purchased for $185,000 pays $5,000 at the end of every quarter. How long will the payments continue if the funds earn 5% compounded semiannually? (Do not round intermediate calculations and round up the number of payments, n, to

Q: Cost of Preferred Stock with Flotation Costs Burnwood Tech plans to issue some $80 par preferred…

A: Annual dividend (D) = Par value * Coupon rate = $80 * 0.07 = $5.60 Market value of stock (P0) = $95…

Q: 2. Explain why the expected return of a corpor bond does not equal its yield to maturity.

A: The expected return on bond is what we are expecting the return from bond it depends on the market…

Q: The owner of oak hill farm deposits $3000 at the end of each quarter into an account paying 2.5…

A: To calculate the value at the end of 5 years and 6 months we will use the below formula   Future…

Q: Differentiate between the stock dividend and stock split and their effects on the stock prices.

A: Stock Dividend: It is a form of equity dividend paid to the shareholders by the company. Stock…

Q: A company currently pays a dividend of $1 per share (D0 = $1). It is estimated that the company's…

A: Given,  D0 is $1 growth rate for first 2 years is 21% after that it is 8%

Q: You are considering purchasing an annuity that would pay you $1,000 per year for 10 years. The…

A: Formula to find the present worth of annuity:- P= Amount (P/A,Rate%,time)

Q: What is the present value of $30,000 you will receive 7 years in the future, ass

A: The present value is equivalent value of money to be received today that will be equal to money to…

Q: The payment for a certain loan was arranged such that Dino will pay $5,500 every month for the first…

A: Present Value:  The present value (PV) is the present sum of a series of fixed payments. The series…

Q: )Alex Karev has taken out a ​$180,000loan with an annual rate of 9 percent compounded monthly to pay…

A: Payment per month refers to the amount every month for a particular period of time up to the…

Q: What is the bond's price?

A: Information Provided: Years to maturity = 10 Coupon rate = 6.25% semiannual  Par value = $1000…

Q: You think that there is an arbitrage opportunity on the market. The current stock price of Wesley…

A: Put-call parity is used to find out the actual price of the options that have the same…

Q: Kenji wants to retire with an income of $7000 per month over 25 years. His money is saved in a…

A: Present Value:  The present value is the current value of a series of fixed payments. The series of…

Q: Natalia makes a deposit of $2,000 into a savings account at the end of the 1st year and another one…

A: Here, Deposit in year 1 and 3 by Natalia is $2,000 Deposit in Year 2 and 4 by Manuel is $2,000…

Q: 1. How much money did we invest in total? 2. How much money will we have in total at the end of all…

A: Future Value: It is the value of an investment over a period of time at a future date and the…

Q: David Rubin has $100,000 to invest over 5 years. David is very risk-averse and has a target average…

A: Risk free rate of return is the rate which investors get on Treasury bills. These are short term…

Q: Your company borrows $500,000 from a bank to finance the purchase of a new machine. The nominal…

A: First let us calculate the 4 equal half yearly payments that need to be made. This can be calculated…

Q: ou are interested to value a put option with an exercise price of $100 and one year to expiration.…

A: According to put call parity theory there is certain relation ship between the Put , call and stock…

Q: explain with detailed reason.

A: NCAA stands  for National Collegiate Athletic Association.  NCAA is a nonprofit organization that…

Q: Bertrand is a worker in Canada with a continuous income stream at the rate of 650e dollars per year.…

A: The concept of the time value of money states that money has more value today because of its ability…

Q: SML and WACC [LO1] An all-equity firm is considering the following projects: Project W X Y Z Beta…

A: CAPM or Capital Asset Pricing Model is the formula that represents the relationship between the…

Q: Use the annuity formula to calculate the future value of an annuity where you deposit $50 into an…

A: Monthly deposit (D) = $50 Monthly interest rate (r) = 0.00416666666666667 (i.e. 0.05 / 12) Monthly…

Q: What do you think about vanilla options as hedging market risk vehicle? In your answer please…

A: The vanilla options are nothing but buying call and put options and these give opportunity to buy or…

Q: Maturity Risk Premium The real risk-free rate is 2%, and inflation is expected to be 4% for the…

A: Treasury security has lower nomnal interest rate as compared to corporate bonds, as they do not…

Q: us compound interest with QUARTERLY compounding at a rate of 6% APR. We set a goal of saving up…

A: Annuity It is a series of equal periodic payment at equal interval over a specified period. In…

Q: A machine purchased for #919866 has a depreciable life of 7 years, and it has a terminal book…

A: Depreciation expense is the amount that a company's assets are depreciated for a single period,…

Q: 5-year Treasury bonds yield 6.2%. The inflation premium (IP) is 1.9%, and the maturity risk premium…

A: Treasury bonds are bonds issued by the U.S. Federal government. Essentially treasury bonds are…

Q: 3) An alumni association wants to establish an endowment that can provide $1million annually for…

A: Equivalent annual cost  The annual cost of owning, running, and maintaining an asset over the course…

Q: Can you re-check your work?

A: Information Provided: Semiannual payments = $4016.00 Years = 23 Interest rate = 14%

Q: Caspian Sea Drinks' is financed with 62.00% equity and the remainder in debt. They have 11.00-year,…

A: EXCEL FORMULA:

Q: A machine that produces a certain piece must be turned off by the operator after each piece is…

A: Net present value refers to the amount present today for an asset based on the value that will be…

Q: Blue Whale Moving and Storage recently purchased a warehouse building in Santiago. The manager has…

A: When a project is presented, a preliminary analysis must be performed to assess whether or not it…

Q: What is the net present value of this project?

A: Information Provided: Fixed cost = $157,000 Annual sales = $98,000 Variable cost = $27,400 Fixed…

Q: Mrs Galicia gave her sisters $3000 each to invest. The investment will last 8 years. The table shows…

A: Future Value: It shows the future value of the present amount of investment. It is estimated by…

Q: Suppose you need to have $57,942.00 in an account 25.00 years from today and that the account pays…

A: Present value is the equivalent value today which is equal to future value required tomorrow…

Q: If $15,000 is invested at 3.5% for 20 years, find the future value if the interest is compounded the…

A: Initial investment (I) = $15,000 Interest rate (r) = 0.035 or 3.5% Period (t) = 20 years Future…

Q: A corporation will pay a dividend of $1.75 per share at this years end and a dividend of $2.25 per…

A: The value of the stock is the PV of all future dividends and price of the stock.Timeline is as…

Q: Better Corporation can purchase a piece of equipment now for $120,000 or buy it 4 years from now for…

A:

Q: Made sure you differentiate portfolio investments from FDI. Can we argue that a "A closed economy,…

A: FDI and  Portfolio investment - FDI or Foreign Direct Investment  involves a large commitment of…

Q: When deciding whether or not to take a trade discount, the cost of borrowing funds should be…

A: Trade Discount - It is the discount which is given on bulk purchase, the same is reduced from the…

Q: I just need to verify that these IRRs are correct.

A: Data given:  Year  CF 1 0 500000 1 -447000 2 -447000 3 -447000 4 881000   To check…

Q: Consider a zero-coupon bond with a $1,000 face value and 10 years to maturity. The price this bond…

A: Z = Maturity value or face value i.e. $1000 r = Yield to maturity i.e. 0.071 p = Maturity period…

Q: Can you please explain more on the example?

A: Shadow banks facilitate lending using a variety of securitization and secured funding strategies,…

Q: Using the SML [LO4] Asset W has an expected return of 11.8 percent and a beta of 1.15. If the…

A:

Q: invests $80,000 today at 10% per annum, compounded quarterly. What will the balance of Sam's…

A: Effective rate = 0.10/4    = 0.025 n = 5 * 4   = 20 Current amount = 80000

Q: An investment earns 7% the first year, earns 12% the second year, and loses 10% the third year. The…

A: Year 1 return (r1) = 0.07 Year 2 return (r2) = 0.12 Year 3 return (r3) = - 0.10 Period (n) = 3 years…

Q: A friend is celebrating her birthday and wants to start saving for her anticipated retirement.  She…

A: Present and Future Values of a growing annuity: The current value of a series of fixed, constant,…

Q: today, so the stock is less likely to How much net premium lignoring commissions) does the client…

A: A collar consists of buying a put option and selling a call option to hedge from large losses. Now…

Q: Hello! Please help me with as much of this as you can. Thank you! Present Value of an Annuity of $1…

A: Net Present Value = Present Value of Cash Inflows - Initial Investment Cash Payback = Initial…

Q: .Ran Company wants to determine its cost of common stock equity using the CAPM. The company's…

A: The CAPM refers to the Capital Asset Pricing Model. The model describes the relationship between…

Q: Identify the main differences between common stock and preferred stock.

A: Preferred stock are hybrid type of security between the equity and bonds and they have features of…