Discuss the impact risk exposures have on families and friends.

Q: Describe the services and characteristics that are of prime importance to you in a financial institu...

A: Financial institutions are the institutions in which the operations are all finance related. These i...

Q: he dividend per share was 27 last year while the current market price of the shares is 135. The grow...

A: The return required by a business for an investment or project, or by an individual for an equity in...

Q: Wells Leasing Company signs an agreement on January 1, 2020, to lease equipment to Manchester Compan...

A: Cost of asset = $250000 Fair value of asset = $ 250000 Residual value = $ 25000. But it is not guran...

Q: What is Chipotle’s TIE

A: TIE of a company means Times Interest ratio or interest cover ratio of a company. It evaluates a com...

Q: State whether the Portfolio Nature is Defensive/Aggressive. Weight on XOM Weight on PFE Portfolio R...

A: A defensive portfolio is made up of equities that have a low beta. The equities in this portfolio ar...

Q: Compute for the Effective Interest Rate Payment Period = Semi-annual   10% Compounded Yearly = Bla...

A: The modified rate of return for compounding interest into actual terms of time is called the effecti...

Q: Amiel paid P1,400 interest for his loan from a cooperative that charges simple interest rate of 3.5%...

A: Answer -  Based on the given conditions, formulate: 1400=3.5%×x 0.035x=1400  Step 1 - Divide both si...

Q: Compute for the Effective Interest Rate Payment Period = Monthly 10% Compounded Yearly = 10% Compou...

A: The effective interest rate is the interest rate considering the effect of compounding.

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective ...

A: We will find the interest rate by applying the requisite formula where we can use the amount 8000 an...

Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...

A: Inventory period is a efficiency ratio which measures number of days , th company holds its inventor...

Q: Bronze, Inc has sales of $58,200, costs of $25,300, depreciation expense of $3,100, and interest exp...

A: Operating Cash Flows  = Earning before interest & tax + Depreciation - Taxes

Q: Type 2D: ABC Inc. is considering the acquisition of Togo Company. respectively. ABC's financial mana...

A: Given, Value of ABC is $ 40 million Togo is $15 million

Q: What is the interest rate on a loan of $52,000 for 54 days that yields $780.00 interest? Group of an...

A: Loan (L) = $52000 n = 54 days Let r = Interest rate  

Q: Everything else equal, an industry with more leverage will have a: higher return on assets. higher r...

A: More leverage means more use of debt and less use of equity. 

Q: (Preferred stock valuation) Kendra Corporation's preferred shares are trading for $32 in the market ...

A: Share price Share price is the current market price of the share. It is the price of the share at wh...

Q: Would be necessary for equipment. The annual revenues and expenses are expected to be $38,000 and $1...

A: B/C ratio is ratio of present value of benefits to initial investment and if B/C B/C ratio is more t...

Q: Based on SME’s financial statements, what is its current ratio? [Calculate to 2 decimal points XX.XX...

A: Since you have posted a multiple question so we will be solving the first question only. However if ...

Q: • Create a new sheet named vertical analysis in the Excel workbook and insert the necessary equation...

A: Vertical analysis is a method of proportional analysis of financial statements where an item of the ...

Q: Balance sheet Assets (in KD) Liabilities (in KD) Cash 53627 Accounts payable 80000 Accounts receivab...

A: Solution:- Current ratio measures the liquidity of the company ie. the ratio of current assets to cu...

Q: Beginning Inventory $11,500 Dairy Alternative Purchases (+) $1,000 Produce Purchases (+) $500 Protei...

A: With the help of the given chart ,  

Q: A project has initial costs of $1,000 and subsequent cash inflows of $700, 200, 200 and 200. The com...

A: Since you have posted a question with multiple sub parts, we will be solving first 3 sub parts for y...

Q: Calculate the amount of money Dylan had to deposit in an investment fund growing at an interest rate...

A: Interest rate = 2% Annuity amount = $11,000 Time period = 2 years 

Q: You are planning for your future by depositing lump sum into a time deposit account, what amount mus...

A: Annuity is a series or level of cash flows that occur at the particular time periods.  It is the rec...

Q: Compute for the Effective Interest Rate Payment Period = Monthly   10% Compounded Yearly = Blank 1...

A: An effective rate of interest is defined as the loan's rate of interest or financial product, which ...

Q: If a bank has quarterly deposit interest expense of $1MM, an average deposit portfolio of $3.2Bn and...

A: Solution:- Interest bearing deposit cost for bank means the bank’s interest expense for its interest...

Q: What will be the interest rate per interest period if convert to compounding monthly?     1.9967% ...

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...

Q: 3. If banks heeded Shakespeare's admonition “Neither a borrower nor a lender be", what would happen ...

A: If banks had noted Shakespeare's rebuke, the circular flow of the economy will become much smaller. ...

Q: Based on SME’s financial statements, what is its average collection period or DSO

A: Receivables days means the average number of days a company takes to collect receivables from its cr...

Q: weighted average cost of capital

A: Weighted Average Cost of capital refers to the cost changed on capital invested in the firm invested...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery ...

A: Capital structure decisions refer to those decisions which are concerned with the sources of funds l...

Q: Assets (in KD) Liabilities (in KD) Cash 263854 Accounts payable 80000 Accounts receivable 100000 Acc...

A: To Find: Quick ratio

Q: John Doe currently has $12,000 and decides to make a 4-year investment, which is compounded semiannu...

A: Concept. Formula of future value F = P ( 1+ i)t Where , F = future value P = principal amount i  = i...

Q: 1. Jackie has just finished high school. She will live for two more periods, and she needs to choose...

A:

Q: General Term used to defined a series of equal payments occurring at equal interval of time. ...

A: Annuity Series of equal payments occurring at equal interval of time is known as annuity.

Q: A nuclear power plant would generate electricity worth $50 million per year for this year and the ne...

A:

Q: ABC Corporation has the following capital structure and costs. Further assume that ABC ‘s income is ...

A: Weighted Average cost of capital (WACC): The WACC is the overall cost of capital from all the source...

Q: A call option on a non-dividend-paying stock has a strike price of $30 and a time to maturity of six...

A: An option is a financial instrument that is based on the value of underlying securities such as stoc...

Q: A lemon-growing cartel consists of four orchards. Their total cost functions are: TC, = 20+50 TC, = ...

A: With the help of given information we are going to make a summary of the costs incurred, fhgh jfhghj...

Q: QI: you put $ 2500 in account bank , this bank gives interest 6.5% for the first 3 months of saving ...

A: Interest is the cost which the borrower has to bear on the loan taken. interest is of two kinds. It ...

Q: Differentiate between voluntary and involuntary liquidation of a company and outline the circumstanc...

A: Meaning and difference  of voluntary and involuntary liquidation . Voluntary liquidation. It is not ...

Q: Using either logarithms or a graphing calculator, find the time required for the initial amount to b...

A: Solution:- We know, future  value means the amount to be receivable at the maturity after compounded...

Q: The project returns 50% in present value for each current dollar invested The proiect's costs are le...

A: Profitability index is the ratio of the present value of the benefits to the amount of initial inves...

Q: COMPLETE THE CALCULATIONS ON PAPER FIRST AND WRITE THE ANSWERS IN THE TABLE: What sum of money must ...

A: Compound interest is the interest computed on the original principal of a deposit or loan as well as...

Q: You are considering two ways of financing a spring break vacation. You could put it on your credit c...

A: The option with lower effective annual rate should be chosen.

Q: 2. A financial manager must choose between three alternative investments. Each asset is expected to ...

A: Wealth maximization is the concept of maximizing the value of the shares held by the shareholder, to...

Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2nd year,  4,000 on the 4th yea...

A: The present value of a cash stream: A series of finite, regular or irregular cash flows is known as ...

Q: Question: How many prospects do the crook need initially, so that on the 11th day one person remains...

A: Stock predictions are based on how the stock has behaved in the past and the current market conditio...

Q: erm in years: 2 3 4. Cate: 1.8% 2.25% 2.30% 2.66% 3.13% he table above shows the interest rates avai...

A: Present value of cash flow is the value of cash flow that is equivalent to the value today consideri...

Q: Lush Gardens bought a new truck for $85,000. It paid $10,000 as a down payment and financed the bala...

A:

Q: The Salad Oil Storage Company (SOS) has financed a large part of its facilities with long-term debt....

A: As SOS has financed a large part with long term debt so there is a chance that the shareholder can l...

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.