What is the present value of an annuity of P150,000 payable at the end of each 6-month period for 2 yea if money is worth 8% compounded semiannually?

Q: West Wind, Inc. has 4,900,000 shares of common stock outstanding with a market value of $90 per shar...

A: Market capitalization = Number of shares outstanding x market value per share             = 4,900,00...

Q: Two bonds are selling at par value and each has 17 years to maturity. The first bond has a coupon ra...

A: Duration refers to the price sensitivity of a bond, or a portfolio of bonds, to a change in interest...

Q: Calculate the net profit margin for a mixer sold for $125 that has an $80 cost of goods sold and 20%...

A:

Q: Currently, ABS Company has an issues with the working capital. ABS is running the food manufacturing...

A: Days sales outstanding of a business organization ascertains the time period taken by a business org...

Q: which of the following investments that pay will $5000 in 12 years have a higher price today?

A: Present Value: It is the present worth of the future amount and the present value is computed by dis...

Q: 3. Azman purchased a land at a price of RM 280,000. He paid RM W as a down payment and borrowed the ...

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...

Q: Lux Co. recently reported sales of P100 million, and net income equal to P5 million.  The company ha...

A: Answer -  Additional funds needed (AFN )is a financial concept used when a business looks to expand ...

Q: Consider the expected return and standard deviation of the following two assets:   Asset 1:  E[r1]...

A: Here,

Q: Future value of an annuity) Let's say you deposited $160,000 in a 529 plan (a tax advantaged college...

A: Given:

Q: Harding Company is in the process of purchasing several large pieces of equipment from Danning Machi...

A: Data given: Payment options: 1.Pay $1,130,000 in cash immediately.2. Pay $402,000 immediately and th...

Q: Which is a better choice in buying a computer worth $12,700.00? Choose from the following options:  ...

A: Time Value of Money: According to the time value of money, a basic financial principle, money receiv...

Q: Many corporations do not pay dividends, why are investors willing to by their stock?

A: There could be two types of investments with respect to dividends. One, the stock pays regular divid...

Q: Jersey Medical earns $11.50 a share, sells for $90, and pays a $8 per share dividend. The stock is s...

A: Given: Earnings = $11.50 Stock price = $90 Dividend = $8 Stock split 2 for 1 Cash dividend = $4

Q: Give at least three risks faced by a portfolio manager? Explain each.

A: Portfolio manager is a person who has an expertise in financial market and who is entrusted with the...

Q: ABC company has expected cash flows of $100,000 from local business and 1 million JPY from business ...

A: Exchange rate refers to a rate at which one unit of currency can be exchanged with another unit of c...

Q: The pressure of corporate debt repayment has increased year by year, and the total profit has also i...

A: There are two types of financing for every organisation, namely, equity financing and debt financing...

Q: The firm is formed to purchase and operate a vehicle.  The purpose of the vehicle is to operate a ta...

A: Annual Revenues are $145,000 Operating Expense are $100,000 To Find: NPV of this investment

Q: wants to purchase a house after a couple of years. his target house value is P4,975,193. He decides ...

A: Given information : Price of house 4975193 Annual payments at the beginning  592796 Time peri...

Q: Consider a 16-year, $1,000 par value, 4% semiannual-pay bond that is currently trading at a flat pri...

A: Current yield is a rate of return of bond using the market price of the bond. It is calculated with ...

Q: Find the simple interest and maturity value. 1. 240, 000 at 6% for 5 years 2. 780, 000 at 4% for 13 ...

A: We know that simple interest can be computed using the formula given below. Simple Interest = Princi...

Q: Lala Ltd's stock currently sells for $5 per share. The company just paid an annual dividend of $0.50...

A: Current price (P0) = $5 D0 = $0.50 Growth rate (g) = 6% r = Expected return

Q: ound interest for long-term financial transactions than simple interest. III. In compound interest,...

A: Introduction : There are two methods of computing interest on the principal the simple interest and ...

Q: Written solution. How much is the amount of an ordinary annuity of which yearly payment of php25,00...

A: In order to calculate ordinary annuity, firstly we have to find out the nature of payment. If the pe...

Q: (Related to Checkpoint 6.2) (Present value of an ordinary annuity) Nicki Johnson, a sophomore mechan...

A: Annuity refers to a series of payments with a fixed number of instalments of the same value and made...

Q: THE TERM STRUCTURE OF INTEREST RATES The term structure theory assumes that investors in bonds are w...

A: The yield curve, also known as the term structure of interest rates, illustrates the interest rates ...

Q: In how many years is required for $2000 to increase by $3000 if interest is 12% compounded semi annu...

A: Compound interest (also known as compounding interest) is interest calculated on a loan or deposit u...

Q: 11. A share of stock is expected to pay dividend of £2 in Year 1 and £2.5 in Year 2. The stock will ...

A: The valuation of an equity share depends upon two variables:- Estimating the expected future cash i...

Q: A certain type of machine loses 10% of its value each year. The machine cost P2,000 originally. Make...

A: Machine cost = P2,000 Depreciation rate = 10%  

Q: 4. (Present value of an ordinary annuity) What is the present value of the following annuities? c. $...

A: c) Annual payment (A) = $280 n = 7 years r = 6%

Q: Bettis Corporation issued 7 percent bonds 3 years ago with 22 years until maturity.  The coupons are...

A: Yield to call refers to the total return earned by the bondholders if the bond is held until the cal...

Q: 32. A student plan to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he ...

A: The effective interest rate connected with an investment or loan is described by the effective yearl...

Q: (Refer to this word problem. Samuel wishes to have P500,000 available for his son's college educatio...

A: Here we have to find the present value so that P 500,000 is available after 14 years. 

Q: National Co. recently reported sales of P100 million, and net income equal to P5 million. The compan...

A: AFN is a tool for determining how much money a company will require in the future. This strategy wil...

Q: Find i (the rate period) and n (the number of periods) for the following annuity Monthly deposits of...

A:

Q: (Related to Checkpoint 6.3) (Determining the outstanding balance of a loan) Ten years ago you took o...

A: Data given :: Loan = $250,000 n= 25 years i= 10% PMT= $ 2271.75   Required: Outstanding balance on y...

Q: What is the value of a bond with a face value of £1,000 and a coupon rate of 8% if the required rate...

A: Given : face value = £ 1000             Interest rate = 8%             Required return = 15% Value o...

Q: 6. Find the nominal rate compounded monthly which is equivalent to 12% compounded quarterly.

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the ...

Q: 2. The average price of gasoline may reach $5.00 per gallon in some parts of the U.S. by next month....

A: The effective annual rate of interest is the rate at which the investment actually grows. It takes i...

Q: n model holds, wl that the mark ure

A: Given information : EPS  ₹        5.00 ROE 16% Market price  ₹      50.00 DPR 40% Since ...

Q: A manufacturing company purchased electrical services for the next 5 years to be paid for with $70,0...

A: The question is based on the concept of the present value of expected future cost. The advance payme...

Q: The payments are made monthly and its compounding periods is quarterly." What kind of annuity is thi...

A: payments are made monthly and its compounding periods is quarterly   Payment period = monthly Compou...

Q: The present value is P 16,300.00, and the interest rate is 9% compounded monthly for 6 years. What i...

A: Here, Present Value is P16,300 Interest Rate is 9% Compounding Period is Monthly i.e. 12 Time Period...

Q: A customer deposits money into a bank which was able to create $10 000 000 in credit from it. The RR...

A:

Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a...

A: Risk-free rate = 8% Expected return on stock fund = 19%  Expected return on bond fund = 12%  Standar...

Q: A fixed-income analyst, Sean, observes a 7-year, 8% semiannual-pay bond. the face amount is ¥1,000. ...

A:  A Bond is an instrument that represents the loan that is made by the investor to the company and af...

Q: Berman V. Parker is planning to borrow P10 Million from NBA Bank, which offers to lend the money at ...

A: In discount loan; we deduct interest first then pay the rest of the amount.It is different than the ...

Q: 2. Calculating Future Välues ture value: L01 Present Value Years Interest Rate Future Value 13% $ 2,...

A: Future value can be calculated using the formula given below Future Value = P0 x (1+r)^n Here P0 = P...

Q: 3 years.  Calculate the capitalized cost if an annual maintenance of P 590,000 is required. Express ...

A: Given information : Rate of interest 7.50% Bridge cost 200 Time period  23 Partial cost  14...

Q: ABC has relatively constant returns from its operations. Average annual profit figures are as follow...

A: Debt amount = 3,000,000 Coupon Rate = 8% Tax Rate = 35% Weighted average cost of capital = 15%

Q: ABC trucking has issued and 14%, 10 year bond that pays interest semiannually. If the market prices ...

A:

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.