Why is there a need for regulation of the financial system?  What are the objectives of the FMA and of RBNZ Prudential  regulation, as set down in legislation?  What are current challenges facing the FMA and RBNZ as financial regulators?

Q: An individual borrows £15,000 to be repaid in 10 years with monthly payments at the end of each…

A: Here, Particulars Values Borrowed amount (PV)  £15,000.00 Number of years 10.00 Number of…

Q: hat are the operating cash flows in years 1 to 5?

A: Operating cash flows are the cash money available from core operations of the company. Operating…

Q: Consider the following information for Vine Inc.: Beta: 1.39 Risk-free rate: 7% Market Risk Premium:…

A: According to Capital asset pricing model ( CAPM), ke = Rf  + [beta × ( Rm - Rf)] Where, ke = cost of…

Q: An investor knows that she will need £20,000 in ten years and looks at possible savings plans. The…

A: The FV of an investment refers to the cumulative value of the cash flows at a future date assuming…

Q: O $3,433.89 O $3,630.56 $3,636.11 $3,793.72

A: In period less than one simple ordinary interest is applied and computations is done based on number…

Q: $ Revenue Cost of sales Gross margins Operating expenses: Research & Development Selling, general &…

A: The ratio is a mathematical relationship between two variables that are used to evaluate the…

Q: 1 . F r e d O n g k e k o w i s h e s t o h a v e P 4 M i n a r e t i r e m e n t…

A: 1. PV = A * 1-(1+r)-nr where , PV  =  present value of annuity A = periodic withdrawals r = interest…

Q: If Treasury bills are currently paying 6.25 percent and the inflation rate is 1.8 percent, what is…

A: The real rate refers to the rate of interest that is being received by the investors, and lenders,…

Q: 1 . F r e d O n g k e k o w i s h e s t o h a v e P 4 M i n a r e t i r e m e n t…

A: Annual withdrawal refers to an amount withdraw at every period from the fund created for the purpose…

Q: Filer Manufacturing has 6,294,304 shares of common stock outstanding. The current share price is…

A: We need to use below equation to calculate weight of equity weight of equity  = market value of…

Q: Green Lantern Enterprises has just completed an initial public offering. The firm sold 1,500,000 new…

A: Underpricing cost = $5,250,000 Spread = $1.18 No. of shares offered (Primary offering) = 1,500,000…

Q: Assume that interest rates on 20-year Treasury and corporate bonds with different ratings, all of…

A: Corporate Bond: It is a debt security issued by the company for raising capital. The investor is…

Q: Demonstrate how interest rate and currency swaps are constructed and discuss the comparative…

A: Two parties can exchange cash flows based on various interest rates or currencies using financial…

Q: h) discuss the relationship between the prices of puts, calls, and forward/futures contracts on the…

A: The answers to the questions are given below

Q: 3. The car that Deborah bought is 4 years old. She paid $9,600. This make and model depreciates…

A: Present value refers to the method of capital budgeting in which the current value of an asset that…

Q: think question 3 is not answered clearly.  If Project A is rejected due to negative NPV, then all…

A: In case of discounted payback period, all cash flows are first discounted back to present value and…

Q: Question (3) Mary made five annual deposits of $X1 in a savings account that pays interest at a rate…

A: The future value (FV) refers to the value of an investment or asset at a specified point in the…

Q: Sentry Manufacturing paid a dividend yesterday of $5 per share (D0 = $5). The dividend is expected…

A: Cost of retained earning is equal to cost of equity because retained earning are the part of owner's…

Q: Whadden National Bark is undertaking statec GAP analysis. In the one yoar time bucket, it holds $43…

A: Strategic gap analysis is a business management technique that requires an evaluation of the…

Q: The most recent financial statements for Summer Tyme, Inc., are shown here: Income Statement Sales…

A: The question is based on the concept of Financial Management. In order to calculate the external…

Q: F i n d   t h e   m o n t h l y   m o r t g a g e   p a y m e n t s   o n   t h e   f o l l o w i n…

A: The concept of time value of money will be used here. When we take a loan or a mortgage we have to…

Q: Only by formula or skip pls .If a​ firm's cost of capital is​ 15%, then an investment project that…

A: Net Present Value (NPV) is a discounted capital budgeting technique. If NPV of a project is positive…

Q: Suppose that you took out a loan at 10% interest for 283 days. If the amount of interest was…

A: Interest rate = 10% Period = 283 days Amount of interest = $852.88

Q: 2.11 Heddy is considering working on a project that will cost her $20 000 today. It will pay her $10…

A: Cash flows represent the amount of cash generated by the firm from its normal business operations.…

Q: Xespresso is launching a new type of espresso coffee machine. Production requires an initial…

A: Here, Particulars Values Initial investment  £ 8,50,00,000.00 Salvage value  £ 1,00,00,000.00…

Q: 5.7 Driving Data Ray is planning a 425-mile trip to a math teachers' conference in Las Vegas. He…

A: With time and distance, speed is expressed as given below. Speed=DistanceTime required

Q: 5) Asset P has a beta of 0.9. The risk-free rate of return is 8 percent, while the return on the…

A: The required return of an asset is the rate of return required by an investor considering the risks…

Q: Why can an M&A fail? O a. Economies of scale O b. shortcomings of the due diligence process,…

A: In general terms merger and acquisition refers to the consolidation of assets of 2 or more entities.…

Q: Lachman Ltd is considering replacing a machine. The cost on 1.1.2023 will be £2.3m. The expected…

A: Internal rate of return(IRR) the discount rate that equates the NPV of an investment opportunity…

Q: The portfolio weights for a portfolio that has 150 shares of Stock A that sell for $50 per share and…

A: The amount invested in stock A is calculated below: Value of Investment in Stock A = No. Of Share ×…

Q: force of interest measured in years is δ(t) = 0.02 + 0.01t for t ≥ 0. (a)Compute the accumulated…

A: Over the period of time due to compounding of interest large amount of interest is accumulated and…

Q: The most recent financial statements for Live Co. are shown here: Income Statement Sales Costs…

A: The highest rate of growth that a business may maintain without using more equity or debt to finance…

Q: In the event of unexpected news announcement, such as a significant reduction in profit…

A: The reaction of stock prices to news announcements can vary depending on several factors and the…

Q: ne that you are a 25-year old finance professional. You wanted to buy the latest model of your…

A: Buying any equipment involves cost and money is borrowed and so there decision making involved in…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: The question is based on the concept of annuity in financial management. Annuity refers to the…

Q: 4) 1) Miguel is attending a 2-year college. As a freshman, he was approved for a 10-year, federal…

A: Principal Amount = $3100 Rate of Interest = 4.29% No. of years = 2.5

Q: Rosina plans on saving $2,225 a year and expects to earn a rate of 8.37% compounded quarterly. How…

A: Amount in the future is the future value of annuity accumulated along with interest. This is the…

Q: An investor’s portfolio currently is worth K1 million and during the year the investor company at a…

A: The ratio of a portfolio's net gain or loss, defined as the sum of its net income, foreign exchange…

Q: 5.6 Historical and Exponential Depreciation 1. Sandi's new car cost her $24,000. He was told that…

A: Depreciation is the allocation of asset cost over its useful life on logical basis.

Q: A company received a loan of $30,000 from a bank that was charging interest at a rate of 4.80%…

A: A loan is an agreement between a lender and a borrower in which the lender provides a sum of money…

Q: When performing benefit-cost analysis, economists usually discount future benefits and costs. Why?…

A: This is based on capital budgeting and concept of time value of money. Benefit-cost analysis is done…

Q: Thornton, Inc., had taxable income of $131,387 for the year. The company's marginal tax rate was 35…

A: Taxable Income = $131,387 Average Tax rate = 22.8%

Q: Assume the return on a market index represents the common factor and all stocks in the economy have…

A: Here, Particulars Values Beta 1 Standard deviation 30.00% Total number of stocks 20.00…

Q: Below is a major portion of the income statements of KTA Inc. for 2020 and 2021: Sales Cost of Sales…

A: Here, Particulars 2020 2021 Sales 80000 97200 Cost of sales 50000 72000 Gross margin 30000…

Q: Capital asset pricing model (CAPM) For the asset shown in the following table, use the capital asset…

A: Risk free rate = rf = 7% Market return = rm = 10% Beta = 0.9

Q: Assume a company can invest in equipment that will cost $1,000,000 and is expected to generate…

A: Initial cost = $1,000,000 First 3 years cash flow = $160,000 next 3 years cash flow = $140,000 next…

Q: Dineage Corporation has 5 million shares of common stock outstanding. The current share price is…

A: Weighted average cost of capital refers to the cost of capital on its average including the common…

Q: Assume the $11,700 Treasury bill, 6% for 10 weeks. Calculate the effective rate of interest. (Use…

A: The effective rate of interest takes into account the compounding of interest, which means that…

Q: Activity in Mortgage Market Offer instruments to help institutions that invest in mortgages hedge…

A: Institutions that offer instruments to help institutions that invest in mortgages hedge (protect…

Q: Suppose at the start of the year, a no-load mutual fund has a net value of RM27.15 per share. During…

A: A )  The starting NAV per share is $27.15. Note : We can solve only sub parts up to three as per…