Questions 11 to 12 The discount rate for the US T-bill that was issued on October 12, 2023 and maturing on January 11, 2023 is 5.340 %. 11. What is the price that is paid if one buys that T - bill? Answer to six decimal places. A. 98.002176 B. 98.183421 C. 98.650167 D. 98.876581 E. 98.991132 12. What is the geometric rate of return for holding the T - bill for 91 days? Use 365 days. A. 5.60% B. 5.77% C. 5.89% D. 5.98% E. 6.21%
Q: You deposit $64000 into an account which pays 5% compounded monthly. You wish to make semiannual…
A: Amount that can be withdrawn from account depends on the period of withdrawal and interest rate of…
Q: Required: a. MF Corporation has an ROE of 15% and a plowback ratio of 40%. If the coming year's…
A: ROE=15%Plowback=40%EPS=$3Market capitalization=12%
Q: Your parents will retire in 27 years. They currently have $370,000 saved, and they think they will…
A: Retirement income refers to the funds and financial resources that an individual or household…
Q: What is the yield to maturity for this bond? Assume the yield to maturity remains constant over the…
A: Bond valuation aims to ascertain the intrinsic worth of the bond. It entails determining the present…
Q: Annual and Average Returns for Stocks, Bonds, and T-Bills, 1950 to 2019 1950 to 2019 Average 1958 to…
A: It is represented as the variation's average amount in the set of data. It is helpful in…
Q: 16-year, 8% annual coupon, $1,000 par value bond that sells for and can be called after five years…
A: Some bonds have option to be called before maturity of bond period to give investors exist option…
Q: FinCorp's free cash flow to the firm (FCFF) is reported as $200 million. The firm's interest expense…
A: FCFE is free cash flow for equity refers to the cash flow available for the equity holders or…
Q: Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash…
A: Free cash flows are the cash flows available to investors after the firm has met all operating needs…
Q: The internal rate of return of the investment is closest to:
A: Internal rate of return method:-The internal rate of return is the discount rate at which the net…
Q: In response to customer complaints about rising prices of food items a supermarket responds by…
A: Coupons are the discounts given to customers to promote the sales of the company and this is one way…
Q: Charlie Munger wants to save for a trip to Italy. He will need $18,108 at the end of 12 years. He…
A: Annual Investment refers to the amount which is accumulated into a fund account with which interest…
Q: What is the value today of only the face value of this bond?
A: We can determine the value of the face value of the bond using the PV formula as below:q =…
Q: 14.7. A company in Calgary serves a market in the northwestern United States. Now it ships LTL at an…
A: Variables in the question:Average cost per unit=$30If the company establishes a distribution…
Q: DEF Corporation is considering a new product line. The company currently manufactures several lines…
A: Incremental sales from new product = RM1 millionRevenue lost due to sale of new product =…
Q: Janine is 46 and has a good job at a biotechnology company. Janine estimates that she will need…
A: Future value is the amount deposited and amount of interest accumulated over the period of deposit…
Q: Assume Gillette Corporation will pay an annual dividend of $0.69 one year from now. Analysts expect…
A: According to the dicidend discount model, the stock price is
Q: reen Caterpillar Garden Supplies Inc. is a small firm, and several of its managers are worried about…
A: Payback period is that period of time under which investor will received his invested amount return.…
Q: A student leaves her job for a year to attend college. The job pays 10,000 a year. After returning…
A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: Peyton Manufacturing is trying to decide between two different conveyor belt systems. System A costs…
A: EAC or equivalent annual cost is the annual cost of owning and maintaining the asset over its entire…
Q: Ms. T. Potts, the treasurer of Ideal China, has a problem. The company has just ordered a new kiln…
A: The term "after-tax cost" is frequently used to estimate the full economic impact of a financial…
Q: Payback A project has an initial cost of $67,275, expected net cash inflows of $11,000 per year for…
A: ayback period (PBP) refers to the period or duration within which the company is able to recover the…
Q: Fegley, Incorporated, has an issue of preferred stock outstanding that pays a $3.95 dividend every…
A: Required return on preferred stock paying perpetual dividend is calculated as follows:-Required…
Q: You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.8%. Your…
A: Yield on T-Bill = 4.8%Inflation premium = 3.5%Real risk-free rate= Yield on T-Bill - Inflation…
Q: Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost…
A: NPV is also known as Net present Value. It is a capital budgeting technique which helps in decision…
Q: Solo Corporation is evaluating a project with the following cash flows: Year Cash Flow 0-$ 13,800 1…
A: It is the indication of the flow of money in and out of the organisation. Cash received helps in…
Q: Market Top Investors, Incorporated, is considering the purchase of a $485,000 computer with an…
A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
Q: What is the profitability index of a project that costs $8,000 and provides cash flows of $2,900 in…
A: Solution:Profitability Index is calculated by dividing present value of cash flows divided by…
Q: Harrington Enterprises’ has issued preferred stock, but its annual dividends will not begin until 7…
A: Preferred stock is a type of equity security issued by a corporation to investors, providing them…
Q: Authorized and available shares Aspin Corporation's charter authorizes issuance of 2,100,000 shares…
A: Authorized Shares: These are the maximum number of shares a corporation is legally allowed to issue…
Q: a payment. If the interest rate on the mortgage is 6.75% (APR), how much cash will you have from the…
A: A mortgage payment is a regular commitment that a borrower makes to a lender in order to pay back a…
Q: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend…
A: The capital asset pricing model (CAPM) represents the minimum rate of return required by investors…
Q: If a company reduces their fixed costs from $219,000 to $158,000 when the selling price of $35 per…
A: Operating profit is that amount which exclude all the expenses from the sales which is incurred by…
Q: You believe you have discovered a new medical device. You anticipate it will take additional time to…
A: Present value refers to the method of time, the value of money used for the present value of an…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Here, Expected Return E(R )Standard Deviation Stock Fund (S)17%35%Bond Fund (B)14%18%Risk Free…
Q: The cost of retained earnings for Tangshan Mining would be 17.60 percent if the firm just paid a…
A: Solution:Cost of retained earnings refers to the rate of return required by the equity shareholders…
Q: How much would be your total yield if you sell this bond today?
A: Price of the bond is the PV of all future coupons and par value discounted at the YTM. This bond is…
Q: Delia Landscaping is considering a new 4-year project. The necessary fixed assets will cost $157,000…
A: Npv is also known as Net present value. It is a capital budegting technique which helps in decision…
Q: Assume a farmer takes out a five-year loan for $150,000. The annual interest rate is 8% and the…
A: Loans are paid by the annual payments and these annual payments carry the payment of interest and…
Q: A $34, 223 simple interest note was dated August 14, and earned 14.79% exact interest for 78 days.…
A: The maturity value of the security is the value that the security will provide to the holder at the…
Q: Purple Panda Pharmaceuticals Inc.'s free cash flows (FCFS) are expected to grow at a constant…
A: Value of operations is computed by following formula:-Value of operations = whereFCF = Expected free…
Q: What will be the WACC for this project? (Note: Round your intermediate calculations to three…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$…
A: Profitability Index is also known as PI. It is a capital budgeting technique which helps in…
Q: You are operating an old machine that is expected to produce a cash inflow of $6,000 in each of the…
A: EAC means net annual cost of operating the machine. With the passage of time, the value of money…
Q: Assume you invest $15,000 today. How much will you have in six years at an interest rate of 9%?…
A: Future value:Based on the investment's current value and anticipated future growth, the future value…
Q: Portfolio invested in the stock Portfolio invested in the bond - Expected return Standard deviation
A: The optimal risky portfolio is the portfolio that gives the highest Sharpe Ratio.Sharpe ratio is…
Q: On its savings accounts, the First National Bank offers a 5 perce interest rate that is compounded…
A: In compounding there is interest on interest and due to which the effective rate is more than the…
Q: money at 10.7% interest per year. How much money must she accumulate by the time she retires in…
A: Present value illustrates the current value of a sum of money that will be received or paid in the…
Q: Use the following information to answer the question(s) below. Suppose that the market portfolio is…
A: Expected return = 0.5*(24%) + 0.5*(-8%)= 0.5*16%Expected return = 8%Variance for the market…
Q: You are a consultant to a large manufacturing corporation that is considering a project with the…
A: The Capital Asset Pricing Model (CAPM) is a widely used financial theory that relates the expected…
Q: Calculate the price of the the call option
A: We can determine the price of the call option using the Black Scholes Option Pricing Model. A call…
Step by step
Solved in 3 steps with 3 images
- QUESTION 5 One has the following data regarding spot and 1 year forward for USDCHF Spot 1.2500 # of CHF to buy 1 USD F 1.2000 US interest rate Swiss interest rate 5.00% 3.14% All quotes above are "market"quotes, i.e. one can buy or sell USD, borrow or lend, at the stated rates. A practioner would say that the quote for F seems "out of line", thus there could be an arbitrage opportunity. What would be profit in USD from arbitrage on a notional amount of 100,000,000 USD? 2,031,250 2,437,500 1,950,000 2,949,375D6 American Express and other credit card issuers must by law print the Annual Percentage Rate (APR) on their monthly statements. If the APR is stated to be 11.50%, with interest paid monthly, what is the card's EFF%? Select the correct answer. a. 9.33%b. 3.73%c. 6.53%d. 17.73%e. 12.13%Quèstion 9 What is the price of a $1,000,000 T-bill that has a discount yield of 4.979% and is 87 days from maturity? (round your answer to 2 decimal
- 2:48 AM V ← October 14, 2023 14:12 | United States, Wa... VPN YY13¹4 Acme Annuities recently offered an annuity that pays 5.4% compounded monthly. What equal monthly deposit should be made into this annuity in order to have $76,000 in 10 years? CHE The amount of each deposit should be $ (Round to the nearest cent.)QUESTION 7 What is the present value (PV) today of a stable perpetuity that pays $11,000 every 3 years, starting 7 years from today? The appropriate annual discount rate is 12% p.a. Round your answer to the nearest dollar. Do not include the S symbol nor the separating comma, if any. Thus, for example, if the PV is $24,323.55 write 24324 in the answer box. IMPORTANT: Use at least 4 decimals in all your intermediate calculations. In the case of a discount rate, the 4-decimal requirement applies to the percentage version; that is, the decimal version would have 6 decimals. For example, 1.2345% would become 0.012345. Write your answer rounded to the dollar; e.g., 6543 (Acceptable error = 200)i will 10 upvotes urgent Assume that Riverside Corp. from the United States will receive 400,000 pounds in 180 days. The following information is available in current and forward markets: 180‑day U.S. interest rate = 8% 180‑day British interest rate = 9% 180‑day forward rate of British pound = $1.50 Spot rate of British pound = $1.48 How much will Riverside Corp. receive in dollars in 180 days fare if it uses a money market hedge for the 400,000 pounds? Please show your steps, thank you!
- Q33 What is the present value of a $1,450 payment made in seven years when the discount rate is 10 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PRESENT VALUE?Question 3 A T-bill that matures in 120 days has a discount rate (yield) of 7%. If the bill has a $1000 face value, the price of this bill is O $1000 O$987.8 O $1001.2 $976.67The present rate for deutsche marks per dollar is 1.79 and 90-day forward rate is 1.78. Compute the annualized discount rate in dollar assuming 365 days in a year. A. -2.266% B. -2.37% C. -2.97% D. -2.164% Answer O B Submit search 1O Inser C12 Home End
- Problem 11 On January 1, 2020, Molina Company sold a special machine that had a cash price of P900,000. The buyer paid P100,000 cash and signed a 4-year note. The note specified that it would be paid off in four equal annual payments of P274,565 each starting on December 31, 2020. The payments include 14% interest. 12. The carrying amount of the receivable on December 31, 2020 isTask 1 On Friday 26th January 2018, the UK government held its weekly auction of government Treasury bills. The table below outlines prices for the one-, three- and six-month bills. Maturity Date Average Price Average Discount 26th February 2018 99.978223 30th April 2018 99.940167 30th July 2018 99.779994 Calculate the discount rates for the three bills. You must show the price using an appropriate mathematical formulation and take into account the difference between the auction date and settlement date when working out the terms to maturity. 2. The table below lists the principal amounts of each bill auctioned and the scale of bidding on 26th January 2018. Maturity Date Principal Amount Sold Aggregate Scale of Bids 26th February 2018 £500 million £2711.5 million 30th April 2018 £500 million £2869.0 million 30th July 2018 £2000 million £6134.5 million Calculate and comment on the significance of…X 9.5.4 Question Help Y Scheduled payments of $969, $1386, and $617 are due in one year, four-and-a-half years, and five-and-a-half years respectively. What is the equivalent single replacement payment two years from now if interest is 8% compounded quarterly? The equivalent single replacement payment in S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)