Arlex Oil Corporation plans to build a new garage in 6 years. To finance the project, the financial manager established a $250,000 sinking fund at 6% compounded semiannually. Find the semiannual payment required for the fund. A. $
Q: The William Companies (WMB) owns and operates natural gas pipelines that deliver 12% of the natural…
A: Variables in the question:Anticipated loss of profit=$90 millionLikelihood of a disruption per…
Q: B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 5.2…
A: Calculation of expected return and standard deviation: Formula used:
Q: Nikita Enterprises has bonds on the market making annual payments, with eight years to maturity, a…
A: Here,Par Value of Bond is $1,000Current Value of Bond is $962YTM is 5.1%Time to Maturity is 8 years
Q: QUESTION 8 Which of these statements is not true? A The forward exchange rate is a good predictor of…
A: Fuutre exchange transaction also known as future contracts is defined as the situation where one…
Q: ← Colgate-Palmolive Company has just paid an annual dividend of $1.38. Analysts are predicting…
A: When the company receives profits and distributes them among the shareholders. That share of profit…
Q: Someone in the 36 percent tax bracket can earn 8 percent annually on her investments in a tax-exempt…
A: Here,One Time Invetsment is $13,000Tax Rate is 36%Interest Rate is 8%
Q: Abbreviated financial statements for Archimedes Levers are shown in the table below. Assume sales…
A: a. Growth rate = 14%Dividend payout ratio = 50% Retention ratio, b =The return on assets is No…
Q: The real rate of interest is 5,20% and inflation is expected to be 3,60% for the next three years. A…
A: Variables in the question:Real rate of interest=5.20%Inflation for the next 3 years=3.60%3 year…
Q: You have a loan outstanding. It requires making three annual payments of $8,000 each at the end of…
A: The concept of time value of money will be used here.The present value of both the options will be…
Q: Chloe Jones has determined the following information about her own financial situation. Her checking…
A: Checking account balance=$850Saving Account=$1,200Market value of…
Q: A bank may only take a bank deposit as collateral if the deposit was made at the same bank. a. True…
A: Collateral security refers to assets or property that a borrower pledges to a lender to secure a…
Q: Josie wants to be able to celebrate her graduation from CSULA in 5 years. She found an annuity that…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…
Q: Which of the following is NOT a cash flow from investing activities? a. Cash payments of dividends…
A: Cash flow is the movement of money into and out of a business or an individual's financial…
Q: Calculate the bond selling price for the three separate scenarios that follow. a. 33M Corp.…
A: Given information,Issued bonds: Time period: yearsCoupon rate: Market rate: Compounding frequency:…
Q: The equity portion of the balance sheet for BusFinance Inc. for the year 2022 is shown in the table…
A: Market Value per share = $25Value of Common stock per share = $0.25Value of common Stock =…
Q: Which of the following accounts belongs in the liability section of a balance sheet? Select an…
A: Among the options provided, "Accounts payable" belongs in the liability section of a balance sheet..
Q: Stanley Jaffe and Sherry Lansing have just purchased the rights to Corporate Finance: The Motion…
A: We will use the capital budgeting tools of NPV and IRR here.NPV is the sum of present values of all…
Q: You will retire when you have accumulated $2 million in your IRA. If starting in one year and…
A: In compounding there is interest on interest including the deposit made due to which interest is…
Q: MidAm, a charter airline, purchased five small planes (with 5 or 6 passenger seats each) to serve…
A: The problem requires first to calculate the equivalent present value of the revenue, hence we have…
Q: The Lusaka City Council (LCC) intends to build a new market on a newly acquired piece of land along…
A: The loan syndication is referred to as the financing arrangement in which a group of banks and…
Q: You need $12,000 at the beginning of year 12. Four years ago, you saved $3,000 for nine years in the…
A: The value of the account at the beginning of the 12th year is equal to the value of the account at…
Q: Problem 4-18 Growth and Profit Margin [LO3] Gamgee Company wishes to maintain a growth rate of 11.8…
A: Growth rate=11.8%Debt equity ratio= 1.7 andDividend payout ratio=20%Total asset to sales=…
Q: You have an investment that is expected to make annual payments that grow at a constant annual rate…
A: In an annuity the payments grow by a constant amount and that factor remains fixed and the same for…
Q: The future value and present value equations also help in finding the interest rate and the number…
A: Given information,Present value:Future value: NPER: yearsTo calculate,the rate of investment
Q: You are considering investing in a security that will pay you $2,000 in 30 years. a. If the…
A: Future Value = fv = $2000Time = t = 30 years
Q: The current compensation output for standard inventory is estimated by using this formula: Y = D /…
A: The term "current compensation" typically refers to the amount of money or other benefits an…
Q: You borrowed $90,000. You will pay back the loan over 10 years with monthly payments. The interest…
A: The amortization schedule of a loan refers to the breakdown of the payments of the loan into…
Q: Assume an organization could issue a zero-coupon bond at an annual interest rate of 4 percent with…
A: Compound = Semiannually = 2Interest Rate = r = 4 / 2 = 2%Time = t = 20 * 2 = 40 Present Value = pv =…
Q: If you take the "get a job" route you expect to start off with a salary of $40,000 per year. There…
A: The PV of an investment refers to the combined value of the cash flows of the investment assuming…
Q: Select all that are true with respect to the NPV rule for making capital investment decisions.…
A: Npv is also known also known as Net present value. It is a capital budegting techqniues which help…
Q: 1. Present Value (PV Enter the interest rate in the highlighted cell below. Use the cash flows below…
A: Present value is the current date value of all future cash flows discounted over a period of…
Q: You are saving for retirement. To live comfortably, you decide you will need to save $3,000,000 by…
A: When a person stops working actively or full-time in a company or a department, it is called…
Q: Compute the debt ratio from the data shown below: Balance Sheet (Millions of $) Assets Cash and…
A: Debt ratio formula:-Debt ratio =
Q: n to start saving for your son’s university education. He will begin university when he turns 18 and…
A: There is a need for planning for the future requirements of the money and proper planning should be…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: ParticularExpected ReturnStandard DeviationStock Fund19%34%Bond Fund10%18%Risk Free…
Q: Suppose that the index model for stocks A and B is estimated from excess returns with the following…
A: Standard deviation of stock = wherei is stock is beta of stock i is standard deviation of market
Q: Nancy Regan purchased a new diamond bracelet for $12,600. The state sales tax is 6% and the federal…
A: The selling price for Bracelet is $12,600State sales tax is 6%Federal excise tax is 11%To Find:Total…
Q: ou are saving for the college education of your two children. They are two years apart in age; one…
A: Present value is the equivalent today of the future money required based on time and interest rate…
Q: on May 31, 2022, the DJIA opened at 33,224.59. The divisor at that time was 0.15244. What would the…
A: Divisor is the term used to make calculate index price from the individual stock and thus divisor is…
Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…
A: Initial investment = $10 MillionInvestment A cash flows = $2.1 MillionInvestment B cash flows = $1.7…
Q: The risk of not having sufficient cash and borrowing capacity to meet deposit withdrawals, loan…
A: Interest rate risk refers to risk of change in value of investments due to change in interest rates…
Q: During the year, Belyk Paving Company had sales of $2,485,000. Cost of goods sold, administrative…
A: Sales$2,485,000 Cost of goods sold$1,349,000Administration & selling…
Q: You are bearish on Telecom and decide to sell short 100 shares at the current market price of $36…
A: Margin refers to the money which has been borrowed from the broker for the purpose of purchasing the…
Q: INDTAP work Q Search this co Quantitative Problem 2: You and your wife are making plans for…
A: Present value is an estimate of the present value of future cash values that may be received at a…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Here, Expected ReturnStandard DeviationStock Fund21%36%Bond Fund13%22%Risk Free Rate6%Correlation…
Q: Consider a company that has the following financial information for 2022: net income $492,000;…
A: Net income = $492,000Dividend payout = $223,000Common equity = $4,460,000Retained earnings =…
Q: To borrow $2,400, you are offered an add-on interest loan at 10.4 percent with 12 monthly payments.…
A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…
Q: Sentra Limited has identified a new machine that it is considering for purchase during 2024. The…
A: The NPV is a capital budgeting technique used to evaluate the profitability of an investment using…
Q: A short forward contract on ABC stock that was negotiated some time ago will expire in six months…
A: Given information,Delivery price: Dividend: Market price: Risk free rate: Compounding frequency:…
Q: Compare the monthly payments and total loan costs for the following pairs of loan options. Assume…
A: A loan is a financial arrangement in which one party, typically a lender, provides a sum of money to…
Arlex Oil Corporation plans to build a new garage in 6 years. To finance the project, the
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Solve by using the sinking fund or amortization formula. A manufacturing company has determined that it will need $400,000 in 6 years for a new roof on its southeastern regional warehouse. A sinking fund is established for the roof at 3.8% compounded semiannually. What equal payments (in $) are required every 6 months to accumulate the needed funds for the roof? (Round your answer to the nearest cent.) $A business set up a sinking fund so they will have a 62,000.00 to pay for a replacement piece of equipment in 11 years when the current equipment will be sold for scrap. If they make deposit at the end of every 2 months for 11 years in the investment that pays 7.4% compounded every 2 months, what size should each payment be?The management of a condominium association anticipates a capital expenditure of $150,000 in 3 years for the purpose of painting the exterior of the condominium. To pay for this maintenance, a sinking fund will be set up that will earn interest at the rate of 5.6%/year compounded monthly. Determine the amount of each (equal) monthly installment the association will be required to deposit into the fund at the end of each month for the next 3 years. (Round your answer to the nearest cent.)
- Starr Company decides to establish a fund that it will use 5 years from now to replace an aging production facility. The company will make a $101,000 Initial contribution to the fund and plans to make quarterly contributions of $50,000 beginning in three months. The fund earns 8%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar.) What will be the value of the fund 5 years from now? Table Values are Based on: Initial Investment Periodic Investments Future Value of Fund n = Present Value Table Factor Future ValueXYZ plans to construct an additional building at the end of 10 years for an estimated cost of P5,000,000.00. To accumulate this amount, it will make equal year-end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building than originally intended to an estimated cost of P8,000,000.00 What should be the annual deposit for the last five years? Please provide CASH FLOW diagram. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Starr Company decides to establish a fund that it will use 4 years from now to replace an aging production facility. The company will make a $109,000 initial contribution to the fund and plans to make quarterly contributions of $52.000 beginning in three months. The fund earns 4%, compounded quarterly (PV of $1 EV of $1. PVA of S1, and EVA of 5) (Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar) What will be the value of the fund 4 years from now? Table Values are Based on 1% Present Value Future Value $ 100.000 S Initial investment Periodic Investments 52.000 Future Value of Fund Table Factor 1.1726 127,813
- ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of P15,000,000.00. To accumulate this amount, it will have to make equal year end deposits in a fund earning 13%. However, at the end of the 5th year, it was decided to have a larger building that originally intended to an estimated cost of P24,000,000.00. What should be the annual deposit for the last 5 years? Answer. P2,203,175.82Bank Muzn provides musharakah mutanaqisahfinancing to Moonway Corporation for housedeveloping project amounting to OR 1,000,000.This amount represents 25% of the total cost ofthe project. The term of financing is for 10 yearsand the partner is required to pay back the bankin 10 equal installments yearly. Calculate Muzn'sshare of capital at year 41. A business man wishes to set aside semiannual payments to purchase machinery after two years (two years from now). The machinery's estimated cost is Birr 8000. Each payment earns interest at 12%compounded semiannually. a) Find the semiannual payment b) Find the total interest earned c) Prepare a sinking fund schedule 2. Strong steel company operates two steel mills with different production capacities. Mill I can produces 1000 tons per day of AAA steel, 3000 tons per day of AA steel, 5000 tons of per day of A steel. Mill F can produce 2000 tons per day of each grade of steel. The company has made a contract with the construction firm to provide 24,000 tons of AAA steel, 32,000 tons of AA steel and 40,000 tons of A steel. The cost of running mill I is $1,400 per day and mill F is $ 1000 per day. (2 pt each) a) Formulate linear programming model? b) How many amount of mill I and F should be produced? Solve by using graphical method? & Simplex Solution Method 3. A person deposits Birr…
- A municipality decides to purchase a small collection truck that has an expected life of 10 years of Rs. 590,000. Cost of truck is to be borrowed from the local bank and to be paid back in 10 annual payments. Determine the annual instalments on this capital expense if the interest rate is 6.125 %An Engineering Research foundation wishes to set up a trust fund earning 10% compounded annually to provide P 2,613,522 for the lot and building and P 1,443,776 for the initial equipment of a Structural Engineering and Materials Laboratory; pay P 405,996 for the annual operating cost every year; and pay P 528,758 for the purchase of new equipment and replacement of some equipment every 7 years beginning 7 years from now. How much money should be paid into the fund for the building and equipment and to pay for perpetual operation and equipment replacement?AZUL W.L.L borrows $350,000 loan to buy a new equipment from USA. The company agrees to make semi-annual payments for 5 years at 12%. Find the amount of the semi-annual payment. Construct an amortization schedule for the first three payments only. A city issues $1,000,000 worth of bonds to raise capital to improve its sewage treatment system. What semi-annual deposits must be made into a sinking fund earning interest at 8%, m=2 to redeem the bonds at the end of 15 years? Construct a sinking fund schedule for the first three payment period only.