Kiko inherited Php250,000.00 and invested the money in SM, Meralco and Ayala Corp. After a year he got a small return of Php16200 from the three investments. SM returned yielded 6%, Meralco 7% and Ayala 8%. There was Php60,000 more pesos invested in Meralco than in Ayala. How much was his initial investments in the three companies?
Q: An insurance policy will pay a sum of $1 million when the insured reaches the age of 65. Mary, the…
A: Future Value $10,00,000.00 Time Period 28 Inflation Rate 3%
Q: Boone's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent…
A: Risk-free rate = 8% = 0.08 Beta = 0.90 Market premium = 7% = 0.07 Required Rate of Return (RRR) =…
Q: 1. Net Assets method 2. Yield method 3. Fair value method
A: Since in the given case, we firstly make the different class of shares to uniform class of shares,…
Q: The dividend for Should I, Inc., is currently $2.05 per share. It is expected to grow at 24 percent…
A: We will use the dividend discount model here. As per the dividend discount model price of a stock…
Q: Self-regulation, regulation by the government and regulation by a governmental agency are three…
A: Financial Regulation refers to the rules and regulations by which financial bodies operate in the…
Q: At birth of his grandson, Gregorio Sirug commits to help pay his college education. He decides to…
A: Quarterly deposit (P) = P10,400 Interest rate = 10% Quarterly interest rate (r) = 10%/4 = 2.50%…
Q: The Bar-None Manufacturing Company manufactures fence panels used in cattle feedlots throughout the…
A: The term payback period refers to the time it takes to recover the cost of an investment. Simply…
Q: A student needs P4000 per year for 4 years to attend college. Her fath invested P5000 in a 7%…
A: A. Assuming Investment made at the start of Year 1 Future Value at end of year 16 = Present Value *…
Q: Management is considering buying a pump that costs $20,000 and could save them $7,500 per year over…
A: Solution: Whether the investment should be made or not depends upon the Net Present Value ie. NPV of…
Q: e NYSE? firm. To buy or sella stock listed on the NYSE, the investor contacts th vestors who trade…
A: NYSE refers to the New York Stock Exchange. It is one of the biggest stock exchanges in the world…
Q: Explain how the parties involved in a project finance manage risk.
A: Given, The parties are involved to manage the risk in a finance project. The finance project is a…
Q: 1. If you wished to calculate a stock's 5% daily VAR using historical data. If you had 2000 data…
A: The Value at Risk: The Value at Risk (VaR) is a metric that is used to quantify the worst potential…
Q: (a) Determine the effective rate of interest for 4.275% compounded semiannually. Round your final…
A: Bartleby honor code states that in case of multiple questions, the expert is required to give…
Q: Personal Savings Principle B. Personal Spending Principles C. Personal Investing Principles
A: Guiding principles refer to the principles which guide an organization in the whole life and in all…
Q: You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you…
A: Calculation of Asset Beta: Asset Beta = Equity Beta/1+1-Tax*Debt - Equity ratioAsset Beta =…
Q: Management is considering buying a pump that costs $20,000 and could save them $7,500 per year over…
A: NPV is the difference between the Present Value of Cash Inflows and Initial Investment. A project…
Q: Baron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…
A: Solution: Weighted Average Cost of Capital (WACC) is the minimum rate of return required by the…
Q: How much will you pay for the bond?
A: The amount that will be paid for the bond is the bond's present value. The bond present value can be…
Q: What is the expected risk-free rate of return if asset X, with a beta of 1.5, has an expected return…
A: The risk free rate of return can be calculated with the help of CAPM equation
Q: The Sebastinian Arts Guild wants P5,000 at the end of each 2-months theater season for renovations.…
A: Given, The payments required is P5000 Rate is 9% compounded annually
Q: . A certain sum of money is divided among A, B, C in the ratio 2:3:4. If A's share is $200, find the…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Find the amount of $1000 invested for 10 years if the force of interest is 5%
A: Invested amount (P) = $1000 Period (t) = 10 Years Interest rate (r) = 5%
Q: If the payments are monthly how would you set up the present value?
A: The concept of present value asserts that a sum of money today is worth more than the same sum in…
Q: The expected value and the standard deviation of returns for asset A is 12.7% and 2.3% 12.7% and…
A: Expected return = Sum of weighted probability return. Standard deviation = Square root of variance.
Q: In a studio inc 2021 income statement lists the following income and expenses EBITDA equals $650,000…
A: Given, EBIT = 538,000 Interest = 63,000 Earnings before Tax = EBIT - Interest = 538,000 - 63,000…
Q: Which of the following is an asset of the Fed? Federal Reserve notes bank reserves
A: The assets of Federal reserve consist of Gold stock, Special drawing rights, reserve position in…
Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…
A: Before Tax Cash Flow: It is the net operating income after deducting debt service. It addresses…
Q: Western Electric has 21,000 shares of common stock outstanding at a price per share of $61 and a…
A: The question is related Weighted Average Cost of Capital.The term cost of capital refers to the…
Q: Beagle Beauties engages in the development, manufacture, and sale of a line of cosmetics designed to…
A: The Price Multiple approach can be used to calculate the expected price of a share by estimating the…
Q: Two investments have the following pattern of expected retuns: Year 1 $5,100 Year 2 $10,100…
A: BTIRR is the before tax internal rate of return of the cash flows. It is the rate at which the net…
Q: B. Patrimonial loss for loss of financial support.
A: Insurance refers to a contract between the insurance company and insurer in which a fixed amount of…
Q: A. Complete the information below using Ordinary Simple Annuity. 1. R=P900 An= 21121.50 Sn =…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: internal rate of return (IRR): Group of answer choices will always lead to the same decision as…
A: IRR is a method used for investment appraisal. It is the rate of return at which the present value…
Q: What is the yield to maturity?
A: As no coupon payment is mentioned, this bond is assumed to be a zero coupon bond. A zero coupon bond…
Q: On July 1, 2000, the New York Mets reached an agreement with Bobby Bonilla to defer the remaining…
A: As per the information provided : Amount = $5.6 millionInstallment = 25 equal installmentsRate =…
Q: Omega Corp. has EBIT of $12 million, depreciation expense of $2 million and taxes of $4 million.…
A: EBIT = $12 million Depreciation expenses = $2 million Taxes = $4 million
Q: Which of the following functions of the Commercial Bank's primary functions is influence by the…
A: Solution:- Reserve Requirement Ratio (RRR) means the minimum amount of deposit a bank has to keep…
Q: 8d. A large profitable corporation is considering a capital investment of $50,000. The equipment has…
A: Cash flow of a project evaluates how cash flows in and out of a business. Inflation is the general…
Q: The manufacturing firm Rebo is considering a new capital investment project. The project will last…
A: NPV is calculated by deducting present value of cash outflows from present value of cash inflows.
Q: A) The rate of return on a bond is expected but the interest rate is unexpected.
A: Interest rates refer to the proportion of the loan which is to be paid by the borrower to the lender…
Q: factors affect inventory turnover ratio
A: The inventory turnover ratio is a financial ratio. It is the rate at which a company is managing its…
Q: Technical Analysis (the practice of analyzing past stock price and volume data in order to predict…
A: The efficient market hypothesis (EMH), also known as the efficient market theory, claims that stock…
Q: Compute the price of a share of stock that pays a 2 per year dividend and that you expect to be able…
A: Shares, often known as stocks or stock shares, indicate a corporation's equity ownership divided…
Q: Good Credit is between O 680-700 O 620-800 O 650-700
A: Credit score determines the credit worthiness of customers. A good credit scores enables the…
Q: Treasury bills are currently paying 6 percent and the inflation rate is 3.10 percent. What is the…
A: Nominal interest rate = 6% Inflation rate = 3.10%
Q: O a. None of the above Ob. Decrease in Money Supply O C. Increase in Money Supply d. No Change in…
A: Solution: Credit Creation Multiplier is a multiple which shows that how much multiple times the…
Q: On September 6, Irene Westing purchased one bond of Mick Corporation at 91.75%. The bond pays 5.25%…
A: Bonds are the debt securities which are issued by the companies or the government to arrange the…
Q: Explain each of the investment instruments stated below that offered by financial institutions.…
A: Futures and Options are derivative products. The main purpose or objective of derivatives is to…
Q: value of delta of a 3 month European put option on the stock
A: European put option refers to the option that allows the holder to sell the under security at the…
Q: Q. Jayden borrows $10500 from his grandmother for 4 years. Jayden’s grandmother gives Jayden a…
A: While calculating future value using simple interest, the amount of simple interest is only based on…
Step by step
Solved in 2 steps
- Billy has invested RM38 500 in three unit trusts. He divided the money into ièTY different unit trust accounts, Amanah Saham Nasional, Amanah Saham Wanuer and Amanah Saham Mas. At the end of the year, he obtained a profit of RMI 877.50. The annual interest rates given to each account are 4%, 5.5% and 6°. Rypecmeh. The total amount of money in Amanah Saham Nasional account is three times that in Amanah Saham Mas account. How much money did Billy invested in each unit trust account?Marty performed the following transactions this year: He sold shares of Yellow Corp. and realized a gain of $14,000 He sold share of MiniMax Inc. and realized a gain of $3,000 He sold shares of ExtraSpec Inc. and realized a loss of $22,000 Which is the net impact of Marty's transactions? i want answer within one hour, ThanksThe Distance Plus Partneship has the following capital balances at the beginning of the current year: Tiger (50% of profit loses) 135,000 Phil (20%) 105,000 Ernie (30%) 120,000 A. If Sergio invest 150,000 in cash in the business for a 20 percent interest,what Journal ENtry is recorded. Assume that the bonus method is used. B. If Sergio invest $80,000 in the business for a 20percent, what journal entry is recorded? Assume that the bonus method is used. C. If Sergio invest $100,000 in cash in the business for a 20percent,what journal entry is recorded? Assume that the goodwill is used.
- Mr. Chavez purchased 4000 shares of DITO CME at Php5.4 per share and the broker charged 1.5% of the BUY transaction. After 1 month, the market price increased to Php14.2 per share. Then, Mr. Chavez decided to sell all his 4000 shares at Php14.2 per share and the broker charged 1.5% of the SELL transaction. How much did Mr. Chavez gain? a. Php33,567.00 b. Php34,024.00 c. Php40,274.00 d. Php65,879.00Gary purchased 250 shares of PAC stock for $37 per share and sold this same stockone year later for $44 per share. He paid commissions of $15 when he purchased thestock and $10 when he sold the stock. Dividends of $1.50 per share were paid duringthe year. The total rate of return on this investment was ?Dev recently sold Protus Corp for $45 after holding back the stock for a year. He received dividends payments totally $1.20 over that year and earned 9.5%. How much did Dev pay for Protus?
- Check my work Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. What is Sharrod’s new basis in the Kaiwan stock? Beginning Basis 32000 Add Long -term cap gain 5000 Less Distribution -20000 Deductible loss -17000 Basis in stock 0 Stock basis is 0The Distance Plus parnership has the following capital balances at the beginning of the current year. Tiger (40% of profits and losses) $65,000 Phil (20%) $35,000 Ernie (40%) $50,000 Each of the following questions should be viewed independently. a. If Sergio invests $70,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used. b. If Sergio invests $60,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the bonus method is used. c. If Sergio invests $72,000 in cash in the business for a 30% interest, what journal entry is recorded. Assume the goodwill method is used.Ana bought a 1,500,000 php 10-year life insurance policy, total premium of P600,000. Ana died in the 6th year. Her daughter received 1,500,000 from the company. Total premiums paid by Ana was 360,000. How much is the taxable income? 360,000;1,500,000;0;1,140,000 How much is the return on capital? 360,000;1,500,000;0;1,140,000 How much is the return of capital? 360,000;1,500,000;0;1,140,000
- In Year 1 you invested $500,000 in exchange for a 15% partnership interest in ABC, LP. Here are some additional facts: Year 1: ABC had ordinary business income of $3.4 million for the year; it had no other categories of income or deductible expense; during Year 1 you received a cash distribution from ABC of $400,000. Year 2: ABC had ordinary business income of $4.6 million for the year; it had no other categories of income or deductible expense; during Year 2 you received a cash distribution from ABC of $500,000. Year 3: ABC had ordinary business income of $1.8 million for the year; it had no other categories of income or deductible expense; during Year 3 you received a cash distribution from ABC of $450,000. Year 4: ABC had an ordinary business loss of $2.75 million for the year; it had no other categories of income or deductible expense; during Year 4 you received no cash distributions from ABC but did make a $125,000 additional capital contribution. What is your adjusted basis…Check my answer. Kaiwan, Inc., a calendar year S corporation, is partly owned by Sharrod, whose beginning stock basis is $32,000. During the year, Sharrod’s share of a Kaiwan long-term capital gain (LTCG) is $5,000, and his share of an ordinary loss is $18,000. Sharrod then receives a $20,000 cash distribution. Compute the following. A Sharrod’s deductible loss. Beginning Basis 32000 Add Long -term cap gain 5000 37000 Less Distribution -20000 Basis for loss limitation purp 17000 Deductible loss 17000 B Sharrod’s suspended loss. Share of loss 20000 Deductible loss -17000 Suspended loss 3000Nora, Vilma and Sharon are setting up the Past Stars Company and agreed to contribute cash and non-cash assets with total capital at P2,500,000. If there profit and loss ratio will be 5 : 4 : 3 that is based on contributed capital, how much should Sharon invest ?