What is the future (compounded) value of $ 9500 invested for 4 years at r =%8.25 with quarterly compounding

Q: Bulawan Coin, Inc. is considering shortening its credit period from 30 days to 20 days and believes,...

A: Total cost is sum of variable cost plus fixed cost and at breakeven point total cost must be equal t...

Q: Pedro borrows P300,000.00 from lender ABC today at 12% compounded monthly. To fulfill his obligation...

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both ...

Q: Assume that the risk-free rate is 5.5% and the market risk premium is 4.5%. What is the required...

A: Risk free rate = 5.5% Market risk premium = 4.5% Beta = 0.90

Q: 2. HYZEL Merchandising borrowed Php 300,000 from Partner's Bank at 15% simple interest for one year....

A: Borrowed amount = Php 300,000 Interest rate = 15%

Q: 6. Calculating Rates of Return Assume the total cost of a college education will be $235,000 when yo...

A: Annual rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = $235,000 P...

Q: What is the monthly payment on a loan of $5,000 at APR = 6% for 5 years.

A: Loan amount (PV) = $5000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 5 Yea...

Q: Which of the following is/are true regarding payout policy to shareholders? A. Most of the time tha...

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Q: projects payback? Year Cash flows 1 3 $300 -$500 $150 $200

A: Payback period is the time taken to recover the cost of the investment. The payback period does not ...

Q: 8. Bond Pricing. A 6-year Circular File bond with face value $1,000 pays interest once a year of $80...

A: Coupon rate means the coupon payments as a percentage of the face value of bonds, whereas yield to m...

Q: A person wants to invest $12,000 for 2 years and is considering two different investments The first ...

A:

Q: Is There Cash Value of No Cash?

A: Step 1 The replacement cost less any depreciation is equivalent to the actual cash value (ACV = repl...

Q: Which one of the following measures is relevant for assessing exposure to systematic risk?

A: Systematic Risk: It refers to the risk caused by factors that are not in the control of an organizat...

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded mon...

A: A perpetuity is an annuity that gives payments but has no maturity period.  

Q: Alyssa Stuart is thinking of starting a store that specializes in handmade Viennese style bentwood c...

A: Contribution margin It is the amount excess of variable cost. Contribution margin is calculated as s...

Q: A man deposits P5,000 at the end of every year earning 7.50% compounded continuously. Determine the ...

A: Annual deposit (P) = P5000 Interest rate = 7.50% e = 2.7182818284590452353602874713527 Annual intere...

Q: Peter makes a deposit at the end of every month into a savings account that earns interest at 5.4% c...

A: There is need of proper financial planning for the future needs and there is need proper savings nee...

Q: List the five groups of ratios and identify, calculate, and interpret the key ratios in each group.

A: When someone first open a company's published accounts, it may be a daunting experience since people...

Q: A machine is under consideration for investment. The cost of the machine is P25,000. Each year it op...

A: The discounted payback period is a measure of the time required for the project to break even. It di...

Q: Your company has been doing well, reaching $1.05 million in earnings, and is considering launching a...

A: Net present value is the difference between the present value of cash inflows and present value of c...

Q: The Premiere Company obtained a short-term bank loan for P1,000,000 at an annual interest rate 12%. ...

A: Since you have posted a multi part question therefore as per the guidelines we will be solving the f...

Q: A loan is to be amortized by a group of five end of year payments forming an ascending arithmetic pr...

A: A loan is a sum of money borrowed from a third party, such as a bank, and returned over time in pred...

Q: Assume that the risk-free rate is 7.5% and the required return on the market is 10%. What is the req...

A: The question is based on the concept of the capital asset pricing model (CAPM), the model explains t...

Q: -Explain why there is a departure from the EMH

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for y...

Q: 3. The budget element/s included in the financial budget process are the following except the - Gro...

A: Financial Budget: It is the budget used to examined the needs of cash in the organization and financ...

Q: OBJECTIVES: 1. Describe the factors in selecting sources of short-term financing; 2. Identify the so...

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

Q: You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying...

A:

Q: R61 [Review Question] I. F=A(F/A, 1%, 6) II. F=A(F/A, 1%, 5)(P/F, 1%, 1) II. F=A(P/A, 1%, 5)(F/P, i%...

A: Below are the meaning of the abbreviations: F = Future Worth A = Annuity P = Present Worth i% = inte...

Q: Sally received an invoice dated on 15 February 2020 worth RM4 goods that included a prepaid freight ...

A: Companies gives different kind of discounts to the customers to increase the sales. But the cost to ...

Q: Malburn Construction Ltd. Manufactures and distributes window frames. The company uses 600,000 metal...

A: We need to use economic order quantity(EOQ) formula to calculate order size to minimize inventory co...

Q: What is the total interest paid on a loan of $5,000 at APR = 8% for one year.

A: Loan amount (LV) = $5000 Interest rate (r) = 8% Period (n) = 1 Year

Q: Wolseley manufacturing Co. invests in a group of risky projects, which increases the unsystematic ri...

A: We know, as per Capital Asset Pricing Model (CAPM),  Re= Rf + [ (Rm - Rf) x Beta ] where, Re= cost o...

Q: The one-year spot rate is 8 percent and the two-year spot rate is 10 percent. What is the price of a...

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...

Q: You want to buy a motorcycle for $11,500 plus freight of $145 and other delivery charges of $125. Yo...

A: Cost = $11500 Freight = $145 Delivery charges = $125 Total cost = 11500+145+125 = $11770 Down paymen...

Q: An equity analyst from Jefferies & Co. expects Johnson & Johnson (NYSE: JNJ) current annual dividend...

A:

Q: You have just won the Super Duper Lotto. Although the prize is advertised as $30 million, you actual...

A: The present value of winning is calculated as present value of all cash flows. 

Q: An individual has $39000 invested in Stock A with a beta of 0.5 and another $35000 invested in Stock...

A: A portfolio is a set of varied investments made by an investor. Its beta is computed as the weighted...

Q: If your trust fund promises to pay you RM25,000 on your 24th birthday (6 years from today) and earns...

A: Promised amount (F) = RM 25000 n = 6 years r = 9%

Q: Alpha Corporation reported the following financial details for t ncial year 2021. Revenue is $250 mi...

A: The Earning per Share or the EPS are of two types that is the Basic EPS and the Diluted EPS. This me...

Q: Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What i...

A: Year 0 cashflow (CF0) = - $1000 CF1 = $450 CF2 = $450 CF3 = $450 r = 10% n = 3 years

Q: Calculate the Modified Duration of the following securities: 10 % semi-annual coupon maturating in 5...

A: Assume that the face value of the coupon is $1,000. Therefore, the Modified duration for security ...

Q: A company concerned about the liquidity of its near-cash securities should invest in U.S. Treasury b...

A:

Q: ZEC Corporation currently has 4 million shares outstanding. The stock sells for RM35 per share. The ...

A:

Q: Pinocchio Inc. has a total annual cash requirement of P9,075,000 which are to be paid uniformly. Sim...

A: Since you have posted a multipart question therefore we will solve the first three parts only. Howev...

Q: Use the Fisher Effect/equation. A $1,000 Par value, 3% Coupon bond with 10 years to maturity is tra...

A: The Fisher effect states that the nominal interest rate changes with the change in inflation. It is ...

Q: Loans - Loan of $ 12 million at 7.8% nominal interest capitalized monthly; - Loan of $ 5 million at ...

A: 1st Loan   $                                                                                        ...

Q: What is the present value of $5,000 paid at the end of each of the next 89 years if the interest rat...

A:

Q: identify the causes of loss that are covered under the broad form that are not covered. under the ba...

A: Loss is a situation in which a company is not bale to meet its financial obligations or payments or ...

Q: You arrange a mortgage from the Pinder Bank of Australia. The amount you borrow is $760,000 with pay...

A:

Q: # 5 Reynelds' stock has a beta of 1.21 and an expected dividend next year of $1.60 a share. The firm...

A: Beta 1.21 expected dividend 1.6 Risk-free Interest 2.5% Market return 10.6 % 

Q: Crisp Cookware's common stock is expected to pay a dividend of $2.5 a share at the end of this year ...

A: Dividend per share (D1) = $2.5 Beta = 0.6 Risk-free rate = 2.8% Market risk premium = 6% Current sto...

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.