Q: True or False. 1. Personal financial activities may fall into spending, saving or sharing…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: ibe how agency conflicts in multinational corporation can be addres
A: Agency problem exist in the corporation due to conflict of interest between the managers and…
Q: Carol has two job offers.One pays $655 per week, and the other pays $2,800 per month. Which is the…
A: As the given offers are not comparable, we can convert them into annual terms. Option 1 : $655…
Q: Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in…
A: The amount of proceedings will be discouraged value of money today of future principal amount to be…
Q: The 3-year spot rate is 6.35%, and the 1-year forward rate two years from today is 5.26%. the 2-year…
A: Pure Expectations Theory refers to the concept which tries to determine by predicting what will be…
Q: How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8…
A: Present value = Future value/(1+required rate of return)^n. Use PV Function in excel Future value =…
Q: At the start of every year Jane puts $100 into an investment that gets 5% interest at the end of the…
A: According to the requirement, question (b) is solved.
Q: uity X and Y provide the following payments: End of Year Y 1-10 1 K 11-20 2 21-30 1 K Annuity X and…
A: Annuity is a stream of constant regular payments.
Q: How are the Dow Jones industrial Average and the S&P 500 index different?
A: 1. DJIA tracks the stock prices of 30 large cap US companies. 2.DJIA is a price-weighted index 3.…
Q: A trader writes 564 January put options on common shares of Carnival Corporation & plc. Lot size:…
A: Strike price = $14.7 Option premium = $3.5 Underlying share price = $12.1 Number of options = 564…
Q: An analyst is studying the movement of the stock ABC. His research and came up with a different…
A: Probability of Economic conditions; Strong (Ps) = 0.30 Normal (Pn) = 0.50 Weak (Pw) = 0.20 Rate…
Q: a factory savings plan, a workman deposits P 25 at the beginning of each month for 4 years, and the…
A: The amount being deposited at each month and that money grow with time and interest and period of…
Q: Why is it important to prepare a financial budget? Explain what is meant by the term "time value of…
A: Financial statements are written documents that generally tells any company's various records or in…
Q: The cost price of 35 pairs of sport shoes was $350 per pair. AG Sport Center plan to sell all the…
A: Concept. Gross profit = selling price - cost of goods sold. Hence , Selling price = gross profit +…
Q: True or False. 1. Financial independence is the same as financial self-reliance. 2. Financially…
A: Financial independence is defined as the status for having an enough wealth or income for paying off…
Q: An analyst is studying the movement of the stock Philippines. His research and came up with a…
A: Total expected return (R) = 0.17 Probability of Strong economy (Ws) = 0.30 Probability of normal…
Q: The quoted rate of a short-term government security is 2%. A premium of 3% is added to the risk-free…
A: As per CAPM formula Required rate of return of the portfolio = Risk free rate+(Beta*Premium)…
Q: 1. John approached you with a business proposition to invest in a project. The Annual Cash Flows…
A: Cash flows are the cash generated from the operation of the business organisation. In other words,…
Q: Calculate the nominal and real return as well as the nominal and real risk premiums for the…
A: Real rate of return is the net return to the investor after adjustment of inflation. Return on…
Q: What is the total return of an equal-weighted index over the holding period given the following data…
A: Return refers to the additional earnings over the invested amount. Basically, it is a profit which…
Q: Find the value of the unknown quantity Z in the following diagram, such that the equivalent cash…
A: A diagrammatic representation of cashflows over a period of time is called cash flow diagram. Given…
Q: ou are given the financial information for the Unic Company: Earnings Before Interest and Tax…
A: Company Equity is the difference between the assets and liabilities of the company . We also…
Q: The asset has FC of 10 000 000 and is expected to last in 10 years with the salvage of 800 000.…
A: Depreciation as per Sum of years Depreciation First years = Sum of digits * ( Cost of asset -…
Q: duration __________ when maturity decreases. duration decreases when the coupon rate __________.…
A: The answer is option D. decreases/ increases/ increases duration decreases when maturity decreases…
Q: What is the change in price the bond will experience in dollars?
A: Bond Price: It represents the current value of the bond and is estimated by discounting the coupon…
Q: Speculating with Currency Call Options. ABC Inc., purchased 75,000 units call option on British…
A: An option is a financial derivative that gives the buyer the right to buy or sell the underlying…
Q: Melvin availed a loan from a bank that gave him an option to pay Php 25,700 monthly for 2 years. The…
A: In this Question, we have information i.e. Melvin availed a loan from a bank and he can repay the…
Q: 13. A discounted loan of $3,000 at a simple discount rate of 6.5% is offered to Mr. Jones. If the…
A: 1. Interest amount = (face Value - amount received = 3000 - 2869.11 = $130.89) 2. Time when the…
Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…
A: Annual Worth: It is the equivalent uniform yearly worth of all estimated receipts and costs…
Q: What is the future value of $20,000 in three years at an annual interest rate of 5%?
A: given pv = 20000 n=3 i=5%
Q: Question Owing to perennial complaints by students about the lack of accommodation problems on…
A: Before investing in new projects, profitability of the project is evaluated by using various methods…
Q: The real risk-free rate of interest, r*, is 3%. Inflation is expected to be 4% this year, 5 percent…
A: Bonds: It is an agreement by a borrower to pay a a money lender their principal and usually…
Q: our department is choosing between two technology projects to launch in the upcoming quarter.…
A: Net present value is the difference between the present value of cash flow and initial investment of…
Q: a. If the first payment is made four years from now, what is this grand prize really worth today?…
A: Present Value is the value of money in today at zero period for all the payments which is received…
Q: The market value of Lays Corporation's equity is 50 million $ and the market value of its debt is 27…
A: Cost of equity = Risk free rate + (Market rate of return - risk free rate) * Beta Weight of equity…
Q: You have $21,600 to invest in a stock portfolio. Your choices are Stock X with an expected return of…
A: To calculate the investment in stock X we will solve the following equation Portfolio return =…
Q: An investor has portfolio of shares consisting of P2,500 investment in each of twenty different…
A: Old beta of the portfolio (Po) = 3.00 New beta of the portfolio (Pn) = ? Beta of share sell (Bs) =…
Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: Find the interest due loan of 5,500 at 3/4% simple interest for 1/4 year, using exact interest
A: To calculate the interest amount we will use exact interest formula as follows: Interest amount =…
Q: The GS Co has a debt ratio of 30%. The unlevered beta of GS Co. is the 1.50 while the applicable tax…
A: As per formula Levered beta = Unlevered beta*[1+(1-Tax rate)*(Debt/Equity)] Where Unlevered beta =…
Q: Larry wants to make a decision on a six- year amortized loan for him to buy a new car. The value of…
A: Maximum amount of loan that Larry can pay in 6 years will be equal to the the present value of…
Q: A company has a choice of three investment schemes. Option I gives a sure $25,000 return on…
A: Option I: Expected Return = $25,000 As this return is guaranteed. Option II: Expected Return =…
Q: Gs Co. has insufficient retained earnings to fund capital expenditures and decided to issue new…
A: Floatation cost is the cost to be incurred on issue of new shares. Ke = (D1 /(P0 - F)) + G Where…
Q: A 1-year short-term corporate bond yields 8.50%. The stated rate for the short-term government…
A: Bond yield refers to the total return to the investors by investing in bonds. Bond yield reflects…
Q: Question 2 The Penny Wheel Company is considering the following two projects, but the firm can only…
A: The question is related to Capital Budgeting. 1. The Payback period is the length of time required…
Q: a. What is the debt/equity ratio for this firm in book value terms? In market value terms? b. What…
A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…
Q: Ken Allen, capital budgeting analyst for Bally Gears, Inc., has been asked to evaluate a proposal.…
A: Evaluating projects is the vital factor in investing in a new project because without evaluating and…
Q: Assume an investor with the coefficient of risk aversion A=5.5. To maximize her expected utility,…
A: Utility functions are used to measure the risk-reward tradeoff as the maximum return that a person…
Q: A P1,000 bond which mature in 10 years and with a bond rate of 5% payable annually is to be redeemed…
A: Par value = P1000 Coupon rate = 5% Coupon amount = 1000*0.05 = P50 Years to maturity = 10 Years Bond…
Q: Engr. Tongol borrowed money from a loan shark. He receives from the loan shark an amount of P…
A: Simple interest = Amount borrowed * Interest rate * (Number of months / 12)
17)
Analysts projected that Apple will have earnings per share 1$. The industry has average PE ratio of 33. What is the price of Apple?
Step by step
Solved in 2 steps
- What is the earning per share? I am trying to calculate the price to earnings ratio. The cost per share is $24.83 for 2016, 25.66 for 2015Analysts are projecting that Halyk Bank will have earnings per share of 3.55. If the average industry PE ratio is about 22.2, what is the current price of Halyk Bank?Suppose the average industry PE ratio for auto parts retailers is 20. Auto Zone's earnings per share is projected to be $1.90. If the current market price of the company's stock is $35, the stock is ____, indeed, the true value of this stock would be a. Overvalued; $10.53 b. Overvalued; $38 c. Undervalued; $10.53 d. Undervalued; $38
- Based on the data from the table, which company would you expect to have the highest projected earnings growth rate? D A B OC Company A B C D Estimated Estimated Projected P/E ratio EPS Price? 20 30 40 25 5 3 3 4 **May I ask for a solution and explanation to the problem for a better understanding. Thank you! 11. Using Lettuce Company data, what is the dividend yield ratio for years 1 and 2 respectively? a. 0.10; 0.090 b. 0.80; 0.09 c. 0.95; 0.05 d. 0.85; 0.089How would an increase in each of the following factors affect the AFN?1. Payout ratio2. Capital intensity ratio, A0*/S03. Profit margin4. Days sales outstanding, DSO5. Sales growth rateIs it possible for the AFN to be negative? If so, what would this indicate?If excess capacity exists, how would that affect the calculated AFN?
- Assume that two companies in the same industry have equal earnings. Why might thesecompanies have different price-earnings ratios? If a company has a price-earnings ratio of 20 andreports earnings per share for the current year of $4, at what price would you expect to find thestock selling on the market?A standard "money demand" function used by macroeconomists has the form In(m) = o +/In(GDP) +₂R Where m is the quantity of (real) money, GDP is the value of (real) gross domestic product, and R is the value of the nominal interest rate measured in percent per year. Supposed that ₁ = 3.83 and ₂ = -0.05. What is the expected change in mif GDP increases by 10%? The value of m is expected to by approximately% (Round your response to the nearest integer) What is the expected change in m if the interest rate increases from 3% to 7%? The value of m is expected to (Round your respon by approximately% ger) increase decreaseI need help on this question ASAP: A start-up technology company has projected earnings per share of $4.50. If the average technology industry P/E ratio is 30, what would the company's projected stock price be?
- Suppose a firm has had the following historic sales figures. Year: 2016 Sales $1,420,000 2017 $1,720,000 Next year's sales 2018 2019 2020 $1,600,000 $2,010,000 $1,770,000 What would be the forecast for next year's sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar. 27Suppose a firm has had the following historic sales figures. Year: 2016 2017 2018 2019 2020 Sales $1,530,000 $1,720,000 $1,560,000 $2,100,000 $1,850,000 What would be the forecast for next year’s sales using FORECAST.ETS to estimate a trend? Note: Round your answer to the nearest whole dollar.11. Assume a company has a payout ratio of 45 percent, a profit margin of 4 percent, a cost of equity of 10 percent and a growth rate of 2.5 percent. a. What is the forward price-sales multiple? b. What is the trailing price-sales multiple?