Implications of foreign direction investment (FDI) on developing countries

Q: Draiman Corporation has bonds on the market with 16 years to maturity, a YTM of 10.5 percent, a par…

A: The price of Bond is $943Par Value of the Bond is $1,000YTM is 10.5%Time to Maturity is 16 years

Q: The Lesseg Company has an opportunity to invest in one of two mutually exclusive machines that will…

A: The sum of all PV is the net present value. This is the dollar profit that the project makes today.…

Q: An investor was afraid that he would become like King Lear in his retirement and beg hospitality…

A: Interest rate is the earning on the investment made by the investor for a specified tenure at a…

Q: Kk.371. Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,250,000 in 7%…

A: Bonds are financial instruments that reflect loans made by investors to borrowers, who are often…

Q: The following is a four-year forecast for Torino Marine. Year 2022 2023 2024 2025 Free cash flow ($…

A: Data given:EBIT=$200 million Depreciation=Capital Expenditure Change in working capital=0 Tax…

Q: Hubrey Home Inc. is considering a new three-year expansion project that requires an initial fixed…

A: Operating Cash Flow:It represents the cash flow produced by the company from its regular business…

Q: Each of the following questions should be answered by building a 15-period binomial model whose…

A: The BSM model is quite popular to find the true intrinsic value of the call & the put options.It…

Q: For each of the following, compute the present value: (Do not round interm calculations and round…

A: The present value represents the current worth of the future stream of expected cash flows.

Q: John is looking for a new car. He has a down payment of $1,000.00 and wants to pay $350.00 per month…

A: A loan refers to a contract where money is borrowed by one party on the promise of future repayment…

Q: Which method of depreciation will result in a higher net income during the first year the asset is…

A: Depreciation is an accounting method used to allocate the cost of an asset over its useful life. It…

Q: evaluate the present value of an annuity formula

A: We can determine the PV of an ordinary annuity by using the formula below:In the formula above PMT =…

Q: A firm has net income of $500,000 and sales of $18,000,000. Its interest expense is $180,000 and the…

A: Net Income = ni = $500,000Sales = s = $18,000,000Interest Expenses = i = 180,000Tax rate = t = 30%

Q: You purchase three Microsoft December $145 put contracts for a premium of $8.10. What is your…

A: Number of Contract = nc = 3Strike Price = s = $145Premium = p = $8.10Number of shares for each…

Q: XYZ Corporation is considering two investment projects. Project A requires an initial investment of…

A: The NPV of the project refers to the measure of its profitability by discounting the cash flows to…

Q: The most recent free cash flows of a firm were $15 million. They are expected to grow at a constant…

A: Free cash flow model is valuation model used to value the firm and value from equity.

Q: Eaton Electronic Company's treasurer uses both the capital asset pricing model and the dividend…

A: The Capital Asset Pricing Model (CAPM) is a financial model used to determine the expected return on…

Q: Assume a company has ane oubilarding bond or with a coupon paid semiannually years to maturity, a…

A: Equity gives ownership rights to investors in the company and is subject to a greater risk than the…

Q: You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You m nvest all of…

A: Portfolio is combination of many securities and return on the portfolio depend on the weights of…

Q: An actor invests some money at 5%, and $41000 more than four times the amount at 7%. The total…

A: Each and every deposit carry some amount of interest and interest is amount of profit earned over…

Q: 60 eBook 3 Problem Walk-Through Holt Enterprises recently paid a dividend, Do, of $2.25. It expects…

A: Dividend discount model is used to value the present or current value of the stock using the…

Q: mey Products has decided to acquire some new equipment having a $190,000 purchase price. The equipm…

A: lease is kind of arrangement where there is no need of initial investments and equipment can be used…

Q: Calculate the Payback Period of Machine A (expressed in years, months and days?

A: Payback period is the time taken for the company to recoup its initial investment back from its…

Q: Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, which currently…

A: Here,Current Quoted Price is 125-100Face Value of Future is $100,000Interest Rate will go down in…

Q: If John wants to retire with $10,000 per month, how much principal is necessary to generate this…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: Problem 7-21 Dividend Yield [LO 3] You’ve collected the following information from your favorite…

A: The dividend yield is a financial ratio that indicates the percentage return an investor can expect…

Q: Byron Corporation is considering the purchase of a new piece of equipment. The cost savings from the…

A: The net present value represents the absolute profitability generated by a project & expressed…

Q: Suppose you invest $3,800 today in an account that earns a nominal annual rate (inom) of 12 percent,…

A: Compound = Quarterly = 4Present Value = pv = $3800Interest rate = r = 12 / 4 = 3%Time = t = 12 * 4 =…

Q: A bank is paying 7.5% APR on a CD. (Note: The convention when there are no periodic payments is to…

A: Present value is the estimation of the current value of future cash value which is likely to be…

Q: WACC and target weights After careful analysis, Dexter Brothers has determined that its optimal…

A: The desired rate of return on investments that a corporation must achieve in order to preserve or…

Q: Profitability analysis) Last year Trangular Resources named $53 million in net operating income and…

A: Asset Turnover ratio is that which shown the relation ship between the sales of the company and…

Q: You borrow $145,000 and must make annual loan payments of $11,635.18 for 20 years, starting at the…

A: Future Value = fv = $145,000Payment = pmt = $11,635.18Time = nper = 20 yearsPresent Value = pv = 0

Q: Your grandfather would like to share some of his fortune with you. He offers to give you money under…

A: A future sum of money or a series of future cash flows are valued today using the financial concept…

Q: A father is now planning a savings program to put his daughter through college. She is 13, plans to…

A: Current annual cost is $20,000 and these costs expected to increase by 7% annually. College starts 5…

Q: Mary has $55,000 in a brokerage account, and she plans to deposit an additional $8,500 at the end of…

A: Present Value = pv = $55,000Payment = pmt = $8500Future Value = fv = $300,000Interest rate = rate =…

Q: What is the bond price at 12 percent?       b. What is the bond price at 8 percent?       c.…

A: The price of the bond is the PV future coupons and par value discounted at the YTM.

Q: All computations must be done and shown in detail a)  You currently own 600 shares of JKL, Inc. JKL…

A: Total number of shares owned=600All equity firm has a number of shares=75,000Earnings before…

Q: A firm's cost of capital is 12 percent. The firm has three investments to choose among; the cash…

A: Since the Cashflow is received at the end of the year 1, then 3 years remaining is reinvested at…

Q: Your brother has offered to give you either $60,000 today or $120,000 in 10 years. If the interest…

A: When an amount is receivable, every person will choose to receive higher amount. So, in the given…

Q: The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 6% yield to…

A: The market price of the bond has been computed below:This can be calculated using below formulas:

Q: Hello, I need help with finance questions from book Fundamentals of corporate finance ( 11th…

A: Cash flow to shareholders refers to the cash that is paid by the company to its outstanding…

Q: Calculating Lessor Payment- Unguaranteed Residual Value Marshall Inc. is negotiating an agreement to…

A: To calculate the fixed lease payment, we need to consider the present value of the lease payments…

Q: Ranger Corporation is currently selling widgets for $40 at a cost of $20 per unit. Fixed costs are…

A: Selling Price = $40Cost = $20Production = 100 widgetsFixed cost = $500Operating cashflow only deals…

Q: Which two types of investment criteria are most frequently used by managers today? Multiple Choice O…

A: Net Present Value (NPV) is the difference between present value of cash inflows and present value of…

Q: Savings Calculator Initial Savings Balance $ 19,000.00 Deposit Amount Per Period $ 360.00 Deposit…

A: Opening Balance = $19,000Monthly deposit = $360Interest rate = 3.25% per year = 3.25/12 = 0.270833%…

Q: We are evaluating a project that costs $2,190,000, has a 8-year life, and has no salvage value.…

A: Project cost = $2,190,000Useful life = 8 yearsDepreciation = 2190000 / 8 = $273,750Sales = 91,200…

Q: Even though most corporate bonds in the United States make coupon payments semiannually, bonds…

A: A bond is a kind of debt security issued by the government and private companies for raising funds…

Q: Where are the numbers from step 4 derived from?

A: When a future value is multiplied with the present value factor, it turns to be present value.…

Q: WRE is currently trading at $120/share. You sold 8 PUT-option contracts on WRE with a strike price…

A: Current Price = $120No of Put Options = 8Strike Price = $110Premium = $8

Q: Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7 Stock X 7% 1% -2% -3% 5% 11% 5%…

A: PeriodStock XStock Y10.07-0.0420.010.13-0.020.044-0.030.0850.050.0760.11-0.0170.05-0.03Required:The…

Q: An asset bought for R2 million in 2020 with a useful life of four years, depreciated by way of the…

A: Net Proceed from Sale is that amount which is received by the investor from the selling of equipment…

Currency Market

The currency market, also known as the foreign exchange market, consists of currencies worldwide. This market determines the rate of all currencies based on the buying and selling of forex. It is an over-the-counter market. It is the largest and most liquid market based on trade volume.