Are synthetic CDOs a legitimate business investment, or are they pure gambling? If the former, what are their benefits? If the latter, should banks and other companies be allowed to wager on whatever they want if they like the odds and think they can make money that way?

Q: 4. The amount of interest earned on K for one year is 243, while the equivalent amount of discount i...

A: Details of Ques-4: Amount of Interest Earned on K is 243 Amount of Discount on K is 225    

Q: If a RM10,000 investment will return RM25,000 to you in five years, then to the nearest percent what...

A: Investment = RM10,000 Return = RM25,000 Period = 5 Years

Q: what are the meaning of Revenue Enhancement and Cost Saving ? and I need examples for each.

A: Revenue enhancement is the enhancement or increase in the revenues which also leads to an increase i...

Q: A chip company is planning to launch a new product, but their demand planning team is having a hard ...

A: The Net Present Value: The net present value is net of the total present value of the cash flows tha...

Q: Sam Long anticipates he will need approximately $225,000 in 15 years to cover his 3-year-old daughte...

A: Given: Future value = $225,000 Years = 15 Interest rate = 8% Compounding = Semi annually

Q: You invest PHP 100,000.00 in Stock A, PHP 300,000.00 in Stock B. You expect a return of 10% for Stoc...

A: Amount invested in A (A) = Php 100000 Amount invested in B (B) = Php 300000 A's return (Ra) = 10% B'...

Q: 10. Find the present worth of an annual installment of P5000 for 10 years, if the money is worth 15%...

A: Annual installment (A) = P5000 Interest rate = 15% Annual effective rate (i) = [1+(0.15/12)]12-1    ...

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 12% annually if th...

A: A perpetuity is an annuity that gives out payments but has no maturity period.  

Q: Calculate the interest rate for the diagram below. 125 10 30 40 50 60 20

A: The internal rate of return is a return which helps in knowing the profitability of an investment. T...

Q: A major property developer is concerned about lack of sales due to local economic conditions. To ens...

A: The effective annual rate of interest is the interest rate actually earned on the amount of loan or ...

Q: Determine the exact simple interest on P500,000 invested for the period from January 15,1996 to Octo...

A: The simple interest is the method of calculating interest on investments without considering the tim...

Q: uestion 5 Jack deposits $5000 in an account which pays 5 percent compounded quarterly. How much will...

A: The compound interest is the method in which interest earned is reinvested which gives us even more ...

Q: Taggart Inc. is considering a project that has the following cash flow data. What is the project's p...

A: Project's Payback means the time when project's cash inflows cover the initial investments.  Payback...

Q: Consider the previous question with the following details: A company is considering a project that w...

A: In the project evaluation using the discounted payback period, we should compute the present value o...

Q: A new loan at 9% compounded quarterly requires quarterly paymets of $727.88 for seven years. Rounded...

A: Interest rate = 9% Quarterly interest rate (r) = 9%/4 = 2.25% Quarterly payment (P) = $727.88 Period...

Q: An ordinary annuity where the first cash flow of the series is not at the end of the first period an...

A: An annuity is a series of equal payments made at regular intervals. When these payments are made at ...

Q: Aldo's Shoes bought a shipment of 656 pairs of women's shoes for $25.00 per pair. The store sold 176...

A: Since you have posted a question with multiple sub-parts, thus we will solve first three sub-parts. ...

Q: Use the savings plan formula to answer the following question You put 5350 per month in an investmen...

A: Compute the effective annual rate (EAR) of the APR by the EAR formula. Here, 'R' represent the EAR, ...

Q: Sally received an invoice dated on 15 February 2020 worth RM4 goods that included a prepaid freight ...

A: Companies gives different kind of discounts to the customers to increase the sales. But the cost to ...

Q: Investors expect a 2.0% rate of inflation in the future.  The real risk-free rate is 1.0%, and the m...

A:

Q: Which of the following is closest to the future value of a cash flow of $1,000 invested today for 7 ...

A: We will find the Future value by applying the required formula using the interest rate of 4% and tim...

Q: Refer to the attached diagram to answer the following question: Will the level of saving and consum...

A: In four sector economy, income is determined by the following formula: Y = C + I + G + (X-M)  where,...

Q: What is the NPV of this project

A: The given problem is based on annuity. A series of fixed or proportionately growing payments in equa...

Q: What is the future (compounded) value of $ 9500 invested for 4 years at r =%8.25 with quarterly comp...

A: Future Value: It represents the future worth of the present sum of money or present annual cash flo...

Q: Carl Hightop, a popular basketball player, has been offered a four-year salary deal. He can either a...

A: Option-1 Payment now = $5,300,000 Option-2 Quarterly payment (P) = $360,000 Number of payments (n) =...

Q: An entity uses the economic order quantity model and wishes to discover how many orders it need to p...

A: Economic Order Quantity E.O.Q is the ideal or optimal quantity that helps in minimising the total co...

Q: Assume that the risk-free rate is 6.00% and the market risk premium is 6.75%. What is the expected ...

A: Given: Risk free rate=6% Market risk premium = 6.75%

Q: List the five groups of ratios and identify, calculate, and interpret the key ratios in each group.

A: When someone first open a company's published accounts, it may be a daunting experience since people...

Q: In making a financing decision, how would a financial manager answers questions like:   1. How sho...

A: Financial manager (FM) has to make various decisions for the company related to the funds. One of th...

Q: The TopCar Industries manufactures and sells car components. The current annual sales volume is 500,...

A: Sales volume = 500000 units Selling price per unit = P 0.50 Annual expenses = P 80000

Q: 9. The day Anna was born, her father invested P5000 at 9% converted quarterly. Find the value of the...

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any sp...

Q: Assuming interest rates are at 6%, what is the fair value of this offer?

A: Fair value or present value can be calculated using the present value concept.  1. Find the value of...

Q: Given 2 alternatives: dneleviupe erf First Cost 4,000 1,000 2,000 6,000 500 Annual Cost Annual Benef...

A: Let the first cost = F Annual cost = A Annual benefit = B Salvage value = S r = 10% n = 5 years for ...

Q: Assume that in 2018, a copper penny struck at the Philadelphia mint in 1796 was sold for $495,000.  ...

A: Given: Sale year = 2018 Purchase Year = 1796 Copper purchased = 0.01 Sale value=$495,000

Q: What is the effective annual rate for 18 percent compounded semi-annually? O 18.81% O None of the li...

A: The effective annual rate is the actual return that the investment gives. It is usually calculated i...

Q: Consider a $100 par value bond that has an 8% coupon rate, pays a semi-annual coupon, matures 2 year...

A: Par value = $100 Coupon rate = 8% Semi-annual = 2 times in a year maturity = 2 years Yield = 6% 

Q: What should be the market price of the stock?   $     If the current market price of the stock is...

A: Share Price: The price of a share is an indication of its present value to buyers and sellers. Howe...

Q: VALUATION METHOD

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a ti...

Q: What is the ordinary interest on P1,350.75 for 163 days at 3.5%? php?

A: Ordinary interest is calculated on the basis of 360 days a year or 30 days a month whereas exact int...

Q: What is the total interest paid on a loan of $5,000 at APR = 6% for one year.

A: Loan amount = $5000 Interest rate = 6% Period = 1 Year

Q: You are trying to pick the least-expensive equipment for your manufacturing operations. You have two...

A: To take the valuing decision between the two alternatives that have a different useful life, it is r...

Q: Bulawan Coin, Inc. is considering shortening its credit period from 30 days to 20 days and believes,...

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...

Q: ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investmen...

A: Net Present value refers to the present value of future cash flow, which means cash flows generated ...

Q: 14. What is the simple interest if P = P10,000, r = 15% and t = 2.5 years? %3D A. P2,500 O B. P3,750...

A: The simple interest can be calculated with the help of simple interest equation

Q: Guy Fieri has purchased a significant plot of land in Northwest Ohio for his newest venture: FlavorT...

A: We will first have to determine the expected no. of days that the township will be open. 

Q: What is the interest earned on a P100,000 investment if it is held for 20 years at 4.3% simple inter...

A: Under simple interest, Total interest per year remains the same and there is no concept of interest ...

Q: Clark borrows P 600,000 at 15% compounded annually agreeing to repay the loan in 15 equal payments. ...

A: Loan amount (PV) = P600,000 Interest rate (r) = 15% Number of payments (n) = 15

Q: As an investor, would you rather invest on stock exchange with strict requirement or OTC market? And...

A: Listing on the stock exchange: A company that wishes to list on a stock exchange has to make several...

Q: Equity: 120,000 shares at $1 each. Share premium: $22,000 The company decides to issue 1:3 shares....

A: Share Premium- This is the amount which is over and excess of nominal value. If Say for example if n...

Q: Jasmin bought a laptop amounting P45,000 in an installment basis with 1.5% annual interest. She prov...

A: Cash flow in year 0 (CF0) = - 45000 + 5000 = - P 40000 CF1 = P 3000 CF2 = P 9000 CF5 = P 4000 CF8 = ...