REQUIREMENTS: 1.  How much is the cost of equity using the capital asset pricing model? 2. How much is the cost of equity using the bond plus risk premium?

Q: The stock price of Alps Co. is $53.50. Investors require a return of 13 percent on similar stocks. I...

A: Stock price is $53.50 Required retturn is 13% Dividend next year is 3.40%   To Find: Growth rate

Q: If the total sale is P125,750.00, the cost of sales is 42.25% of the total sales, and the operating ...

A: Total sales = P125,750.00 Cost of sales = 42.25% Operating expenses = P15,429.30

Q: clusive investment projects have the following forecasted cash flows: Year A B $-20,000 $-20,000 1 +...

A: Internal rate of return is return achieved that makes present value of cash equal to initial investm...

Q: Mariah invested $10,000 in a bank certificate of deposit at a rate of 5% interest compounded annuall...

A: Certificate of deposits is an investment product offered by banks. The interest rates on certificate...

Q: The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. ...

A: Present value of perpetual annuity, when growth rate is given, can be calculated as: = Inflow / (Req...

Q: The next dividend payment by Hoffman, Inc., will be $2.75 per share. The dividends are anticipated t...

A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...

Q: CDE Co. has the following assets: Cash = P64,800, Accounts Receivable = P684,800, Inventory = P161,7...

A: Assets are the revenue-generating property of the business. Current assets are the assets that can b...

Q: ony's Pizzeria plans to issue bonds with a par value of $1,000 and 10 years to maturity. These bonds...

A: Par Value = $1,000 Time period = 10 years Coupon payment = $45 Present value of bond = $937.79  

Q: Which of the following are true statements on the principal-agent problem between corporate managers...

A: the principal-agent problem occurs when there is conflicts of interest between the principal and age...

Q: Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $9.50 per shar...

A:  In financial markets, it is a method of evaluating the intrinsic value of the stock. It is a compli...

Q: Diana Wade is evaluating her debt safety ratio. Her monthly take-home pay is $3,320. Each month, she...

A: Monthly take-home pay = $3,320 Auto loan = $380 Personal Credit = $120 Department Store Charge = $60...

Q: Uzam company has Tk. 1,312,500 in current assets and Tk. 525,000 in current liabilities. Its invento...

A: Current ratio measures the liquidity calculated by dividing current assets by current liabilities. C...

Q: What parameter is this question asking for? What deposit made at the end of each month will accumula...

A: Annuity is the equal periodic cash flows over specific time time period. When the payment is due at ...

Q: You are interested in purchasing a new automobile that costs $35.000. The dealership offers you a sp...

A: A loan is an agreement where a party receives an amount in return for paying it back along with some...

Q: ary Joy rery year, she decided to give her contribution of P9 000 every quarter. How much surance co...

A: The future value of money includes the principal amount deposited and interest accumulated over the ...

Q: Consider a portfolio consisting of the below securities with the below characteristics: Securit...

A: Portfolio refers to group of investment. Beta refers to measure of a stock volatility in relation to...

Q: (a) If $5,500 is invested at 1.35% interest, find the value (in dollars) of the investment at the en...

A: Future Value: It refers to the future worth of the current amount and is computed by the product of...

Q: January 1, 2022, you open a checking account with the same bank that you have your savings account. ...

A: Applicable interest rate is 0.02% Bi monthly deposits are of $25 Time period is 1 year To Find: Amo...

Q: Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25...

A: An annuity is a series of payments that are all the same size and are made at regular intervals over...

Q: If a firm is given a trade credit terms of 2/15, net 30,  then the cost to the firm failing to take ...

A: Trade credit terms of 2/15, net 30 means the firm gets a 2% discount if it pays within 15 days. Othe...

Q: Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets a...

A: Solution:- Debt equity means the ratio of debt to the equity in the capital structure of the company...

Q: Credit Card Debt 2.) At the end of January your credit card balance is $3575.00. The bank that issue...

A:

Q: How much would a business have to invest in a high-growth fund to receive $13,000 every month for 7 ...

A: First we need to calculate present value of all withdrawals by using the following formula        PV...

Q: Question 3 You know you will receive $1,450 each month in Social Security payments in retirement. As...

A: An annuity is referred as the fixed amount of the funds, which will be provided to an individual for...

Q: Merlin builds tables that she will sell for $200 per table. Her fixed costs for building the table i...

A: The optimal units to be produced should be at which the marginal revenue will be equal to marginal c...

Q: NATO Co.’s business is booming, and it needs to raise more capital.  The company purchases supplies ...

A: Here, Discount Rate is 1% Days of Discount is 10 days Days of Payment without adverse effect is 30 d...

Q: We want to generate a uniform monthly savings over the next 10 months to complete the value of a car...

A: Total number of months are 10. Car will cost 9,457,300 Annual Interest rate is 2.75% To Find: Amoun...

Q: A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue so...

A: Let the maturity value = F Selling price (S) = P 980000 n = 60 days r = 12%

Q: Given financial information of MEM's Merchandising Co.: Average accounts receivable = P90,000.00, be...

A: Net sales = P 2,000,000 Gross profit margin = 25% Average accounts payable = P 700,000

Q: below the letter representing,  write the importance of such research in daily life.  A. Digital Ag...

A: Uses of these researches in daily life. A. Digital Age This is to state that the curve of technologi...

Q: Consider a T-bill with a rate of return of 5 percent and the following risky securities. From which ...

A: Risk Seekers:  Risk seekers willing to pay for taking risk for getting more profits. ---------------...

Q: SDJ, Inc., has net working capital of $2,360, current liabilities of $5,430, and inventory of $1,220...

A: Net working capital = Current Assets - Current liabilities   Current Assets  = Net working capital  ...

Q: Premier Baking Ltd has recently appointed a new CEO to run its bakery business, which supplies to su...

A: Agency cost In a corporation, shareholders are the owners of the company while the management team a...

Q: The formula below shows the computation of a future value for a series of cash flows. Your task is t...

A: The movement  in and out of money in a business is referred to as cash flow. Cash received denotes i...

Q: A series of cash flows starts at $1,000 at the end of the first year and increases each year for the...

A: Future value of cash flow includes the deposit and plus interest accumulated over the period of time...

Q: What is the reason for using a two-stage dividend growth model

A: The two-stage dividend discount model has two parts and assumes that dividends will grow at two diff...

Q: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if ...

A: Given: Bond cost (PV) $50 Years(NPER) 22 Future value(FV) $100  

Q: An engineer deposits $550 each month into a retirement account. After 30 years, the balance in the a...

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

Q: Assume that a company has $2.000 equity and borrows $1000 at 10 nterest. All of frns funds are inves...

A: Return on equity (ROE) is a financial ratio is calculated by dividing net income by shareholders' eq...

Q: Consider two lotteries. Lottery A is such that an individual receives a prize of 1.25 units of a con...

A: The expected value is determined by multiplying the probability with its units. This is expected val...

Q: Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over t...

A: The question is related to Dividend Policy. The Current Share price will be calculated with the help...

Q: If the required return on the stock is 10 percent, what is the current share price?

A: Share price: It represents the current market value to buyers and sellers. The price of a share can...

Q: On January 2, 2022, Promenade Company purchased 25% of Twilight Company’s ordinary shares; no goodwi...

A: Solution: Promenade Company purchased 25% of Twilight Company’s ordinary shares. It means Promenade ...

Q: Chelsea FC has $15 million debt outstanding due next year and currently has $8 million cash. Chelsea...

A: Expected return if Ronaldo is hired by the clubs with weighted average revue under various scenarios...

Q: Both Bond Bill and Bond Ted have 9.4 percent coupons, make semiannual payments, and are priced at pa...

A: Given Two bonds bond Bill and bond Ted par value of bonds $1000.

Q: Eyes.com has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 divid...

A: The value of preferred stock will be the present value of the perpetual dividend to be paid over the...

Q: Advanced personalized learning, tailoring instruction to a student's particular needs and learning p...

A: Effective Annual Rate The effective annual rate of interest is the actual or the real rate of intere...

Q: QUESTION 7 Select from the following a factor that does not relate to the reduction of agency costs....

A: Agency cost refers to a payment made to the agent who is acting on behalf principal. this cost is tr...

Q: The Taiwanese debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% ...

A: To find: Monthly payment for each earnng individual.

Q: How many percent was the increase in gross sales?

A: Note: This post has two questions. The second question needs data from the balance sheet, which has ...

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.