the effective cost of credit in the following case: 2,

Q: Suppose someone offered to sell you a note (an investment) that calls for $1,000 payment two years…

A: .Future Value (FV) :FV represents the projected worth of an initial sum of money at a specific point…

Q: a) True b) False highe 19. What is the Present Value of a stream of quarterly cash flows of $55m…

A: Future value of the amount is the amount being deposited and amount of compounded interest…

Q: what would be the year-end amount available in perpetuity from the endowment for charitable purpose?

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: ou could save $12,000 per year ($1,000 per month) for 20 years towards your retirement and you could…

A: Future value of money is the amount of deposit made and amount of compounded interest accumulated…

Q: a) Calculate the breakeven number of books to be sold.  b) Calculate the estimated profit for the…

A: We are going to complete this question using the formula below:

Q: Firms HL and LL are identical except for their financial leverage ratios and the interest rates they…

A: a.Invested capital = $23 millionEBIT = $3.45 millionTax rate = 25%The ROIC for firm LL is The ROIC…

Q: You have successfully started and operated a company for the past 10 years. You have decided that it…

A: Quarterly payments means an investor makes remittance into an account or makes a debt repayment…

Q: Macy Pharmacy has a project which has the following cash flows. Year 0-$200,000 Year 1 = $50,000…

A: YearsCash flows0($200,000)1$50,0002$100,0003$150,0004$40,0005$25,000Required:Discounted Payback…

Q: Calculate the present value of an annuity due given the following information: number of periods =…

A: The present value of an annuity due is the current value of a series of payments or cash flows…

Q: You are planning to make monthly deposits of $110 into a retirement account that pays 8 percent…

A: Compound = Monthly = 12Monthly Payment = p = $110Interest Rate = r = 8 / 12%Time = t = 28 * 12 = 336

Q: Investment X offers to pay you $6,100 per year for 9 years, whereas Investment Y offers to pay you…

A: Investment XCash Flow = cfx = $6100Time = tx = 9 YearsInvestment YCash Flow = cfy = $8400Time = ty =…

Q: Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 Long-Term Treasury Bonda…

A: The portfolio return is the weighted average of returns of individual assets. The average portfolio…

Q: Suppose the Bank of Montreal is offering a 30-year mortgage with an EAR of 5.125%. If you plan to…

A: Given information,Annual rate: Years:  yearsCompounding Frequency: MonthlyAmount: To compute,Monthly…

Q: In any year, a person can suffer from a minor fracture. From year to year, the number of people…

A: Mean and standard deviation are quantative term used in finance to find out risk and return in the…

Q: The following pre-closing accounts and balances were drawn from the records of Carolina Company on…

A: Working Note#1Computation of  beginning retained earnings:Beginning  retained earnings=Cash + Land +…

Q: et’s say you want to purchase shares of Fontaine Ltd. and then hold this stock for six years. The…

A: 1.Price to be paid for stock today = Present value of dividend payments + Present value of Selling…

Q: Witwer Inc. is making plans for next year. It expects sales to be $300,000, operating costs to be…

A: Sales = $300,000Operating Cost = $280,000Assets = $220,000Tax rate = 35%Interest on debt = 10%Plan…

Q: Solve for the unknown number of years in each of the following: (Do not round intermediate…

A: The number of years in each of the cases is calculated using NPER function. The number of years is…

Q: Mark signs a note promising to pay $825 in 3.5 years with simple interest at 10.75%. Then, 9 months…

A: The promissory notes are those legal instruments where one party promises to pay a sum of money to…

Q: If the following quotes are on September 15, 2012, what was the coupon rate for the JD.VR bonds with…

A: Coupons with reference to a bond indicate the sequential cash flow with timed intervals that are…

Q: Meriton Ltd borrows $ 100,000 at an interest rate of 11.5% per annum, repayable by equal monthly…

A: Loans are paid by equal monthly installments and these carry the payment for interest and payment…

Q: A Tediore Industries bond has an 7,5 percent coupon rate and a $1,000 face value. Interest is paid…

A: Here,Coupon rate is 7.5%Face Value of Bond is $1,000Compounding Period (m) is Semi Annual i.e…

Q: Use the commission schedule from Company A shown in the table to find the annual rate of interest…

A: Here,No. of Shares is 330 sharesPurchase Price of Shares is $10.69Selling Price of Share is $18.91

Q: Sales : $250,000 Costs : $134,000 Depreciation : $10,200 Operating expenses : $6,000 Interest…

A: iv)Interest expenses : $20,700Dividends : $10,600Long term debt repaid : $9,300New Equity issued :…

Q: Using the data in the following table,, calculate the dividend yield and the capital gain yield from…

A: The dividend yield is calculated byThe capital gain yield is calculated by

Q: Today (n=0), a company invests $1,000 and expects that investment to grow 10% each period for the…

A: In order to calculate the present value  considered the interest rate and time. The  calculation of…

Q: What will be the change in the bond's price in dollars? (Negative amount should be indicated by a…

A: Bond valuation aims to ascertain a bond's intrinsic value. It entails determining the present value…

Q: Intro Income statement for 2016 (in $) 2016 Sales 400,000 Costs (incl. depr.) 280,000 EBIT 120,000…

A: Income Statement is a financial statement. which is prepared in every organization. It helps in…

Q: You are thinking about buying a savings bond. The bond costs $48 The bond will earn an annual rate…

A: Present Value = pv = $ 48Time = t = 12 YearsFuture Value = fv = $ 98

Q: Matt’s Lemonade Stand is one of the most up and coming places to get lemonade in Amherst. I’m…

A: Every asset's worthiness can be said to be equivalent to whatever cash flows it generates in the…

Q: What is the future value of $200 received today and deposited at 8 percent compounded semi-annually…

A: Interest Rate = 8%Semi-annually rate = =0.04No. of years = 8Total no. of years =  3 x 2= 6Present…

Q: u take out a 30-year $150,000 mortgage loan with an APR of 12% and monthly payments. In 11 years,…

A: Principal balanceamount outstanding and owing for satisfying the payoff the amount of an underlying…

Q: Assume that a student graduates from college with $20,000 in student loans. If the interest rate is…

A: Given:PV = $20,000 r = 4.80% / 12 = 0.004 or 0.40% n = 15 years * 12 months/year = 180 payments

Q: he net cash flow diagram of a tradesman's account based on his work is given above. a) According to…

A: Interest Rate: In some cases, like the one you mentioned, interest rates may be factored in to…

Q: The annual interest rate on a credit card is ​17.99%. If a payment of ​$400.00 is made each​ month,…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: The rent on a building is 20,000 a month for 10 years with the first payment due today and the first…

A: Since the rent payments are made at the beginning of each month, there is an annuity due. The…

Q: Suppose your expectations regarding the stock price are as follows: State of the Market…

A: Market Probability 0.35, 0.3, 0.35HPR ( including Dividend )44.5%, 14%, -16.5%Applying the Formula

Q: a. Ten years to maturity and the required rate of return goes from 5% to 6%. b. Twenty years to…

A: Price of the bond is the PV of all annual coupons and par value discounted at the interest rate.…

Q: Zaliea company produces hat with a variable cost of RM 5,000 for 500 pieces. Each unit was sold at…

A: For calculation of profit , we need to dedect veriable cost and fixed expences from sales .Profit =…

Q: You have a student loan of 40,0005s that you want to repay in 10 years interest rates are at year…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Year 1 2 3 4 Free cash flow to the firm $15 million $20 million $25 million $30 million Conundrum…

A: YearsFree Cash flowYear 1$15,000,000.00year 2$20,000,000.00 Year 3$25,000,000.00Year…

Q: Joint Cost Allocation—Market Value at Split-off Method Burn-on Inc. processes crude oil to jointly…

A: To allocate the $15,800 joint cost to each product using the market value at split-off method,…

Q: Department A's cost was $10,000 in year 1 of its operation; however, it is estimated that costs will…

A: Present value is the current value future value of money at specified rate of interest. If we will…

Q: 3. follows: Carnegie Corp. projects an annual cash flow for one of its divisions as Year 0 1 2 3 4 5…

A: AB2YearCash flow30341052-1063274285296210IRR of the cash flow9.59%=IRR(B3:B9)

Q: tock price of ABC company at the end of 2018 was $85. In 2019 the quarter end stock prices are $94,…

A: Annual return = capital gain on stock + Dividend IncomeCapital gain on stock = Closing price of…

Q: Which of the following statements is CORRECT O If a 10-year, $1,000 par, zero coupon bond were…

A: Fixed income securities which are issued by a firm are known as bond. Firm pays fixed interest on…

Q: Your grandmother has been putting $600 into a savings account on every birthday since your first…

A: The future value of an annuity can be calculated using the formula,

Q: ent to finra-markets.morningstar.com, enter SNA as the company, and found the yield to maturity for…

A: Weighted average cost of capital is the weighted cost of debt and weighted cost of capital and is…

Q: early following informa was true about Alb clothing retailers. Values (except price per share) are…

A: Market value of equity to book value of equity is the important ratio when comparing the two…

Q: Find expressions 2) Item Price $3.00 for the Revenue, Cost, and Profit from selling x thousand…

A: Variables in the question:Item price=$3Fixed Cost=$31,471 Variable Cost=3775x