How much will Cyrus receive 5 years after his last deposit if he deposited 1,092 Php annually for 10 consecutive years? Assuming money is worth 7.775%.
Q: Securities that plot above the security market line (SML) are undervalued. Select one: True…
A: The capital asset pricing model (CAPM) and security market line (SML) are used to calculate the…
Q: The First National Bank is offering a 4 year certificate of deposit (CD) at 4% interest compounded…
A: Compound Interest The interest received over the principal amount and the interest received from the…
Q: 1. Gabrielle's student loan of $27,000 at 4.12% compounded quarterly was amortized over 5 years with…
A: Here, Particulars Values Loan Amount $27,000.00 No. of years 5.00 Interest rate 4.12%…
Q: The price of a stock, which pays no dividends, is $30 and the strike price of a two-year European…
A: The risk-free rate "r" is 8% Compounded continuously The strike price is $25 The stock price is $30…
Q: Janex PLC is a multi-divisional organisation manufacturing four different product lines. The…
A: Absorption costing is the method of determining direct and indirect costs related to each division…
Q: What is finance
A: Finance is the very important in modern econpmy and no company can survive and think without finance…
Q: 5. Bond yields Coupon payments are fixed, but the percentage return that investors receive varies…
A: 5. Given: YTM is the rate of return expected from a bond held until its maturity date. Data given…
Q: 5. Jenna received a 15 year loan of $375,000 to purchase a 5.10% compounded semi-annually. a. What…
A: Loans are paid by the fixed monthly payments and these payments carry the payment for interest and…
Q: You would like to provide $113,000 a year forever for your heirs. How much money must you deposit…
A: Any regular periodic payment made till infinity is regarded as a perpetual annuity. The current…
Q: You enter into a 9-month forward contract on a non-dividend paying stock when the stock price is £38…
A: Given: Spot price = £38 Periods = 9 months Interest rate = 10%
Q: A company has a £10 million portfolio with a beta of 0.8 to the stock market. The futures price for…
A: Given: Particulars Amount Portfolio £10 Million Beta 0.8 Future price 500 Multiples…
Q: Island News purchased a piece of property for $1.46 million. The firm paid a down payment of 20…
A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…
Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 7 percent coupon rate.…
A: A bond is used by companies to raise capital from investors rather than traditional institutions. It…
Q: The reasons why a company might NOT engage in CSR iitiatives are because _______. It is only for…
A: CSR (Corporate Social Responsibility) is the strategy that motivates the organization in…
Q: Mike's parents decide to deposit an amount of money at the end of every month into a bank account…
A: Annuity is a series of equal receipts/payments made at a regular interval of time over a fixed…
Q: Your division is considering two projects with the following cash flows (in millions): 2 + $9 $7…
A: Npv or Net present value is calculated as the difference between the present value cash inflows and…
Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…
A: The average daily balance is the estimation of the amount on which the interest has been calculated…
Q: A recent edition of The Wall Street Journal reported interest rates of 9.75 percent, 10.10 percent,…
A: The forward rate refers to the price on which all the parties agreed on who is involved in the…
Q: Why is it the same company can be a saver and a user of funds?
A: There is flow of money in the system from saver of money to the who need money and all this is done…
Q: Calculate the WACC of a given company according to the following information. Common Stock: 200,000…
A: Weighted average cost of capital is weighted cost of debt, weighted cost of eqiuty and weighted cost…
Q: The domestic currency price of a unit of foreign currency 0.70 and the domestic and foreign…
A: We have to find the forward rate based on spot rate and interest rates.
Q: A project capitalized for P 50,000 in depreciable assets will earn a uniform annual income of P…
A: The process through which an entity evaluates any investment or project's profitability and decides…
Q: classified stock founders’ shares American depository receipts (ADRs) Euro stock Yankee stock market…
A: Source of finance The required funds can be raised from various sources as needed. If money is…
Q: Globe telecom purchased a microwave radio equipment for P 6,000,000. Freight and installation…
A: Depreciation The reduction in the value of an asset due to its continuous use over its useful life…
Q: loan is repaid monthly and the annual effective interest rate is 6.9% pe nnum. The capital…
A: Loans are paid by the equal monthly installments and these monthly installments carry the payment…
Q: you have developed the following pro forma income statement for your? corporation: it represents the…
A: Variable costs will change by the same percenatge as the percentage change in sales. Hence when…
Q: Public relations specialists create and maintain a favorable public image for the organization they…
A: The down payment is the cash payment when a purchase is made. The down payment decreases the amount…
Q: You enter into a 9-month forward contract on a non-dividend paying stock when the stock price is £35…
A: Forward price is calculated using following equation Forward price = S0×1+rt Where, S0 is spot price…
Q: A 5-year Treasury bond has a 4.55% yield. A 10-year Treasury bond yields 6.4%, and a 10-year…
A: Data given: Description Data 5 year Treasury bond yield 4.55% 10 year Treasury bond yield…
Q: Companies often come across projects that have positive NPV opportunities in which the company does…
A: The NPV of a project is used to find out the profitability of the project by discounting the future…
Q: 3) Which three of the following factors are most likely to lead to a stable dividend policy? A)…
A: The term dividend refers to that part of profits of a company which is distributed by the company…
Q: 7. Suppose you find an investment account that you decide to contribute to every month over the…
A: Future value is calculated to determine the worth of an investment in the future date if a…
Q: What makes business successful
A: The business is an activity which is generally done with view of making profit and businesses are…
Q: The effective convexity of with a high price of $100.73, a low price of $99.24, and a current price…
A: Bond price and bond yield are inversely related. As the price of a bond goes up, the yield…
Q: Consider the candlestick below, you can conclude that the open price is higher than the close price…
A: Candlesticks color is generally displayed as green and red candles or white and black candles…
Q: Suppose the market risk premium is 6% and the risk-free interest rate is 5% . Using the data in…
A: Given The risk free rate is 5%Market risk premium is 6%
Q: Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would…
A: Beta denotes systematic risk while standard deviation measures total risk of a firm. Beta number…
Q: You want to buy a $130,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…
A: Down Payment The first payment made by a buyer for a credit purchase is called a down payment. The…
Q: A couple buys a $190000 home, making a down payment of 23%. The couple finances the purchase with a…
A: Individuals and couples usually take loan when they buy homes because of the fact that houses are…
Q: You borrow 112000 for 10 years from a bank in order to renovate your flat. The effective interest…
A: Whenever a loan is taken or some amount is borrowed by a person he wants to calculate the repayments…
Q: Based on the information above, the capital gains yield for the coming year is closest to A. 9.08%.…
A: The required return on a stock consists of the dividend yield and capital gains yield. The capital…
Q: 1. Gabrielle's student loan of $27,000 at 4.12% compounded quarterly was amortized over 5 years with…
A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…
Q: Foreign Complexities. Capital budgeting for a foreign project is considerably more complex than the…
A: Capital budgeting is the process by which companies choose new projects based on the value they add.…
Q: Complete the following: Invoice Jan. 26 Date goods are received Terms 4/10 EOM Last day of discount…
A: The time between the final day that the discount terms are still in effect and the date when the…
Q: A bond has a Macaulay duration of 5.5, a yield to maturity of 6.2%, a coupon rate of 6.5%, and…
A: Macaulay duration is the number of years it will take to recover the cost of the bond. However,…
Q: Project A Project B 0 F -$20 -$13 1 $5 $8 million a. What are the projects' NPVs assuming the WACC…
A: Capital budgeting Investing decisions for long-term investment can be taken with the help of capital…
Q: 1. A fund manager announces that the fund's 95% VaR one month is 6% of the size of the portfolio…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 4. A design studio received a loan of $5,500 at 4.30% compounded semi-annually to purchase a camera.…
A: Particulars Values Loan amount $ 5,500.00 Time period 3…
Q: Acme Co is considering an acquisition of Pinder Co at the end of the current year. Acme expects to…
A: Commercial transactions termed mergers and acquisitions occur when the ownership of one company or…
Q: -11 Present values For each of the cases shown in the following table, calculate the present value…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Step by step
Solved in 4 steps with 4 images
- Derek will deposit $1,169.00 per year into an account starting today and ending in year 5.00. The account that earns 7.00%. How much will be in the account 5.0 years from today?Derek will deposit $4,619.81 per year for 13.77 years into an account that earns 14.27%, The first deposit is made next year. How much wil be in the account 43.96 years from today?Carla Lopez deposits $5, 200 a year into her retirement account. If these funds have an average eaning of 6 percent over the 40 years until her retirement, what will be the value of her retirement account?
- Carla Lopez deposits $2,500 a year into her retirement account. If these funds have an average earnings of 5 percent over the 40 hears until her retirement, what will be the value of her retirement account?How much should Mr. Sy invest on a bank that offers 10% interest so that he would earn Php1,000 each year in perpetuity.To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine years after, he deposited another 10,000. How much will be available at his retirement?* Find the simple interest earned in an account where 5,000 is on deposit from March 14, 2020 to your birthday next year at 5%. Write your birthday. Use all methods discussed.* For what rate it is possible for a deposit of 40,000 to earn 8,400 in simple interest if the money is to be left on deposit for 5½ years?* Find the principal necessary to earn 500 in simple interest if the money is to be left on deposit for 5 years and earns (A) 8.5%; (B) 8%; (c) 7.5%.* Michelle signs a note for 2,000 due in 9 months at 3%. Three months after the note is signed, the holder of the note sells it to Donita who charges 3.5%. How much does the holder receive?* Tekla owes 100 due in 5 months and 700 due in 9 months. What single payment in 6 months will discharge these obligations if the settlement is based on an interest…
- How many payments can Gabriel expect to receive in retirement? He expects to earn 7.04 percent in his retirement account. He plans to save $22,600.00 per year in his retirement account for 5 years, with his first savings contribution to his retirement account expected today. In retirement, Gabriel plans to withdraw $30,500.00 per year for as long as he can, with his first retirement payment received in 5 years.(Round the value to decimal places)2. Manuel is preparing for an income fund for his retirement. He wants to receive ₱ 15 500 at the beginning of each month for the next 25 years. The income fund pays 10.5% per year compounded monthly. How much must Manuel deposit now to pay for the annuity?Please help me answer the following time value of money question. Chuck deposited $25 in an account that pays 4.25%, how much will be in his account in 15 years? 45 years? 110 years?
- Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?Derek will deposit $2,713.00 per year for 16.00 years into an account that earns 10.00 %, The first deposit is made next year. He has $14,955.00 in his account today. How much will be in the account 50.00 years from today? round answer 2 decimal placesMrs Sam has deposited $ 18,000 in a bank at the rate of 7% per annum. Find out how much she will receive after 12 years? Also comment on what effect will she get on her initial deposit if the rate is changing to 10% if she still willing to receive the same sum after 12 years.