financial impact of lily taking out this payday loan? how do borrowers get trapped in an inescapable cycle of borrowing money when using this type of loan

Q: BCD Company offer its investors option contracts to buy their shares at a price of P50. Currently,…

A: Given, The spot price is P60 Risk free rate is 8.25%

Q: The following data are gathered: ·       The real risk-free rate is 1.05% ·       Inflation premium…

A: Treasury Bills: T-bills are the treasury bills issued by the government. These bills are risk-free…

Q: The following statements relate to derivatives. Which of the following is FALSE? a. Swaps may have…

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A: Credit Tranching:- It is a system which is generally used by the international monetary funds. under…

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A: Floatation cost is the cost to be incurred on issue of new shares.     Ke = (D1 /(P0 - F)) + G Where…

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A: Probability of Economic conditions; Strong (Ps) = 0.30 Normal (Pn) = 0.50 Weak (Pw) = 0.20     Rate…

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Q: explain what is mutual funds

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A: Rebalancing a portfolio It is a process by which the weights of the assets of a portfolio are…

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Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

A: Future Value = Present Value*(1+Interest rate)n Where n = Time period

Q: National Co. has a debt to equity ratio of 25% and a weighted average cost of capital at 25%. The…

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Q: Using the corporate valuation model approach, what should be the company's stock price today?

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Q: . A bank offers a 272 – day discounted loan at a simple discount rate of 12%. (a) How much money…

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Q: Suppose that the CAPM holds and that BP’s stock has a beta of 2. the required rate of return on BP…

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Q: What is Behavioral Finance and how does it relate to effective asset allocation? expand your answer

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A: As per the information provided: Principal (P) = $140,000 n = 5 g = 9% or 0.09 i = 13% or 0.13

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Q: How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8…

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Q: Ritter Sports Industries has preferred stock outstanding with a par value of $100. The stock pays a…

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A: Year Cash flow 0 -12200 1 2810 2 2810 3 2810 4 0 5 0 6 5550 7 5550

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Q: Cálčulăté the capital recovery for the following cash flow. Assume i= 8% per year.

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A: given that: Loan Amount=20000 Loan period= 20 years The excel formula is:

Q: Using the corporate valuation model approach, what should be the company's stock price today?

A: Free cash flow = (EBIT*(1-T)) + Depreciation exp. - Capital expenditure - Changes in working capital…

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Q: What is the present value of a 6% investment that would pay P30,000 annually perpetually?

A: To calculate the present value we will use present value of perpetuity formula as follows:   Present…

Q: There are many indicators that can be used to determine a community’s needs and resources. Which of…

A: The answer is option 4: Homeownership. Homeownership is not a community need and resource indicator.

Q: Modes of Payment Premium Factor Semi-annually 0.51 Quarterly 0.26 Monthly 0.0908 201.12 307.52…

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Q: How do anthropological perspectives on debt help us make sense of modern-day financial markets?

A: Whether focused on family or with kula, anthropology's attention to credit and debt stretches back…

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.