A stock has had returns of 11 percent, -8 percent, 6 percent, 21 percent, 24 percent, and 16 percent over the last six years. What is the geometric retúrn for this stock? O 10.82 percent O 11.13 percent O 11.31 percent O 11.42 percent O 11 47

Q: Nick’s Novelties, Incorporated, is considering the purchase of new electronic games to place in its…

A: Answer -   Part 1 -  The simple rate of return would be: Simple rate of return = Annual incremental…

Q: Calculate the property tax rate required to meet the budgetary demands of the community. Note: When…

A: Concept. Property tax rate % =       Total Taxes Required                      × 100…

Q: purchased a 10-year $200,000 variable annuity that based its rate of return the performance of a…

A: Th amount to be received from the annuity each month depends on interest rate earned  by the fund…

Q: An annuity with a cash value of ​$12,000 pays ​$2,050 at the beginning of every six months. The…

A: Annuity:  An annuity is the series of payments which is received or paid for a certain period of…

Q: 3. Pet Palace had a net income before taxes of $1,175,200. Calculate the net income after taxes.…

A: Net income after tax is calculated as net income before tax less taxes

Q: olly purchased a car. She paid ₱150,000 as down payment and pays ₱5,500 at  the end of each month…

A: A part of the cost of an asset paid at the time of purchase of an asset is known as a down payment.…

Q: Locust Inc. owes ​$20,000.00 to be repaid by monthly payments of ​$510.00. Interest is 6​%…

A: Since you have asked a multiple subpart question, we will answer the first three subparts for you.…

Q: The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state’s…

A: Given that: Mr. Ormsby won the week’s grand prize totaling $1.06 million.  He will receive his prize…

Q: An amount of $29,200 will provide 9 years of payments of $2,518.50 at the end of every 6 months.…

A: Present Value  $                 29,200.00 Time Period 9 Semi Annual Payment(P/Y)  $…

Q: 1.886 1.859 1.833 | 1.808 | 1.783 | 1.759| 1.736 1.713 1.690 1.668 | 1.647 1.626 1.6051.585 1.566 |…

A: Present Value = Annual Installment received * PVIF( r, n) = 53,000 * PVAF( 10%, 20) ( from annuity…

Q: 2. A loan amounting to P1.5 million was secured dated, June 1, 2010. The loan should be paid by…

A: The retirement of debt is the process by which amount lent is repaid by borrower to the lender for…

Q: You have a bond with the following features: - Semi-annual coupon payments. - Coupon rate 7.60%.…

A: Macaulay Duration is calculated using the below formula: Modified Duration:

Q: What would be r in this problem? A $100,000 loan is to be paid monthly for 2 years with an interest…

A: Here, Loan Amount is $100,000 Time Period is 2 years Payment Period (p) is Monthly i.e 12 Interest…

Q: What is the discounted value of payments of $120.00 made at the end of each month for 7.5 years if…

A: Given, Monthly payments $120 Term is 7.5 years Rate 8% compounded monthly

Q: Question 18 Hamilton Company invested in a two-year project having an internal rate of return of…

A: Solution:- We know, Internal Rate of Return (IRR) is the rate of return the project is yielding ie.…

Q: KK Industries is a division of a major corporation. Last year the division had total sales of…

A: Given: Particulars Amount Total sales $23,380,000 Net operating income $2,828,980 Operating…

Q: A firm’s current balance sheet is as follows: Assets $ 150   Debt $ 30         Equity $ 120 What is…

A: Cost of Capital or Weighted average cost of capital (WACC) is determined as below:

Q: Investment - Total Rate of Return. Bailee purchased 475 shares of Millersview Corp. at $22.78 and…

A: The sum of capital yield and the dividend yield is known as the total yield on stocks. The dividend…

Q: Which of the following coupon bonds have the highest yield to maturity (YTM)? Notation: P = Current…

A: Solved Using Financial Calculator

Q: Consider the following date of Labanos Company: Year Investment Cash Inflow 1 4,000 1,000 2 3 2,000…

A: Payback period = Initial investment/Annual cash flow The above formula is useful if their is a…

Q: Compute the present value of growth opportunities if the dividend payout ratio is 35%, the return on…

A: Here, Dividend Pay-out Ratio is 35% EPS is $5 Risk Free Rate is 4.2% Company's Risk Premium 5%…

Q: Solve the following problems. Provide proper solutions. 1. Given the information below and 15…

A: Net present value (NPV) is calculated as: = Present value of inflows - Present Value of outflow If…

Q: 2. Mike purchases a bicycle costing $176.90. State taxes are 4% and local sales taxes are 3%. The…

A: The total price paid to buy a good is known as the purchase price. It includes list price, taxes,…

Q: . Grace Kennedy’s 2019 earnings per share (EPS) were $4, and its growth rate during the prior 5…

A: Given: EPS at 0 time=$4 growth rate=12% To find: Time taken to get EPS doubled =n

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A: To specify:Calculation of weighted average cost of capital

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A: We know that Interest is calculated on outstanding balance. Interest = Outstanding Balance x Rate of…

Q: ABC Manufacturing Company is planning to reduce its labor costs by automating a critical task that…

A: The present value method is a method of finding the profitability of a project by discounting the…

Q: ase solve within 15 minutes I will give thumbs up to you)

A: Given,  Price of car            = $12,000 Down payment      = 25%                                 =…

Q: What is the present value or price of a 10 year $20,000 annuity with an interest rate of 5% $1.9M…

A: Present value of annuity can be calculated as: = Annuity * Present Value annuity factor (i%, n…

Q: Suppose a ten-year, $1,000 bond with an 8.9% coupon rate and semiannual coupons is trading for…

A: Given: Bond par value=$1000 Coupon interest rate=8.90% Number of years=10 market price=$1035.78…

Q: Market participants, including financial institutions, fund managers and corporations, must…

A: Business cycles are periods of economic expansion followed by periods of economic contraction. They…

Q: How much approx., would be the FW of $30,000 be worth after 50 years if a rate of 10%/yr (compounded…

A: Solved using Financial Calculator  PV = +/- 30,000 N = 50*12 = 600 I/Y = 10/12 = 0.8333 CPT FV =…

Q: monthly payments for th

A: Monthly payment refers to the amount which is due and paid in regular intervals to an organization…

Q: On the basis of the information that John has collected, what estimate can he make of the real rate…

A: Real interest rate (constant dollar interest rate) refers to those interest rate of the company…

Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…

A: a) Solved using Financial Calculator  N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…

Q: 3% compounded annually, what was the equivalent uniform annual cost for the 12-year period? Include…

A: An item of expenditure on a capital asset that brings back the asset to its working position is…

Q: ._______ An offer to purchase the stock of a firm targeted for acquisition.

A: Step 1    A takeover bid is a business transaction in which one firm bid to buy another. The target…

Q: John already has $55,600 today in his savings account earning 5.5% compounded semiannually. The…

A: Here,

Q: 6. Calculate the capitalized cost of a project that has an initial cost of P3, 000,000 and an…

A: Capitalized cost is referred as an expenses that are added to the cost basis of the fixed asset on…

Q: What is the difference between yield to maturity on outstanding debt and coupon rate? Which is a…

A: Solution of Question 6: The yield to maturity (YTM) is the annual percentage rate of return on a…

Q: A new oven wil save s00 per year in electricity expense. How much can we aford to pay for ths oven…

A: Here, Annual savings = $90 Time period = 13 years Interest rate = 16% To Find: Affordable amount of…

Q: A debt of ​$40,000 is repaid over 12 years with payments occurring annually. Interest is 4%…

A: Effective annual interest rate If the interest rate has compounding other than annually, the…

Q: 1. Differentiate stocks from bonds; and stockholders from bondholders.

A: Since you have posted a question with multiple questions, we will solve the first one for you. If…

Q: Manjean is making car payments of $662 per month for the next 3 years. Manjean knows that the car…

A: Formula Car price = P*[1-(1+I)-N]/I Where P - Monthly payment i.e. $662 I - Monthly interest rate…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The present worth is calculated as sum of present value of the cash flows.

Q: Fraser Company will need a new warehouse in seven years. The warehouse will cost $350,000 to build.…

A: Present Value  = Future Value/( 1 + Interest Rate)n Where, N = Time period a) When Interest rate is…

Q: In some banks the interest on the deposit depends on the amount on the account. Derive the…

A: Given in this question, Savings account balance grows, at each instant of time, at a proportional…

Q: A $5000 bond bearing interest at 3.4% payable semi-annually is due in 12 years. Money is worth 8.0%…

A: Coupon rate is the rate that provides the amount of payment to be made to the holder at the…

Q: It is the responsibility of the board of directors to: * Ensure that the financial report is O…

A: The board of directors is the top-level management of the company elected by the shareholders. The…

Q: Stretching payables refers to postponing payment of bills to their due dates or last date of…

A: The Cash Conversion Cycle (CCC) is one of the various quantitative indicators that may be used to…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.