Why would staff costs increase with increase in revenue?

Q: Fiske Roofing Supplies' stock has a beta of 1.23, its required return is 10.00%, and the risk-free…

A: Market risk premium is calculated using following equation Market risk premium = Required return on…

Q: How were the depreciation rate and the PV factor at 12% calculated? (the equations)

A: Depreciation rate for 3 year MACRS is provided in the table and is universally available.…

Q: You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise…

A: We will use the Black Scholes model to value this call option. All the inputs are available with us.

Q: Your company currently has $1,000 ​par, 6.5% coupon bonds with 10 years to maturity and a price of…

A: We need to use RATE function in excel to calculate yield to maturity. Yield to maturity(YTM) will be…

Q: What is the nominal annual rate of interest compounded monthly at which ​$1663.00 will accumulate to…

A: Number of monthly periods = Number of years×12 =3.25×12=39 Monthly interest rate is calculated using…

Q: Polly's Parrot Shop's cost of common equity is 18% and its yield to maturity on debt is 10%. The…

A: Cost of common equity (Ke) = 18% Cost of debt (Kd) = 10% Tax rate (t) = 35% Common stock (E) =…

Q: lculate the monthly payment by table lookup and formula. (Answers will not be exact due to rounding…

A: Loans are paid by the fixed easy monthly payments and these monthly payments carry the payment for…

Q: A​ BBB-rated corporate bond has a yield to maturity of 13.2%. A U.S. Treasury security has a yield…

A: We have the bond and treasury securities cash flows information. We have to find the prices of these…

Q: Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays…

A: A bond refers to an instrument that is issued by the government, corporation, municipality, etc. for…

Q: Inc. maintains a cash buffer for unexpected cash outlays for the year amounting to 3,000. Bank of…

A: The median balances between Chase checking and savings accounts are used to establish the actual…

Q: Athena Investment Company is considering the purchase of an office property. After a careful review…

A: The difference between the current value of cash inflows and outflow of cash over a period of time…

Q: Ten years ago the Jacksons bought a house, taking out a 30 year mortgage for $160,000 at 5.75%. This…

A: Mortgage loans are secured loans and house is collateral for that and these mortgages are paid by…

Q: Describe how and why investors use technical analysis tools and fundamental analysis tools for the…

A: The technical analysis is the analysis related to the price information and it is related to…

Q: Given the following information: Interest rate 9% Tax rate 30% Dividend $2.50 Common stock on the…

A: A company's average after-tax cost of capital from all sources, including common stock, preferred…

Q: You can get a car loan with a term of three years at an APR of 4%. If you can afford a monthly…

A: Borrowed amount refers to the money that is being taken by the borrower from the lender for a…

Q: epsi stock price: $178   Expiration date of options: December 9, 2022 (i.e., 1 month from November…

A: We have to draw the profit graph for the covered call position. Then we have to discuss the…

Q: What present value amounts to $11,273.57 if it is invested for 5 years at 10% compounded annual?…

A: Present value is calculated using following equation Present value = Future value1+rn Where, r is…

Q: Ten physicians have just completed their residencies in internal medicine and are considering…

A: The Break-even point is the formula used by the management to determine desired minimum sales to be…

Q: Maude pays $5,000 a year into an annuity contract for 25 years. Maude is paying A) periodic flexible…

A: The payments are of many types depending on the mode of payment and whether they are paid at the…

Q: Calculate the price of a 5.7 percent coupon bond with 22 years left to maturity and a market…

A: Here, Particulars Values Coupon rate 5.70% Time to maturity 22.00 Yield to maturity 6.50%…

Q: Dudley's has a preferred share issue outstanding with a current price of $26.57 per share and a par…

A: The cost of preferred shares is computed by dividing the dividend by the current price.  Expected…

Q: Suppose that your unsubsidized Stafford loans plus accumulated interest total $22000 at the time you…

A: In mortgage loan the monthly payment are amortized over the loan period. The monthly payment here…

Q: Suppose Summa Industries and Cumma Technology have identical assets that generate identical cash…

A: We have to two otherwise identical firms except for capital structure. We have to find the stock…

Q: can you show formulas used to solve this problem?

A: The concept of the time value of money determines that the worth of money gets depreciated over a…

Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…

A: Profitability Index is the ratio of the present value of all net cash flows to the initial…

Q: What

A: We will be discussing the Real Estate Investment Trust Act of 2009 (RA 9856) with detailed…

Q: A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end…

A: An annuity is a series of payments that are provided in return for a lump sum amount paid today. It…

Q: Put the home buying stages in the correct order. Dragged and dropped options will be automatically…

A: There are different stages or processes in buying a home. It requires assessing your financial…

Q: Calculate (a) the amount financed, (b) the total finance charge, and (c) APR by table lookup. (Use…

A: Here, Particulars Values Purchase price of a used car  $ 4,455.00 Down payment  $ 90.00…

Q: Using the data in the table to the right, calculate the return for investing in the stock from…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Based upon the information below calculate the Expected Return of the Asset (E)= ∑ Pr * R Worst…

A: Expected return on asset = P1×R1+P2×R2+.....+Pn×Rn Where, Pn  is nth probability  Rn is return for…

Q: redit union entered a lease contract valued at $5000. The contract provides for payments at the end…

A: Size of payments refers to an amount that is paid by the borrower to the lender at the end of each…

Q: 5. The relationship between a firm's capital structure and other company attributes As a firm takes…

A: The entity that utilizes merely equity for raising the capital indicates an unlevered firm. However,…

Q: You are selling short a futures contract of $110,000 at a price of 115. In doing this, you are…

A: Future is a contract to buy or sell the underlying assets on future dates at a fixed predetermined…

Q: single si quarterly report. There is a 53% chance that the company will meet the quarterly sales…

A: Given P = 53% Stock Value (X) = 340 and 100

Q: You own a lot in Key West, Florida, that is currently unused. Similar lots have recently sold for…

A: The seller is looking for the right but not the obligation to sell at a pre determined price. The…

Q: B/S Leverage: LEVERAGE 2020 2019 2017 Debt/Total Capital 150.2% 2018 Debt/EBITDA 2.02x 6.3x 2.9x…

A: Leverage ratios are those financial ratios used to assess the company's ability to meet its…

Q: uld you simply explain & give some examples of repurchase agreements (a.k.a., “repos”) in commercial…

A: There are many types of short term instruments used by the federal bank to impart liquidity to the…

Q: You are in medical school and are trying to decide what specialty you want to train in. You know…

A: Required: Highest NPV of income at opportunity cost @3% Highest NPV of income at opportunity cost…

Q: onsider the following expected returns, volatilities, and correlations:   Stock Expected Return…

A: Portfolio variance Risk is measured in terms of variance. With weight of asset 1 (W1), weight of…

Q: No More Books Corporation has an agreement with Floyd Bank, whereby the bank handles $4.7 million in…

A:

Q: risk premium (RP) expected return on a portfolio,r^P realized rate of return, r¨ diversification…

A: 1) Risk premium is the return you earn over and above the risk-free rate. It is calculated by…

Q: With reference to question #8, assume inflationary expectations rise by 1%. As a result, interest…

A: Given that the interest rate increased by 1% due to inflation Dividend growth also increased by 1%…

Q: Q13 An investor owns $6,000 of Adobe Systems stock, $5,000 of Dow Chemical, and $5,000 of Office…

A: Solution:- Weight means the proportion of amount of each asset in the portfolio. It is calculated by…

Q: QUESTION 2 You are considering starting a new factory producing small electric heaters. Each unit…

A: concept. Working capital is required for smooth functioning of the project. It represent cash…

Q: Carlos purchased 2,000 shares of a common stock last June 2017 for Php 3,200,000. In June 2018, he…

A: Internal rate of return(IRR)is a discount rate at which net present value of investment is zero. In…

Q: he balance sheet for Quinn Corporation is shown here in market value terms. There are 12,000 shares…

A: Data given: Market value of equity=$404,300 No. of shares outstanding= 12000 Dividend declared per…

Q: Question 1 A firm is looking to assess the potential income from a set of projects from the city. In…

A: Concept. Mitigating risk involves reducing exposure of risk and reduce likelihood of reoccurrence of…

Q: 1. A man paid 10% down-payment of P200000 for a house and lot and agreed to pay the 90% balance on…

A: Cash flow The money that flows into and out of a business is called cash flow. Cash that moves into…

Q: A rights offering that gives existing target shareholders the right to buy shares in either the…

A: Shareholders The legal owners of a company is known as its shareholders. The shareholders invest in…