Lisa invested $5000 in a fund for 5 years and was paid simple interest. The total interest that she received on the investment was $1000. As a percentage, what was the annual interest rate of her investment? If necessary, refer to the list of financial formulas.
Q: outstanding
A: After cost of Debt = YTM (1-T) Where YTM is the yield to maturity, T is the tax rate.
Q: What is FDI? Explain it and give example 3 companies (which are the FDI in China)
A: FDI stands for "Foreign Direct Investment" and refers to an investment made by a company or…
Q: Bond Z has a Par value K1000, coupon rate 10%, maturity 10years, market rate for bonds 15%. Find the…
A: Par value = K1000 Coupon rate = 10% Years to maturity at the time of issue = 10 years Market rate,…
Q: Assume that you hold a diversified $90,000 portfolio with a beta of 1.20, and that you are in the…
A: Current portfolio beta = 1.20 Portfolio value = $90,000 Stock beta = 1.70 Value of stock =…
Q: Critically discuss five ways in which banks and/or bond holders can manage the credit risk of the…
A: Bondholders are exposed to various types of risks, including credit risk, interest rate risk,…
Q: You've observed the following returns on Pine Computer's stock over the past five years: -29.1…
A: Relation between real and nominal rate Real and nominal rate are related with each other through the…
Q: Mullen Inc. has an outstanding issue of perpetual preferred stock with an annual dividend of $2.90…
A: Perpetual preferred stock is a type of stock that pays a fixed dividend indefinitely, without any…
Q: Suppose you want to have $400,000 for retirement in 35 years. Your account earns 9% interest. a) How…
A: Answer 3 Future value = $400,000 Number of monthly deposit, n =35*12=420 Interest rate per period,…
Q: 4) Total Debt Ratio: [TA-TE/TA] Question Blank 4 of 20 5)…
A: Total Debt Ratio: It represents the percentage of assets a firm has that are financed by debt.…
Q: A bond for J. Morris, Inc. a coupon rate of 6%. The yield to maturity is 7%. The bond has a…
A: Bond price is the present value of future coupon payments and face value. The present of the face…
Q: (increases/decreases/remains co
A: For a given level of output, the Degree of Operating Leverage (DOL) decreases as the size of the…
Q: 10. ABC Inc. is developing its standard cost system. In producing its only product, the following…
A: When a standard costing system is used, then there is a need to establish the number of hours…
Q: Assume that to comply with the Air Quality Control Act of 1989, a company must install three…
A: This is a case of capital budgeting. We will use the capital budgeting tool of NPV (net present…
Q: For both individuals and corporations, the tax code in the United States is ___________: in…
A: Taxes is that portion of income that is paid to the government. The tax rates usually differ…
Q: You are given the following information on a Company - ROAop = 10%, tc = 30% and rd = 5% if D/EV =…
A: Financial ratios are based on the mathematical relationship between two financial line items. For…
Q: The return and volatility of ________ portfolios are often lower than those of other asset types…
A: A portfolio is a collection of financial assets such as stocks, bonds, and cash that an investor…
Q: Here and Gone, Inc., has sales of $17,546,456, total assets of $10,662,678, and total debt of…
A: Net Income will be calculated using formula : Net Income = Net Sales × Profit Margin
Q: You can earn $ 44 in interest on a $ 1 comma 000 deposit for eight months. If the EAR is the…
A: Data given: Description Data Amount deposited ($) 1000 Interest earned ($) 44 Final Value…
Q: stock
A: There are many companies listed in the stock markets in the USA, they belong to different sectors…
Q: ifies for $0 down payment but makes a $2,500 down payment on his car purchase anyway. Will this…
A: While you purchase the car than you generally take loans and pay by monthly payments because monthly…
Q: 3. Current price of stock is $20 and expected price after one year is 22.5. If investor required…
A: Dividend means the part of profits distributed by the company to its shareholders. As per Dividend…
Q: Use Product life cycle (PLC) to analyze Starbucks products and give an explanation.
A: The Product Life Cycle (PLC) model is a framework that describes the typical stages that a product…
Q: Procter and Gamble (PG) paid an annual dividend of $2.94 in 2021. You expect PG to increase its…
A: Here,
Q: Allied Food Products is considering expanding into the fruit juice business with a new fresh lemon…
A: Cash flow refers to the movement of cash into and out of a business or an individual's financial…
Q: Business Risk , refers to the certainty of operating income caused by products, customers, machinery…
A: Risk is the possibility of suffering harm or loss. It is the chance that an event or action will…
Q: August
A: 1.. Acid Test Ratio =Quick Ratio / Current Liabilities Here quick assets are only accounts (trade)…
Q: Vigour Pharmaceuticals Ltd. is considering investing in a new production line for its pain-reliever…
A: Here, Tax Rate is 35% After Tax Salvage Value of Old Equipment is $350,000
Q: In the most recent year, two different companies generated the same earnings per share. The stocks…
A: Trading is the act of buying and selling financial instruments such as stocks, bonds, currencies,…
Q: An investor makes the following three investments: (i) the purchase of a stock for £38 (ii) the…
A: A derivative contract that gets its worth from an underlying is regarded as an option contract. It…
Q: Shareholder theory states that the primary objective of management is
A: Shareholder Theory is a concept that states that the shareholders are the ultimate owners of the…
Q: redondo, Inc., has current assets of $394, net fixed assets of $17,137, current liabilities of…
A: Working capital is very important in business operations and working capital shows the liquidity of…
Q: Subject: Financial strategy & policy Fill in the blanks in the following table: Nominal Interest…
A:
Q: Amanda Forsythe of Springfield, Missouri, must decide whether to buy or lease a car she has…
A: Here, Particulars Values Borrowing option: Purchase price $ 30,000.00 Down payment $…
Q: Suppose Kate is choosing how to allocate her portfolio between two asset classes: risk-free…
A: Risk refers to the variability in the expected return. Higher the risk, higher the return.
Q: Network One is expected to pay a dividend of $3.20 at the end of the year. If the company has a…
A: The question asks us to calculate the current stock price of Network One, given its expected…
Q: You are considering a savings bond that will pay $100 in 12 years. If the interest rate is 2.2%,…
A: Solution: Amount which should be paid for a bond today should be equal to the present value of the…
Q: Why do you think a speeding ticket or DUI would increase your insurance rate? O The insurance…
A: Insurance is a financial product that provides protection against potential financial losses.…
Q: Compute the amount of money to be set aside today to ensure a future value of 4,100 in one year if…
A: The amount of money to be set aside today would be present value of future value of 4,100. Present…
Q: Marigold Corp. is planning to replace an old asset with new equipment that will operate more…
A: Net Present Value is also known as NPV. It is a capital budgeting techniques which help in decision…
Q: D. Newcombe & Associates, Inc., is considering the introduction of a new product. Production of the…
A: Break even is a financial concept that refers to the point at which a business or project's total…
Q: 1 Find the interest earned. Assume 3% interest compounded daily. 2 Assume 365 day year (non-leap…
A: Future value is the total amount of money that has been invested with the hope of receiving a…
Q: Suppose you want to have $300,000 for retirement in 20 years. Your account earns 10% interest. How…
A: The amount to be deposited monthly is an annuity and the final amount of $300,000 is the future…
Q: When risk grows while an investor's return remains constant, that investor is said to be a.…
A: Risk is the possibility of suffering harm or loss. It is the chance that an event or action will…
Q: Rate(%) 3.40 If you spent $30,000 on AT&T bonds, how much interest would you earn every 6 months?…
A: Bonds are debt instruments issued by companies. The issuing company pays interest or coupons to the…
Q: : Semi-annually : $1,000 Nominal value：$1000 Callable period： First p
A: The bond price is the combined value of the present value of the coupons and the redemption or the…
Q: a firm is analyzing a project that is expected to have an annual cash flows of 46,400, 51,300, and…
A: MIRR stands for modified internal rate of return. In the discounting approach we discount all the…
Q: Invest $12,000 today and $10,000 in four years. Receive $15,000 in six years and $20,000 in eleven…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: Describe and justify what the value of the beta of a U.S. Treasury bill should be. B I U T₂ T² Ix d…
A: Treasury Bill Treasury Bills are short term debt instruments issued at a discount price and are…
Q: A key to resolving the NPV and IRR conflict is through the assumed reinvestment rate. The NPV…
A: The Net Present Value (NPV) and Internal Rate of Return (IRR) are two commonly used methods for…
Q: 8310
A: To calculate the value of the swap, we need to calculate the present value of the fixed leg and the…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Rita borrowed $4000 from a bank for 5 years and was charged simple interest. The total interest that she paid on the loan was $1600. As a percentage, what was the annual interest rate of her loan? If necessary, refer to the list of financial formulas.Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the investment is expected to be doubled after 5 years. Approximately, how much will she gain from the investment after 3 years?Maya borrowed $700 from a lender that charged simple interest at an annual rate of 6%. When Maya paid off the loan, she paid $126 in interest. How long was the loan for, in years? If necessary, refer to the list of financial formulas.
- Ms. Lee is thinking about her retirement fund and she still have another 15 years to reach her retirement time. She deposits RM4,800 each year in the investment that give 6% until her retirement day. Kindly explain to Ms. Lee on the reasons why she needs to prepare and organize her financial record.ten years ago, Amanda Cortez invested $20,000 in an account paying an annual interest rate of 5%. What is the value of the investment today? What is the interest on interest earned on this investment?Michelle Payne deposited $12,000 in a savings account paying 6.25% simple interest. How long (in years) will it take for her investment to amount to $21,000?
- katy took out a loan for $12000 over 3 years, if her total loan repayments amounted to $18750, calculate the interest charged.Phyllis invested $9,000, a portion earning a simple interest rate of 4 1 2 % per year and the rest earning a rate of 4% per year. After one year the total interest earned on these investments was $400.00. How much money did she invest at each rate?Jasmine invested a certain amount in a bank compounded semi-anually. The bank told her that the investment is expected to be doubled after 5 years. Approximately, how much will she gain from the investment after 3 years?
- you want to establish a perpetuity that pays $6500 per year. Your banker will establish such an account if you deposit $97000 in her institution. calculate the rate that she is paying on the depositWhen you were born, your parents opened an investment account in your name and deposited $500 into the account. The account has earned an average annual rate of return of 4.8 percent. Today, the account is valued at $36,911.22. How old are you?Your sister placed her graduation gifts amounting to P25,000 in a special savings account that provides an interest of 2% for 8 months. Compute the annual interest, total interest, and amount to be received or paid at the end of the term for this scenario using a simple interest assumption and compound interest assumption.