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A: The IRR is the investment discount rate that corresponds to the difference between the original capi...
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A: Cost of preferred stock = Annual dividend / Share price Annual dividend = $15 Share price = $142.73...
Q: what is the PV of his investment if he lives for the next 20 years.
A: Present Worth: It is the present value of the future annual cash flows stream and is calculated by ...
Q: Why there is a difference between the interest rate and the APR
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A: The estates tax is a taxation which is applied by the government when the estates value exceeds a ce...
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Q: Steady Company's stock has a beta of 0.17. If the risk-free rate is 6.1% and the market risk premium...
A: Stock beta (B) = 0.17 Risk free rate (RF) = 6.1% Market risk premium (MR) = 7.1%
Q: ring and explain its advantages and disadvantages. Why might a bank be interested in a company’s lev...
A: Gearing : In simple words, gearing refers to the ratio of the company debt to equity. It depicts how...
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Q: Assume we are now in mid- or late February 2022. After conducting your own analysis, you have made a...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: What are the most important tactics that small companies can use to ensure their long-term financial...
A: Financial security is very important for small companies to sustain over the long period of time.
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A: The above is a case of Uniform Gradient Present Worth or UGPW. This is also known as Discrete Compou...
Q: The one-year spot rate is 8 percent and the two-year spot rate is 10 percent. What is the price of a...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: What is the value of the Shoprite call option on the expiration date if:
A: Call Option: It represents the financial contract that gives the buyer the right to purchase the und...
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A: Stock prices move on a daily basis due to market dynamics. This indicates that stock prices change a...
Q: Which of the following is the most advantageous for a debtor if he borrowed P15, 000 at 6% from Marc...
A: Interest is the additional money that a person earns on his or her investment. It is an additional a...
Q: riod, if a loan of Php 50,000 is made for a riod of 16 months at a rate of 7.5%?
A: The amount due at the end of period will be amount of loan and accrued interest on that. That would ...
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A: Fixed capital investment = 10,000,000 Estimated working capital = 2,000,000 Depreciation rate = 10% ...
Q: You deposit $4000 each year into an account earning 4% interest compounded annually. How much will y...
A: Future value of annuity = Annual payment x [(1 + i)n - 1]/i i = Interest rate n = number of years
Q: Bill's Bakery expects earnings per share of $2.10 next year. Current book value is $3.80 per share. ...
A: Given: Earnings per share = $2.10 Current book value=$3.80 Discount rate = 12% Growth rate = 2.50%
Q: a) Approximately how long (approximate years) would it take if you put in a lump sum to double at th...
A: Future Value of Annuity: It is the future value of the present annuity cash flow stream and is calcu...
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A:
Q: Calculate the equilibrium interest rate of a 1-year discount bond with a face value of 1000. The dem...
A: Let price = P Quantity = Q Demand: P = - 0.8Q + 1160 Supply: P = Q + 720 Equilibrium interest rate =...
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A: Expected return: The return anticipated by investor from his investment is called expected return. I...
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A: The present value of an annuity: The constant amount that can be withdrawn each month for 20 years c...
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A: Stock Split: It represents the increase in the outstanding shares of a company for the purpose of bo...
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A: Present Value means value of future benefits at the current date. The formula for the same is as fol...
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A: Working Note #1 Conversion of 12 percent into an effective quarterly rate, then EAR:: =(1+0.12)1/4 ...
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Q: Suppose you are provided with the following table of spot rates of different maturity bonds: Year ...
A: Here, Year Spot rate 1 8% 2 9% 3 7% 4 8% 5 10%
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A: Simple Interest is calculated directly on the principal for the respective period of time. Simple I...
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A: Coupon rate means the coupon payments as a percentage of the face value of bonds, whereas yield to m...
Q: Lilly's Tax has an ROA of 11%, a 5% profit margin, and an ROE of 23%. What is its total assets turno...
A: ROA = 11% Profit margin = 5% ROE = 23%
Q: The current price of silver is $206 per ounce. The storage cost is $1 ounce per year, payable quarte...
A: Current price = $206 Quarterly storage cost payable in advance (q) = $1 = $0.25 Interest rate (r) = ...
Q: Turnbull Co. has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. ...
A: The capital structure has 45 % of debt 4% of preferred stock and 51% of equity tax rate is 25%.
Q: what is the equivalent percent of 20% compounded quarterly if converted to compounded monthly.
A: Interest rate (r) = 20% Number of compounding per year (n) = 4 Effective annual interest rate = [1+(...
Q: For a 20-year deposit, what annual rate payable semiannually will produce the same effective rate as...
A: Annual rate (r) = 8.50% e = 2.7182818284590452353602874713527 Effective annual rate = er-1 ...
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A: Step 1 Budgeting to plan and manage your finances. If you write down on paper or a computer, you can...
Q: Assume the S&P 500 has a dividend yield of 2.8 percent. Analysts expect overall dividends to grow at...
A: Expected market rate of return = dividend yield + growth rate Market risk premium = Expected marke...
Q: 4. If you pawned your jewelry at Php 50,000 for 75 days at 8% per annum simple interest.How much wil...
A: We know, in simple interest method Future value = Principal amount + Interest earned where interest ...
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Q: “Sum of money is worth more now than the same sum of money in the future”. Critically evaluate the m...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
What is the effect of cashless society to finance system?
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