Non-equity Strategic Alliance

Q: A man paid 10% down payment of P1,500,000 for a house and lot this month of January. The rate of int...

A: Here, Interest Rate is 15% Compounding Period (C) is Semi- Annual i.e 2 Payment Period (K) is Monthl...

Q: A renewable energy industry is one of the promising sectors in future and play a major role in the v...

A: Future value of a present value is the value of that amount after taking into account the time value...

Q: Nominal interest rates are the rates stated or quoted in the terms or contract of a particular secur...

A: Real interest rate is the rate that shows the actual cost of borrowing to the borrower by removing t...

Q: QUESTION ONE Jogena Company Ltd. is being considered by Adwen Na Nsa Community Bank for a credit fac...

A: Projected Cash budget statement A cash budget statement is a financial statement that provides infor...

Q: 6. You are thinking of buying a bond from Bluestone Corporation. You know that this bond is long ter...

A: "Hi, Thanks for the Question. Since you asked multiple questions, we will answer first question for ...

Q: trend has openned an RRSP account by making an initial deposit of $1000. he intends to make annual d...

A: Future Value of Growing Annuity helps in ascertaining the total amount accumulated at the end of a p...

Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of s...

A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of t...

Q: You spend $1,000,000 to buy a multiplex unit with 5 units for rent. Cost of maintaining and operatin...

A: In building and apartments the units are rented on monthly rent depending on the cost of maintenance...

Q: uate the impact of agency costs on a firm’s selection of bond and eq

A: Step 1  The agency theory in corporate finance aims to describe and evaluate the behavior of numerou...

Q: An equity analyst, has determined that the appropriate ratio of Enterprise Value to EBITDA (EV/EBITD...

A: Dividend: The dividends are the returns provided to the shareholders by the company. The dividends a...

Q: The balance in the account will be $ (Round the final answer to the nearest cent as needed. Round al...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: What is the amount of Return on Equity? (Round to the nearest 2 decimal places in percentage form)

A: ROE is a profitability ratio in finance.  ROE = net income/shareholder's equity

Q: A construction company agreed to lease payments of $622.77 on construction equipment to be made at t...

A:  a) The Value of original lease  Contract: Payment (PNT)=$ 622.77 (payment is made at every 3 months...

Q: 8)Justin is twenty years old and has saved 50,000. He can invest it in a real estate venture that wi...

A: The worth of a present asset at a point in the future depending on an estimated rate of growth is kn...

Q: An installment contract for the purchase of a car requires payments of $346.34 at the end of each mo...

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at pre...

Q: Speedy Printers has the following data for its Sales and Expenses: Sales: January $50,000, February...

A: Given Sales for the month of January = $50,000 Sales for the month of February = $30,000 Sales for t...

Q: 1

A: Arbitrage profit is generated by purchasing and selling its same securities or portfolio at price ra...

Q: An investor is considering an investment that will pay $2,290 at the end of each year for the next 1...

A: Solution:- When an equal amount is paid each period at end of each period, it is called ordinary ann...

Q: Increasing debt can be used as part of the financial strategy of the firm to increase ROE decrease c...

A: Debt is a liability which allows an entity to get immediate funds for their requirement and make a l...

Q: A condominium unit is being amortized with a quarterly payment of P56,000 for 5 years at 3% compound...

A: Loan means a value which is borrowed from the external sources for a certain  period. This loan is r...

Q: Which of the following supply and demand graphs for bonds issued by Company X represents what happen...

A: Default risk is the risk when the issuer of the bond is not able to make timely interest or coupon p...

Q: 22. The company has P5,000,000 n in inventory and P2,000,000 in accounts receivable. Its a daily sal...

A: Cash conversion cycle is the time period that the company takes to convert its inventory into cash. ...

Q: The spot exchange rate is $0.19 per Brazilian real in American terms. Assume interest rates are cont...

A: Arbitrage profit In finance, arbitrage profit is a profit earned by taking advantage of a difference...

Q: certain product payment offers 30/ 25/ 18/5 discounts. What is the total net price rate /hat is the ...

A: There are multiple discounts given on the product but they may be converted into equivalent single d...

Q: What cash payment is equivalent to making payments of $1471.00 at the end of every year for 8 years ...

A: Solution:- When an equal amount is paid at end of each period, it is called as ordinary annuity. Now...

Q: After the repurchase how many shares

A: Shares are the equity ownership of the corporation. Dividends to be paid out of profits to all the e...

Q: What cash payment is equivalent to making payments of $1471.00 at the end of every year for 8 years ...

A: Solution:- Ordinary Annuity means paying an equal amount at end of each period for a number of perio...

Q: Calculate the project's cash payback period. (Round answer to 2 decimal places, eg. 15.25) Cash payb...

A: Payback period is the period within which the sum invested by the company in a project will be recei...

Q: Amortgage of $176,000 is to be repaid by making payments of $1010 at the end of each month. If inter...

A: Loans are paid by equated monthly payments that carry the payment of interest and payment of princip...

Q: An installment contract for the purchase of a car requires payments of $346.34 at the end of each mo...

A: Solution:- When a loan is taken, it can either be repaid by paying a lump sum amount at maturity or ...

Q: Consider the two risky investments below: Scenario Asset 1 Asset 2 Probability Returns 0.1 Probabili...

A: Part 2 of the questio is : What is the difference between systematic and non-systematic risk.  There...

Q: Economic Profit (or Economic Value Added) is created

A: Economic profit shows the difference between the revenue generated from outputs after meeting all th...

Q: Thomas has made deposits of $800 at the end of every quarter for eleven years. If interest is 5% com...

A: Future Value: The future value is the amount that will be received at the end of a certain period. T...

Q: Jie purchased a computer priced at $891.06, financing it by paying $60.38 on the date of purchase, a...

A: Solution:- We know, when an asset is purchased,  it may be possible that the amount is paid in equal...

Q: 1. Company S and Company T combine to form a new Company ST by pooling all their assets and liabilit...

A: Solution:- When two seperate entities pool their resources together and distribute their new shares ...

Q: 1. Explain in detail the term receivable float. 2. Explain briefly with your rationale reasoning wh...

A: Receivable management may be a process of managing the account receivables within a business . Accou...

Q: An amortization of a debt is in the form of a gradient series of $6,000 in the first year, $5,000 in...

A: When a debt is paid in series of instalments involving principal and interest is called amortization...

Q: How long will it take to save $2581.00 by making deposits of $227.00 at the end of every month into ...

A: Solution:- Ordinary annuity refers to equal periods deposits when these deposits are made at the end...

Q: Your uncle is trying to figure out how much he has to have set aside today to pay for his son's unde...

A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...

Q: The asset manager is generally NOT responsible for: Finding properties for the investor/principal Ar...

A: Solution;- Each corporation has seperate departments and each department is headed by respective man...

Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Periodic Pa...

A: Present value (PV) = $20,000 Quarterly payment (Q) = $900 Interest rate = 4.7% Quarterly interest ra...

Q: You have shorted a put option on Ford stock with a strike price of $15. When you sold (wrote) the pu...

A: Payoff to a Short Put option The writer or seller of the put option is required to buy the stock at ...

Q: What cash payment is equivalent to making payments of $1471.00 at the end of every year for 8 years ...

A: Solution:- When an equal amount is paid at end of each period, it is called as ordinary annuity. Now...

Q: Jasmine May is a 45-year-old academic dean who has just inherited a large sum of money. Having knowl...

A: DURATION: It is the time taken by the bond to recover its investment made in the bond through coupon...

Q: Question 17 Issuing stock rather than increasing debt: O all of the other answers O reduces financia...

A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...

Q: Suppose a life insurance company sells a $250,000 one-year term life insurance policy to a 24-year-o...

A: Insurance  Insurance is a legal agreement between an insurance company (insurer) and a person (insur...

Q: Annette has just purchased a new home for $562758. She put 25% down and is paying the remainder off ...

A: The present value of the loan is equal to the sum of the present values of all future monthly instal...

Q: A construction company agreed to lease payments of $427.14 on construction equipment to be made at t...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: Assume that today’s settlement price on a CME EUR futures contract is 1.10405. Your performance bond...

A: Performance bonds are the financial instruments that are issued by one party to the other as a guara...

Q: Find the future value of the following ordinary annuity. Periodic Payment Interest Rate Payment Inte...

A: Annual payment (A) = $1450 n = 14 years Interest rate = 2% semiannual conversion