What is a smart beta strategy? How does this strategy work

Q: What is the value of a share of a corporation's $4.80 preferred stock to an investor who requires a ...

A: Given: Dividend = $4.8 Required return = 12%

Q: Elijah now has $500. How much would he have after 7 years if he leaves it invested at 5.1% with annu...

A: We will apply the formula of future value so as to find the amount of money that Elijah will have af...

Q: What is the ‘intrinsic value’ of a stock and what does it tell us?

A: Intrinsic value refers to a company's, stock's, currency's, or product's expected or calculated valu...

Q: Suppose a world has two risky assets: StkC and StkD. The following table shows the holding period re...

A: First, we will calculate the Expected Return for Stock C and Stock D then we will find out the Stand...

Q: 2. HYZEL Merchandising borrowed Php 300,000 from Partner's Bank at 15% simple interest for one year....

A: Borrowed amount = Php 300,000 Interest rate = 15%

Q: Clark borrows P 600,000 at 15% compounded annually agreeing to repay the loan in 15 equal payments. ...

A: Loan amount (PV) = P600,000 Interest rate (r) = 15% Number of payments (n) = 15

Q: merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days.  What is ...

A:

Q: The government received a loan of 7 million monetary units at 10% per year (expenditure). These fund...

A: Loan is a situation where the individual or the company or government or any other party borrows mon...

Q: ian financial crisis and the Thai baht. On July 3, 1997, the Thai baht was unpegged from the U.S. do...

A: Depreciation/Appreciation of one currency against other country happen due to some internal and exte...

Q: Explain a flat yield curve using the segmented market theory.

A: Mаrket  segmentаtiоn  theоry  is  а  theоry  thаt  lоng  аnd  shоrt-term  interest  rаtes  аre  nоt ...

Q: ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investmen...

A: Net Present value refers to the present value of future cash flow, which means cash flows generated ...

Q: (b) price of RM35 and 2 years 9 months until expiration. Ali Baba's share is currently trading RM37 ...

A: We will apply the formula to find out the price of the call option and put the option using the data...

Q: A 5-year annuity-due has semiannual payments with the first payment starting two years from now. The...

A: First semi annual payment = 800 Decrease in each payment = 50 Interest rate = 8% Semi annual interes...

Q: You sell a put option on a stock for $4 with a strike price of $30. The stock currently sells for $2...

A: Give, Premium on option $4. Strike price is $30.  

Q: Find the present worth of perpetuity of P 6,000 annually with an interest rate of 10% compounded mon...

A: A perpetuity is an annuity that gives payments but has no maturity period.  

Q: Ten bonds are purchased for $9,598.13 and are kept for 5 years. The bond coupon rate is 7% per year,...

A: A bond is a debt instrument that is issued by governments and companies which forwards them a loan t...

Q: You have been given the following coupon yield curve: Maturity (years) 1 2 4 Coupon Rate (annual pay...

A: Here, YTM of 2 Year Coupon Bond is 2.31% YTM of One Year Coupon Bond is 1.5% Coupon Rate of Two Year...

Q: 19. Which is the correct bar chart if the stock's opening price is P15, closing price is P25, highes...

A: Opening price = P 15 Closing price = P 25 Highest price = P 30 Lowest price = P 10  

Q: An ordinary annuity where the first cash flow of the series is not at the end of the first period an...

A: Annuity: It is a series of payments that is paid  at equal intervals.  

Q: Please show work. Thank you

A: The future value is calculated as per time value equation

Q: Risk return exercise : D2L Assessment #7 DePaul, Inc. You are searching for a stock to add to your c...

A: Given:  

Q: An asphalt road requires no upkeep until the end of 2 years when P60, 000 will be needed for repairs...

A: Equivalent uniform annual cost is the annual cost of repairing, maintaining an asset over its useful...

Q: Question Quarter-end payments of $1,470 are made for 9 years to settle a loan of $37,120. What is t...

A: Borrowings/Mortgage are the loan which is taken by the individual to meet its financial requirements...

Q: We should accept a project if the Net Present Value is positive and the Internal Rate of Return is h...

A: Net present value is referred as the difference between the cash inflow's present value and also cas...

Q: the lender charges the borrower 1.8% per quarter. find the equivalent nominal rate of interest. incl...

A: The equivalent nominal rate of interest is calculated as quarterly rate multiplied by compounding fr...

Q: Electronic Games is moving very quickly to introduce a new interrelated set of video games. The init...

A: "Since you have posted a question with multiple sub-parts, we have solved the first three for you. T...

Q: Panther enterprise finances its projects with 40 percent debt, 10 percent preferred stock, and 50 pe...

A: The weighted average cost of capital is what the company pays for financing its assets. It is contro...

Q: Assume we are now in mid- or late February 2022. After conducting your own analysis, you have made a...

A: Behavioral finance is finance that helps in understanding the behavior and mindset of investors in t...

Q: A company expects to earn Rs.4.4 million in 2022, and 50% of this amount or Rs.2.2 million has been ...

A:

Q: Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an all-equi...

A: Equity beta (EB) = 0.82 Risk free rate (RF) = 4% Market risk premium (RP) = 5%

Q: A company concerned about the liquidity of its near-cash securities should invest in U.S. Treasury b...

A:

Q: 1. In the following cash flow diagram, find the value of P in year 0. Consider an interest rate of i...

A: An annuity is a series of equal cash flows that occur for a certain fixed period of time. When the a...

Q: ZEC Corporation currently has 4 million shares outstanding. The stock sells for RM35 per share. The ...

A:

Q: Lin Lowe plans to deposit $1,800 at the end of every 6 months for the next 15 years at 8% interest c...

A: Amount Deposit = $1,800 Time Period = 15 Years Interest Rate = 8%

Q: Today, you invest P 100,000 into a fund that pays 25% interest compounded annually. Three years late...

A: With the time value of money application, we compute the amount at each even of deposit and withdraw...

Q: What is the total interest paid on a loan of $5,000 at APR = 8% for one year.

A: Loan amount (LV) = $5000 Interest rate (r) = 8% Period (n) = 1 Year

Q: If you know the nominal interest rate 3% Per Quarter A) Find the Nominal interest rate. B) Find the ...

A: Here, Nominal Interest Rate is 3% per Quarter

Q: You are negotiating the terms of a legal settlement. You have been given several different settlemen...

A: Present Value means value of future benefits at the current date. The formula for the same is as fol...

Q: TASK 1.1 Kashi is preparing the cash budget for the first 3 months of her business's trading. Busine...

A: Cash Budget A cash budget is referred to as the estimation of cash inflows and outflows over a speci...

Q: Why there is a difference between the interest rate and the APR

A: Interest rates and APR are two phrases that are sometimes used interchangeably to refer to comparabl...

Q: hat is SWIFT code in the philippine

A: SWIFT code is used in sending money internationally from one country to other country. This code is ...

Q: What is the monthly payment on a loan of $5,000 at APR = 10% for one year.

A: Loan amount = $5000 Interest rate = 10% Monthly interest rate  = 10%/12 = 0.833333333333333% Number ...

Q: If the effective interest rate is 24%, what nominal rate of interest is charged for a continuously c...

A: Effective interest rate = 24% e = 2.7182818284590452353602874713527  

Q: Calculate the total payment for the FHA   Purchase Price: $500k LTV: 96.5% Loan term and type: 3...

A: Working Note #1 Purchase Price = $ 500,000 LTV = 96.5% Down payment = 100% - 96.5% = 3.5%   Working ...

Q: An ordinary annuity where the first cash flow of the series is not at the end of the first period an...

A: An annuity is a series of equal payments made at regular intervals. When these payments are made at ...

Q: The present value of an annuity of X pesos payable annually for 10 years, with the first payment at ...

A: Present value (PV) = P189,481.25 Interest rate (r) = 5% Number of annual payments (n) = 10 Period of...

Q: Consider the following mutually exclusive projects, for Oz Corp, a firm using a discount rate of 10%...

A: Rules for Mutually Exclusive project:-The corporation is free to choose any of the projects if they ...

Q: Houston Tools has expected earnings before interest and taxes of $189,400, an unlevered cost of capi...

A: Value of firm is defined as an economic concept, which helps in reflecting the business value in the...

Q: Steady Company's stock has a beta of 0.17. If the risk-free rate is 6.1% and the market risk premium...

A: Stock beta (B) = 0.17 Risk free rate (RF) = 6.1% Market risk premium (MR) = 7.1%

Q: Calculate the Modified Duration of the following securities: 10 % semi-annual coupon maturating in 5...

A: Assume that the face value of the coupon is $1,000. Therefore, the Modified duration for security ...