Mr. Roxas pays monthly amortization of P54,100 for a parcel of land. The amortization factor for 5 years at 21% is 0.02705. If Mr. Roxas paid a down payment of 20% of the contract price, compute the principal obligation in which the monthly amortization is based?
Q: a) Explain the significance of financing with accounts payable. b) Explain (including computations)…
A: when a company purchases raw materials and goods from suppliers on a credit basis. In that case, the…
Q: 1. At the Longbridge Early Childhood Institution, the princip had to make a school bank lodgement at…
A: Cash is very important for business and life but should have minimum cash because of risk involved…
Q: The clientele argument in dividend theory implies that: ● The stock of low-payout firms will be held…
A: Several statements have been given about the clientele argument. We have to find the correct one.
Q: Natsam Corporation has $150 million of excess cash. The firm has no debt and 600 million shares…
A: We have to find the ex dividend share price in first case, share price post repurchase ion second…
Q: Two stocks each currently pay a dividend of $1.60 per share. It is anticipated that both firms'…
A:
Q: 21. A discount bond is a. priced below 100% of face value b. priced at 100% of face value c.…
A: A discount bond is the bond that is trading at price lower to its face value. It is similar to zero…
Q: Compute the total and annual returns on the described investment. (Round to hundredths place)…
A: Return on investment is an important criteria for the investors for judging the fruitfulness of…
Q: Project A Project B Time 0 -10,000 - 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000…
A: IRR internal rate of return is main capital budegting technique used that is based on time value of…
Q: Mooradian Corporation estimates that its weighted average cost of capital is 17.8 percent. The…
A: Net present Value (NPV) is the sum of the present value of all expected cash flows. If NPV is…
Q: The interest tax shield year 1 is ______$ million (Round to three decimal places) The interest…
A: concept. Interest tax shield = Interest amount * tax rate.
Q: What is the present value of the streams of cash flow for the following: Php1,000,000 with a…
A: Solution:- When an equal amount is paid each period, it is known as ordinary annuity. We know,…
Q: 7 Carvana (CVNA) is suffering with a share price of $3 down from $223 a year ago (yikes!). The…
A: When company thinks that company is facing losses and there are more chances of going to be…
Q: You are trying to convince an investor into buying a rental apartment unit that fetches a rent of…
A: Monthly rent, PMT is 10,000 The time period is 30 years Total number of months, "n" are 30×12 = 360…
Q: A high-water mark of $115.25 million was established two years ago for Korean Fried Chicken (KFC)…
A: Solution: Management fees is the basic fees charged on the fund value (whether beginning or end) and…
Q: Internet companies that simply act as agent or broker for the transfer of goods can record revenue…
A: Internet companies that simply act as agent or broker for the transfer of goods , act in the…
Q: Suppose that zero interest rates with continuous compounding are as follows: Maturity (years) Rate…
A: Data given: Maturity (years) Rate(% per annum) 1 2.0 2 4.0 3 4.7 4 5.2 5 5.5
Q: you would like to have in 5 years a total of $5000 for a trip knowing that you can invest a simple…
A: formula. Future amount = principal amount + simple interest amount. simple interest =principal *…
Q: has a hard hurdle rate of 7.45%. If the incentive fee and management fee are calculated…
A: Solution:- Investor's net return means the percentage or amount of net profit earned on the initial…
Q: Let us suppose that you and a friend both start working at the age of 23 and decide on very…
A: Future value of money includes the amount being deposited over the period of time and amount of…
Q: An individual has a portfolio that consists of 1) a three year zero coupon bond with a maturity…
A: Duration of a zero coupon bond is the term or tenure to maturity. Duration of a growth stock in…
Q: Bells Inc. plan to issue new 7.0% coupon, 25-year semi-annual bonds with a standard par value. If…
A: A bond is a debt instrument where a lender provides capital in the form of bond price and receives…
Q: A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be…
A: Honor Code: Since you have posted a question with multiple sub-parts, we will provide the solution…
Q: Titusville Petroleum Company is considering pledging its receivables to finance an increase in…
A: The question is related to Annual Financing Cost. The details of the same is given.
Q: You are considering the following investment activity. The facts are the following:…
A: Net Present Value Net present value is the distinction between the worth of money now and when it…
Q: Consider long positions on options written on the same underlying stock. Option 1 is a call on 100…
A:
Q: A young couple wants to have a college fund that will pay $30,000 at the end of each half-year for 8…
A:
Q: Uncorrelated assets A and B have standard deviation of return 0.3 and 0.4 respectively. If a denotes…
A: concept. 1. If two assets are uncorrelated , then their correlation coefficient = 0. 2. Minimum…
Q: Answer the following as indicated. (Format: problem, then, solution) 7. How many shares can you…
A: Given: Amount = 5,000 NAV = 3.46
Q: The current ratio of Company X is 3.0 times. Company X has working capital of $20,000. Total Current…
A: Solution: Given , Current ratio = 3 times Working capital =$20,000 Accordingly, We know, Current…
Q: Suppose that all capital gains are taxed at a 24% rate, and that the dividend tax rate is 48%.…
A: We have to find the impact of taxes and the dividend on share prices. In the second part, we have to…
Q: Assume u have bought a CDS with the market value of 1,000,000 dollar and and the spread appreciated…
A: The spread on a CDS changes. We have to find the new MV of the spread.
Q: What's the forecasted capital expenditure based on the information below? -Net PP&E beginning of…
A: Given: Net PP&E at the beginning = 4200Net PP&E at the end = 6800Depreciation expenses =…
Q: Excel Questions 1) What would happen to the contribution of asset allocation to overall performance…
A: Whent the weights in the portfolio changes to 75/12/13, then the excess return will be: Result:…
Q: Projected Spontaneous Liabilities Smiley Corporation's current sales and partial balance sheet are…
A: Spontaneous liabilities are short term liabilities that generally arise as result of operating of…
Q: The risk-free rate of return is 2 percent, and the expected return on the market is 6.1 percent.…
A: Value of stock can be determined based on the dividend and growth of dividend and required rate of…
Q: The following information is available for a firm in a developing country: 2.0% 1.5 Risk-free rate…
A: As per Capital Asset Pricing Model the cost of equity is calculated with the help of following…
Q: Bass Corporation is considering whether to pursue an aggressive or conservative current asset…
A: The return on equity is calculated with the help of following formula Return on Equity = Earnings…
Q: The company is setting aside funds to acquire a property for its new warehouse. The company needs…
A:
Q: hat is the pay off to a call option with strike 17 when the underlying price is 26? Need typed…
A: Call option gives you the opportunity to buy the stock on the expiration of contract but there is no…
Q: Choose which bond issue is at above par value issue coupon rate % yield required by market % A 5…
A: Bonds are long term sources of finance for the companies and the prices of bond depends on the…
Q: On a Cash Flow Statement, Operating activities include: Establishing a line of credit.…
A: Solution:- Cash flow statement is a part of financial statements, which show the flow of cash during…
Q: The clientele argument in dividend theory implies that: O The stock of low-payout firms will be held…
A: Several statements have been given as implication of the clientele argument in dividend theory. We…
Q: A business has 10 million ordinary shares that are currently quoted at £2.20 each. The business has…
A: We have to assess the impact of a dividend payout followed by equity issuance on the total value of…
Q: Increasing financial leverage will create value. A. True OB. False
A: Financial Leverage is use of borrowed funds for financing business needs or for executing expansion…
Q: Alternative A B C D E Annual Equivalent Cost Php 49,990,000 53,000,000 68,250,000 61,000,000…
A: The B-C ratio is the benefits of the respective project divided by the costs of the individual…
Q: You have $10 million to invest. If you invest the money in the US for six months, you can earn…
A:
Q: AFN equation Broussard Skateboard's sales are expected to increase by 15% from $7.4 million in 2019…
A: We have to compute the additional fund needed to support the growth in the next year.
Q: Company X has an investment opportunity in Europe. The project costs €30,000,000 and is expected to…
A: The NPV of a project is a measure of its profitability. It uses the concept of TVM to discount…
Q: The spot rate is $1.60/£. Three-month interest rate in the US is 6% while the three-month interest…
A: Interest Rate Parity theory (IRPT) When the interest rate of two country is different, then the…
Q: CAN YOU SHOW THE STEPS ON A BA CALCULATOR USING THE PMT + I/Y + FV BUTTONS.....I CAN GET THE LONG…
A: Given: Payment = $250 Interest rate = 8% Future value (FV) = $50,000
Mr. Roxas pays monthly amortization of P54,100 for a parcel of land. The amortization factor for 5 years at 21% is 0.02705. If Mr. Roxas paid a down payment of 20% of the contract price, compute the principal obligation in which the monthly amortization is based?
Step by step
Solved in 2 steps with 2 images
- On January 1, 2018, Mr. V leased his vacant lot for period of 12 years to Mr. J at an annual rate of 2,400,000. It was also agreed that Mr. J will pay the following: 4,800,000 representing rental payment for 2018 and 2019 Security deposit of 2,400,000 Annual real property tax of 30,000 The lease contract provides, among others that the lessee will construct a 5-storey building for parking purposes at a cost of 9,500,000. Ownership of the building shall belong to the lessor upon the expiration or termination of the lease contract. The building was completed on July 1, 2020 with an estimated useful life of 15 years. How much can Mr. J claim as deduction in relation to the lease in 2021?Catarina bought a residential unit in XYZ Real Estate Co. amounting to 20,000,000. The said unit has a term of: 5,000 reservation fee, 20% down payment payable in 3 years, and the rest of the contract price payable in 20 years. Compute for the annual amortization for the next 10 years.Atty. Santa agreed to sell their condominium unit to a campanera worth 2.4 million pesos in two payment schedule: On the first 5 months, the price of the unit is amortized at 3% quarterly. The balance amount will be paid at 4% semiannually for 7 months. Prepare the amortization schedule. Amortization schedule content: Date, beg bal, payment, interest, principal, and end bal
- Two years ago, the rental for the use of equipment and facilities as paid 5 years in advance, with option to renew the rent for another years by payment of P15,000 annually at the start of each year for renewal period. Now, the lessor asks the lessee If it could be possible to prepay the renewed 5 years period. If the lessee will consider the request, what would the fair prepayment to be made to the lessor if interest is now figured at 8%?On January 1, 2019. Eric, the lessee, and Betty, the lessor, signed a noncancelable lease agreement for Betty's equipment with a carrying amount of $60,000 and fair value of $75,000. The lease term is seven years with rental payments of $10,000 at the beginning of each year. Eric's incremental borrowing rate is 9%. The equipment is expected to have a residual value of $15,000 at the end of the lease, unguaranteed, and a useful life of 15 years. The collectability of the lease payments is probable for the lessor Betty. Instructions 1. Provide the journal entries required on the books of both Eric and Betty through December 31, 2020. 2. What if the residual value of $15,000 is guaranteed?Dahyun contracted a 4-year lease of a machinery with Jackson Wengon January 1, 20x1. Rent in 20x1 is ₱10,000 and as stipulated inthe contract, shall increase by 10% annually starting on January1, 20x2. Rentals are payable at every year end. Dahyun pays Jacksona lease bonus of ₱5,000 on January 1, 20x1. Dahyun opts to use thepractical expedient allowed under PFRS 16 for leases of low valueassets. How much is the lease expense in 20x1?
- A contractor bought an asphalt plant from a commercial bank for a certain amount, and the two parties agreed that the contractor would pay an amount of (2) upon signing the contract as an advance, provided that he would pay ten equal annual installments of the value of each payment (0.5) and with an interest of (8%). The first installment starts to be paid at the beginning of the year The fifth is from signing the contract, so what is the value of the factory? And when the payment date came, he persuaded the bank management to postpone the payment (6 years), provided that the interest during this period is (12%), so what is the value of the new installments? After paying two installments, he decided to pay the remaining amount in full when the third installment is due. How much will he pay?Lessee enters into a three year lease of equipment and agrees to make the following annual payments at the end of each year 10,000 in year one, 12,000 in year two and 14,000 in year three. Discount rate is approx. 4, 235% and right of use asset is depreciated on a straight line basis over the lease term. What is the value of the lease liability at the end of years 2 & 3?On January 1, 2020, an entity leased an equipment for four years at anannual rental of P170,000 payable at the end of each year. The estimateduseful life of the equipment is four years. The present value factor of anordinary annuity of 1 for four years of an implicit rate of 12% is 3.0373. Thelease provides for a transfer of ownership of the equipment to the lesseeat the end of the lease term. Compute for the depreciation expense forthe right of use of asset for the year ended December 31, 2020.
- Atty. Santa agreed to sell their condominium unit to a campanera worth 2.4 million pesos in two payment schedule: On the first 5 months, the price of the unit is amortized at 3% quarterly. The balance amount will be paid at 4% semiannually for 7 months. Prepare the amortization schedule.Kit Company leased equipment at an annual rental of P45,000 payable in advance for five years. Under the lease contract, Kit is given the option to purchase the asset for P75,000 at the end of the lease term and Kit is reasonably certain to exercise this option. The appropriate interest rate is 12%. Present value of 1 at 12% for 5 periods is 0.5674. Present value of an annuity due of 1 at 12% for 5 periods is 4.0373. What is the capitalized cost of right of use equipment? a. 225,000 b. 300,000 c. 224,234 d. 189,679Ground Company leased a parcel of land to Sparks Company for six years. The lease agreement states that theSparks will pay rental of P200,000 on the first year, to be increased by P10,000 annually. There is also a provision that Ground is to receive a lease bonus of P30,000 and a security deposit of P60,000, refundable atthe end of the lease contract. How much is the rent expense of Sparks Company on the first year? How much is the rent income of Ground Company on the second year?