A car loan of $46,700 is amortized over 8 years by equal end-of-month payments at 2.9% compounded monthly. What is the amount still owing after 2 years? A. $36,019.15 B. $30,522.60 C. $43,208.24 D. $45,833.37

Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...

A: Annual Equivalent cost is the annual amount of expenditure incurred each year resulting in total pre...

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at...

A: Period of first payment from now = 7 Years (i.e. 8-1 = 7 Years of age) Number of annual allowance = ...

Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposi occ...

A: The today value is the present value of annual series considering the interest rate and given period...

Q: A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond ...

A: Face Value  $                                     100.00 Coupon rate 6.00% Time Period  10 Cur...

Q: You own a stock trading on 1/1 at 40 and on 12/31 at 43.50. What annual dividend do you need to earn...

A: Beginning stock price (P0) = 40 Ending stock price (P1) = 43.50 Let the annual dividend = D Required...

Q: Question 1 How much will an investor pay for a preferred stock that pays a $0.50 per share dividend ...

A: Dividend receivable = $ 0.50Required rate of return = 11.5% Formula = Dividend/ Required rate of ret...

Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant  has a cost...

A: Modified Accelerated cost recovery system (MACRS) Modified Accelerated cost recovery system (MACRS) ...

Q: Bartlett Co. wants to issue sixty 20-year, $1,000 par value, zero-coupon bonds. If each bond is pric...

A: Par value = FV = $1000 Years to maturity = n = 20 years Yield  rate = r = 7% Number of bonds = N = 6...

Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of 5...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner. The s...

A: Tax shield on depreciation =(6,300,000/4)*(0.36) 567000 After tax lease payment = 1745000*(1-0.36)...

Q: From the firm’s perspective, how are dividends different from interest payments?

A: Even though interest and dividend are two distinct ideas, both are critical components of a corporat...

Q: The display cases above were purchased at the beginning of the month and are being depreciated at a ...

A: A financial plan is a forecast of a company's cash flows over a set period of time  that is weekly, ...

Q: 6. An investment of P3,000,000.00 earns interest of 9% compounded continuously. the effective rate o...

A: Effective interest ratee is the interest considering the impact of the compounding on the interest a...

Q: what is a contract

A: A Contract A contract is an agreement between at least two parties or more that generates enforceab...

Q: The minimum required return by Cross-Ocean’s debtholders. 2.    The minimum required return by Cro...

A: Minimum Required Return: It represents the minimum return expected by the investors for investing i...

Q: ook Problem 17-03 An investor buys shares in a mutual fund for $22. At the end of the year the fund...

A: Annual rate of return the dividend received and also capital gain achieved on the initial purchase p...

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out ...

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To Find...

Q: . Compute the cost of equity for this project  2. Compute the relevant cost of debt for this project...

A: WACC: It represents the average cost of capital for the company. It is computed by adding the indiv...

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings...

Q: future value of the bond (the amount the bond pays in one year) is

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: a) Assess the financial performance of BWealth Ltd using the information given. b) Briefly explain ...

A: Financial KPIs (key performance indicators) are metric entities used to track, measure, and analyze ...

Q: The Ewing Distribution Company is planning a $100 million expansion of its chain of discount service...

A: Given, Amount required for expansion is $100 million  

Q: Car loan Planning to give his son a car as a gift when he graduates from college 2 years from now, A...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: The future value of four cash flows paying $100 at the end of each year starting three years from no...

A: Future Value: The future value is the amount that will be received at the end of a certain period. T...

Q: Assume that a UK family visits Spain every summer. Last year, the hotel room where they stayed was p...

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

Q: Tom Fong Music Inc., has an outstanding bond callable at $1,340. The total value of the bond is $100...

A: Bonds that can be called anytime before maturity are known as callable bonds. Yield to maturity is c...

Q: To start a new business Beth deposits $1000 at the end of each six-month period in an account that p...

A: Semi annual deposit (P) = $1000 Interest rate = 7% Semi annual interest rate (r) = 7%/2 = 3.50% Peri...

Q: The maintenance cost of a new equipment is projected to start at the end of the 2nd year at an amoun...

A: Cost in year n = Cn C2 = P 8000 C6 = P 10000 Uniform increase in cost = (10000 - 8000) / (6 - 2) = P...

Q: ble below is the information about three RM1000 par value bonds and each of which pays coupon semian...

A: The price of bond is present value of coupon payment and present value of par value of bond these ar...

Q: Dan bought 200 shares of a stock at P140 per share. A year later, he sold the stocks at P145.50 a sh...

A: Buying price = P 140  Selling price = P 145.50 Dividend = P 2.25

Q: Cal withdrew $800 from his HSA to pay for non-medical expenses. He had to pay 25% income tax plus a ...

A: Withdrawal Amount = $800 Income Tax = 25% Penalty = 10%

Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently bein...

A: NPV It provides the net present value or worth of an investment. If NPV is calculated considering al...

Q: In year 2018, the real rate of interest was 9 percent and infation was meesured at 3 perbent Whet wa...

A: Real Rate of Return = 9% Inflation = 3%

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which prod...

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4  

Q: us ways to manage the funds of a business ente

A: Step 1 It is a way of planning, organizing, managing, and analyzing financial resources to meet the ...

Q: Based on the table below, you invested 40% on Stock A and B and 20% on Stock Calculate the expected ...

A: Expected return The expected return refers to the profit or loss that is anticipated by an investor ...

Q: 4. You owe P120,000.00 from a friend that promise to pay 6% simple interest. How much will you pay a...

A: The easiest and simple method of calculating interest is simple interest. An interest rate is consid...

Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...

A: In finance we often use the average collection period as one of the financial metrics.  This metric ...

Q: I need help explaining the graphs, below  please.

A: Cash flow from financing activities: It shows the cash inflow and outflow from a company's financing...

Q: Identify methods for using and analysing working capital cycles ( max. 300 words )

A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...

Q: Required information An electric switch manufacturing company is trying to decide between three diff...

A: We will calculate the future worth of all the 3 methods. We will select the method which has the hig...

Q: Consider a one-year discount bond that has a present value of P1,500. If the rate of discount is 4 p...

A: Present value (PV) = P1500 Discount rate (r) = 4% Period (n) = 1 Year

Q: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an av...

A: Risk can be compared on the basis of coefficient of variation. Higher the coefficient of variation, ...

Q: Stock Y has a beta of 1.2 and an expected return of 11.5 percent. Stock Z has a beta of .80 and an e...

A: The risk-free rate of return is the theoretical return on a risk-free investment. Over a given perio...

Q: Maria loaned an amount of 100,000 in payable in 15 equals installments. The first payment was made a...

A: Loan amount (L) = 100000 Number of quarterly payments (n) = 15 First payment after 1 year (4 quarter...

Q: What amount will be paid at the beginning of every month for 10 years if the present value is 20O, 0...

A: The payment flow which continues for a definite time period and terminates after lapse of time perio...

Q: ZDL Ltd's earnings per share next year is expected to be $1.50 and the earnings are expected to grow...

A: Present value of growth opportunity (PVGO) refers to the valuation method used by the company to det...

Q: A loan of $6000 is being repaid with quarterly installments of P at the end of each quarter for 5 ye...

A: Given, Loan amount is $6000 Term of loan is 5 years rate is 12% Payment is made quarterly.

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts fo...

Q: a single bank faces a required reserve ratio of 20 percent, has total reserves of $500,000, and chec...

A: The maximum amount of money that this bank can increase is the amount of its excess reserves.  Amoun...