Q: A four-year discount bond has a face value of $1,000 and a price of $925. What is the yield to…
A: We need to use RATE function in excel in to calculate yield to maturity. Yield to maturity(YTM)…
Q: A company issued 10-year $1,000 par value bond with a conversion ratio is 50. What is the bond…
A: Conversion price can be calculated by dividing the par value of bond by conversion ratio Conversion…
Q: ABC Construction Corporation is planning to purchase STUVW Mining Corporation which is owned by S,…
A: When two or more companies join together or one company tends to acquire the other company, it is…
Q: Blue Ram Brewing Company currently has no debt in its capital structure, but it is considering using…
A: CASE D/Cap Ratio E/Cap Ratio D/E Ratio Bond Rating Before-Tax Cost of Debt (rdrd) Levered Beta (b)…
Q: A municipal bond with a face value of $10,000 and bond interest rate of 8% per year payable…
A: Given, The face value of the bond is $10,000 Interest rate 8% Yield is 12%
Q: Income Statement Interest income on loans Interest income on securities Interest expense Noninterest…
A: Return on equity(ROE) measures the profitability of business in relation to equity invested. It can…
Q: Given there are two assets making up a portfolio where each asset has the following characteristics:…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Benito borrowed $800 two years ago. The interest rate on the loan was 5% compounded monthly for the…
A: Borrowed Amount is $100 Borrowed two years ago Interest Rate is 5% compounded monthly for first 8…
Q: what will be the new loan maturity (IN YEARS) assuming that loan payments are not reduced?
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…
Q: expansion purposes. You decided to issue semi- annual R1 000 bonds which pay a coupon of 10% for a…
A: Price of bond is present value of coupon payment and present value of par value of the bond at…
Q: What is the Macaulay duration of a semi-annual bond with a coupon rate of 7 percent, five years to…
A: First, need to find out Yeild to Maturity Solved using Financial Calculator PV = -959 FV = 1000…
Q: Here is Dan's credit card statement for the month of March. Transaction Date Transaction amount…
A: Note: No intermediate rounding is done in the calculation Given:
Q: The given amount of annual interest is earned from a total of $12,000 invested in two funds paying…
A: Since multiple questions are asked , we will answer 1st question for you as per prescribed…
Q: Exclusions from gross income, except: O Interest on the price of land covered by the Presidential…
A: As per Bureau of Internal Revenue(BIR) of republic of Philippines, certain items have been specified…
Q: Raymund just won the lottery. He can get his prize either in the form of $40,000 at the end of each…
A: Prize money at the end of each year us $40,000 Single amount paid immediately is $500,000 Interest…
Q: Lola's Furniture is offering a "houseful of furniture" for $9,999. Furthermore, if you make a down…
A: First, we will calculate the present value of the amount then we will add the downpayment so as to…
Q: A couple bought some stock for $30 per share that pays an annual dividend of $0.60 per share. After…
A: Share price: Share price is the current market price of the share. It is the price of the share at…
Q: tive rate is 10% tive rate is 8% tive rate is 12%
A: Present value of financial liability i.e loan is the present value of future actual cashoutflows…
Q: A recent college graduate buys a new car by borrowing $16,000 at 7.2%, compounded monthly, for 5…
A: Loan is a borrowed amount of money for a fixed time period. The fee for borrowing the funds is…
Q: What is a derivative and what is its purpose? Give an example of how a firm might use a derivative…
A: A derivative is a type of financial contract whose value is determined by the value of an underlying…
Q: True or false for Question 6 and
A: Leverage is use of debt in the capital structure or leverage indicates how much debt and how much…
Q: Find the value (using Binomial Tree) of a European style call option on an underlying stock which is…
A: Stock price is RM 10 Exercise price is RM 10 Interest rate is 8% Probability of an up is 60%…
Q: The chart below shows the exchange rate between the U.S. dollar and Norway's currency, the kroner,…
A: Given, The chart that shows the exchange rate between US dollar and Kr.
Q: Five years ago, you entered into a 10-year investment with a simple interest of 4% per annum and a…
A: One time principal = P Simple interest for first 5 years (r) = 4% Compounded interest for next 3…
Q: To save for graduate school, a student invests $2220 semiannually in an ordinary annuity with 7%…
A: Semi annual investment amount (P) = $2220 Interest rate = 7% Semi annual interest rate (r) = 7%/2 =…
Q: RiverRocks (whose WACC is 12.7%) is considering an acquisition of Raft Adventures (whose WACC is…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment. NPV = Present…
Q: Q4: A cutting machine costs 60,000$ and has an anticipated 12000$ scrap value at the end of its 7…
A: Reducing balance method of depreciation can be defined as the method of depreciation in which book…
Q: 30. Systematic versus Unsystematic Risk Consider on Stocks I and II: State of Probability of State…
A: Market risk premium is 7% Risk free rate is 4% To Find: Beta Standard deviation
Q: (d) How much will Nolan save by paying the extra $40 with the number of payments from part (c)?…
A: Given, In this question, we have to solve the savings for Nolan, As, he is paying an additional…
Q: You have the following information: A B с Market Alpha 2% 3% 0% Beta 1.5 0.5 1 Res. 2.00% 0.90%…
A: Here,
Q: Which of the following presumption is correct about the reliability of audit evidence
A: Reliability of audit evidence :- Evidence from sources outside an entity is more reliable than…
Q: 2. What would be the WACC if the company in question 1 changed its debt-to-equity ratio to zero?
A: The debt to equity ratio is the proportion of debt of total equity in total invested capital. It is…
Q: If you are to give your assessment on the value of Artificial Intelligence in business strategy, at…
A: Artificial intelligence (AI) is the ability of a computer or a computer-controlled robot to do tasks…
Q: At the end of each quarter, a life insurance client deposits Ph 6,176 for 5 years. If money is worth…
A: Quarterly deposit (P) = Ph 6,176 Interest rate = 5.3% Quarterly interest rate (r) = 5.3%/4 = 1.325%…
Q: A company just purchased a new vehicle for $25,000. The vehicle's salvage value at EOY1 is 80% of…
A: Economic Life: It is the timeframe a resource is supposed to be valuable to the owner.
Q: Joey invests $7,560 at 4 percent simple interest in a bank. Find the amount in the account after 9…
A: In order to find the amount in the account after a certain period using simple interest rate, we are…
Q: Project X has an initial investment cost of $20.0 million. After 10 years it will have a salvage…
A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows.…
Q: 1. Kind according to purpose (Choose 1) a. Horizontal b. Vertical c. Product Extention d. Market…
A: Merger & Acquisition can be defined as the process or merging and acquiring one or more…
Q: E11-2 (Algo) Calculating Accounting Rate of Return, Payback Period (LO 11-1, 11-2] Bartlett Car Wash…
A: Accounting rate of return(ARR) is the annual rate of return given by the project. ARR =Net…
Q: A firm has fixed operating costs of R650,000, a sales price per unit of R20, and a variable cost…
A: Fixed operating cost = 650000sales price per unit = 20variable cost per unit = 13sales = 500000…
Q: The real risk-free rate of interest, r*, is 4 percent, and it is expected to remain constant over…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: Assume that you buy a 1-year, 210,000-peso Philippine bond that pays 7 percent when the exchange…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Connie put $7,525 into a term deposit on March 10th. The deposit earns a simple interest rate of 5%.…
A: Deposit amount = $7,525 Period from march 10th to july 4 = 116 days Interest rate = 5%
Q: Management action and stock value REH Corporation's most recent dividend was $1.56 per share, its…
A: Here, Recent Dividend is $1.56 Dividend Growth Rate is 5% Required Return is 15%
Q: Question 11 Find the future value of a 3 years investment of $5,000 that earns 6 percent compounded…
A: When the interest on interest is calculated on monthly basis it is known as compounded monthly. The…
Q: You are financial adviser to a retailing company, Us Ltd. You obtain the accounts of its main…
A: Ratio Analysis: It is a quantitative technique for acquiring insight into an organization's…
Q: On January 1, 2019, Alex deposited $2,000 into a savings account that pays interest of 10 percent,…
A: Deposit amount (P) = $2,000 Interest rate (r) = 10% Period (t) = 3 Years
Q: Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It…
A: Given: Contract NPV Use of facility A 1.95 100% B 0.95 58% C 1.47 42%
Q: ncial fu
A: Futures are a sort of financial derivative in which one party contracts with another to buy or sell…
Q: Using the sinking fund formula or a financial calculator, complete the following: (Do not round…
A: Annuity: An annuity is the series of payments which is received or paid for a certain period of…
Refer to each case in the table below to answer what is required in this problem.
Required:
- Find the future value of the annuity, assuming that it is
(1) An ordinary annuity.
(2) An annuity due.
- Compare your findings in parts a(1) and a(2). All else being identical, which type of
annuity—ordinary or annuity due—is preferable? Explain why.
Step by step
Solved in 4 steps
- What is the equivalent annual annuity (EAA) of the project S? WACC 9.00% Year 100224 CFS -$1,000 650 650 CFL -$1,000 375 375 375 375Appendix D Present value of an annuity of $1, PVA Period -NM in D 1 2 3 4 5 6 7 8 9 12 13 15 16 18 19 20 25 30 40 50 PUINDING FAMIGOs 19 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.046 22.023 25.808 32.835 39.196 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12.106 12.849 13.578 14.292 14.992 15.678 16.351 19.523 22.396 27.355 31.424 3% 0.971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 17.413 19.600 23.115 25.730 PVA-A 1 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.79.3 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 15.622 17.292 19.793 21.482 1 (1 + )" 5% 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 Percent 0.943 1.833 2673 3.465 4.212 4.917 5.582 6.210…Use the NPV method to determine whether Root Products should invest in the following projects: • Project A: Costs $275,000 and offers eight annual net cash inflows of $53,000. Root Products requires an annual return of 12% on investments of this nature. Project B: Costs $380,000 and offers 9 annual net cash inflows of $74,000. Root Products demands an annual return of 10% on investments of this nature. E(Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=8) Value 1-8 Present value of…
- Appendix 9.1 – Period 7 at 10%Present value of $1 received in n periods= 0.5132 Appendix 9.2- Period 4 at 14% Present value of an annuity of $1 per period = 4.8684ests - X þver Reference Reference Present Value of Ordinary Annuity of $1 Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.905 0.820 | 0.744 0.676 0.614 | 0.558 0.508 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% us Period 1 Period 2 Period 3 Period 4 Period 5 0.935 0.952 0.943 0.935 1.859 1.833 1.808 0.926 0.917 0.909 0.893 0.877 0.870 1.783 1.759 1.736 2.577 2.531 2.487 0.990 0.990 0.980 0.971 0.962 | 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 0.943 0.917 0.909 0.893 | 0.877 0.842 0.826 0.797 0.769 0.772 0.751 0.712 0.675 0.658 | 0.641 0.708 0.683 0.636 | 0.592 0.572 0.552 0.516 0.482 0.650 0.621 0.567 0.980 0.971 0.962 0.862 0.847 0.833 0.926 0.862 0.847 0.833 1.566 | 1.528 2.174 2.106 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798…Use the following Annuity Table for questions 1 through 6. Future Value of Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 11.000001.000001.000001.000001.00000 22.050002.060002.080002.100002.12000 33.152503.183603.246403.310003.37440 44.310134.374624.506114.641004.77933 55.525635.637095.866606.105106.35285 66.801916.975327.335927.715618.11519 78.142018.393848.922809.4871710.08901 89.549119.8974710.6366311.4358912.29969 911.0265611.4913212.4875613.5794814.77566 1012.5778913.1807914.4865615.9374317.54874 Present Value of an Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 1.95238.94340.92593.90909.89286 21.859411.833391.783261.735541.69005 32.723252.673012.577102.486852.40183 43.545953.465113.312133.169863.03735 54.329484.212363.992713.790793.60478 65.075694.917324.622884.355264.11141 75.786375.582385.206374.868424.56376 86.463216.209795.746645.334934.96764 97.107826.801696.246895.759025.32825 107.721737.360096.710086.144575.65022 Use the following…
- Use the following Annuity Table for questions 1 through 6. Future Value of Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 11.000001.000001.000001.000001.00000 22.050002.060002.080002.100002.12000 33.152503.183603.246403.310003.37440 44.310134.374624.506114.641004.77933 55.525635.637095.866606.105106.35285 66.801916.975327.335927.715618.11519 78.142018.393848.922809.4871710.08901 89.549119.8974710.6366311.4358912.29969 911.0265611.4913212.4875613.5794814.77566 1012.5778913.1807914.4865615.9374317.54874 Present Value of an Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 1.95238.94340.92593.90909.89286 21.859411.833391.783261.735541.69005 32.723252.673012.577102.486852.40183 43.545953.465113.312133.169863.03735 54.329484.212363.992713.790793.60478 65.075694.917324.622884.355264.11141 75.786375.582385.206374.868424.56376 86.463216.209795.746645.334934.96764 97.107826.801696.246895.759025.32825 107.721737.360096.710086.144575.65022 Use the following…Use the following Annuity Table for questions 1 through 6. Future Value of Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 11.000001.000001.000001.000001.00000 22.050002.060002.080002.100002.12000 33.152503.183603.246403.310003.37440 44.310134.374624.506114.641004.77933 55.525635.637095.866606.105106.35285 66.801916.975327.335927.715618.11519 78.142018.393848.922809.4871710.08901 89.549119.8974710.6366311.4358912.29969 911.0265611.4913212.4875613.5794814.77566 1012.5778913.1807914.4865615.9374317.54874 Present Value of an Ordinary Annuity of 1 Period 5% 6% 8% 10% 12% 1.95238.94340.92593.90909.89286 21.859411.833391.783261.735541.69005 32.723252.673012.577102.486852.40183 43.545953.465113.312133.169863.03735 54.329484.212363.992713.790793.60478 65.075694.917324.622884.355264.11141 75.786375.582385.206374.868424.56376 86.463216.209795.746645.334934.96764 97.107826.801696.246895.759025.32825 107.721737.360096.710086.144575.65022 Use the following…Questic Present Value of Annuity Not ye Annuity Years Interest Rate Compounding Due Marke $100.00 37 20.00% Weekly P Flac O a. $42,071,286.08 O b. $41,910,093.41 O c. $26,083.82 O d. $25,983.88 X N hp
- Атount of Еach Deposit Rate Number Туре Атount Deposited per Year of Years of Annuity of Annuity 1. $1000 annually 6% 8 ordinary 2. $4500 semiannually 10% ordinary 3. $30,000 quarterly 8% 6. due 4. $2600 semiannually 5% 12 dueFind the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated. R= $1,000, i- 0.04, n = 13 O $41.626.84 O $15,025.81 O 54002.58Use the table below to answer the following questions: Period 4 567 8 9 10 11 Present Value of an Annuity of 1 4% Future Value of an Annuity of 1 5% 5% 8% 10% 4% 8% 10% 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 6.7327 6.4632 Bobby receives alimony payments every 6 months and the next payment is tomorrow. Median homes go for $950,000 and he wants to save $190,000 in 4 years. How much money should Bobby put away into an investment each time he receives alimony payments if he can get a 8% return a year? $35,593 O $31,624 O $23,131 O $46,262