SOLVE STEP BY STEP IN DIGITAL FORMAT According to the Asset Allocation (AA) formula and the following data: Benchmark weight Market Eurostoxx 50 (RV) German bonds (RF) Cash Calculate: Wallet weight 70% 7% 23% 60% 30% 10% The excess of financial assets The contribution or gain of the financial asset 5.81% 1.45% 0.48% Market profitability
Q: Celtic Inc. is considering a 16-year project that will generate before tax cash flow of $18,000 per…
A: Cash flow per Year before tax= $18,000No. of years (n)= 16 YearsMachine cost = $96,000Salvage Value…
Q: Which of the following do/does NOT describe how shareholders accrue investment returns (Select all…
A: The objective of the question is to identify the options that do not represent ways in which…
Q: Find the APR, or stated rate, in each of the following cases. Note: Do not round intermediate…
A: EAR stands for Effective Annual Rate. This is the actual interest rate that a borrower has to pay on…
Q: (Future value of an annuity) Upon graduating from college 35 years ago, Dr. Nick Riviera was already…
A: Semi annual payment=PMT=$900Semi annual rate=r=7/2=3.5%Semi annual period=n=35 x 2=70
Q: Find the size of each payment assuming they are equal, and the interest
A: The amount of money that a person or organization must consistently pay towards the payback of a…
Q: When Marilyn Monroe died, ex-husband Joe DiMaggio vowed to place fresh flowers on her grave every…
A: Cost of flower = $6Growth rate = 3.6% per yearEAR = 10.40% per yearNumber of years = 24To find:…
Q: Company A has 4 million shares outstanding and its net income stood at $35 million. The current…
A: P/E ratio is the price to earnings ratio. It is an important financial ratio that is used for the…
Q: What should be the size of Gandalf's biweekly deposits in order to accumulate $50,000 in an account…
A: Bi weekly deposits:Bi-weekly deposits refer to the practice of making financial transactions every…
Q: Orlando invests 1,000 in a wealth fund for 10 years. (i) During the first 2 years, the wealth fund…
A: A wealth fund, alternatively referred to as a sovereign wealth fund (SWF), is an investment fund…
Q: Lance Whittingham IV specializes in buying deep discount bonds. These represent bonds that are…
A: Bond price refers to the price at which the bonds are bought and sold in the market among investors…
Q: Consider a deposit into a bank with a stated interest rate 6%, compounded quarterly, for 3 years.…
A: Compound interest:Compound interest is a financial issues in which the interest earned on the…
Q: Firm E must choose between two business opportunities. Opportunity 1 will generate an $14,240…
A: The net cash flows can be found by deducting taxes from the taxable income (assuming that there is…
Q: A second version of the Markowitz portfolio model maximizes expected return subject to a constraint…
A: Step :1
Q: Living Colour Company has a project available with the following cash flows: Year Cash Flow 0 -$…
A: NPV is the measure of profitability of a project. NPV can be computed by discounting the cash flows…
Q: Assuming a 1-year, money market account investment at 2.282.28 percent (APY), a 1.391.39 percent…
A: The objective of this question is to calculate the after-tax rate of return, the real rate of…
Q: A payday loan servicer has a stated APR of 23.68%. In reading the fine print on the loan you see…
A: Nominal Rate = 23.68% = 0.2368Number of Compounding Periods = 365
Q: bill is 0.01 and the expected rate of return on the Wilshire 5000 is 0.10. What is the required rate…
A: Treasury- bill returns = 0.01Beta = 0.84Expected Return on Market = Expected Return on Wilshire 5000…
Q: A payday lender offers 7 day loans at 7.6% discount interest per week. For example, if you borrow…
A: Effective annual rate refers to the percentage of return after the effect of compounding for the…
Q: C File Home Insert Draw Design Transitions Animations Slide Show Record Review View Help Ginger…
A: With the time value of money considered at a 11% annual interest rate, we can calculate the present…
Q: Suppose an investment offers to triple your money in 12 months (don't believe it). What rate of…
A: ParticularAmountFuture Value (FV)3Present Value (PV)1No. of Quarters (NPER)4
Q: A bond with a face value of $7 000 pays quarterly interest of 2.5 percent each period. 22 interest…
A: Face value = $7,000Quarterly interest rate = 2.5%YTM = 6%Number of interest payments = 22
Q: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an…
A: The coefficient of variation represents a measure of the dispersion of the data points relative to…
Q: From the following information, construct a simple income statement and a balance sheet: Sales…
A: The income statement and balance sheet serve as the conclusive financial records of a business. The…
Q: You have your choice of two investment accounts. Investment A is a 9-year annuity that features…
A: The time value of money technique explains the concept that the rupee received today is worth more…
Q: • Suppose you are going to receive 25000 if you deposit 2500 per year at 3% rate of return. How long…
A: Future value (FV) refers to the value of a sum of money or an investment at a specified date in the…
Q: You are thinking of purchasing a house. The house costs S 431,000. You have $ 45,000 in cash that…
A: Loan installment is that which is paid by the borrower to lender for a specified period of time.…
Q: Marc has nothing saved for retirement. He wants to receive $46,000.00 per year for 5 years during…
A:
Q: D-2024, a financial manag Oil Future contract calls E the contract, respectivel- date (200 x 1,000 x…
A: Initial Margin Requirement: Initial Margin = Number of Contracts * Number of Barrels per Contract *…
Q: Please show detailed steps and correct
A: The discounted cash flow valuation model refers to the valuation model that considers the time value…
Q: The semistrong form of the EMH states that price: O all publicly available information O all…
A: EMH stands for efficient market hypothesis. This is a very important hypothesis or theory in…
Q: A dairy processor that makes ice cream reviews its historical sales in relationship to summer…
A: A financial derivative known as an option contract grants its holder the right, but not the…
Q: Compute and interpret the Altman Z-sc
A: The Altman Z-score is the output of a credit-strength test that gauges a publicly traded…
Q: Sinaloa Appliance, Incorporated, a private firm that manufactures home appliances, has hired you to…
A: Asset beta, also known as unlevered beta, represents the risk of an investment when considering both…
Q: Analysts expect Score Industries to make payouts of $2.18B at the end of this year. Assume that all…
A: To find the required return that the market has priced into Oscorp's share price, we can use the…
Q: The engineering staff at the Sun Shipping Company has informed decision-makers that substantial…
A: The current worth of the future savings can be found to determine the amount that company would be…
Q: ock price from open to close on a given day. This is designated by a box inside the high-low range.…
A: May 10: Gain (White box): The closing price is higher than the opening price, indicating a gain for…
Q: The engineering staff at the Sun Shipping Company has informed decision-makers that substantial…
A: The objective of the question is to calculate the present value of the savings that the company will…
Q: Solve the problem where the amount of wages ( after subtracting withholding allowances) is over $551…
A: The objective of the question is to calculate the amount of income tax to withhold from an…
Q: An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $400…
A: The Future value refers to the value of the future expected cash flow at future date. It is…
Q: Question content area top Part 1 Calculate the after-tax return of a(n) 8.858.85 percent,…
A: The objective of this question is to calculate the after-tax return of a corporate bond and a…
Q: The Bruin's Den Outdoor Gear is considering a new 7-year project to produce a new tent line. The…
A: NPV is defined as the sum of the present values of all future cash inflows less the sum of the…
Q: Following are four economic states, their likelihoods, and the potential returns: Economic State…
A: Expected return = (Return under fast growth × probability of fast growth) + (Return under slow…
Q: will save $1,400 a year in enses. These savings will What is the NPV of the inve en the cost of…
A: Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP)…
Q: 7 What is the price of a 10-year zero coupon bond with face value of $1,000 and when the market…
A: Price of the bond is the current value of the bond. It is can be determined by discounting the…
Q: valued at $15000. What is
A: To find the annual interest rate for the annuity, we can use the present value formula for an…
Q: turns of stock "A" and "B"? Enter your answers as a percentage. Do not put the percent sign in your…
A: To find the expected returns of stocks A and BE(ra)=4.52%E(rb)=6.04%Now, for the standard deviations…
Q: What is a fair purchase price for a zero - coupon bond with 19 years to maturity, a face value of…
A: Time = t = 19Face Value = fv = $20,000Yield to Maturity = r = 3.84%
Q: What is the price of the bill? (Use 360 days a year. Do not round aces.) Price of the bill What is…
A: Treasury bills are money market instruments issued by the Government of India as a promissory note…
Q: Empire Electric Company (EEC) uses only debt and common equity. It can borrow unlimited amounts at…
A: Give that, Last dividend (D0) = $2.55 Growth rate (g) = 3% or 0.03…
Q: Consider the following information on Stocks I and II: Probability of State of Economy Stock II…
A: Since you have posted multiple questions with multiple sub parts, we will provide the solution only…
Step by step
Solved in 4 steps with 4 images
- Two capital assets display the following: E(RA) = 12% σA = 1.5% E(RB) = 15% σB = 1.0% If asset A´s return is 5% below the Capital Market Line (CML), and asset B´s return is 1% below the CML, what is the equation of the CML? a) E(Ri) = 0.1203 − 0.02σi b) E(Ri) = 0.09 + 2σi c) E(Ri) = 0.1227 + 0.02σi d) E(Ri) = 0.15 − 2σi e) E(Ri) = 0.14 + 2σiQuestion 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in the box" at the bottom of table. Assets: 3 year Consumer Loans with an average interest rate of 7% Cash Flow (CF) $561,300 $766,010 $2,702,883 $0 $0 Present Value Factor (PVF) 5 Year Commercial Loans with an average interest rate of 10% Cash Flow (CF) $755,299 $1,254,503 $1,855,631 $3,214,131 $4,005,543 Present Value Factor (PVF) A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format | B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format .935 .873 .816 N/A N/A .909 .826 .751 .683 .621Example (1): You have the following data: Details 12/31/2020 1/1/2020 60000 80000 40000 150000 15000 50000 10000 20000 Fund Assets Debtors Goods Liabilities Creditors and you have available additional information: 1. Additions to the capital amounted to 100,000 dinars . 2. Withdrawals from the capital amounted to 40,000 dinars. Required: Extracting the result of the activity works on 31/12/2020.
- a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows: Total margin 3.5% Total asset turnover 1.5 Equity multiplier 2.5 Return on equity (ROE) 13.1% b. Calculate and interpret the following ratios: Industry Average Return on assets (ROA) Current ratio 5.2% 2.0 Days cash on hand 22 days Average collection period 19 days Debt ratio 71% Debt-to-equity ratio 2.5 Times interest earned (TIE) ratio 2.6 Fixed asset turnover ratio 1.4 c. Assume that there are 10,000 shares of Green Valley's stock outstanding and that some recently sold for $45 per share. • What is the firm's price/earnings ratio? What is its market/book ratio? (Hint: These ratios are discussed in the supplement to this chapter.)PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land Equipment Less: Accumulated depreciation 580,000 890,000 (528,000) $1,392,000 580,000 770,000 (368,000) $1,307,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payab le Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 109,000 7,000 9,000 95,000 13,000 6,000 2$ 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.Current Attempt in Progress Suppose selected comparative statement data for the giant bookseller Barnes & Noble are as follows. All balance sheet data are as of the end of the fiscal year (in millions). Net sales Cost of goods sold Net income Accounts receivable Inventory Total assets Total common stockholders' equity 2022 $5,050.3 3,700.7 65.1 65.0 1,250.1 2,950.1 940.6 2021 $5,800.9 3,200.1 190.9 106.6 1,350.1 3,250.1 1,100.5
- ACCOUNTING ASAP Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio. Select one: a. 7.0x b. 4.7x c. 14.0x d. 5.0xAssume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3% Return on equity: -5% What is the debt ratio?Use the information from this table to find the covariance for each asset. State of Economy Probability of State Return on Asset J Return on Asset K Boom 30% 5% 24% Growth 40% 5% 12% Stagnant 20% 5% 4% Recession 10% 5% -10%
- The possible rates of return of two assets, A and B, under different economic conditions are given below: Economic Situation Probability Return of Asset A Return of Asset B Recession 0.2 10% 6% Stable 0.5 14% 15% Growth 0.3 20% 11% An investor places 50% of his funds in Asset A and 50% in Asset B. [Note: you may use correlation between A and B as 0.2401] Required: (i)Calculate the risk and expected return for each asset. (ii)Calculate the risk and expected return of the investor’s 2-assets portfolio. (iii) What do you understand by total risk?MVP Co. provided these data for 2020: Income from continuing operations Unrealized gain on financial asset at FVPL Unrealized gain on equity investment at FVOCI Unrealized loss on debt investment at FVOCI Loss on credit risk of a financial liability at FVPL unrealized gain on futures contract designated as cash flow hedge NET remeasurement gain on a defined benefit plan Translation loss on foreign operation Income from discontinued operations Revaluation surplus P4,000,000 800,000 1,000,000 1,200,000 300,000 400,000 600,000 200,000 500,000 2,500,000 How much should be reported as comprehensive income for 2020?Using the statements provided Calculate the following liquidity ratios: Current ratio Quick ratio Calculate the following asset management ratios: Average collection period Inventory turnover Fixed asset turnover Total asset turnover Calculate the following financial leverage ratios Debt to equity ratio Long-term debt to equity Calculate the following profitability ratios: Gross profit margin Net profit margin Return on assets Return on stockholders’ equity For example: you should present it like the text, or as:Gross margin = 1,933 divided by 8,689 = 22.2% A competitor of ACME has for the same time period reported the following three ratios: Current ratio 1.52Long-term debt to equity .25 or 25%Net profit margin .08 or 8% Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.