Vaughn Inc. has been using the services of San Bernadino Brokerage Company (SBBC) for the past six months. SBBC has informedVaughn Inc. that the geometric mean monthly return was 6.6 percent and that over the past six months Vaughn Inc. earned 15.6percent, 18.6 percent, -22.6 percent, 13.6 percent, -7.6 percent, and an unknown amount in the last month.Determine the missing return. (Round intermediate calculations to 6 decimal places, e.g. 1.251125 and the final answer to 4 decimalplaces, e.g. 14.5125 %)Missing return%

The geometric mean is a measure of central tendency that calculates the average rate of return of a…

Answered: Vaughn Inc. has been using the services…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $310,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 7%. B. On July 9, Mohammed borrows an additional $120,000 with payment due in four months from July 9, and an annual interest rate of 14%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed. If an amount box does not require an entry, leave it blank. Round intermediate calculation and final answers to the nearest whole dollar. June 10 July 9 Oct. 10 Nov. 9
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An investment that earns intrest: Any amount deposited does not earn interest for the first month it is in the account. Afterwards, it earns interest at a rate of 1% at the end of every odd month (January, March, May, July, September, November), and 1.5% at the end of every even month (February, April, June, August, October, December). You'd like to make three equal deposits of P to the account on October 1, 2021, February 1, 2022, and April 1, 2022. Determine P so that you have exactly $2000 on July 1, 2022.
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Several months ago, Buddy Inc. issued a unique fixed income security. As of today, the security is maturing in 11 months. The security pays semi-annual interest, which is equal to X% p.a minus the 6 month LIBOR, where X% is equal to the sum of 6% p.a. and the 3-month LIBOR rate. That is, in every six months, the interest is defined as: L3% + 2 6% L6% 4 2 where, L6 (quoted on an annual basis, in %) is the 6-month LIBOR and L3 (also quoted on an annual basis, in %) is the 3-month LIBOR. Assume that the 6-month LIBOR will never exceed 6% p.a. At maturity, the company will pay $100 as the face value of the security. Also, assume all other bonds and floating rate notes have a face value of $100, respectively. Table 1 shows the 3-month and 6-month LIBOR rates observed in the previous months as follows: Table 1 2 months ago 3.4% р.a. 1 month ago 3.1% р.а. 3-month LIBOR 6-month LIBOR 3.7% р.a. For example, two months ago, the 3-month LIBOR rate was observed at 3.4% p.a. 3.4% р.a. Table 2 shows…
Sawchuk's Home and Garden Centre in Toronto files monthly HST returns. The purchases on which it paid the HST and the sales on which it collected the HST for the last four months were as follows: (assume HST in Toronto is 13%) Month Purchases ($) Sales ($) May 176,730 313,245 Based on an HST rate of 13%, calculate the HST remittance or refund due for each month Calculate the difference between GST Collected on Sales and GST Paid on Purchases?
In 2014, Bank A paid 3% interest, compounded daily, on a 8-year CD, while Bank B paid 3% compounded quarterly. a. What are the effective rates for the two CDs? Use 365-day year. b. Suppose $4000 was invested in each of these accounts. Find the compound amount after eight years for each account. ------------------------------------------------------------------------------------------------ a. The effective rate for Bank A is % (round to 3 decimal places) The effective rate for Bank B is % b. For Bank A, the compound amount after 8 years is $ For Bank A, the compound amount after 8 years is $ (round to the nearest cent)
As loan analyst for Headland Bank, you have been presented the following information. Assets Cash Receivables Inventories Total current assets Other assets Total assets Liabilities and Stockholders' Equity. Current liabilities Long-term liabilities Capital stock and retained earnings Total liabilities and stockholders' equity Annual sales Rate of gross profit on sales Toulouse Co. $122,000 225,000 564,000 911,000 502,000 $1,413,000 $299,000 398,000 716,000 $1,413,000 $964,000 30 % Lautrec Co. $332,000 313,000 541,000 1,186,000 638,000 $1,824,000 $353,000 502,000 969,000 $1,824,000 $1,548,000 40 %
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Takaful wishes to adjust their rates for next year, they calculate that the expected loss ratio is 0.8, while the data shows that the loss adjustment expenses is 566 and the total premium earning is 990. The company's current ratei s 77. Using the experience rating method what will the new primum be if the credibility factor is 0.6
To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year. The amount of working capital The current ratio The acid-test ratio The average collection period (The accounts receivable at the beginning of last year totaled $250,000) The average sales period (The inventory at the beginning of last year totaled $500,000) The operating cycle The total asset turnover. (The total assets at the beginning of last year were $2,420,000) The debt-to-equity ratio The times interest earned ratio The equity multiplier (The total stockholder’s equity at the beginning of last year totaled $1,420,000) Could you please help me answer 7-9?
Lush Gardens Co. bought a new truck for $52,000. It paid $4,680 of this amount as a down payment and financed the balance at 3.98% compounded semi-annually. If the company makes payments of $2,000 at the end of every month, how long will it take to settle the loan? years months Express the answer in years and months, rounded to the next payment period

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