Oasis Products, Incorporated has current liabilities = $10 million, current ratio = 1.5 times, inventory turnover ratio = 12 times, average collection period = 20 days, and sales = $100 million. What is the value of their cash and marketable securities? Multiple Choice a.$1,187,215 b.$8,333,333 c.$17,146,188 d.$15,000,000

Q: Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 14 quarterly…

A: The regular fixed periodic payments made at each periodic interval indicate annuity payments. The…

Q: Corporations can raise capital using either debt (and must pay interest) or equity (and are expected…

A: Dividend per share is $2.15. The tax rate is 35%.

Q: A brand had a 20% dollar share at 12/31/20 and a 18% dollar share at 12/31/21. Additionally, the…

A: Unit velocity is a metric used to measure the rate of sales growth per unit of production. It…

Q: You owe $2,500 in 5 months and $4,750 in 15 months. Your creditor has agreed to let you make one…

A: The calculation of interest amount or the total amount using single interest rate where the interest…

Q: Tommy Tutone is buying a $250,000 house and facing $6,500 in closing costs. He plans to put 20% down…

A: Amortization table In a table known as a loan amortization schedule, each periodic loan payment that…

Q: Mosel Wine Company is currently 100% family owned and has no debt. The family is considering  for…

A: The optimal debt level can be determined by finding the debt level that results in the highest total…

Q: Consider the bonds below and determine relative duration. As there are three bonds, there are three…

A: Duration is the time taken for a bond to recoup the price paid for the bond. The duration of the…

Q: A. $270,000 C. $275,150 B. $294,850 D. $258,400 tab

A: Given, The purchase value is $300,000. Therefore loan value is calculated as follows. Loan Amount =…

Q: Find the amount of each payment to be made into a sinking fund which earns 7% compounded quarterly…

A: Answer Future Value $32,000 Period In Years 2.5 Rate 7% Compund  Quaterly Total Periods…

Q: Use the amortization table to determine how much of the 5th payment is interest. Click the icon to…

A: STEP 1 A loan's or an intangible asset's book value can be periodically reduced over a certain…

Q: Required: (a) Calculate the present value of the note (PV).

A: The present value of the note is as follows. =Amount repaid(1+interest rate)=$10000(1+12%)= $ 8,929

Q: Suppose Wacken, Limited, just issued a dividend of $1.93 per share on its common stock. The company…

A: Stock valuation is a process in which all the expected dividends are discounted to its present value…

Q: Does cryptocurrency have a future? Explain thoroughly.

A: Cryptocurrencies are digital or virtual tokens that use cryptography to secure and verify…

Q: An investment promises the following payments: March 3 $1000; March 18 $2000; March 26 $30000 If…

A: Present value (PV) is the value of a future payment or series of future payments discounted back to…

Q: Compute the present value if future value (FV) = $4892, interest rate (r) = 14.0%, and number of…

A: The PV of an investment refers to the worth of the cash flows of the investment discounted to the…

Q: a-1. What is the NPV of each project if the discount rate is 10%? (Do not round intermediate…

A: NPV is the discounted value of future cash inflows. NPV is calculated by discounting the cash…

Q: James is currently 25 years old and earns $40,000 a year. His boss has promised that he will get a…

A: In a time value of money concept based question, we have to find the accumulated value of a growing…

Q: What is the IRR of the following set of cash flows? (Do not round intermediate calculations and…

A: Any project/investment's profitability and feasibility are accessed via a process recognized as…

Q: Assume that there are two groups of borrowers in the economy: i = {g, b). The groups are of the same…

A: The lender would choose not to charge a higher interest rate than ri if it results in a lower…

Q: What is Fiat money? What are the characteristics of ‘good currency or money?

A: The Fiat currency is reflective of a type of currency which is not backed by any commodity and it is…

Q: A debtor borrows P7,900 and agrees to pay P9,359 for his debt 3 years & 4 months from now. At what…

A: The present value (P) is P7,900. The future value (FV) is P9,359. The period is 3 years 4 months…

Q: Winsome is considering borrowing $10,300 over seven years to buy a new compact SUV valued at $23,500…

A: Multiple options to borrow are available. We need to compare them and find the repayment amount on…

Q: Sally has won the grand prize in a lottery and must choose between the following three options:…

A: Answer -  Option 1 - Received a Lump Sum Payment of $10,000,000. Option 2 - In Option we will…

Q: Find Operating Cash Flow (OCF) annually first ten years and terminal phase, with the following…

A: The Operating Cash Flow (OCF) for the first ten years and terminal phase can be calculated as…

Q: A firm evaluates all of its projects by applying the NPV decision rule. A project under…

A: Net present value method is based on finding out the difference between present value of cash…

Q: when considering the Basic Ideas of Finance, what is the main risk of buying or borrowing capital to…

A: When you borrow funds to invest in an asset, the funds have to be repaid with Interest.…

Q: Q4: Grandma Jones has $300,000 in a bank account, which pays her interest at 3.33%. What is the…

A: Future value Future value is the value of an asset or investment as of some future date. In other…

Q: If you invest $300 per month at an annual interest rate of 10%, how much will you have after 30…

A: Value of monthly payment after 30 years is calculated as the future value of monthly investment…

Q: Find the present value of the given future amount. $43,000 for 22 months at 5% simple interest

A: Answer  Future Value $43,000 Time 22 Months Period In Years 1.83 Years Rate 5%

Q: (Related to Checkpoint 10.2) (Relative valuation of common stock) Using the P/E ratio approach to…

A: STEP 1 The price at which one share of a corporation would be purchased is known as the share price…

Q: Sonova Corporation has an operating income (EBIT) of $215,000 and a 40% tax rate. The firm has…

A: The operating profit (EBIT) is $215,000. The tax rate is 40%. The short term is $115,000 and…

Q: Provide examples of real-world situations where ALM helped financial institutions to manage risks…

A: Asset and Liability Management (ALM) is a critical function of financial institutions that helps…

Q: What rate compounded monthly will yield the effective rate 19.75%?

A: Effective rate is 19.75%. Monthly compounded.

Q: MagnusBane International Plc, a listed company operating in the entertainment sector, has a current…

A: (a) i. Calculation of Straight Debt Value: The straight debt value can be calculated by discounting…

Q: 3. We have the following information on Costco (COST) on October 20th, 2020: the previous close…

A: Market Cap can be calculated as = Number of Shares outstanding x Price of Stock P/E ratio = Market…

Q: Assume the total cost of a college education will be $350,000 when your child enters college in 15…

A: Compound interest refers to the method of earning a return where the interest earned in a period…

Q: Problem B: RS Bank pays interest at the rate of 7.6% annually compounded quarterly. How much money…

A: Note: “Since you have posted multiple questions, we will provide the solution only to the first…

Q: Suppose that we can describe the world using two states and that two assets are available, asset K…

A: To guarantee that you have $100,000 in the future, you can create a portfolio of assets K and L such…

Q: A project has the following cash flows: Year Cash Flow 0 -$ 16,300 1 2 3 a. What is the NPV at a…

A: NPV is a measure of the profitability of a project as it discounts the cash flows to the present to…

Q: A producer of asset S is going to sell it at future time T. Draw naked position revenues as a…

A: A naked contract is a financial agreement in which one party takes a position without any offsetting…

Q: Find the compound amount for the following deposit. $18,000 at 6% compounded semi-annually for 7…

A: Answer  Amount 18000 Year 7 Rate 6% Comounding Semi-Annualy

Q: Find the future value of a 12-year annuity due with payments of $3,000 and an annually compounded…

A: The future value of an annuity due is the value of a series of equal payments made at the beginning…

Q: Does the rule rendering an insurance contract voidable as a result of concealment apply with equal…

A: Property insurance is a type of insurance coverage that protects real or personal property against…

Q: Miss A wants to have P35436 for 2.1 years starting today which is to be used for research. If she…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: Tesla stock is currently selling for $14000.  You are thinking about buying it and you hope to sell…

A: The required return on investment refers to the amount of profit that an investor requires in…

Q: a. If the interest rate on the loan is 12%, how long will it take for her to repay the loan fully?…

A: By rearranging a PV of ordinary annuity formula we can determine the time taken.  PV = PMT…

Q: Subject: Islamic banking & applied finanace Describe the execution of ‘Diminishing Musharka’ in…

A: Islamic banking is a financial system based on principles derived from Islamic law (sharia) and…

Q: O O D 9,550 9,550 9,550

A: Given required rate of return for both the project =11%  First we have to find out the total Present…

Q: How much money do I need today to invest at 9% to have enough money to buy a house with cash worth…

A: Time value of money concept says that a dollar amount invested today will have more value in future…

Q: What is the expected return of a portfolio of two risky assets if the expected return E(Ri),…

A: The expected return of Asset A is 25% and Asset B is 15%. The weight of Asset A is 0.75 and Asset B…

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.