Q: beneficiary of a life insurance policy is
A: Beneficiary of a life insurance policy is the person who receives money from the insurance company…
Q: Sainsbury is financed by both debt and equity. calculate the weighted average cost of capital (WACC)…
A: To specify:Calculation of weighted average cost of capital
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A: There are taxes to paid on the capital gain that means if the equipment is sold above the book value…
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A: As per the answering guidelines, in case of multiple questions we have to solve the first question…
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A: Borrowing costs are the effective interest rates that a company pays on its debt, such as bonds and…
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A: Here, No. of Outstanding Shares is 1,000,000 Total Market Value is $20,000,000 Price Per Share will…
Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…
A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…
Q: You are considering investing in a zero coupon bond that will pay you its face value of$1000 in ten…
A: IRR Refers to the Internal rate of Return, At IRR the Net present value of the future cash flows is…
Q: Explain or illustrate before-tax cost of debt and after-tax cost of debt.
A: In finance the cost of debt is the effective rate that a company pays on its debt. A company can…
Q: 7. Calculating Returns and Variability bon On long-term corporate bonds? Using the following…
A: The Arithmetic average return for X = (14 - 13 + 11 + 18 + 8 )5=7.6% The Arithmetic average return…
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A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
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: A debt of $40,000 is repaid over 12 years with payments occurring annually. Interest is 4%…
A: Effective annual interest rate If the interest rate has compounding other than annually, the…
Q: 7. A company has just paid a dividend of 5$ per share. Dividends are expected to grow as follows:…
A: Dividend paid now is $5 Risk free rate is 5% Equity risk premium is 8% Beta is 1.15 Growth rate is…
Q: Yale Corporation had the following results last year (in thousands). Management's target rate of…
A: Return on investment (ROI) =( Operating income/Total assets) ×100
Q: E.) Is a contractual financial product sold by financial institutions that is designed to accept and…
A: E. The Correct option is 'a. Annuity'.
Q: (C) Calculate the yield-to-maturity (YTM) and current yield for each of the bonds below. Coupon rate…
A: YTM or the yield to maturity is the the return earned when the bond is held to maturity. It can be…
Q: What is the current value of a security that pays $165,500 per year for 10 years if similar…
A: FORMULA Current value = P*[1-(1+i)-n]/i Where P - Annual payment amount i.e. $165,500 i - Interest…
Q: A property is expected to have NOI of $124,000 the first year. The NOI is expected to Increase by 5…
A: A participating loan: A participating loan is a loan where the lender also has the right to a share…
Q: 10. Consider the following two projects with cash flows in $: Year 0 Year 1 Year 2 Project Cash Flow…
A: Here,
Q: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS TO 4…
A: Present Value of Cashflows = Cashflows/ Discount rate = 1000/15% = 6,666.67
Q: A sum of ₱ 35,000 is invested from March 8,2019 to December 5,2019, at 18 ½ % Simple Interest. Find…
A: Following are the four methods to compute the Simple Interest: Ordinary Interest using Approximate…
Q: The initial cost of painting the Golden Gate Bridge is $400,000. If the bridge is painted now and…
A: The present value method is one of the methods for finding the profitability of a project by…
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A: National tax is defined as the national internal revenue taxes, which are collected as well as…
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A: Stock is referred as the security, which used to represent an ownership share in the firm. At the…
Q: ISE THE FOLLOWING INFORMATION TO ANSWER THE FOLLOWING PROBLEM(S) Est $ Last Last EST Company Ticker…
A: 1) Annual Dollar Coupon Amount: = Coupon Rate * Face Value of Bond = 4.75% * $1000 = $47.50
Q: A certain nominal annual interest rate has an effective rate of 19.722% when compounded…
A: In order to convert, periodically compounded rate to a continuously compounded rate we use LN…
Q: Complete the following table and compute the project’s conventional payback period. For full credit,…
A: Payback period is the period within which the sum invested by the company in a project will be…
Q: company has a policy of requiring a rate of return on investment of 16%. two investment alternatives…
A:
Q: Erwin and Eleni have an outstanding mortgage balance of $175,000. They have 14 months remaining on…
A: A mortgage, also known as a mortgage loan, is an agreement between you (the borrower) and a mortgage…
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: Describe how Investment Managers measure the non-systematic risk of their portfolio
A: Non-systematic risk refers to firm specific risk factors. This type of risk is usually eliminated or…
Q: KK Industries is a division of a major corporation. Last year the division had total sales of…
A: Following are the formulas to compute the answers: Division Margin = Net operating Income of…
Q: Part 2: An amount of $1000 is invested into an account that pays 5% per annum compound interest.…
A: Compound interest Compound interest is computed by multiplying the initial principal amount by one…
Q: ABC Manufacturing Company is planning to reduce its labor costs by automating a critical task that…
A: The present value method is a method of finding the profitability of a project by discounting the…
Q: Fill in the missing numbers for the following income statement. (Do not round intermediate…
A: Sales 663800 Costs -425700 Depreciation -101300 EBIT 136800 663800-425700-101300 Taxes…
Q: If the asset turnover decreased by 20% and profit margin decreased also by 20%, the ROI would a.…
A: The ROI is calculated as profit margin multiplied by the asset turnover.
Q: Which statement is true when considering a loan? F. You should always take the least interest rate…
A: While considering a loan, both interest rate and term of the loan are important. Both of these…
Q: John already has $55,600 today in his savings account earning 5.5% compounded semiannually. The…
A: Here,
Q: Compute the size of the final payment for the following loan. Principal $ Periodic Payment $…
A: A loan is basically a type of debt that an individual or the other entity incurs. The lender, who…
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: Discuss the 10-year Bond rate of UK government as proxy of risk-free rate.
A: In finance risk free rate is a very important concept. The risk free rate means that interest rate…
Q: Nivea Company is planning to introduce a new product. Market research information suggests that the…
A: New product should sell 1000 units at OMR 225 per unit Hence total revenue will be =1000*OMR…
Q: An unlevered firm has a cost of capital of 11.3 percent and a tax rate of 34 percent. The firm is…
A: We need to calculate weighted average cost of capital(WACC) which will be the firm's levered cost of…
Q: Prob. Return (%) B 0.1 40 G 0.2 30 O 0.3 15 L 0.2 2 S 0.2 -12 where B-Bloom,G-Good,…
A: Risk is a factor which arises due to the possibility of differences between the actual outcome and…
Q: On July 1, 2014, The Govemment of Canada issues a 30-year real return bond with a 4.5% semi-annual…
A: Solution:- Consumer Price Index (CPI) is an indicator of the inflation in the economy.
Q: $16,449
A: Net present value shows the difference between the cash inflow and cash outflows in a particular…
Q: 6c A large profitable corporation is considering a capital investment of $50.000. The equipment has…
A: Tax for year 2 will be calculated on net income. Tax for year 2 =(Annual gross…
Q: The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an…
A: Net Present Value is a capital budgeting technique which is used to know the profitability of the…
Q: A company is considering the purchase of a new machine for $50,000, installed. The machine has a tax…
A: For evaluating any new asset or project, cashflows are considered. For overall evaluation cashflows…
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