Define each term and state three characteristics for each term a- Pay-back period b- Discounted Pay-back period C- Internal Rate of Return (IRR)
Q: much of the value of the account can be attributed to the interest earned? 5)You want have $12,000…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Suppose the market risk premium is 6% and the risk-free interest rate is 6%. Using the data in the…
A: Risk free rate = 6% Market risk premium = 6% Starbucks beta = 0.80 Hershey beta = 0.33 Autodesk beta…
Q: You are working as a financial advisor for Bradford financial Services Ltd based on Leeds Road which…
A: Investment options: An investor with an objective of investment has several avenues available for…
Q: Ms. Rahat hails from a business family. She is considering starting a supermarket with an investment…
A: The IRR is one of the methods of finding the profitability of a project. It is the rate at which the…
Q: Its coupon As a bond approaches maturity, its value is approaching $1000 plus the discount or…
A: Bond: It is a debt instrument issued by the company for raising capital and the bondholder receives…
Q: LO1 Show the reasons why the net present value criterion is the best way to evaluate proposed…
A: Since you have posted a question with multiple questions, we will solve the first one for you. If…
Q: total return will you have earned over the year? What was your dividend yield? Your capital gain…
A: Given Information: Purchase Price (Po) = $101 Expected Dividend (D1) = $7 Expected Price after 1…
Q: 9. Which of the following is not a limitation of the proprietorship form of business? a. Unlimited…
A: A sole proprietorship is a business owned, managed, and managed by one individual. The sole…
Q: 品 Check my work Consider the following information: Probability of Rate of Return if State Occurs…
A: The expected return is the return rate at which investors want or expect from a particular…
Q: A car costing $ 48182 is purchased with a 25% down payment and further payments of X at the…
A: The act in which one person or entity provides funds to another person for defined term and agreed…
Q: The after-tax cost of debt of Company XYZ Ltd is 4.5%. The systematic risk of its equity is twice…
A: After-tax cost of debt is 4.5% Market Beta is 1 Beta of Firm = 2* market Beta = 2 Risk free rate is…
Q: Please show the formula used. At age 30 you deposit 150 pesos at teh end of each month into SSS…
A: The interest earned at the end of the period can be calculated with the help of future value of…
Q: Suppose when you are 52 years old, the yearly statement you get from the Social Security…
A: In this case, the $620 can be thought of as the future value and the real purchasing power value can…
Q: eligible for redemption before it is due to b
A: A callable bond, also known as a redeemable bond, allows the issuer to redeem it before the maturity…
Q: Year Net Cash Flow Alt 1 Net Cash Flow Ali PhP 11,000 - PhP 5000 5,000 2,000 4,000 3,000 3 3,000…
A: Capitalized cost is present value of all cost and benefits that are worth today considering interest…
Q: Return 19.34% 6.99% 38.99% Deviation of retums 6 prediction interval of the S&P500 is between % and…
A: When returns are normally distributed than we can use z score from table available and get…
Q: We must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine,…
A: Projects cash flows at year 0 will be the sum of the following Cash flows year 0 =Purchase price…
Q: Question 3a continued. The coupon rate experienced by the investor is Y percent. What is Y? 0.1…
A: The coupon rate is the annual interest rate on the bond. The capital gains yield in the capital gain…
Q: Compute for the bank's income if a client will purchase USD375,000 @ P50.76 = $1 based on P50.30…
A: Purchased currency = $375,000 Transaction exchange rate $1 = P50.76 Benchmark exchange rate $1 =…
Q: Assume Evco, Inc. has a curent stock price of $47.26 and will pay a $2.25 dividend in one year: its…
A: Stock Price: The price of a stock represents the current value of a buyer and seller with respect…
Q: Term policies provide a O death benefit and a savings component. O death benefit only. O savings…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Kirk, Klein & Co. requires $108,000 fifteen years from now to retire a debt. A sinking fund (a) What…
A: Loan: It is the amount due to the lender by the borrower and the borrower pays periodic payments to…
Q: What’s one personal finance lesson that you find important?
A: Handling the reality of personal money may be difficult, even for an adult with a lot of…
Q: hat is the contribution of fintech in developing a single financial market?
A: Fintech is the use of technology and computer and internet for the field of finance and banking and…
Q: business purchases 3 new press machines for $150,000 each or a total of $450,000. It borrows…
A: Total cost of assets purchased to the loan taken for assets would give the loan to value ratio.
Q: Suppose the risk-free return is 3.5% and the market portfolio has an expected return of 11.9% and a…
A: a) Beta with respect to market: = (Volatility of Security * Correlation of security with market)/…
Q: The real risk-free rate of interest is 4%. Inflation is expected to be 3% this year and 4% during…
A: Treasury Bills (T-bills) and Bonds are the securities that provide stagnant returns to investors as…
Q: There are six laws that regulate consumer credit in the United States. The one that protects credit…
A: The Correct option is 'a. Fair Credit Reporting Act'.
Q: T
A: The price at which an asset is available for sale in the marketplace is known as market value. This…
Q: Albula Company's beta is 1.4 and its tax rate is 25%. If it is financed with 20% debt, what is its…
A: Since you have posted multiple questions, we shall be solving single question for you. In case you…
Q: On January 1, 2009 Tonks Hair Products Inc. issues $500,000 of 10 year, 7.5% bonds. The bonds pay…
A: Date Amount Particulars 1.1.2009 $500,000 10 years,7.5% bonds (5000 Bonds @ $100)…
Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…
A: Data given: Purchase price (P0)= $50 per share Dividend per share per year = $2 i.e., D1=$2, D2= $2…
Q: The mound-shaped yield curve in the figure above indicates that short-term interest rates are…
A: Yield Curve: It is a graph depicting how the interest rates (yields) on debt instruments like bonds…
Q: Which type of bond is likely to pay a coupon payment that is varying (i.e. it changes over time) ? O…
A: Correct Option is 'B. Tips'.
Q: ou expect that the index will experience a gnificant drop in the next 4 months. What would e the…
A: The option are used for hedging the current position in the market and used quite extensively to…
Q: Present the internal rate of return criterion and its strengths and weaknesses.
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: A year ago, an investor bought 200 shares of a mutual fund at $7.58 per share. This year, the fund…
A: Here, No. of Shares Purchased is 200 shares Purchase Price per share is $7.58 Dividend per Share is…
Q: Green Grow Energies, Inc. reported a taxable income of $87,599,200 last year. What was their net…
A: 1) Corporate Taxes Paid: The corporate tax rate is 21%. So, Corporate tax = $87,599,200 * 21% =…
Q: A tax-advantaged pension plan, such as a 401(k), that both employer and employee may contribute that…
A: 401(k) is a defined contribution pension plan in which employee and employer can make contributions…
Q: Question 1 You borrow 1000 from a friend at a simple interest rate of 6% for 4 years. Calculate the…
A: Question 1: Given that: Borrowed amount(P)=1000 Simple Interest rate (R) =6% T=4 years
Q: The current level of the SPX stock index is 4,475. You expect that the index will experience a…
A: SPX - SPX options are European style option meaning it can be exercised only on the expiration date.…
Q: You are asked to invest $30 million in a bond portfolio consisting of only two bonds. Bond A has a…
A: Concept. Bond duration is way of measuring how much bond prices are likely to change if there is…
Q: If you make quarterly payments of $2000 how much will you have saved in 25 years? Instead, if you…
A: Rate of Interest = 3.5% p.a. compounded quarterly Calculation of Future Value of Annuity FV = A…
Q: Exercise 2: 1. An investment amounting to P300,000 has an annual interest of 4%. How much discount…
A: Simple interest is the interest without compounding that simple plain interest is calculated over…
Q: Practice B. I Total asset is PHP750,000. Sales is PHP1,500,000. What is the total asset turnover? 2.…
A: Accounts receivable turnover = sales/Accounts receivable
Q: give three examples for each context. 1.Portfolio analytics
A: Standard disclaimers “Since you have asked multiple question, we will solve the first question for…
Q: d short 700 shares of XYZ Company at $43 per share. The initial margin requirement was 60%. (The…
A: Shares are bought and sold on the basis of some margin and some loan from broker and they are…
Q: 4. For the mortgage payment example in Chapter 17, use the Scenario Manager to create a report…
A: Monthly payment: A mortgage is a loan used to buy or maintain a home, land, or other sorts of real…
Q: You have $19,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…
A: Here, Stock portfolio = $19,000 Stock X return = 15% Stock Y return = 10% Expected return of the…
Q: 3. Mr. Francis worked on a regular holiday that falls on his rest day. He rendered 12 hours of…
A: Overtime hours = 12 Hourly rate = P 125
Step by step
Solved in 2 steps
- Which of the following ROIs uses the income computed under the accrual basis? A. Accounting rate of Return (ARR) B. Internal rate of return (IRR) C. Payback reciprocal D. True rate of returnWages payable is classified as : a. Current asset b. Long term liability c. Fixed asset d. Current liabilityDescribe the rules of accounting rate of return.