moid has just tume sume a return that is compounded annually Present val in a ect one: a. between 5 and 6 percent b. between 7 and 8 percent c. between 8 and 9 percent
Q: Tax evasion and tax avoidance costs the UK government £34 billion a year.” In the light of the above…
A: Tax evasion: One sign of tax evasion is the amount of unreported income, which is the difference…
Q: at what price should the bonds sell
A: Bond is a type corporate loan issued by companies to finance their operations. The current price of…
Q: You are considering making a movie. The movie is expected to cost $10.5 million up front and take a…
A: Payback period refers to the period within which the sum invested by the company in a project will…
Q: What should be the firm’s growth rate in order to attain a weighted average cost of capital of…
A: Dividend discount model refers to a stock valuation model which is used by the company for…
Q: If the interest rate on comparable debt is 2.0% is your broker fairly pricing the bond? (What is the…
A: Bond: It is a debt instrument issued by the firm (issuer) to raise debt capital. The issuer pays…
Q: Suppose the required reserve ratio is 14.25%. The simple money multiplier will be approximately…
A: The simple money (deposit) multiplier gives the change in money supply due to one unit change in the…
Q: What is the variance of returns for Security ABC
A: In finance we use variance of returns as a measure of risk that is inherent in a stock or a…
Q: 13. A discounted loan of $3,000 at a simple discount rate of 6.5% is offered to Mr. Jones. If the…
A: A Simple Discount Loan refers to the type of loan where the interest is deducted at the time of…
Q: A fixed capital investment of P10,000,000 is required for a proposed manufacturing plant and an…
A: Fixed capital (F) = P 10,000,000 Working capital (W) = P 2,000,000 Depreciation (D) = 10% of F = P…
Q: 12 You will bid to supply 3 jets per year for each of the next three years to the Navy. To get set…
A: We have to bid for 3 Jets per year for next 3 year to the Navy - 3*3 = 9 Jets in total $60 Million…
Q: ABC Co. bought 20 long forward contracts for corn at strike price of $3.67 per bushel (each contract…
A: To calculate the profit on forward contract we will use the formula as follows: Profit = (Market…
Q: Art purchase a house and lot worth ₱1,410,000, he made a down payment of ₱150, 000 and the remaining…
A: A home loan taken from a bank or a financial institution is termed as mortgage. The home and the…
Q: Which form of receivables financing is least complex?
A: factoring is a form of receivables and debtor finance
Q: Investment Banks operate and earn profits by: a) Purchasing undervalued securities on the market…
A: The answer is option f). None of the other answers.
Q: The 3-year spot rate is 6.35%, and the 1-year forward rate two years from today is 5.26%. the 2-year…
A: Pure Expectations Theory refers to the concept which tries to determine by predicting what will be…
Q: You can buy a piece of land today that you except will be worth $15000 in 9 years. Assuming your…
A: To calculate the value of property today we will use present value formula as follows: Present…
Q: What is the annualized investment rate% on a Treasury bill that you purchase for $8000 that will…
A: T-bills refers to a debt securities or government bonds issued by the central bank on behalf of the…
Q: Based on a modified duration of 4.1141, the price of the bond should increase by approximately…
A: Modified duration = 4.1141 Increase in YTM = 1.00% Modified duration means expected percentage…
Q: Question 9 Abnormal earnings are O net income adjusted for a capital charge computed as the…
A: An earnings of the company are defined as the after tax the net income. Basically, they are the…
Q: In 2019, Scotiabank's interest rate on GICS was 1% for a 1-yr term and 2.5% for a 10-yr term.…
A: Data given: Rate on GICs for 1 year term=1% Rate on GICs for 10 year term=2.5% Average annual return…
Q: The QYU, Inc. has sales of P5 million per year (all credit) and an average collection period of 35…
A:
Q: 4. In a CDS the accrual payment is a payment made by CDS to CDS and occurs when the defaults
A: In a CDS, the accrual payment is a payment made by a CDS buyer to a CDS seller and occurs when the…
Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…
A: Final Amount (Principal +Interest) = P (1+r/n)nt Where P = Principal Amount r = rate of interest n =…
Q: Engr. Tongol borrowed money from a loan shark. He receives from the loan shark an amount of P…
A: Simple interest = Amount borrowed * Interest rate * (Number of months / 12)
Q: Develop a good contingency plan to each of the following situations: 1. If a major competitor…
A: Answering the first 3 sub-questions as per Bartleby Guidelines: 1. If a major competitor withdraws…
Q: A waitress's base wage is $11 per hour, plus 10% automatic gratuity for all tables served. If she…
A: Gratuity is a benefit paid by an employer to their employee for services rendered.
Q: ctly negatively correlated risky securities A and B. A has an expected rate of return of 12% and a…
A: A minimal variance portfolio is a strategy for maximising returns while minimising risk.It entails…
Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…
A: Here, Cost of Route is $15 million Cost Saving is 17,500 people $100 per year Yearly Expense is…
Q: he value of your investment increased by 9.77% last year, and your purchasing power decreased by…
A: Inflation is a situation of general increase in prices. Inflation leads to decrease in purchasing…
Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…
A: Initial investment (I) = ₱55,000 Interest rate for first 10 year = 0.05 Semiannual interest rate for…
Q: A solid waste disposal company borrowed money at 10% pe and other equipment needed at the…
A: The principal amount would the present value of single payment done after 2 years considering the…
Q: Discuss the differences between the three forms of capital market efficiency?
A: Capital market efficiency- It is related to a condition where all the information pertaining to the…
Q: Determine the present value of a 4 month, 13 1/2 simple interest loan. if its final amount is 31,350
A: To calculate the present value we will use the simple interest formula as follows: Present value =…
Q: GenMath Corporation with a current market value of 40.92 declared a dividend of 6.72 per share for…
A: The dividend is the company's net profit for the period. Dividends are payments made to shareholders…
Q: Joe Pierce has been offered the opportunity of investing $178,556.90 now. The investment will earn…
A: Initial investment = $178,556.90 Interest rate = 0.08 Accumulated value = $500,000 Period = ?…
Q: Create a plan of investment on a bank and solve its interest with respect to the rate offered and…
A: Simple interest is computed on the loan's initial main amount, but compound interest is calculated…
Q: n March 2022, ABC Co. is considering the issuance of $100 million 10-year bonds rated AAA. The issue…
A: Rates of AAA bonds are related directly to the treasury bond future contracts so can use for hedging…
Q: Calculate the expected return, variance, and standard deviation for a portfolio of four equally…
A: The expected return of the portfolio is the return that an investor gets based on the weightage…
Q: Consider the following cash flows. The interest rate is 10%. What is the total wealth after 2 years…
A: It is given that: Year Cash flow 1 150 2 120 3 100 4 200 And the Expected…
Q: If the municipal bond rate is 6% and the corporate bond rate is 7%, what is the marginal tax rate,…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: You have $21,600 to invest in a stock portfolio. Your choices are Stock X with an expected return of…
A: To calculate the investment in stock X we will solve the following equation Portfolio return =…
Q: Which of the following is not correct about sole proprietorship?
A: There are different form of doing business doing alone ,doing with partners or doing with large…
Q: In 1999, the euro was trading at $0.82 per euro. If the euro is now trading at $0.99 per euro, what…
A: To calculate the percentage change in euro's value we will use following formula Percentage change…
Q: Which of these would NOT contribute to a retailer's use of forward buy? O A. Low holding costs O B.…
A: Forward buying - When a buyer negotiates the purchase of a commodity at current price i.e., today's…
Q: Year Investment Cash Inflow $13,000 $10,000 $1,000 $2,000 $2,500 $4,000 $5,000 $4,000 $5,000 $4,000…
A: Payback period = initiative investment/Annual cash inflows Here cash inflows per year is not…
Q: Find the interest eaned on $10,000 invested for 4 years at 6% interest compounded as follows. a.…
A: Compound Interest: It refers to the interest earned on an investment or paid on loan and is…
Q: 1. Use MS Excel to determine the Present Worth of the following cash-flow diagram: a) At 7%, PW = b)…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: 4. Solve problem 3, assuming that 50% of the initial investment is borrowed at an annual interest…
A: PW method: It is the method that is utilized to compare mutually exclusive alternatives that have…
Q: XYZ just went public. As a growing firm, it is not expected to pay a dividend for the first five…
A: Price of stock may be calculated using dividend discount method with following formula Present…
Q: What is the present value of 5,275 due in 6 months if 11% interest is paid
A: Future Value = (P * R * T) + PWhere P = Present ValueR = Rate of InterestT = Time Period
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Assume that you just inherited an annuity that will pay you $10,000 per year for 10 years, with the first payment being made today. A friend of your mother offers to give you $60,000 for the annuity. If you sell it, what rate of return would your mother’s friend earn on his investment? If you think a “fair” return would be 6%, how much should you ask for the annuity? What keys do I need to enter in a financial calculator to get the answers of (13.70%, $78,016.92)/ only show me the keys to enter in a financial calculaotr. not excel and not algebraYour friend offers to pay you an annuity of $2,500 at the end of each year for 10 years in return for cash today. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Please show your work in excelAssume that you just inherited an annuity that will pay you $10,000 per year for10 years, with the first payment being made today. A friend of your mother offersto give you $60,000 for the annuity. If you sell it, what rate of return would yourmother’s friend earn on his investment? If you think a “fair” return would be 6%, howmuch should you ask for the annuity? (13.70%, $78,016.92)
- Ken Francis is offered the possibility of investing $2,745 today; in return, he would receive $10,000 after 15 years. What is the annual rate of interest for this investment?Dean Gooch is planning for his retirement, so he is setting up a payout annuity with his bank. He wishes to receive a payout of $1,500 per month for twenty-five years. (a) How much money must he deposit if his money earns 7.3% interest compounded monthly? (Round your answer to the nearest cent.) (b) Find the total amount that Dean will receive from his payout annuity.Suppose you wish to retire forty years from today. You determine that you need $50,000 per year once you retire, with the first retirement funds withdrawn one year from the day you retire. You estimate that you will earn 6% per year on your retirement funds and that you will need funds up to 25 years after retirement. Use the PV of an ordinary annuity due formula. a) Calculate the amount you must deposit in an account today so that you have enough funds for retirement b) Calculate the amount you must deposit each year, starting one year from today, so that you have enough funds for retirement.
- Your uncle is about to retire, and he wants to buy an annuity that will provide him with $7,000 of income a year for 25 years, with the first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?Suppose that Raphael is 35 years old and has no retirement savings. He wants to begin saving for retirement, with the first payment coming one year from now. He can save $20,000 per year and will invest that amount in the stock market, where it is expected to yield an average annual return of 10.00% return. Assume that this rate will be constant for the rest of his's life. In short, this scenario fits all the criteria of an ordinary annuity. Raphael would like to calculate how much money he will have at age 60. Use the following table to indicate which values you should enter on your financial calculator. For example, if you are using the value of 1 for N, use the selection list above N in the table to select that value. Input Keystroke Output N I/Y Input Keystroke Output 0 PV N Using a financial calculator yields a future value of this ordinary annuity to be approximately PMT Raphael would now like to calculate how much money he will have at age 65. I/Y FV 0 PV ? Use the following…Starling wants to retire with $2, 110,000 in his retirement account exactly 41 years from today. He will make annual deposits at the end of each year to fund his retirement account. If he can earn 9.73 percent per year, how much must he deposit each year? ** PLS EXPLAIN HOW TO SOLVE USING A FINANCIAL CALCULATOR
- An investor is considering an investment that will pay $2,170 at the end of each year for the next 10 years. He expects to earn a return of 12 percent on his investment, compounded annually. Required: a. How much should he pay today for the investment? b. How much should he pay if the investment returns are received at the beginning of each year? (For all requirements, do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. Present value of ordinary annuity b. Present value of annuity dueYou have just received a windfall from an investment you made in a friend's business. She will be paying you $ 45236 at the end of this year, $ 90472 at the end of next year, and $ 135708 at the end of the year after that (three years from today). The interest rate is 3.1 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?Saved Mark Ventura has just purchased an annuity to begin payment two years from today. The annuity is for $30,000 per year and is designed to last 8 years. If the interest rate for this problem calculation is 9 percent, what is the most he should have paid for the annuity? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Maximum payment 139,756.40
