Q: Choose from the two machines which is more economical: Machine B 14000 P2,000 Machine A First Cost P...
A: Taxes and Insurance = 3% Interest Rate = 16%
Q: What is the impact of deferred annuities in consideration to business matter?
A: The legal contract between any entity and an insurance company is a deferred annuity contract. The i...
Q: Based on the information below, what is the weighted average cost of capital of ABC Co.?
A: The Weighted Average Cost of Capital(WACC) refers to the financial ratio that calculates the overall...
Q: Suppose Capital One is advertising a 60-month, 5.42% APR motorcycle loan. If you need to borrow $8,0...
A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that includ...
Q: Assume that sales and expenses forecasts for months April, May, June, and July are as follows. 20% ...
A: Pro forma cash flow It provides the estimated cash inflow and cash outflow for the coming period. It...
Q: Balance sheet Assets (in KD) Liabilities (in KD) Cash 154674 Accounts payable 80000 Accounts receiva...
A:
Q: Some economists believe that the FOMC should instead increase interest rates by 0.50% (50 basis poin...
A: The Fed's tightening monetary policy is virtually entirely due to inflation, The FOMC stated in its ...
Q: You decided to purchase a new appliance by borrowing $1,500 using Home Credit Product Loan which cha...
A: Loan amount (PV) = $1500 Interest rate = 18% Monthly interest rate (r) = 18%/12 = 1.50% Period = 3 Y...
Q: 4. A company owes P 80,000, which includes the interest, to be paid one year from now. To provide fo...
A: At the end of a year (12 months), the total Future Value of the repayments is P =76063.59.The fund's...
Q: Default risk is generally much greater for commercial mortgage loans than home loans because...
A: In finance default risk refers to that risk in which the borrower will not be able to make the neces...
Q: The table shows some Price Real price beef prices (1982-1984 cents per (cents per pound) and the CPI...
A: Let P = Nominal price CPI = CPI index R = Real price
Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...
A: Inventory period formula = (Average inventory/Cost of goods sold) x Number of days in a period
Q: Refer to the graph below. It shows 2 indifference curves: for person A and for person B. Which perso...
A: In this question , The Indifference curve (IC) shows the various bundles of two goods that the consu...
Q: 11. You want to start saving for your 10 year old son's college education. If you are guaranteed 13%...
A: Solution:- We know, when an equal amount is saved each year, it is called annuity. Also, future val...
Q: Office of Business Administration tells you that Villa Apartment has a project to expand the current...
A: NPV is the difference between present value of cash inflows and initial investment. NPV =PV of all c...
Q: emand loan was paid off with payments of $3,000 on April 10th, $2,000 on September 25th and a final ...
A: loans are paid by the installment payment and these are paid by the payment that carry the payment f...
Q: You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a...
A: We are required to find the solution to this question with the help of an Excel Formula,
Q: Beginning Inventory $11,500 Dairy Alternative Purchases (+) $1,000 Produce Purchases (+) $500 Protei...
A: With the help of the given chart ,
Q: Compute the maximum value of the utility function U(x, y, z) = 2xyz, subject to x +4y + 4z = 108. %3...
A: Given , u = x y z subject to x+4y+4z=108 x = 108-4y-4z Then u = 108 - 4y-4zyz= 108yz-4y2z-4yz2Diffe...
Q: If investors are less certain about the economic outlook, they will: Select one: O a. raise capital ...
A: When there is uncertainty about economic outlook then in such a case investors ensure to take a posi...
Q: Fritz buys a car costing $24,300. He agrees to make payments at the end of each monthly period for 8...
A: A loan is an agreement between two parties where a sum is forwarded in return for periodic payments ...
Q: Find the compound interest on 99000 for 2yrs at 10% per annum.
A: Interest is the fee paid to an investor or lender of a capital for a period of time. Interest is cal...
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: 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: Choose from the two machines which is more economical: Machine A P12,000 Machine B 14000 P2,000 Firs...
A: Equivalent uniform annual cost method is method in which equivalent annual cost is calculated which ...
Q: Ethan wants to set up a fund for his son's education such that he could withdraw $2,982.00 at the be...
A: Quarterly withdrawal (P) = $2982.00 Period = 6 Years Number of quarterly periods (n) = 6*4 = 24 Inte...
Q: The future value of an investment increases as the number of periods increases True or Fase
A: Future value means the value of investment after x period of time compounded at the interest rate.
Q: "Ten years ago, when Nigel was still a college student, he deposited 10,000 in a bank. The bank's ra...
A: Deposit amount (P) = 10,000 Period = 10 Years Quarterly period (n) = 10*4 = 40 Interest rate = 2% Qu...
Q: Referring to balance sheet and income statement of Sitra Co. below, prepare the cash flow from opera...
A: Cash flow statement: Cash flow statement is one of the important and mandatory reports from the comp...
Q: For each of the companies described here, would you expect it to have a low, medium, or high dividen...
A: Dividend is the distribution of the company’s earnings to the shareholders of the company. A dividen...
Q: tock price of Merck falls to $46, the rate of return of your put option is 60% 10%
A: The rate of return is the percentage profit earned on the investment and that indicates the profitab...
Q: Cellular Access, Inc. is a cellular telephone service provider that reported net income of $250 mil...
A: The free cash flow represents the cash generated by the entity rather than accrual based profits for...
Q: A profitability index of 0.50 for a project means that The project returns 50% in present value for ...
A: Profitability index is calculated by dividing present value of benefits by Investment amount
Q: Find the compound amount and compound interest in Php62,000 at the end of 3 years at 8% compounded q...
A: As you have asked multiple questions, we will solve the first question as per the policy presented b...
Q: Based on the information below, what is the weighted average cost of capital of ABC Co.?
A: Cost of capital of a company is the return required by the capital providers of a company. All the c...
Q: 5. Suppose AW(MARR) = $5 for a single alternative. Is this investment economically justified? Justif...
A: Annual Worth: Annual worth is an alternative method for FW and PW Analysis. Almost all times; It w...
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: ABC Co. wants to have a weighted average cost of capital of 10 percent. The firm has an aftertax cos...
A: Cost of capital = (After tax cost of debt x Debt ratio) + (Cost of equity x Equity ratio) ...
Q: What amount is needed to invest today by a man if he wants to receive quarterly cash out of Php 4962...
A: Formula Present value = P*(1-1/(1+i)n)/i Where P = Quarterly cash out i.e. Php 49623 i = Quarterly i...
Q: Prepare a schedule for the following bond, including calculations, yearly income, end-of-year accumu...
A: Given:
Q: Paco buys a bicycle that costs $4,700. Give a 30% down payment and pay with a payment of $3,627.23 n...
A: Bicycle cost = $4700 Down payment = 30% Balance amount = 4700*(1-0.30) = 4700*0.70 = $3290 Period o...
Q: A lock-out provision Prevents even small payments in excess of the contracted amount.
A: Lockout provision is basically prohibit for any advance payment during a specified period. In simple...
Q: A $10000 15-year bond is priced to yield at 12% compounded quarterly. It has quarterly coupons of $2...
A: Face Value = $10,000 Time Period = 15 Years Yield = 12% compounded quarterly
Q: XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropri...
A: The Surplus cash means that the business have extra cash inflows coming into the business. The cash ...
Q: What is Debt Service?
A: Step 1 The amount of money required to pay interest on the loan with the principal over some time is...
Q: What is the impact of annuity dues in consideration to business matter?
A: An annuity due is one whose payment is due right away at the start of each period and the difference...
Q: 14. A man made ten annual end-of-year purchases of P1,000 common stock. At the end of 10th year he s...
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...
Q: Jenny is planning to deposit ₱17,000.00 Quezon Metropolitan Bank is offering 7.5% compound...
A: Compound interest is also called as interest on the amount of interest. In other words this is the a...
Q: Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.
A: Given: Loan = P 3000 Interest rate = 4% number of days in loan = 72 total number of days in year = 3...
Q: Beginning Inventory $11,500 Dairy Alternative Purchases (+) $1,000 Produce Purchases (+) $500 Protei...
A: In the given chart we are given the information regarding the inventory.
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- Which constitutes a taxable item of gross income? * Compensation for personal injuries O Gain from sale of shares in mutual fund: O Gain from sale of government bonds O Income exempt under treatyWhat are the special tax features of (a) Treasury securities, (b) agency issues, and (c) municipal bonds?Which of the following groups can benefit from the interest tax shield? both debtholders and equityholders. debtholders. equityholders. only the firm's customers.
- Which, if any, of the following transactions incurred by an S corporation is not a separately stated item? A Tax-exempt income. B Foreign tax credit. C AMT adjustments and tax preference items. D Amortization of organizational expenditures. E Domestic production activities deduction (DPAD).Define the term Corporate taxable income?