7. Your checkbook shows you have a $10,000 balance in your account. You write checks totaling $4,000 and make a deposit of $6,000. What is your disbursement float?
Q: An engineering firm estimates that its cost for employer sponsored health insurance will be $750,000…
A: Equivalent Annual Cost:It represents the annual cost of operating, owning, and the maintenance of an…
Q: Silver Polygon, Inc., has determined that if its revenues were to increase by 10 percent, then EBIT…
A: New Ebit of the firm = $100,000So, old EBIT before increase = $100,000/1.25=$80,000Let old…
Q: A $1,000 10% ten-year bond has semiannual coupons. It is purchased new at $880 and is redeemable at…
A: ytm = * 100where ,ytm = effective yield rate per coupon period.Interest = coupon amountRV =…
Q: A Residual Earnings Valuation (Easy) An analyst presents you with the following pro forma (in…
A: We have to first calculate the equity charge which is the cost of capital ( required rate of return…
Q: 28. Consider a bank dealer who faces the following spot rates and interest rates. What should he set…
A: We are given the following:- Exchange rates on the spot: - Bid: $1.42/€ - Ask: $1.45/€- Borrowing…
Q: 13. Changes to the security market line The following graph plots the current security market line…
A: The objective of the question is to calculate the new required return for Happy Corp. stock given…
Q: Xenia has had access to credit since she was 17 because her parents made her an authorized user on…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Break-Even in Sales Revenue, Changes in Variables Carmichael Corporation is in the process of…
A: The objective of the question is to calculate the break-even sales revenue for Carmichael…
Q: 3. In a statement of cash flows, a company investing in short-term financial investments and in…
A: The cash flow statement refers to the systematic representation of the cash inflow and outflow…
Q: During the boom years of 2010-2014, ace mutual fund manager Diana Sauros produced the following…
A: Average Return: The average return is a measure of the typical performance of an investment over a…
Q: On January 2, Year 1, the Lyndhurst Company Inc. a privately-held company, issued $1,000,000,…
A: bond amortization table for the Lyndhurst bondsDateInterest ExpenseInterest PaymentAmortization of…
Q: On the 18th July 2020, I purchased a 2.45%, 21st August 2030 CGB at a yield of 1.346%. then on the…
A: Assume: The par value of CGB=$1000Working Note #1Calculation of coupon payment:First year complete…
Q: 4. Rivoli Inc. hired you as a consultant to help estimate its cost of capital. You have been…
A: According to Gordon's growth model ,Po= wherePo= stock priceDo = current dividend paidg= growth…
Q: Fitzgerald Industries has a new project available that requires an initial investment of $5.1…
A: Net Present Value (NPV) is a technique of capital budgeting used to determine the profitability of…
Q: Problem 07.037 - MIRR calculation For the net cash flow series, find the external rate of return…
A: The MIRR is an improvement over the traditional Internal Rate of Return (IRR) because it addresses…
Q: Question 2. A company makes payments continuously at a rate of $200 per year. The payments are made…
A: Annual payment = $200Annual interest rate = 6.5%Future value period = 10 Years
Q: previous year. The modified duration calculated on January 1, 2014 is X. Given an annual effective…
A: The Annual Effective Rate (AER) is a financial metric used to express the annual interest rate on an…
Q: One day, Alice and Bob observe the following option prices (assume no bid-ask spread and r=0):…
A: Price at expiryProfit/loss on long 95 CEProfit/loss on 3 short 105 CEProfit/loss on 2 long 110…
Q: An investment has an expected return of 12 percent per year with a standard deviation of 6 percent.…
A: Mean return=12%Standard deviation=6%Calculate Z score and probability.
Q: You plan to purchase a car for $28,000. Its market value will decrease by 20% per year. You have…
A: Given:C = $28,000r=20%=0.20M = $0.485 (mileage reimbursement rate in the 1st year)g=10%=0.10m=15,000…
Q: Dividends on CCN corporation are expected to grow at a 9% per year. Assume that the discount rate on…
A: Given:D_1 = $0.50,r=12% or 0.12,g=9% or 0.09.
Q: Dinklage Corp. has 10 million shares of common stock outstanding. The current share price is $82,…
A: Common Stock :Number of Stocks = 10,000,000Current Selling Price = $82Dividend = $5.4Growth Rate =…
Q: Bruno terminated employment with Philip’s Bar and Grill (PBG) after completing five years of…
A: A vested profit-sharing plan is a retirement savings arrangement wherein employees gradually acquire…
Q: You have some extra cash this month and you are considering putting it toward your car loan. Your…
A: The objective of this question is to determine how much time will be reduced from the car loan if an…
Q: Your firm has an average receipt size of $155. A bank has approached you concerning a lockbox…
A: Average receipt size$155Checks per day$5,700Reduction in collection1Lockbox fees$115Daily interest…
Q: What will your homemade dividend be in two years? (Do not round intermediate calculations and round…
A: Firstly, we need to understand the concept of present value and future value in dividends. Since you…
Q: 15. Standard deviation can be used to measure a) Risk of an investment, b) Return of an investment,…
A: The correct answer is: a) Risk of an investment.
Q: Viation of return of 25 percent. Stock Y has a standard deviation of return of 5 percent. The…
A: Standard deviation of X=25%Standard deviation of Y=5%Correlation coefficient=0.5Weight of…
Q: How much finance charge will he get credit for if he pays the loan in full immediately?
A: A finance charge is the total cost of borrowing money or getting credit, which includes interest and…
Q: Assume that you take out a 30-year mortgage (360 months) with a face value of $425,000 and a stated…
A: The mortgage refers to the agreement of amount provided by a lender to the borrower as a loan for a…
Q: A farmer in mufulira, copper belt province of Zambia would like to introduce a new product .it has…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: Jose is a business partner in MakeMark LLC. Including Jose, there are 5 total partners in the…
A: In a cross-purchase agreement, each partner typically purchases life insurance on the lives of the…
Q: Suppose that a bank has made a large number of loans of a certain type. The one-year probability of…
A: WCDR (T,X)=N(N-1(0.015)+N-1(0.995) / = 0.127
Q: Rainbow Paints is discontinuing a line of paint that it purchased at $56 less 30% and 10% per 4-L…
A: Cost price of 4-L Paul = $56 less 30% and 10%If discount rates are x1 and x2, then cost price =…
Q: Your employer offers a 401(k) plan with a 23% match, and you set a goal of retiring in 28 years with…
A: Purchasing power is often considered in terms of "real" or inflation-adjusted values. Real…
Q: Question 11 of 25. Bart's investment property was condemned. His basis in the property was $100,000.…
A: Here, condemnation means the legal process by which government takes fully control of property by…
Q: Assumes Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with…
A: Current price of bond is the price which can be paid for purchase of the bond. It is also called…
Q: On September 14, Jennifer Rick went to Park Bank to borrow $3,600 at 9.25% interest. Jennifer plan…
A:
Q: Durbanet is an all-equity firm with 132,000 shares of stock outstanding. The book value per share is…
A: Earning per share =Net income / Number of shares outstanding.
Q: Assume that you own a $ 1 million par value corporate bond that pays 7% in coupon interest (3.5%…
A: Par Value of bond = $1 millionAnnual Coupon Interest = 7%Semi-Annual Coupon Interest rate = 3.5%Term…
Q: Connolly Co.'s expected year-end dividend is D1 = $1.00, its required return is rs = 11.00%, its…
A: growth rate = expected return - dividend yield = 11 - 6 = 5%dividend yield = dividend/pricePrice =…
Q: KADS, Incorporated has spent $450,000 on research to develop a new computer game. The firm is…
A: Asset cost $305,000Less: Depreciation charged ($171,625)WDV of machine at the time of sale…
Q: firm 142,000 shares and received net proceeds of $18.56 per share. Hirani & Tran served as the and…
A: Underwriters are intermdediaries that sell the stocks in the market on the behalf of the company and…
Q: Determine the 3-year spot rate given the following information about $1000 par value annual coupon…
A: The coupon rate refers to the fixed interest rate that is paid on a bond's face value. In the…
Q: You purchase a share of Under Armour stock for £50. One year later, after receiving a dividend of…
A: Stock is a capital market security that offers the investor an ownership interest in the company…
Q: t the beginning of 1995, General Motor's pension funds were underfunded by $9.3 billion. Even though…
A: Immunization Strategy Introduction: Immunization is a financial strategy used by investors,…
Q: How much will $7500 in savings today be worth 5 years from now if it earns 6%, compounded monthly?…
A: Compound = Monthly = 12Present Value = pv = $7500Time = t = 5 * 12 = 60Interest Rate = r = 6 / 12 =…
Q: 2/3 1. by by 2. 2. Explain why choosing a model by maximizing R² or minimizing ô is the same thing.…
A: The first part of the question is asking why maximizing R² or minimizing ô in a model is the same…
Q: A company finances its operations and growth opportunities, using common equity and debt. The…
A: Debt to Equity Ratio = de = 0.3Cost of Equity = ce = 14%Pretax Cost of Debt = cd = 5%Tax Rate = t =…
Q: Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Mean…
A: In the given case, we have provided the probability of each state of economy and their respective…
Step by step
Solved in 3 steps
- Interest on your bank balance: Suppose your bank account has a balance todayof $100. Consider the following time periods: t = 0, t = 1, t = 2, t = 12,t = 24, t = 48, and t = 60. Assume there are no deposits or withdrawalsin this account other than the interest that accumulates. (If you like, use aspreadsheet program to help you with this question.)(a) Compute your bank balance for these time periods assuming the interestrate is 1%.(b) Do the same thing for an interest rate of 6%.(c) Plot your bank balances for these two scenarios on a standard scale.(d) Do the same thing with a ratio scale.You have $141,000 on deposit with no outstanding checks or uncleared deposits. One day you write a check for $43,000. a. Does this create a disbursement float or a collection float? b. What is your available balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) c. What is your book balance? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)On May 27, you received your bank statement showing a balance of $1,026.34. Your checkbook shows a balance of $1,056.29. Outstanding checks are $245.50 and $377.20. The account earned $62.59. Deposits in transit amount to $705.24, and there is a service charge of $10.00. Calculate the reconciled balance. $29.95 $943.80 O $1,003.70 O $1,108.88
- On December 10, you receive your bank statement showing a balance of $2,984.86. Your checkbook shows a balance of $2,773.73. Outstanding checks are $389.81 and $172.56. The account earned $124.88. Deposits in transit amount to $471.12, and there is a service charge of $5.00. Calculate the reconciled balance. O $211.13 O $2,653.85 O $2,893.61 O $4,018.352. On your mother's birthday, you bought her a new iPhone from Best Buy. Assume that you made- your purchase by writing a check for $900, and the store promptly deposited your check in its bank. i. Using T-accounts, show the effect of this transaction on your bank and on the Best Buy's hank (after your check is processed and cleared by the Federal Reserve). ii. What happens to your bank's reserves? What happens to the reserves of Best Buy's bank? iii. Assuming the reserve requirement is 10 percent and your bank was holding no excess reserves initially, what is the level of excess reserves in your bank after the transaction? iv.List two possible methods your bank can employ to remedy its reserve deficiency.Use the information from the attached image to answer questions 10 – 14. This is Mason's monthly bank statement and check register. What is the ending balance on the statement? Answers A. $1,352.61 B. $1,257.23 C. $1,241.66 D. $747.61 Question11. What is the total of the outstanding deposits? Answers A. $20 B. $625 C. $605 D. $8 Question12. What is the total of the outstanding withdrawals? Answers A. $130.95 B. $87.38 C. $8.00 D. $43.57 Question13. What is the revised statement balance? Answers A. $1,241.66 B. $1,277.23 C. $1,233.66 D. $1,352.61 Question14. What is the revised balance of the check register? Answers A. $1,198.09 B. $1,257.23 C. $1,233.66 D. $1,291.66
- On December 15, you received your bank statement showing a balance of $2,275.34. Your checkbook shows a balance of $2,437.40. Outstanding checks are $225.50 and $356.10. The account earned $77.55. Deposits in transit amount to $805.21, and there is a service charge of $16.00. Calculate the reconciled balance. O $162.06 O $2,051.73 O $2,375.85 O $2,498.95Assume that a bank receives a deposit of $1,000 in cash, puts aside $200 as required reserves, and makes a loan of $800, these transactions imply that: the money multiplier is 10. the money multiplier is 5. the money multiplier is 4. the money multiplier is 2. the money multiplier is 2.On December 15, you recieved your bank statement showing a balance of $2270.32. Your checkbook shows a balance of $2433.33. Outstanding checks are $225.50 and $356.20. The account earned $77.52. Deposits in transit amount to $805.23, and there is a service charge of $17.00. Calculate the reconciled balance. options are: a. 163.01 b. 2046.79 c. 2372.81 d. 2493.85
- On December 10, you receive your bank statement showing a balance of $2,984.04. Your checkbook shows a balance of $2,775.93. Outstanding checks are $384.81 and $179.56. The account earned $127.88. Deposits in transit amount to $478.14, and there is a service charge of $6.00. Calculate the reconciled balance. a) $208.11 b) $2,654.05 c) $2,897.81 d) $4,026.55On December 3, you received your bank statement showing a balance of $5,055.06. Your checkbook shows a balance of $5,221.98 Outstanding checks are $934.22, $1,579.99, and $1,112.45. The account earned interest of $146.05. Deposits in transit amount to $3,931.63, and there is a service charge of $8.00. Calculate the reconciled balance.Naomi Greenwell fills out a deposit slip for her saving account. She deposits a check for $445.96. She also has $215.44 in cash and $23.17 in coins. What is her total deposit?