end paid dividend by average number of shares outstanding is equivalent to retained earnings. True  False

Q: 20. Ron and Sandy have purchased their first house. They borrowed $174, 000 for 30 years at an…

A: Solution:- Total monthly payment will be the monthly mortgage instalment and monthly portion of…

Q: You work for Apple. After toiling away on $9.9 million worth of prototypes, you have finally…

A: Net present value (NPV) NPV is a capital budgeting tool that helps to identify whether the given…

Q: 20. Ron and Sandy have purchased their first house. They borrowed $174, 000 for 30 years at an…

A: Solution:- Total monthly payment will be the total payment made towards the monthly mortgage…

Q: Currently the risk-free rate equals 5% and the expected return on the market portfolio equals 11%.…

A: Given: Risk free rate “Rf” = 5% Market return “Rm” = 11% Stock A Beta = 1.33 Stock B Beta = 0.7…

Q: Use the sinking fund formula shown to the right to determine the monthly payment needed to…

A: As per the given formula A(r/n) = 340,000(5%/12) =340,000(0.0041667) =1416.667   [(1+(r/n))n*t ] - 1…

Q: If there is a small probability of a risk occurring, a business may choose to assume the risk rather…

A: Risk management is the process through which companies detect, analyse, and address risks that may…

Q: You expect to save $450 at the end of each month for the next four years towards a car. Your parents…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: A businessman has a future liability of P200,000 and agrees to pay P47,720 annually for x years at…

A: Future value of a loan liability can be defined as the terminal value of all instalment payments…

Q: A service enterprise's working capital at the beginning of January was P70,000. The following…

A: Inventory: Inventory can be described as a good or material that a company holds for the purpose of…

Q: 1. Calculate the IRR for the following project with the following cash flows: an initial outflow of…

A: Solution:- Internal Rate of return (IRR) is the rate of return yielded by a project when we invest…

Q: 42. Managerial accounting is similar to financial accounting in that Group of answer choices a.…

A: Managerial accounting can be defined as an accounting process that takes account of all the internal…

Q: 5. The exam is not an open 1. Discuss the major categories of financial services available to users.

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: At the end of 2016, Susan had saved 65 000 € for her retirement. She plans to withdraw at the end of…

A: In order to calculate the periodic payment of an annuity, we are required to use the PMT function of…

Q: Stock price S=$21 Exercise price K= $20 Interest rate r = 0.08 Maturity T= 180 days = 0.5…

A: Options are versatile financial products. These contracts involve buyers and sellers, who pay a…

Q: True or False

A: Cash flow from Operating Activities: It refers to the amount of cash flow generated by the firm…

Q: Which of the following will decrease the length of the operating cycle?   1       Reducing the…

A: The answer is option D. All of the above.

Q: 18. You are borrowing $700,000 for 30 years at 6% annually. The lender is charging you a 2 point…

A: Effective interest rate simply means annual interest rate. It contrasts the interest rates of two…

Q: LMM Company’s total assets at the end of last year were P405,000 and its earnings before interest…

A: Total assets = P405,000 EBIT = P52,500

Q: A home appliance manufacturing company plans to invest what it considers "temporary excess fund" in…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: AL Enterprises purchases P4,562,500 in goods per year from its sole supplier on terms of 2/15, net…

A: Discount rate = 0.02 (i.e. 2%) Allowed payment days = 50 Discount days = 15

Q: Lobster Seafood Corp. is planning to build a new shipping depot. The initial cost of the investment…

A: The cost of capital is the amount of return that the company pays for its capital. The net present…

Q: The following financial information was provided by Anya Company: Net Income      8,255,000.00…

A: Given, Net income is 8,255,000 Tax rate is 35%

Q: On average, how much “free” trade credit does the firm receive during the year?

A: Per credit cycle purchase = purchases *time =450000*60/365 =P 73972.60

Q: 1. Diego deposited Php 1,000,000 on a bank that earns 20 % compounded annually. Five years later, he…

A: Future value of the amount deposit today can be found using the formula : Future value = Present…

Q: A company had average total assets of $3,225,000, total cash flows of $1,320,000, cash flows from…

A: Cash Flow on Total Assets Ratio: It is a ratio of efficiency and helps in measuring the amount of…

Q: Given the data below, what is the simple linear regression model that can be used to predict ales in…

A: Linear regression is used to determine the relationship between the scalar response and one or more…

Q: During the last few years, Jana Industries has been too constrained by the high cost of capital to…

A: The cost of preferred stock is calculated by dividing the declared dividend amount paid yearly on…

Q: Using the formula for YTM (yield to maturity) in the lecture, what is the rate of return for a bond…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: When the economy is weak, money is spent freely on needs and wants. True False

A: An economy is a large set of interrelated production, consumption, and exchange activities that help…

Q: You currently have $250,000 in your retirement account. What equal annual amount must you deposit…

A: Equal annual deposits into an account for a fixed number of times is called annuity. The future…

Q: Music producer, will receive royalties over a period of 3 years for the theme song she made for a TV…

A: In order to calculate the present value of all future royalties at the given interest rate, the…

Q: A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond…

A: Macaulay duration = Sum of weighted present values of cash flows from the bond/Price of bond…

Q: Question Content Area Ralston Consulting, Inc., has a $48,000 overdue debt with Supplier No. 1. The…

A: The best way to select the best financing option is the present value method. The present value…

Q: Which of the following is not an example of investing cash flows? A. payment for purchase of land…

A: Answer -  Cash flows from investing activities are cash business transactions related to a business'…

Q: On October 1, 2010, EEE Inc. issued, at 101 plus accrued interest, 800 of its 10 percent, P1,000…

A: In the given case - P1000 Bonds are dated 1st July-2010. The bonds are issued on 1st October-2010…

Q: 11.8100 11.2500 X

A: We can also do this by taking frequency 2 also i.e on semi annual coupon payment basis and we have…

Q: The following is a portion of the term structure of interest rates on a particular day: Current…

A: Expectation theory helps in estimating the short term rate of interest based on the long term…

Q: When estimating the cash flows on a given project, firms should include expenses from previous…

A: Cashflows on a project include all kinds of cash inflows and outflows related to the project from…

Q: Jude Corp. has annual sales of P50,735,000, an average inventory level of P15,012,000, and average…

A: Cash conversion cycle (CCC) It is the number of days required to convert cash (invested in operation…

Q: how was the trading of SAGE company in march 2022?

A: Buying and selling stocks regularly in an attempt to timing the market is known as stock trading.…

Q: Which of the following will shorten the cash cycle? Select one: A. An increase in the raw materials…

A: The answer is option D. An increase in the trade payables days

Q: Assuming that money is worth 10%, compute the present value of: 1. $14,000 received 15 years from…

A: Present Value: It represents the present worth of the future amount and is computed by discounting…

Q: Year                            Investment A…

A: Investment appraisal is a part of financial management. It deals with evaluating potential capital…

Q: What would you pay for a bond that pays an annual coupon of $45, has a face value of $1,000, matures…

A: Face value of bond (FV) = $1000 Annual coupon amount (C) = $45 Years to maturity (n) = 11 Years…

Q: The Company provided the following financial information: Assets 7,250,800.00 Tax rate 35% BEP 14%…

A: Times Interest Earned  ratio is calculated using the following formula: Times Interest…

Q: Suppose the current exchange rate is $1.77/E, the interest rate in the United States is 5.08%, the…

A: Here, To Find: Part a. Forward Exchange rate =? Part b. d1 and N1 =? Part c. d2 and N2 =? Part d.…

Q: An investor purchases 100 shares of XYZ at 60 and also writes an XYZ 65 call @3. 18. What is the…

A: Here, Details of Ques-18: Purchase Price of Share is $60 Number of Shares purchased is 100 Exercise…

Q: he financial statements showed the following: Operating income $2,750,000, Depreciation $1,350,000,…

A: Operating income = $2,750,000 Depreciation = $1,350,000 Change in working capital = $860,000 Tax…

Q: Compute the Payback statistic for the following project and recommend whether the firm should accept…

A: Cost of capital = 11% Maximum allowable payback = 3 Years   Time: 0 1 2 3 4 Cash…

Q: 7. What is the cost in real dollars today of spending $25,000 four years from now if your effective…

A:

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.