Q: A. Exercise practice 1. What nominal rate compounded quarterly is equivalent to 12% compounded semi…
A: As per the answering guidelines, in case of multiple questions we have to solve the first question…
Q: Find the due date of the following : Date of loan Time July 31, 2019 118…
A: The Due Date: The due date is the date on which a debt, loan or obligation needs to be repaid/met.…
Q: An instalment contract for the purchase of a car requires payments of $280.49 at the end of each…
A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…
Q: What is the value of this levered firm? EBIT is $750,000 with an unleveredcost of equity of 10%, tax…
A: Earnings before interest and taxes: Earnings before interest, depreciation and taxes are the…
Q: I. In case of conflict between revenue regulation and the provisions of NIRC, the former shall…
A: National tax is defined as the national internal revenue taxes, which are collected as well as…
Q: 6a. A large profitable corporation is considering a capital investment of $50,000. The equipment has…
A: For calculation of before tax cash flows, depreciation shall not be deducted because it is a non…
Q: 7 Name the four general real estate investment styles and describe each and give examples of each.
A: Real estate is land with all permanent improvements related to land, whether natural or man-made,…
Q: How much money would you have at the end of 15 years if you initially invested $7,500 at a nominal…
A: Concept. A = P (1 + r)n Where A = amount including compound interest. P = principal amount R = rate…
Q: Provide the conclusions stated in sentences. Due to the effects of pandemic on the economical and…
A: Proposal -1: Receive P40,000 in 25 years Proposal - 2: Receive P3800 today Interest rate is 10%…
Q: Consider a 2-year CDS. Assume the conditional default probability is 7% in year 1 and 12% in year 2.…
A: A credit default swap (CDS) is a financial swap arrangement in which the CDS seller compensates the…
Q: The loan given below was paid off earty. (a) Find the finance change, and (b) find the unearned…
A: Given: Loan = $3400 Monthly payments "PMT" = $204.96 Number of payments "n" = 18 Remaining payments…
Q: Huang Industries is considering a proposed project whose estimated NPV is $12 million. This es…
A: Answer - Calculation of Expected NPV - The expected NPV of the project is the probability…
Q: 3. (a)What kind of cash flows do investors expect from their investment in gövernime (b)What role…
A: Government bond A government bond is issued by the government and it is a debt security. Government…
Q: 2. You have been approved for a $72,000 4-year loan earning 10.8% compounded monthly. (a) What are…
A: pv Loan amount $ 72000 nper Period of loan 4 years 48 months Interest rate yearly…
Q: Manjean is making car payments of $662 per month for the next 3 years. Manjean knows that the car…
A: Formula Car price = P*[1-(1+I)-N]/I Where P - Monthly payment i.e. $662 I - Monthly interest rate…
Q: 20,000 issue of twelve-year bonds redeemable at par offers 7.9% coupons payable quarterly. What is…
A: Price of bond is present value of coupon payment and present value of the par value of bond…
Q: Your bank offers you a new savings account that earns a 20% annual percentage rate (nominal interest…
A: An effective interest rate is defined as an interest rate, which is applied on loan or financial…
Q: The financial manager had collected the following information regarding Modern Furniture Co.? Modern…
A: Weighted Average cost of capital (WACC): The WACC is the overall cost of capital from all the…
Q: Part 2: An amount of $1000 is invested into an account that pays 5% per annum compound interest.…
A: Compound interest Compound interest is computed by multiplying the initial principal amount by one…
Q: Suppose you decide to take the tour now and use a 15% credit card for the purchase. Use the…
A: Given that: The formula sheet of above able is:
Q: a) What is the residual value of the car at the end of the lease? Mode N = PV = FV = b) How much…
A: Lease refers to a contract between two parties under which one party who is the real owner of an…
Q: can step one be structure differently using P=p( r/n)/1-(1+r/n)
A: Here, The interest rate is r. The maturity period is n. The compounding frequency is m.
Q: A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the…
A: Solution:- When a loan is taken, it is to be repaid in lump sum or in installments. If it is paid in…
Q: 1. Differentiate stocks from bonds; and stockholders from bondholders.
A: Since you have posted a question with multiple questions, we will solve the first one for you. If…
Q: What is the future value of $10,000 per year for 10 years invested at 10%? $159,374 $138,824…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: first question
A: Financial ratios refer to the magnitude of two values that should be taken from the firm’s…
Q: A mortgage of $161000 is to be repaid by making payments of $1191 at the end of each month. if…
A: Mortgage repayment in equal amounts is a type of annuity. Annuity can be defined as a series of…
Q: Q5: Which of the following statements are true about early option exercise (for American style…
A: Correct answer is 'A'.
Q: next expected dividend for Stock P is 10 and the current price of the stock is P40. The risk free…
A: Expected rate of return and required rate of return are return on an investment for evaluating an…
Q: engineering company expects to expand its plant facilities in 6 years at an estimated cost of…
A: a) Solved using Financial Calculator N = 6 years * 4 = 24 I/Y = 10%/4 = 2.5% FV = 68,000 CPT PMT =…
Q: Which of the following transactions causes an increase in working capital? a. Sale of merchandise…
A: Working capital = Current assets - Current liabilities
Q: Lunar Vacations needs to raise $5,800,000 for its new project (a golf course on the moon). Astro…
A: First we need to calculate the price of bond by using excel PV function The formula is…
Q: A bond pays $10,000 per year for the next 10 years. The bond costs $90,000 now. Inflation is…
A: Given, Bond pays 10,000 / year for 10 years. Cost of bond = $90,000 Inflation = 6% for 10 years
Q: 7. Calculating Returns and Variability bon On long-term corporate bonds? Using the following…
A: The Arithmetic average return for X = (14 - 13 + 11 + 18 + 8 )5=7.6% The Arithmetic average return…
Q: company's cost of equity capital?
A: Given : Beta of Stock = 1.29 Risk free rate = 5.4% Expected return on market = 12.9% Formula for…
Q: Kinston Industries just announced that it will cut its dividend from $3.00 to $2.00 and use the…
A: Answer - Step 1 - Calculation of Cost of Equity - Stock Price = Dividend / (Cost of Equity -…
Q: Which of the following coupon bonds have the highest yield to maturity (YTM)? Notation: P = Current…
A: Solved Using Financial Calculator
Q: A process for producing the mosquito repellant Deet has an initial investment of $210,000 with…
A: The Payback period method is a traditional capital budgeting method. It is used to find out the time…
Q: Mr. C, married, is a citizen and resident of the Philippines. He had the following data on income…
A: Individuals and businesses pay income taxes based on their earnings or profits. In most…
Q: What’s the present value of a perpetuity that pays $300 per year if the appropriate interest rate is…
A: present value of a perpetuity = Annual payment/Discount rate
Q: 1.) A.) Which of the following statements is most correct? a. A 5-year P100 annuity due will have a…
A: All these options are based on annuity and mortgage payments.
Q: Sun Instruments expects to issue new stock at $35 a share with estimated flotation costs of 9…
A: Cost of retained earnings = (Expected dividend/Current price) + Growth rate =[(2.5*1.08)/35]+0.08…
Q: C. Kandamana Sdn Bhd sells decorative items since it commenced business in year 2006. The accounting…
A: Basis period and assessment year are terms used for tax purposes. Assessment year is the year in…
Q: Find the due date ( actual time ) and Due date ( approximate time )
A: Due date refers to the date at which any event or payment will due. Due date of loan refers to the…
Q: How much should she request from a lender whose discount rate is 9%.
A: Simple interest method is a method of computing interest on borrowed amount where interest is…
Q: purchase a specialty guitar for his band, for the last three years JJ Morrison has made payments of…
A: Solved using Financial Calculator Money accumulated at the end of Year 3 PMT = +/- 98 N = 3*12 = 36…
Q: You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price…
A: In order to decide spectrometer is purchase or not, we need to calculate NPV of spectrometer. NPV is…
Q: You are considering investing in a zero coupon bond that will pay you its face value of$1000 in ten…
A: IRR Refers to the Internal rate of Return, At IRR the Net present value of the future cash flows is…
Q: 7. Ch.11/13 Determine the depletion charges using the percentage depletion methods for the first…
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…
Q: HY Industries Ltd. plans to replace a warehouse in eleven years at an anticipated cost of $55,000.…
A: The periodic payments accumulate interest which is added to the original deposit. The result is that…
Rosa Valencia has a personal automobile policy (PAP) with coverage of $25,000/$50,000 for bodily injury liability, $10,000 for property damage liability that includes coverage for her vehicle, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will her insurance cover in each of the following situations? Will she have any out-of-pocket costs?
- Rosa loses control when she swerves to miss a dog on the street, running into a parked car and causing $5,300 damage to the unoccupied vehicle and $3,750 damage to her own car.
- Rosa pulls out in front of another car and causes a serious auto accident, badly injuring three people. The injured parties win lawsuits against her for $35,000 for one individual, and the other two passengers claimed $5,000 each ($10,000 total).
- Rosa’s 16-year-old daughter borrows her car. She runs off the road when texting while driving and causes $450 damage to the car.
Step by step
Solved in 2 steps with 2 images
- Personal automobile policy coverage. Zachary Lee has a personal automobile policy [PAP] with coverage of $25,000/$50,000 for bodily injury liability, $25,000 for property damage liability, $5,000 for medical payments, and a $500 deductible for collision insurance. How much will his insurance cover in each of the following situations? Will he have any out-of-pocket costs? Zachary loses control and skids on ice, running into a parked car and causing $3,785 damage to the unoccupied vehicle and $2,350 damage to his own car. Zachary runs a stop sign and causes a serious auto accident, badly injuring two people. The injured parties win lawsuits against him for $30,000 each. Zachary’s 18-year old son borrows his car. He backs into a telephone pole and causes $450 damage to the car.While driving Mohamed's car Sarah accidentally crashed and hit a house, the loss costs a total of 2.505. If in this case Mohamed's insurance policy acted as the primary with a limit of 981, while Sarah's policy acts as the excess and has a limit of 3,943. In this case how much will Sarah's insurance policy pay?lauren borrows Mary's car. Lauren has 25/50/25 limits, and Mary has 50/100/50 limits. Lauren, while driving Mary's car, hits a pedestrian, causing $60,000 dollars in medical expenses. How much will be paid by each insurer for this loss? explain why.
- Kurt has 50/100/15 auto insurance coverage. One evening he lost control of his vehicle hitting a parked car and damaging a store front along the street. Damage to the parked car was 5,400 and damage to the store was 12,650. What amount will the insurance company pay for the damages? What amount will Kurt have to pay?Martin hits into a tree when driving his own car. He is injured with a medical expense of $1,000; Martin's friend Jordan who sits in Martin's car is also injured with a medical expense of $2,500. Both Martin and Jordan have PAP policies with medical payment coverage limit of $5,000/person. The amount Martin's insurance needs to pay for this accident is O a. $1,000, O b. $2,500, O c. $3,500 O d. Nothing since it is Martin's faultRaymond has $12,000 worth of property damage insurance and a $1,200 deductible collision insurance policy. He had a tire blowout while driving and crashed into a $1,500 brick wall. The crash caused $3,800 in damages to his car. a. How much will the insurance company pay for the brick wall? b. How much will the insurance company pay for the damage to the car? $ 27
- Kurt has 25/50/25 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. The damage to the parked car was $10,700, and the damage to the store was $18,500. What amount will the insurance company pay for the damage? What amount will Kurt have to pay?Robert had an accident and injured a driver and her car. He has auto insurance with the minimum coverage for Illinois. He also has medical payments coverage of $1,000 and a $250 deductible on his collision coverage. The driver's injuries cost $5,000 and damages to her car cost $3,000. Robert's car had damages costing $4,000. How much will the Insurance company pay for these claims? $12,000 $11,250 $11,750 $3,750Robert had an accident and injured a driver and her car. He has auto insurance with the minimum coverage for Illinois He also has medical payments coverage of $1,000 and a $250 deductible on his collision coverage. The driver's injuries cost $5,000 and damages to her car cost $3,000. Robert's car had damages costing $4,000. How much will the Insurance company pay for these claims? O A. $11,750 O B. $11,250 O C. $3,750 O D. $12,000
- You carry 25/50/25 coverage on your automobile. You are involved in an accident in which you are eventually held responsible for the following damages: other driver, $25,000; passenger 1, $20,000; passenger 2, $9,000; other car, $11,000. How much is left for you to pay after your insurance company has met its obligations under your policy? 0 bodily injury; 0 property damage 0 bodily injury; $4,000 property damage $4,000 bodily injury; 0 property damage $9,000 bodily injury; $4,000 property damageJohn has an auto which is covered for collision losses subject to a $250 deductible. Kate's auto also has collision coverage but her deductible is $500. John got in an accident while borrowing Katie's car and incurred a $2,500 covered collision loss. John's policy will pay s of the covered loss. Katie's policy will pay $ IMPORTANT: Your answers should be rounded to the nearest integer and should NOT include symbols ('S' or ).Kurt has 25/50/10 auto insurance coverage. One evening he lost control of his vehicle, hitting a parked car and damaging a storefront along the street. Damage to the parked car was $13,000, and damage to the store was $7,500. (a) What amount will the insurance company pay for the damages? Amount paid (b) What amount will Kurt have to pay? Amount paid