QUESTION Briefly differentiate between money market and capital market in relation to: i. risk levels ii. timeline for maturity iii. aim of raising money iv. funds supplier v. financial instruments vi. terms of the securities traded vii. investment objective viii. examples (just mention them)

Q: he small happy Kingdom of Pollyanna does not trade with the rest of the world, but uses U.S dollars…

A: Tariff is a kind of levy or a tax. Here the import tariff is levied on the imports of tofu and the…

Q: | Technology Services | VCU Security Treasury AAA Corporate BBB Corporate B Corporate Consider the…

A: Credit spread is the difference in yield between bonds of a similar maturity but with different…

Q: A young engineering company is a subcontractor in an effort to develop technology that will reliably…

A: Effecive Annual rate is the rate earned after considering the impact of compounding. Higher the…

Q: strengths and weaknesses of public financial management at the local government level.

A: The collection, management, and use of public funds across an economy are referred to as public…

Q: Find the present value of Php54,000 due in 4 years if money is worth 12% compounded semi- annually.…

A: Given: Future value = Php54,000 Years = 4 Interest rate = 12%

Q: Use the following information to find dividends paid to common stockholders during 2021. (Enter your…

A: Dividends are appropriations of profits of the firm. Preferred stockholders are paid before the…

Q: What are the answers for the following?   Construct a cost-volume-profit chart on your own paper.…

A: Cost-Volume-Profit chart Units Sales Varibale cost Fixed Cost Total Cost Profit (a) (b) = (a) *…

Q: Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account…

A: Given, 5% per year for 3 years  Amount is $1

Q: If you invest $1,200 for 40 years at an 8.1% rate of return, you will have accumulated: (Keep 2…

A: Future value of a present amount With present value (PV), annual rate of return (r) and period (n),…

Q: Question 3 Mr. Lutombi, aged 55 years old, is the current Roads Authority (RA) CEO. He is…

A: The probability of recession is calculated by subtracting the sum of probabilities of boom and…

Q: Given the following probability distributions, what are the expected returns for the Market and for…

A: We will calculate probability weighted return for both the returns i.e. market return and security J…

Q: Break down step 2  properly  2. Rebound Tourism Inc. Share valuation:   Last year price  =…

A: Information Provided: Last year's price = $40 Dividend = $0.50 Required rate of return = 9%

Q: ABC Limited is an all-equity firm and has a present capital structure of 10 million shares of common…

A: Equity Financing Debt Financing No. of Shares Outstanding Original        1,00,00,000.00…

Q: Use the Excel NPV() function to calculate the maximum loan you would be willing to give today for a…

A: Annual payment = $18,000 Interest rate = 10%

Q: A stock has a beta of 1.3, the expected return on the market is 11 percent, and the risk-free rate…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: A few years ago a couple purchased an office space by financing RA for n years, paying installment…

A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…

Q: Which of the following change in regulations is most likely to improve internal market efficiency…

A: Market is considered as efficient only if: Intrinsic Value = Stock price Stock prices fully relects…

Q: Required: a. Calculate the standard deviation of returns of each service provider. b. Which service…

A: In finance we use standard deviation as a measure of risk. Now standard deviation of returns is a…

Q: Two accounts each begin with a deposit of $7000. Both accounts have rates of 6.5%, but one account…

A: Principal Investment "P" is $7000 Interest rate is 6.5% To Find: Account Balance after 1,5,10 and…

Q: Kim Hotels is interested in developing a new hotel in Seoul. The company estimates that the hotel…

A: Solution: Initial Investment = $17 million Present value of cash inflow = 21.07 Less: Initial…

Q: e expected return of Project Y is at least equal to the expected return of Project X, and the…

A: There should be optimal combination of risk and return. Return is important but the risk should be…

Q: A passbook savings account has a rate of 8%. Find the effective annual yield, rounded to the nearest…

A: Y = (1+(r/n))n - 1 Where Y = Effective Annual Yield (TO be calculated) r = Annual rate of interest…

Q: Nataro, Incorporated, has sales of $742,000, costs of $316,000, depreciation expense of $39,000,…

A: Solution:- Earnings Per Share (EPS) refers to the earnings attributable to each shareholder of the…

Q: The contract for the purchase of a R50 000 factory calls for a cash payment of R15 000. The balance,…

A: Given: The cost of the factory is R50,000 and the down payment amount is R15,000. The payment are…

Q: You have a project which pays $1,000 in year 1 and cash flows decline 2% in each subsequent year.…

A: The formula to find the PV of a declining perpetuity is as follows: PV0 = CF1r-g Where CF1 = cash…

Q: A company is considering an investment with the Bollars. The general inflation rate (7) during this…

A: The cash flows are in constant dollars. Constant dollars means that the dollar (or the cash flow)…

Q: Jack owns a shop that sells furniture. He placed an advertisement in the Friday’s edition of the…

A: Brief summary 1. Jack owns a furniture shop and  placed an advertisement in the Friday’s edition of…

Q: As a financial consultant, you are given the following information about two companies, one levered…

A: Concept. 1.Value of firm = net income ÷ cost of capital(WACC) 2. Value of firm  = value of debt +…

Q: Required: a) Calculate the expected return on this portfolio. b) What is the Beta of this portfolio?…

A: In finance a portfolio is a collection of different financial assets and securities like stocks,…

Q: Suppose that 10-month interest rates in Canada and Europe are 3.2% and 1.3%, respectively. In…

A: We have to decide on the arbitrage action for the euro. Spot rate and interest rates are available.…

Q: Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers…

A: The compound interest adds the interest earned in a period to the principal because of which more…

Q: Can you answer b please

A: Solving  b)    Data given: Purchased shares on margin at $5 per share Limit sell order at $7 Stop…

Q: Construct NPV profiles for Plans A and B. Enter your answers in millions. For example, an answer of…

A: We will use the concept of capital budgeting in this case. The tools of NPV and IRR will be used…

Q: A municipality needs funding for upcoming infrastructure (water and sewer line) repair or…

A: A bond is bought and held for a period and is to be sold prior to maturity. We need to determine the…

Q: What type of firm generally has the highest proportion of fixed assets to total assets? a)…

A: The fixed assets are the long-term tangible assets like plant machines, equipment building, etc that…

Q: Which of the following bonds is trading at a premium? a two-year bond with a $50,000 face value…

A: a) 1) If coupon rate is greater than Yield to maturity, then bond is trading at Premium 2) If coupon…

Q: Based on the interest rates and cash flows shown in the cash flow diagram, determine the value of…

A: We have a stream of cash flows, but they are subjected to a different interest rates in different…

Q: Casa Chica is considering replacing a piece of equipment. Alternative A costs $80,000, has an eight…

A: Given, Cost of Alternative A is $80,000 Cost of alternative B is $65,000

Q: Question 8 How much is the proceeds if Marl Php22,735 at 2.85% for 2 years and 5 m Php21,169.13

A: Simple interest is simple and there is no compounding of that means there is no interest on interest…

Q: A trader submits a market to sell 1,200 shares. The buy limit orders standing in the stock's order…

A: The market sell order will execute at the best available price or the highest available price. The…

Q: Which of the following statements is most accurate?   A stop-sell order is placed by a bullish…

A: A bearish (or negative) investor believes that prices will fall and that significant wealth will be…

Q: You borrow a five-year $13,000 loan with monthly payments of $250. What is the annual percentage…

A: To Find: APR

Q: App1 is a company that has a patent right for a new mobile technology that is expected to enable it…

A: Share Price is the sum of all cashflows discounted at a certian discount rate Share Price =…

Q: XYZ Limited has just paid a dividend of $1.54.  It expects dividends to grow at 28%, 24% and 18%…

A: Last dividend = $1.54 Growth rate after year 3 (g) = 0.08 Required return (r) = 0.15 Share price;…

Q: You recently paid $13,275 for an investment that promises to pay $675 at the end of each of the next…

A: Given: The amount paid for the investment is $13,275 and the annual receipts from investment is $675…

Q: Remember from class that YTM - Riskfree = sum of risk premiums. Assume the risk-free rate is 1.316…

A: Risk free rate = 1.316 Credit risk premium = 1.401 Maturity risk premium = 1.817

Q: Remember from class that YTM - Riskfree = sum of risk premiums. Assume the risk-free rate is 1.789…

A: Risk free rate = 1.789 Credit risk premium = 1.036 Maturity premium = 1.247

Q: Required: a. The expected returns for stock A and stock B b. The standard deviation of stock A and…

A: The expected return of the stock is the return that the stock would provide on average after every…

Q: You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to…

A: Number of withdrawals = 18 Monthly interest rate = 1% First deposit of $108 in 6 months. Increase in…

Q: You are required to answer the following: (a) What is the current market value of the company? (b)…

A: Using the following formulas, we can solve the question: The current market value of the company =…