Based on the role of Islamic financial system, explain the ways that funds are transferred between surplus spending units (SSUs) and deficit spending units (DSUs).

Q: Q4. Samuel is planning to invest in a 12 year, 7% semiannual-pay, noncallable bond but is concerned…

A: Here, To Find: Part A. Current price of the bond =? Part B. Effective duration of the bond =?

Q: 1. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the…

A:

Q: Poonam wants to invest in an account today to have S4000 at the end of 8 years. If she can invest at…

A: As per the given information: Amount (A) = $4,000 Rate (r)= 4.25% Period (t) = 8 years To determine:…

Q: sume the change in price level in Nepal is 50% and is 5% in USA. Calculate the change in spot…

A: According to the PPP purchasing power concept the exchange rate must adjust itself against the…

Q: How would this affect its price, dividend, yield, and capital gains yield? Find the price today. D₂…

A: Given: Current dividend(D0) $1.60 Required return (rs) 10% Short term growth rate (gs) 20%…

Q: w does stretching out AP enhance cashflow?  be specific in terms of operating cashflo

A: Cash flow are very important for any firm because without cash no business can survive for much…

Q: Suppose that PIMCO buys $100m worth of 1-year par-valued Treasuries with a 2.5% coupon rate. Then,…

A: A repurchase agreement (repo) is a type of short-term financing for government securities dealers.…

Q: Serbanika Limited has issued share capital of 2 million common shares, par value $1.00. The board of…

A: Ordinary shares = 2,000,000 Right issue =1:4 shares Cost of Issue = $50,000 Par value = $1 Issue…

Q: e MIRR is a better measurement than the IRR.

A: Rate of return refers to the profit or gain measured in terms of the percentage of the investment…

Q: Q3b. Badawi is evaluating a stock that has a beta of 1.3. Currently, the risk-free rate is 1.5% and…

A: The capital asset pricing model is a model which will help in finding out the expected return as per…

Q: What is the present value of a constant perpetuity of $17 per year if the discount rate is 10…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

Q: c) The net cash flow for two projects, Coffee Shop and Hair Salon, are as follows: Year Coffee Shop…

A: NPV of cash flows will be its future cash flows discounted to its present value using discount rate,…

Q: ABC bought a piece of land in a highly developing area for a purchase price of P4,000,000. Directly…

A: Purchase Price                  P 40,00,000.00 Cots Incurred Buying                    P…

Q: Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory…

A: Absorption Costing and Variable Costing: Absorption Costing is a costing technique that includes…

Q: Carla deposits $1,000 in the bank and the bank is paying a 4% interest rate.  Assuming no other…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: The Buffalo News headline read “Start up by UB student sold for $250 million to major tech firm”.…

A: Present value of annuity With annuity (PMT), period (n) and interest rate (r), the present value is…

Q: Q2. The Dynamic Digital Corporation (DDC) pays no cash dividends currently and is not expected to…

A: Intrinsic value is calculated using dividend discount model.

Q: Cash Budget Activity Cash Receipts Less: Cash Disbursements Net: Cash Flow Add: Beginning Cash…

A: given The Details of cash for the months of Jan, Feb. Mar, Apr.

Q: Marty Corp is issuing a perpetual bond today that will pay $100 per year starting in 3 years. If…

A: Given: Particulars Amount Amount paid $100 Years 3 Cost of capital 5%

Q: TPPY investment in research and development has given it a techn advantage in manufacturing a…

A: The value of stock can found as present value of dividends and growth of dividends and present value…

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Time value of money (TVM) refers to the method or concept which is used to determine the amount of…

Q: he second part of question two was missed: It said to calculate the​ firm's operating return on…

A: Return on assets and return on equity are the two profitability ratios showing the efficiency of the…

Q: 9. Jenny took out a loan of X from the bank today. She has drawn a timeline for the loan and all the…

A: The $500 annual payment is in the form of an annuity. Hence we will have to find the present value…

Q: You would like to have $600,000 when you retire in 40 years. How much should you invest each quarter…

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Q: starting 1 year from today, you will get 20 annual payments of $1,000,000. But to get your money…

A: a) Part a of the question is an example of ordinary annuity. It means when regular payments are made…

Q: Which of the following will (holding everything else constant) cause the price earnings (P/E) ratio…

A: The price to earning ratio is the ratio of current market price with respect to the earning per…

Q: years, while most of the other project's cash flows occur in the later years. The two NPV profiles…

A: NPV is net present value is the difference between the present value of cash flow and initial…

Q: Current Attempt in Progress A county will invest $3,600,000 to clean up a chemical spill that…

A: The Benefit to Cost ratio is used to find out how risky the project is and to compare equivalent…

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

A: In-house production:  An activity or process that is carried out within a business rather than via…

Q: A clothing shop opened eight years ago. The first year it made $9000 profit. Each year  thereafter…

A: Let P = First year profit    Subsequent year profits will be,      = P*(1+g)^n       ; g =…

Q: b) A bond was issued on 1 July 2018. Below is the timeline of all cash flows payable by the bond…

A: A bond is a debt instrument that provides periodic interest to the owner and the face value at…

Q: Solve for the future value of $1,300 after 1 year invested at 4 percent if compounding is a) annual.…

A: Future value is the value of present investment in the future after compounding the present…

Q: Triangular Chemicals has total assets of $95 million, a return on equity of 44%, a net profit margin…

A: Net profit margin is the net income generated by the sales revenue of the firm for a specified…

Q: following: The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest…

A: Loan (mortgage) amortization schedule refers to a schedule which is prepared to shows the periodic…

Q: xplain why the Cedi continues to depreciate against most major international cur

A: Cedi the currency of Ghana depreciated due to many reason some are domestic and some are…

Q: A company wants to invest $619,932 today. The expected returns in years 1, 2, and 3 are $244,539,…

A: Net Present Value ( NPV) is a capital budgeting techniques which help in decision making on the…

Q: Question 1 of 6 A $270,000 house in Hamilton was purchased with a down payment of 20.00% of its…

A: A mortgage is a covered loan that is used for the purchase or maintenance of a property. The…

Q: Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The…

A: The Net Present Value: The net present value is a popularly used capital budgeting technique that is…

Q: FV(Quar.) = $100(1.03)20 = $

A: Future value is the value of the asset at a future date compounded at a particular rate. It tells us…

Q: Eric is interested to invest in shares. However, he realizes there would be a risk if he invests in…

A:

Q: b. John needs to pay $55,000, $60,000 and $65,000 at the end of next 3 years respectively. The…

A: i) Duration of the obligation will be,   = Σ( PV of CF*n) / Σ PV of CF    ;  PV of CF = Present…

Q: The Delgados have a gross monthly income of $6,000. Monthly payments on personal loans total $500.…

A: Gross Monthly Income is $6,000 Personal Loan amount is $500 Gross debt to service ratio is 33% Total…

Q: Kimchi Corporation is thinking about introducing a new surface cleaning machine. The finance…

A: Given, The Initial cost of investment is $15 million The discount rate is 16%

Q: 3. If instead their discount rate were 8%, how many years should they attend school? a. 9 years b.…

A: The Marginal rate of return: The incremental earnings that are estimated to be earned by spending…

Q: An investor has developed projections for an investment that will generate the following stream of…

A: The future value of cash flows will be reflective of the compounded value of investment in the…

Q: A share is worth $56.50 today according to the dividend discount model (DDM). A dividend of $1.30…

A: Dividend discount model is a method of estimating the value of a stock as the present value of all…

Q: 8. If Albert has a 1% discount rate and Bob has a 2% discount rate, all else equal, who would we…

A: The Marginal rate of return: The marginal return can be expressed as the gain/loss earned by…

Q: at t = 0 of $47,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is…

A: *Answer: . Given Information: Initial Outlay is $47,000 Cash inflows are $11,000 No. of years is 8…

Q: Find the annual financing cost (AFC) or a 30 day line of credit where the bank requires a 10%…

A: *Answer:  Data given: Loan amount                     =$214,296 Interest rate…

Q: AT&T Inc $20.60 Previous Close 20.66 Market Cap 147.475B Open 20.63 Beta (5Y Monthly) 0.69 Bid…

A: CAPM is the equation to calculate the required rate of return based on beta of stock and that is…

Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.