Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- st K Present value calculation Without referring to the preprogrammed function on your financial calculator, use the basic formula for present value, along with the given discount rate, r, and the number of periods, n, to calculate the present value of $1 in the case shown in the following table. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Opportunity cost, r 4% The present value of $1 is $ Number of periods, n 6 (Round to three decimal places.)arrow_forward$1,000×6%2? square root of 2?Please clarify im confused of your calculationarrow_forwardWhat is the factor form equation to get EUAB/Annuity (A) ?arrow_forward
- is there a $100 need to be deducted as per the $100 rule?!?arrow_forwardWhere does the $850 go?arrow_forwardSolve it using formulas, no tables correct answers: i) i^2 0.059126 > 0.0341 iii) P(wd) £73.34 per £100 nominal iv) using i* > 6% pa --> NPV(6%)= 2.78020 and NPV(6.5%) = 1.59578 therefore i= 6.32% pa and f=2.5% --> i'= 3.72% pa A fixed interest security pays coupons of 5% per annum convertible half-yearly in arrears. The security is redeemable at 110% at the option of the borrower on any anniversary date between 15 and 25 years after the date of issue. An investor, who is liable to tax on income at a rate of 25% and on capital gains at a rate of 30%, intends to buy the product exactly two months after issue for a price that gives a net effective yield of at least 6% per annum. (i) Determine whether the investor would make a capital gain if the bond is held until redemption. (ii) In what way does your answer to part (i) affect the assumptions made for calculating the issue price? Explain in general terms the reasoning behind your chosen pricing approach. (iii) Calculate the maximum…arrow_forward
- Suppose A=D+E, E=$350,000 and E/A=0.7. Solve for D.arrow_forward8arrow_forwardnnuity. Fill in the missing present values in the following table for an ordinary annuity: Future Value ate Data Table (Click on the following icon O in order to copy its contents into a spreadsheet) it Valuo $298 01 S3.396 92 S615 39 $2.459 07 6% 12% 2.5% 07% 18 0. 27 260 0. Print Done Check Aarrow_forward
- Cashbalance,beginning.....................P9 P ? P ? P? P?Add collectionsfromcustomers..... ? ? 125 ? 391Totalcash available................... 85 ? ? ? ?Less disbursements:Purchaseofinventory..................... 40 58 ? 32 ?Operatingexpenses............... ? 42 54 ? 180Equipmentpurchases................... 10 8 8 ? 36Dividends.......................... 2 2 2 2 ?Totaldisbursement.................... ? 110 ? ? ?Excess (deficiency) of cash availableOrdisbursements... ...................... (3) ? 30 ? ? Financing:Borrowings......................... ? 20 - - ?Repayments (including interest)*.. - - (?) (7) (?)Total financing......................... ? ? (?) (?) ?Cash balance, ending................... P ? P ? P ? P ? P ? *Interest will total P4, 000 for the year.arrow_forwardPlease help with answers asaparrow_forwardThe other photo is the example of the format of the supposed answer (solution and Excel). Thank you so mucharrow_forward
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