Which of the following is not a function of financial markets?     Scope transformation     Maturity transformation     Scale transformation     Risk transformation

Q: A long forward contract on a dividend-paying stock was entered into some time ago. It currently has…

A:

Q: Year 1 Sales (Revenues in $) Cost of Goods Sold (50% of Sales) Depreciation EBIT 100,000 50,000…

A: NPV NPV is a capital budgeting tool to decide on whether the capital project should be accepted or…

Q: Which one of the projects O, M, N, L should be selected? The expected return on the market is 16%…

A: Risk Free Rate = 6% Expected Market Return = 16%

Q: The frequency of spending or the rate or turnover of money a. Demand for money b. Velocity of money…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The present worth is calculated as sum of present value of the cash flows.

Q: cost of the assembly system is $3 million with life expectancy of 10 years, annual operating cost of…

A: NPV= Present value of cashinflows - Present value of cashoutflows. If results are positive then it…

Q: 20121, ABC Company has 1,000,000 accounts receivable that are now fully settled. What is the…

A: To calculate,  Percentage change in Accounts Receivables, data relating to Current year's and Last…

Q: what is the nominal annual rate of interest compounded quarterly if a loan of $25,000 is repaid in…

A: The act in which one person or entity provides funds to another person for defined term and agreed…

Q: Direction: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS…

A: There are two types of annuities one is annuity due and other is ordinary annuity that is being paid…

Q: A man is offered two proposals to invest his money. The first offer is to invest $ 20,000 in the…

A: We need to calculate future value of both investments. Higher future value proposal will be chosen…

Q: ermine the amount of each payment?

A: Monthly payment refers to the amount which is due to be paid at regular intervals for some…

Q: Annual cash inflows that will arise from two competing investment projects are given below:   Year…

A: The technique of assessing the economic & financial potential of investment is capital…

Q: 17. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing credit spread of 3% and…

A: We need to use CAPN method to calculate cost of equity Cost of equity =Risk free rate+Beta(market…

Q: San Diego Enterprises is planning to invest in a five-year project costing $270,000. The project is…

A: Payback period is the amount of time required to recover initial investment. It can be calculated…

Q: .) Which of the following statements is most correct? a. A 5-year P100 annuity due will have a…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: 1. Due to the effects of pandemic on the economical and personal financial status, early investment…

A: Time value of money,  is a basic financial concept which states that the present value or worth of a…

Q: Jane requested a loan from a bank amounting to P405,630 to contin her small business. But she only…

A: Interest is an additional amount charged on the amount. It can be income and expense. For the lender…

Q: The Hurricane Lamp Company forecasts that next year’s sales will be $6 million. Fixed operating…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: What is the final balance owing on the account in two years (24 months from now)?

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: From the interest statement of 18% per year, compounded monthly, determine the value for compounding…

A: Compounding period is referred as the period, which is the span of time that are between the…

Q: A machine was purchased 4 years ago for $50,000. The depreciation amount each year was $1 ger has a…

A: There are taxes to paid on the capital gain that means if the equipment is sold above the book value…

Q: What simple interest rate is equivalent to 5% compounded quarterly if money is invested for 10…

A: Concept. 1. Simple interest formula. SI = P × N × R…

Q: 3. Which of the following statements is most correct?    a. Trade credit is provided to a business…

A: A creditor is a legal entity (individual or institution) that gives credit by giving another legal…

Q: A ​$27,000 bond with interest at 5.3​% payable​ semi-annually and redeemable at par is bought two…

A: Face Value = $27,000 Coupon Rate = 5.3% Time Period = 2 Years Yield = 6.6%

Q: You are trying to pick the least-expensive car for your new delivery service. You have two choices:…

A: EAC means equivalent annual cost. It is used to evaluate capital budgeting decisions. When comparing…

Q: A ​$96,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.1%…

A: Mortgage means amount which is borrowed by external sources to meet financial obligation or purchase…

Q: ABC Trucking's balance sheet shows a total of noncallable $38 million long-term debt with a coupon…

A: Weighted Average Cost of Capital (WACC) is the required rate of return for investors based on the…

Q: A debt of $6434is to be settled by two equal payments due in 1 month and 7 months respectively.…

A: Let equal payments be X: X*PVF(6%/12,1) + X*PVF(6%/12,7) = Total debt Hence, the Equal payments can…

Q: . Fong Company introduced a new product last year for which it is trying to find an optimal selling…

A: We will take the units to be increased by 5000 units and we will reduce the selling price by $2 for…

Q: The present value of the bond is $. (Round to the nearest cent.)

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: Required information Exercise 12-8 (Algo) Payback Period and Simple Rate of Return [LO12-1, LO12-6]…

A: For calculating the payback we will first need to calculate the adjusted annual cash flow by adding…

Q: A loan of X pesos will be paid in 48 equal monthly payments, starting 6 months from the release of…

A: Loan – X Monthly payment – P 5782 Interest rate – 18% p.a. c.m. or 18/12 = 1.5% p.m. Time – 48…

Q: fund is to be set up for an annual scholarship of $5000. If the first payment is due in three years…

A: Solved using Financial Calculator  FV = 5000 N = 3 years * 4 = 12 I/Y = 6.2/4 = 1.55 CPT PV = -…

Q: What’s the difference between order and volume discounts? Justify your answer.

A: Manufacturers and sellers utilize volume discount pricing, or volume discounting, to reward…

Q: 13 Suppose that Argentina’s 10-year bonds are yielding more than 100 percent annually. Does this…

A: A bond is a bond that represents a loan that an investor makes to a borrower (usually a company or…

Q: Tim Smunt has been asked to evaluate two machines. After some investigation, he determines that they…

A: When a company has to chose one out of two or more investment options with same life, a present…

Q: Compute the interest of the following: 2. P25,000 at 6% simple interest for 1 year.

A: Compounding:  A compounding is the interest charged on interest. When any investment is made for…

Q: Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years)…

A: Zero-coupon bonds are those bonds that are initially issued at discount and matured at par. The…

Q: Obtain information on the following two funds: Colonial First State Developing Companies Fund…

A: An investor is someone who invests money in the hope of making a profit or gaining an advantage in…

Q: Compute the present value of the following annuity investments: 2. P5,000 quarterly investment at 6%…

A: FORMULA PVA = P*[1-(1/(1+i)n)/i] Where PVA - Present value of annuity P - Quarterly payment i.e.…

Q: purchase a specialty guitar for his band, for the last three years JJ Morrison has made payments of…

A: Solved using Financial Calculator  Money accumulated at the end of Year 3 PMT = +/- 98 N = 3*12 = 36…

Q: Simon and Simon, makers of cell phones, has a history of paying a dividend of $1 per share to their…

A: Share price is the sum of future cashflows. So, When dividends are paid, the share price falls.…

Q: How do I graph this?     Laurel, Inc. Hardy Corp. Price Today $1,000.00 $1,000.00 Price @ 7.8% YTM…

A: Here; We need to plot graphs

Q: Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral…

A: The net present value or NPV of any project is a financial measure through which the profitability…

Q: A Treasury bond that settles on May 18, 2019, matures on December 31, 2031. The coupon rate is 9.65…

A: We need to use yield function in excel to calculate yield to maturity of bond. The formula is…

Q: C. Identify the Form of Business Organization being described. TOMI Or bUsIness organızation with…

A: Business Organisation is something in which some commercial activity like sales or goods and…

Q: What are flotation costs?

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: Beltway Co. is considering purchasing equipment that has an initial investment of $41,000. The…

A: The profitability index is calculated as ratio of present value of cash inflows and in initial…

Q: Which loan should Spike take and why?

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

Q: What is your prospect about how the Philippine Financial system will evolve in the next 10 years?

A: The financial system is a group of institutions that enable the exchange of funds, such as banks,…