fter tax annual cost

Q: You own a stock trading on 1/1 at 40 and on 12/31 at 43.50. What annual dividend do you need to earn...

A: Beginning stock price (P0) = 40 Ending stock price (P1) = 43.50 Let the annual dividend = D Required...

Q: The following are budgeted data: January February March 15,000 Sales in units. Production in units. ...

A: Solution :    Total No. of Pound Required in month of Feb :          Production in February * One Po...

Q: An investment costs sh.150,000 and pays sh. 12,000 in perpetuity. If the interest rate is 9 percent,...

A: The payments flow which continues for indefinite period with equal amount and interval is called per...

Q: What is the relevance of personal financial planning in a daily life of a student? And what is the s...

A: Financial planning is a systematic approach to achieving one's life goals. As you travel through lif...

Q: What are Critical success factors of the investment sector or banking sector?

A: Banking is the ultimate expression of using other people's money to generate profit. Banks use depos...

Q: Howell Petroleum is considering a new project that complements its existing business. The machine re...

A:

Q: What is the correct interest expense on the serial notes payable for 2022?

A: Interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed or fluc...

Q: 20. The derivatives market allows for a. investors to speculate on price movements. b. the purchase ...

A: A contract between two parties for buying and selling underlying assets is known as derivatives. The...

Q: Netflix, Inc. has a beta of 3.61. If the market return is expected to be 13 percent and the risk-fre...

A: Market return is expected = 13% The risk-free rate = 3%

Q: - Consider a firm that has EPS of $5 at the end of the first year, a dividend-payout ratio of 30%, a...

A: Discount rate is 16% Return on retained earning is 20% EPS is $5 Dividend Payout ratio is 30%   To F...

Q: Given the cash flow diagram below, expressed in months, determine: A. The Present value at a nominal...

A: NPV and IRR both are methods of capital budgeting that are used to make decesion of selecting and re...

Q: What is the covariance of returns between stocks A and B? Year Retum A Retum B 2017 60% 35% 2016 20%...

A: Here, To Find: Covariance =?

Q: Flounder Company's net income for 2020 is $672,000, and 91.000 shares of common stock were issued an...

A: The diluted earning per share is used to measure a company's earning per share by assuming that all ...

Q: elow is the information about three RM1000 par value bonds that pay coupons every six months. The re...

A: Value of a bond  = sum of present value of all its future cash flows. Future cash flows from a bond ...

Q: A company purchase a piece of manutacturing equipment for rental purposes. The expected annual incom...

A: The current value of a projected amount of money or stream of cash flows with a predetermined rate o...

Q: The Northern Mart’s balance sheet at the close of 2021 appeared as follows. They are a very successf...

A: Weighted average cost of capital is the average cost of capital which is calculated by multiplying t...

Q: Marvin industries Inc. operates as a diversified software company worldwide. Its Digital Media segme...

A: AFN equation Additional fund needed (AFN) equation is mentioned below. AFN=A0S0×∆S-L0S0×∆S-M×S1×RRHe...

Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of ...

A: The payment flow which continues for a definite time period and terminates after lapse of time perio...

Q: Financial analysts forecast GDY Inc.’s growth for the future to be 5%. GDY's recent annual dividend ...

A: The stock value can be calculated with the help of dividend growth model

Q: The capital asset pricing model (CAPM) The constant–growth model Compute forward-looking expected re...

A:   The capital asset pricing model (CAPM) The Capital Asset Pricing Model (CAPM) alludes to the conne...

Q: If your account earns 9% interest compounded monthly, how much will you need to deposit each month u...

A: Present Value of Annuity: It represents the present value of a future stream of annuity cash flows....

Q: What is the importance of recording business transaction?

A: Business Transactions are the transactions carried out in the business in the financial year. It inc...

Q: 6) Consider two thirty year bonds with the same purchase price. Each has a coupon rate of 5% paid se...

A: Here, Time to maturity = 30 years Semi-annual Coupon rate = 5%  Par value = 1,000 First bond nominal...

Q: Bond Prices and Interest Rate Changes A 7 percent coupon bond with 8 years left to maturity is price...

A: The current price of the bond is equal to the present value of all its future payments discounted at...

Q: A. What is the future value of each of these options at age 65, and under which scenario would he ac...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: rmine the present value equivalent of a geometric sequence of annual cash flows starting at P 1,254 ...

A: Geometric sequence is that sequence in which the money grow each year by some fixed percentage of th...

Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this accou...

A: Money that is invested today earns interest. This makes the future value of money more than present ...

Q: The expected value of a normal distribution of prices for a stock is $71. If you are 99 percent sure...

A: The normal distribution is assumed than it follows the probability of stock prices can be found from...

Q: Over the last several decades, Hong Kong has gradually established itself as the most important fina...

A: Following China's surrender of Hong Kong to the British under the Treaty of Nanking in 1842, the col...

Q: What critical success factors should all investment films involved in stockbroking and asset managem...

A: Asset management involves the practice of collecting, maintaining, and trading investments with the ...

Q: . In order for Linda to reach her saving goal. How much will Linda need to save each money b. Overal...

A: Future Value of Annuity: It represents the future value of the present annuity cash flow stream. It...

Q: Commercial Bank of Windhoek has credited Upington Solar Corporation with R550m, with a maturity of t...

A: Data given:: Loan amount = R 550 m Expected loss = R 16.5 m Recovery rate = 23%   Required:: Probabi...

Q: What is the relation between the present value of an investment and time and interest rate?

A: The concept of present value of an investment and time and interest rate is an important concept of ...

Q: A financial analyst is in the process of estimating the cost of capital of Gewicht GmbH. The followi...

A: Target Capital structure A target capital structure can be a capital structure, resulted from the av...

Q: Problem 16-5 MM and Stock Value Foundation Corporation is comparing two different capital structures...

A: Capital structures includes the equity debt mix which is to be used by entities in financing theory ...

Q: You have RM9,000 that you plan to invest in a compound interest bearing instrument. Your investment ...

A: Amount to be invested is RM9,000 Case -1 Interest rate is 8% Compounded semi-annually Case-2  Intere...

Q: elix Jones, a recent engineering graduate, expects a arting salary of $35,000 per year. His future e...

A: Salary grow by fixed percentage that salary is geometric sequence of growing annuity and the present...

Q: Taylor and Charlie currently live in New Orleans. Taylor is currently making $60,000 per year, and C...

A:   Taylor Charlie Currently making  $                                          60,000.00  $        ...

Q: •Assume that you have saved money for a down payment on your dream house, but you still need to borr...

A: a) Given that: Loan Amount=Php500000= PV of annuity Year of mortgage=5 Year= 60 months Annual Rate (...

Q: A bond sells for $894.17 and has a coupon rate of 6.20 percent. If the bond has 13 years until matur...

A: Bonds are defined as financial instruments used by companies to raise additional funds from the mark...

Q: Karen obtained a $25.000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay ...

A: The monthly amount will be found using excel’s PMT function. It is the minimum amount that must be p...

Q: (WACC) and leverage

A: Cost of capital refers to the tool which is helpful in analyzing the cost of the capital projects an...

Q: A stock is expected to pay a $6.00 dividend next year, and the dividend is projected to continue gro...

A: According to dividend discount modelP0 =D1Ke-gWhere,P0 = current price = To be calculatedD1 = Expect...

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He...

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts a...

Q: Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender req...

A: The portion of monthly income that goes into paying the loan installments is known debt-to-income ra...

Q: You are reviewing two investment opportunities: the shares of company A and company B. Company A has...

A: Answer 1:- Risk refers to variability of return and is measured by the standard deviation. Company A...

Q: 7.A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and life of 1...

A: With reference to capital budgeting, rate of return can be defined as an internal rate of return whi...

Q: ble below is the information about three RM1000 par value bonds and each of which pays coupon semian...

A: The price of bond is present value of coupon payment and present value of par value of bond these ar...

Q: Solve this cashflow: 20,000 EDY 5000 (D 000 15 000 20,000 i: 6.3% o bimentang

A: We need to find the future value of given cashflows Interest rate = 6.3% compounded bimonthly (Compo...

Q: A study is conducted among senior citizen 60 - 95 years of age staying in home for the aged. We are ...

A:     Mortality Rate Conditional Probability   A1 60-69 0.057 0.33 0.01881 A2 70-79 0.018 0.48 0.0...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.