Q: An 11-year maturity zero-coupon bond selling at a yield to maturity of 5.75% (effective annual…
A: Bond price is the sum of interest payments and maturity value discounted at yeild to maturity Bond…
Q: Provide one example of the following stakeholder groups possible response to risk: Employees…
A: The stakeholders are all such entities who will be impacted by operations of company and they are…
Q: The next dividend payment by Im, Incorporated, will be $1.64 per share. The dividends are…
A: Required return on stock is calculated using following equation Required return = D1P0+g Where, D1…
Q: Question 5 How many days are there between November 24, 2015 to March 28, 2016? 124 days 115 days…
A: Solution: Number of days between two dates can be computed by summation of monthly dates between the…
Q: If Php80,000 is invested at the rate of 6% compounded annually, when will it earn interest of…
A: what is compound interest? compound interest is the interest that you earn over the principal and…
Q: Company Miami just paid annual dividend of $25 today. The dividend is expected to grow at 8% for the…
A: Solution:- Dividend Discount Model (DDM) is the model to calculate stock price of a company by…
Q: You purchase a 20 year semi annually 9% coupon bond with an 11% YTM today. In one year you sell. If…
A: In a sale purchase transaction of a bond, we have to find the 1 year holding period return (HPR).
Q: Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next…
A: To achieve the growth there is need of capital and capital may come from internal sources and also…
Q: A young entrepreneur owes his bank the following obligations, (1) Php75,000 due at the end of one…
A: First let us list down the steps and formula to solve.1. Determine the FV of the loan amount in year…
Q: WHY DO YOU THINK SOME P/E RATIOS OF STOCKS ARE LOWER THAN OTHERS?
A: We have to explain why SOME P/E RATIOS OF STOCKS ARE LOWER THAN OTHERS. We need to understand what a…
Q: What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is…
A: Annual payment (P) = $1400 Discount rate (r) = 8% Number of annual payments (n) = 25 First payment…
Q: How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Suppose rRF = 4%, rM = 11%, and bi = 1.6. A. What is ri, the required rate of return on Stock i?…
A: Given,
Q: App1 is a company that has a patent right for a new mobile technology that is expected to enable it…
A: Share Price is the sum of all cashflows discounted at a certian discount rate Share Price =…
Q: A company that has a patent right for a new mobile technology that is expected to enable it to…
A: Require to compute the current price of the company share. Given data: Growth rate = 25% Constant…
Q: Can you answer b please
A: Solving b) Data given: Purchased shares on margin at $5 per share Limit sell order at $7 Stop…
Q: Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $5 per…
A: Just paid dividend = $5 Year 1 Dividend = $9 (i.e. $5 + $4) Year 2 Dividend = $13 (i.e. $9 + $4)…
Q: Find the future value of an ordinary annuity of $8,000 semiannually for eight years at 7% annual…
A: Given The periodic annuity payment is $8000 Term is 8 years Annual rate is 7% compounded semi…
Q: Question 8 How much is the proceeds if Marl Php22,735 at 2.85% for 2 years and 5 m Php21,169.13
A: Simple interest is simple and there is no compounding of that means there is no interest on interest…
Q: how do you derive to this formula? please enlighten, thankyou
A: Given that, bond doesn't pay coupon. So, it is a Zero Coupon Bond Zero coupon Bond is the bond…
Q: te the required rate of return for Mudd Enterprises assuming that investors expect a 4.3% rate of…
A: Required rate of return depends on risk of the stock that is given by the beta of stock and it also…
Q: Being in an industry with perfect competition VS Being in an oligopolistic industry Market Risk -…
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…
Q: An analyst is evaluating the solvency of a JSE listed company as of the beginning of 2000. The…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Suppose you inherited $1,000,000 and invested it at 12.00% per year. How much could you withdraw at…
A: An annuity is a series of future payments that are provided in return for a lump sum investment at…
Q: 2. Draw the cash flow for a who is person buying a car for 12 months with an initial cost of $15,000…
A: Cash flow diagram shows the cash inflows and the cash outflows with the associated time periods.
Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow…
A: The IRR is the discount rate which equates the present value of cash inflows and the present value…
Q: Robert Chilufya’s employer offers its workers a two-month paid sabbatical every seven years. Robert,…
A: We need to calculate the accumulated value of an annuity at the end of the given term. This is a…
Q: Solve the following: 2. In purchasing of house, a man makes P720,000 down payment and agrees to pay…
A: Present value of future amount With periodic rate (r), period (n) and future value (FV), the present…
Q: Break down step 2 properly 2. Rebound Tourism Inc. Share valuation: Last year price =…
A: Information Provided: Last year's price = $40 Dividend = $0.50 Required rate of return = 9%
Q: Which of the following statements is right? Group of answer choices a)Ignoring the liquidity risk,…
A: Several statements have been given regarding the risk and return of the treasury bond and corporate…
Q: Evaluate three commonly used approaches to quantifying financial risks.
A: The possibility of losing money in a business venture or investment is referred to as financial…
Q: A brand-new car has a list price of ₱850, 000. The car dealer is giving a trade discount of 10% and…
A: Car Price = ₱850,000 Trade discount = 10% Down Payment = 20% Time Period = 5 Years Interest Rate =…
Q: Find their regular monthly payment. (Round your answer to the nearest cent.) $ (b) Find the unpaid…
A: Information Provided: Loan amount = $125,000 Interest rate = 7.8% compounded monthly Period for…
Q: Howard, LLC has an equity beta of 1.3. The company just paid an annual dividend of $0.30, and the…
A: Just paid dividend (D0) = $0.30 Stock price (P0) = $80 Growth rate (g) = 0.04 Cost of equity = ?
Q: Beginning inventory has 100 units. ABC Company bought 400 units during the year. They sold 450…
A: Ending inventory is calculated as shown below. Ending inventory units=Beginning inventory…
Q: *Stock A has a beta of 1.3 and an expected return of 10.2. Stock B has a beta of 0.8 and an expected…
A: Given, Stock A has beta of 1.3 and Expected return of 10.2 Stock B has beta of 0.8 and expected…
Q: whenever i divide 1.3 by 8.2 I get 15.85 but on the answer sheet its saying the answer should be…
A: =Wp×kp =Weight of preference share x Cost of preference share
Q: Complete the following using present value. (Use the Table 12.3 provided.) Note: Do not round…
A: Time Value is an important technique which states that money has earning capacity, hence each dollar…
Q: Suppose you decide to short sell some GameStop shares. Their cur- rent price is $5, and you have…
A: i) a) Given, Margin requirement is 50% and the cash available is $5000, Cash available with margin =…
Q: Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate…
A: Return on Asset: A sort of return on investment indicator called return on assets (ROA) gauges a…
Q: You participate in a private analyst briefing with the CEO of a company included in a number of Citi…
A: Summary: A private analyst briefing which includes -You, CEO of a company who managed a number of…
Q: Suppose you are buying your first condo for $250,000, and you will make a $7,500 down payment. You…
A: Monthly Payment = P * r * [(1+ r)n/({1 + r}n -1)] Where, P = Principal borrowed =Asset value -…
Q: A Php370,000 loan is to be amortized at 10% compounded semi-annually for 3 years. The semi-annual…
A: Time Period Remaining (NPER) 3 Interest Rate (RATE) 10% Loan Amount (PV) PHP 3,70,000.00…
Q: Below are events, for each event, identify the type of risk the event entails, classify your…
A: Systematic and unsystematic risk Risk can be categorized as systematic and unsystematic risk.…
Q: A municipal bond with a coupon rate of 2.4 percent has a yield to maturity of 3.4 percent. Assume a…
A: Solution:- Bond price means the price at which a bond is trading in the market. It is the summation…
Q: A new engineer at a sand and gravel operation is considering two mutually exclusive alternatives for…
A: The company evaluates the cash generated by each project when the company has two alternative…
Q: Assume that the real risk free rate is 2% and the average expected inflation rate is 3% for each…
A: Given, Real risk-free rate is 2% Average expected inflation rate (IP) is 3% Default risk premium…
Q: no. 10 only the subject is finance
A: 10. Data given: PV= Principal =$1000 Rate=9% n=68 years -20 years=48 Future value will be when r=9%…
Q: STRICTLY USE THE GIVEN FORMULA IN THE PHOTO ATTACHED 1. How much must a man deposit in a bank that…
A: As there is more compounding than the effective interest rate would be more and future value would…
Q: Your company has a pre-tax cost of debt of 6%. You anticipate the corporate tax rate will go from…
A: A company pays interest on its debt instruments. This interest is tax deductible. Hence in finance…
Simmons Corporation can borrow from its bank at 21 percent to take a cash discount. The terms of the cash discount are 2.5/14, net 50.
- Compute the cost of not taking the cash discount.
Note: Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Regis Clothiers can borrow from its bank at 18 percent to take a cash discount. The terms of the cash discount are 3/22, net 40. a. Compute the cost of not taking the cash discount. Note: Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places. Cost of not taking a cash discountFriendly’s Quick Loans, Inc., offers you $8.50 today but you must repay $10.75 when you get your paycheck in one week (or else). a. What is the effective annual return Friendly’s earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you were brave enough to ask, what APR would Friendly’s say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)Friendly's Quick Loans, Inc., offers you $8.25 today but you must repay $10.45 when you get your paycheck in one week (or else). a. What is the effective annual return Friendly's earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If you were brave enough to ask, what APR would Friendly's say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Effective annual return % b. Annual percentage rate %
- You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $18, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel. Effective annual interest rate 1.49 %Friendly's Quick Loans, Incorporated, offers you $7.50 today but you must repay $9.85 when you get your paycheck in one week (or else). What is the effective annual return Friendly's earns on this lending business? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. If you were brave enough to ask, what APR would Friendly's say you were paying? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.Friendly’s Quick Loans, Inc., offers you “three for four or I knock on your door.” This means you get $3 today and repay $4 when you get your paycheck in one week (or else). a. If you were brave enough to ask, what APR would Friendly’s say you were paying? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What’s the effective annual return Friendly’s earns on this lending business? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- For a $ 1,314 deposit, a bank offers two choices: Account "A" pays interest at an APR of 8.3%. Account "B" pays an APR of 3.8 %, but pays a one-time bonus of $80 at the end of 2 years. What is the final value of account "A" minus the final value of account "B'? Please calculate accurately and round the answer to four decimal places. Thank you.Dave borrowed $550 on January 1, 2022, and paid it all back at once on December 31, 2022. The bank charged him a $3.50 service charge, and interest was $40.70. What was the APR? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Annual percentage rate %Assume you take out a car loan of $8,600 that calls for 48 monthly payments of $300 each. a. What is the APR of the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.) b. What is the effective annual interest rate on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- Your company was charged $44.19 interest on an overdue amount of $6,275 that was 20 days overdue. What simple rate of interest does this represent? Express your answer as an annual percentage rate rounded to two decimal places. Do not include symbols in your answer (i.e. % sign). Your Answer: AnswerLittle Kimi Clothiers can borrow from its bank at 18 percent to take a cash discount. The terms of the cash discount are 2/18 net 55. a. Compute the cost of not taking the cash discount. (Use 365 days in a year. Do not round the intermediate calculations. Round the final answer to 2 decimal places.) Cost of not taking a cash discount b. Should the firm borrow the funds? % Yes ○ NoSuppose you have a revolving credit account at an annual percentage rate of 12%, and your previous monthly balance is $383.79. Find your new balance (in $) if your account showed the following activity. Use the unpaid balance method. (Round your answer to the nearest cent.)