be co...

Q: National Co. forecasts that its earnings per share will be P4.00 this year.  The company has 500,000...

A: Given: Particulars Amount Earnings per share 4 Out standing shares        500,000,000 Capit...

Q: Say you want to invest a certain amount of your salary each year. This year you take $2,500 out of y...

A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...

Q: Use an 8-year analysis period and a 10% interest rate to determine which of the alternatives below s...

A: Net present value (NPV) of an alternative refers to the variance between the initial investment (fir...

Q: The current zero-coupon yield curve for risk-free bonds is as follows: . What is the price per $100 ...

A: YTM for maturity 2 years (r) = 5.47% n = 2 years Face value (F) = $100

Q: 2. Use the exact interest method (365 days) and the ordinary interest method (360 days) to compare t...

A: Principal = $7390 Interest rate = 7% Period = 13  Days  

Q: calculate the missing information.

A:     A promissory note is a type of instrument issued between two parties in a written form for some ...

Q: What should the monthly payments be if Leons is to earn 15% compounded monthly on its account receiv...

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either r...

Q: (Related to Checkpoint 4.3) (Profitability analysis) Last year the P. M. Postem Corporation had sale...

A: Solution:- Income statement is a part of financial statements which shows the profitability of the f...

Q: The use of financial leverage to enable returns on equity investments is a common characteristic of ...

A: Financial leverage is the use of debt to acquire additional assets or fund activities. Because lever...

Q: A commercial bank is planning to offer Luna a loan in the amount of $15,000 and the bank figures tha...

A: Loan amount = $15000 Loan repayment probability = 0.79 Loan default probability = 1 - 0.79 = 0.21 Le...

Q: 10. Ruel Dayrit deposited P80,250 in a bank paying 5% simple interest for 4 years. How would he have...

A: Simple Interest: Interest on loan/investment is calculated using simple interest method and is  calc...

Q: Suppose that you earn $39,600 per year. What is your monthly salary? $ 3300 Assume that you deposit ...

A: APR refers to annual percentage rate. It is the per year cost of borrowing money and is expressed as...

Q: (Related to Checkpoint 5.6) (Solving for i) At what annual interest rate, compounded annually, would...

A: Investment amount (PV) = $520 Future value (FV) = $1937.06 Period (n) = 10 Years

Q: Attach a complete solution. Draw the cash flow diagram. Suppose that P 4500 is deposited each year ...

A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve ...

Q: nery worth $80 million and a net working capital of $20 million. The entire outlay will be incurred...

A: Capital budgeting is the procedure through which a corporation examines potential large projects or ...

Q: How much is the expected rate of return for Stock B? Use a whole number in

A: Expected return refers to the return earn by an investor on the amount invested during a period of t...

Q: A company is considering a 4-year project with the following cash flows: C0 =-$20,000 C1 =C2 =C3 =C...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Assume the spot Swiss franc is $0.7030 and the six-month forward rate is $0.7010. What is the Value ...

A: Here, Spot Price is $0.7030 Six Month Forward rate is $0.7010 Strike Price is $0.6830 Risk Free Rate...

Q: s are purchasing a $240,000 home with a 30-year fixed mortgage at an APR of 4.5%. They made a 10% do...

A: Mortgages are paid by the monthly payments that carry the payment for the loan and interest rate. Mo...

Q: ecently reported net income of P5,000,0000.  The firm has P40,000,000 total assets. Next year, Inc. ...

A: Out of the net income some part is paid as dividend and some part is retained with firm for future g...

Q: Company A is a motion picture production company. At the end of its most recent financial year, the ...

A: Here, Book value of Debt = $500,000,000 (Including interest for 8 years) Pre-cost of debt = 8% Lever...

Q: Megatron Ltd has an equity beta of 1.5. The market risk premium in South Africa is expected to be 5%...

A: Risk Free Rate 9.50% Market Return 5.00% Beta 1.5 Yield On debt 8.00% Debt/Equity 50.00%

Q: Weekly (Feb 21-27) Projected Actual Difference Food Cost $6,971 $7,842 +$871 (over) Beverage Cost $3...

A: Solution:- ‌If the entity has higher revenue in actual than the costs, it means the company has earn...

Q: Which of the following is false? a. Any presence of a cash buffer affects the cost of holding cash ...

A: Cash is the primary asset of any organisation. Without cash it is impossible for any business to sur...

Q: NoGrowth Corporation currently pays a dividend of $1.72 per​ year, and it will continue to pay this ...

A: Solution:- Companies pay a part of their earnings to shareholders, which is known as dividend. Whene...

Q: J&J Inc. has decided to issue new stock to raise $9,000,000 to expand its operations. J&J currently ...

A: Data given: Net income = $4.1 million No. of common shares outstanding = 2.6 million Fund to be rais...

Q: When all investors have the same information and care only about expected return and volatility; if ...

A: The measure of the dispersion of return on stocks is known as volatility. High volatility means the ...

Q: Calculate the capitalized cost of an equipment maintained at a rate of 6% every year for $10,000, re...

A: Initial cost (C) = $110500 Annual cost (A) = $10000 Replacement cost (R) = $25000 every 3 years r = ...

Q: What is the (annualized) mean return for each stock and the market i. Arithmetic ii. geometric

A: Given: Date YUM ZTS AAPL Market 31/01/18 84.59 76.73 87.3 1251.42 28/02/18 81.38 80.86 75.74 ...

Q: Sara met with a financial planner and has determined that she will need $1,250,000 when she retires ...

A: Retirement amount needed (FV) = $1,250,000 n = 30 years = 360 months r = 5.65% per annum = 0.47083% ...

Q: What should be their current stock price?

A: Stock Price: The stock price is the present market value to sellers and buyers. The stock price can...

Q: what price does the​ dividend-discount model predict Colgate stock should sell for​ today?

A: Dividend Discount Model: It is a quantitative model used for estimating the price of the stock. The...

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.