Q: what will be the cost of equity of Shade plc if it is financed 40% by a 7 % bank loan and 60% by…
A: Cost of Equity: It is the cost of raising equity capital for the firm from the equity investors.…
Q: Make the following Assumptions: Tangible Asset Value = 16,200,000 Required Return on Tangile…
A: In order to value of business, we can also use of excess earnings method. Firstly, we have to…
Q: Your company is considering purchasing an expensive plece of equipment. The manufacturer of the…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: evaluating a project that will cost $541,000, but is expected to produce cash flows of $129,000 per…
A: NPV= Present value of cashinflows - Present value of cashoutflows.
Q: Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your…
A: Accrued interest is one of the features of accrual accounting which follows revenue recognition and…
Q: An equally-weighted portfolio that consists of 13 stocks has a beta of 1.5. If you replace one of…
A: Beta value of a stock can be defined as the volatility of the stock in relation to the market. It is…
Q: Find the future value of an annuity due with monthly payments of $20 that earns 15% after 20 years.…
A: We need to use future value of annuity due formula below Future value of annuity due =PMT(1+i)n…
Q: The Fed's action did not affect the forecasted cash flows. Вy how much did the change in the…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: n the day his grandson was born, a man deposited to a trust company a sufficient amount of money so…
A: Future Value(FV) is ascertained to know the expected value of current amount that will be invested…
Q: Mariano deposited P5,000 today in an account that pays 8% compounded semi-annually. Two years later,…
A: Amount deposited today is $50,000 Interest rate “r” = 8% compounded semi-annually "m" is the…
Q: Some banks now have biweekly mortgages (that is, with payments every other week). Compare a 20-year,…
A: We need to use loan amortisation formula to calculate size of monthly payment PMT =P*i1-1(1+i)n…
Q: A current account deficit implies that* more goods and services are exported than are imported.…
A: Current account of a company deals with the trade in goods, trade in services, investment incomes…
Q: Calculate the duration of a $1,000, 6% coupon bond with three years to maturity. Assume that all…
A:
Q: What is the total value of this firm if you ignore taxes?
A: Value of Firm: The value of the firm is derived by the sum of the value of equity and the value of…
Q: Consider the following potential investment. A 40-unit apartment building, built in 1980, is listed…
A: a) Gross potential Rent is the total amount the investor would receive without any scope of facing…
Q: For the cash flows given in the table below, evaluate the unknown value "A". Use an interest rate of…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: As part of your analysis, you are required to investigate DEVCON Industries' cash flows and selected…
A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…
Q: Accounts receivable turnover is 4. What is the average collection period assuming annual data are…
A: Accounts receivable is the amount, which the customer has paid later on. This is the money, which a…
Q: expansion purposes. You decided to issue semi- annual R1 000 bonds which pay a coupon of 10% for a…
A: Price of bond is present value of coupon payment and present value of par value of the bond at…
Q: What is the Call plus Bond Option strategy?
A: Call option and bond It is a financial instrument that gives its holder the right to buy the…
Q: True or false for Question 6 and
A: Leverage is use of debt in the capital structure or leverage indicates how much debt and how much…
Q: The real risk-free rate of interest, r*, is 4 percent, and it is expected to remain constant over…
A: A Bond refers to an instrument that represents the loan being made by the investor to the company…
Q: B. COMPOUND INTEREST 7. Accumulate P15,000 for 10 years at 7% compounded (a) quarterly. (b)…
A: Time value of money denotes that due to interest rate factor, the future sum of money has more worth…
Q: Suppose we observe the prices of 7-year zero-coupon (with a face value of $91.36) and year 6-to-7…
A: Zero coupon bond refers to the bond issued at discount. Zero coupon bond is a debt security that…
Q: Use the straight line method to find the annual depreciation for a car that costs $18,000, has an…
A: Depriciation is allocation of total cost of assest over its useful life or in the ratio of benefits…
Q: You want to start to save for a major purchase. You can invest P320 every three months for 3 years…
A: Future Value: The future value is the amount that will be received at the end of a certain period.…
Q: the table by finding the balance A when $18,000 is invested at rate r for t years, compounded…
A: There is more compounding than more is the effective rate and more is the accumulation of interest…
Q: yback method, the Accounting Rate of Return, and Discounted Cash Flow Model (Ne
A: Step 1 A huge budget is a method through which a company assesses possible substantial projects or…
Q: Question 4 Anne Murray is planning to buy a rental property, in addition to the family home she and…
A: Return on investment is the financial analysis , which helps to determine the profitability in the…
Q: How do the costs of doing business affect prices?
A: The cost of producing a product or service that a company sells is usually referred to as the cost.…
Q: Question 4 Given the following information, calculate the cost per servable pound. • Yield…
A: Given: Yield Percentage = 82.6%As Purchased (AP) Price = $12.79 To Find: The cost per servable…
Q: Gordon Rosel went to his bank to find out how long it will take for $1,300 to amount to $1,720 at…
A: Present value = $1,300 Future value = $1,720 Interest rate = 0.12
Q: hat are some ways to limit the potential downsides of a strategic alliance? Group of answer choices…
A: Strategic alliances are alliances or coming together and joining of hands by two different companies…
Q: Project X has an initial investment cost of $20.0 million. After 10 years it will have a salvage…
A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows.…
Q: Internal rate of return and modified internal rate of return For the project shown in the following…
A: Concept. 1. IRR. IRR means internal rate of return. It is rate at which the sum of discounted cash…
Q: Daily Enterprises is purchasing a $9.8 million machine. It will cost $47,000 to transport and…
A: Free cash flow Free cash flow is the net earnings plus the depreciation as cashflow considers only…
Q: Joey invests $7,560 at 4 percent simple interest in a bank. Find the amount in the account after 9…
A: In order to find the amount in the account after a certain period using simple interest rate, we are…
Q: A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it…
A: Next dividend (D1) = $1 Growth rate (g) = 0.09 Required return (r) = 0.14 Stock's expected price 2…
Q: A new generator has been installed. There will be no maintenance cost until the end of the sixth…
A: Initially, total value shall be calculated for future expenses at the end of year 5 and then such…
Q: 2 MalkCo is currently an all-equity firm with expected EBIT of Rs. 240,000 in perpetuity. The firm's…
A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer the three…
Q: he level of financial risk to which a firm is exposed is dependent on the firm's: (a) tax rate (b)…
A: Financial risk can be defined as the risk of availing of finance and not being able to return it. It…
Q: Which of the following statements is FALSE of the dividend-discount model Pn= Dn+1/(r-g)? a. The…
A: Dividend discount model is indeed the method of valuation which tends to value the stock based on a…
Q: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000…
A: Cash budget can be defined as the document showing evaluation of cash outflows and cash inflows…
Q: An equally-weighted portfolio that consists of 13 stocks has a beta of 1.5. If you replace one of…
A: Here, Total no. of stocks = 13 Beta = 1.5 Beta of the stock that was replaced = 1.07 Beta of…
Q: OPEC is a(n) cartel that includes. Olegal; 17 O legal; 8 illegal; 17 O illegal; 11 national…
A: OPEC short for Organization of the Petroleum Exporting Countries was established in Baghdad, Iraq in…
Q: a. What is an estimate of the WACC for your computer sales division? b. If your overall company…
A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…
Q: Duration measures... Neither interest rate risk nor reinvestment risk. reinvestment risk. Both…
A: Duration can be intuitively defined for fixed-coupon bonds as the average maturity of all bond…
Q: 11. A 8% $1,000 par-value bond with quarterly coupons maturing in nine years is to be replaced by a…
A: Here, Details of Old Bond: Par Value of Bond is $1,000 Coupon rate is 8% Compounding period is…
Q: A firm has accounts receivables of R352 476, sales just ended of R3 050 291. What is the average…
A: The Financial Ratio is mainly used by the investor for measuring the financial performance of the…
Q: a wants to give her daughter Mara a financial gift on the latter's college graduation two years now.…
A: Solved using Financial Calculator PV = -2,000 FV = 5,000 N = 2 years * 4 quarters = 8 CPT I/Y =…
Eva obtained a loan fee of Php50,000 for the tuition of her son. She has to repay the loan by equal payment at the end of every six months for 3 years at 10% interest compounded semi-annually. Find the periodic payment. Write in Amorzation Schedule
Step by step
Solved in 3 steps with 2 images
- Eva obtained a loan of 50,000 pesos for the tuition fee of her son. She has to repay the loan by equal payments at the end of every six months for 3 years at 10% compounded semi-annually. Find the periodic payment.Nick received a loan of $5000 from a bank to purchase a bike. He obtained the loan at an interest rate of 5% compounded quarterly for 1 year. Calculate the size of his end-of-quarter payments and construct an amortization schedule for her loan.Answer the given problem. Problem: Mrs Talla obtained a loan of P200,000. She has to repay the loan by equal payments at the end of every six months for 5 years at 2% interest compounded semi-annually. Find the periodic payment. (Prepare an amortization schedule) The given picture is only a sample of amortization schedule please refer to it. Thank you.
- Irene’s Home credit was approved. She will be borrowing ₱55,000 but abiding by the rules she will pay ₱5,000 security payment and the balance on quarterly installments for 1 ½ years. If the interest rate will be 6%, find the semi-annual payment. Make an amortization schedule to be followed by Irene.Abigail received a 15 year loan of $280,000 to purchase a house. The interest rate on the loan was 5.80% compounded semi-annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 2? c. By how much will the amortization period shorten if Abigail makes an extra payment of $30,000 at the end of year 2?To vacation with his family, Mr. Velasco obtains a loan of $60,000 to be paid in 7 monthly installments with an annual interest rate of 13% compounded by months. Prepare the amortization table.
- sky wants to purchase a new house that cost 1,440,000. The bank agrees to provide a loan to fixed interest rate of 5.88%. Compute her amortization when spread over a. 5 years b. 10 years. which loan term will she avail if she is recieving a salary of 20,000 per monthSophia obtains a loan of 300,000 pesos with interest at 8% compounded semiannually. She will pay her debt through a sequence of equal semiannual payments for 7 years where the first is due at the end of 3 years. How much is her semiannual payment?Ruby loaned 500,000 php in preparation for her daughter’s college education. The loan comes with 8% interest compounded quarterly, paid every quarter of the year, payable in 2 ½ years. Find a) the amount of periodic payment and b) outstanding balance after the fourth payment. Moreover, c) create an amortization table for this loan, and d) suppose Ruby earns 36,000 php monthly, in your opinion, is she capable of paying her debt? Franco borrowed 1,000,000 php from his father so that he may expand his business. His father agreed to loan him the amount if he makes equal annual payments with 7% interest compounded annually for 7 years. Determine the a) yearly payments Franco must make and b) the outstanding balance after the fourth payment. Furthermore, c) create an amortization table for this loan, and d) if Franco’s new business branch earns an average of ₱16,000 monthly, would you say that expanding was a wise decision?
- Jim and Joan Miller are borrowing $120,000 at 6.5% per annum compounded monthly for 30 years (360 months) to purchase a home. Their monthly payment is determined to be $758.48. A recursive formula for their balance after each monthly payment has been made. A determination of Jim and Joan's balance after the first payment. Don't forget the interest affecting their payment create a table showing their balance after each monthly payment. Determine when the balance will be below $75,000. Determine when the balance will be paid off. Determine the interest expense when the loan is paid.(find the total paid, and subtract 120,000 from it).On the day the child is born, Allyson wishes to determine what lump sum would have to be paid into an account bearing interest at 6% compounded annually in order to withdraw Php. 30,000.00 each on the child's 18 th. 19 th, 20 th and 21 st birthdays. How much is the lump sum amount?James received a 15 year loan of $230,000 to purchase a house. The interest rate on the loan was 2.10% compounded semi- annually. a. What is the size of the monthly loan payment? b. What is the balance of the loan at the end of year 2? Round to the nearest cent c. By how much will the amortization period shorten if James makes an extra payment of $30,000 at the end of year 2?
