return compane to that Of the Spp 500 index?5. What Wold you expect the Betas or the StP500Fund and the T-bill fund to be2 Prob. of state S&P 500Technology T-Bills-15%StateInternational Fund+ 1% GDP.258%5%30%+ 2% GDP.5012%15%15%+ 3% GDP.2516%45%5%0%

Treasury bills are government securities that do not have default risk and the interest rate does…

Answered: return compane to that Of the Spp 500…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the NPV method to determine whether Root Products should invest in the following projects: • Project A: Costs $275,000 and offers eight annual net cash inflows of $53,000. Root Products requires an annual return of 12% on investments of this nature. Project B: Costs $380,000 and offers 9 annual net cash inflows of $74,000. Root Products demands an annual return of 10% on investments of this nature. E(Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. What is the NPV of each project? Assume neither project has a residual value. Round to two decimal places. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative net present value.) Caclulate the NPV (net present value) of each project. Begin by calculating the NPV of Project A. Project A: Net Cash Annuity PV Factor Present Years Inflow (i=12%, n=8) Value 1-8 Present value of…
PA15. LO 5.3 Using the following account balances, calculate for the two years presented: A. working capital B. current ratio 12/31/2018 12/31/2019 $ 6,000 12,750 Unearned revenue $12,600 Cash 33,200 9,000 Prepaid rent Supplies Taxes payable Wages payable 6,000 2,500 5,600 4,800 8,500 5,500 9,250
enters Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she college (17 years from now). If her tuition is projected to be $40,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is S. (Round to the nearest cent as needed.)
31 - _____________________ / _____________________153 COMMERCIAL GOODS XX191 DEDUCTIBLE VAT XX320 SELLERS XX_____________________ / _____________________Which of the following belongs to the above journal entry?A) Returns B) Buy Discounts C) Purchase of Goods on Credit D) Sales Returns E) Sales of Goods on Credit
U. PunUS IOW SIalement Ans: (a) Decrease in WC Rs. 7,000 (b) FFS Rs. 1,08,000; FFO Rs 19. 2073 Set D QNo. 16 Following information are given: Particulars Inventories Debtors General reserve Creditors Cash Year 1 (Rs.) 80,000 2,50,000 20,000 70,000 1,00,000 20,000 Year 2 (Rs. 1,00,000 2,00,000 40,000 1,00,000 1,40,000 25,000 Expenses payable Additional Information: Profit of the year: Rs. 80,000 i. Provision for tax: Rs. 10,000 Required: a. ii. Depreciation on fixed assets: Rs. 20,000 iv. Profit on sales of fixed assets: Rs. 5,000 Schedule of changes in working capital b. Funds from operation Ans: (a) Decrease in WC Rs. 25,000 (b) FFO Rs. 1,05, 20. 2072 Supp Q.No. 16 The following figures are extracted from the two years balance sheet of a company: Year 1 Year 2 Rs. 6,00,000 Rs. 1,50,000 Rs. 5,000 Particulars Share capital Fixed assets Rs. 5,00,000 Rs. 1,00,000 Goodwill Rs. 10,000 Additional Informátion: Net profit: Rs. 75,000 ii. Purchases of fixed assets: Rs. 70,000 Loss on fixed…
Consider two mutually exclusive investment alternatives given in the table below. Click the icon to view the cash flows for the projects. (a) Determine the IRR on the incremental investment in the amount of $5,000. (Assume that MARR = 11%.) The rate of return on the incremental investment is%. (Round to two decimal places.)
What is the amount received by partially secured creditor? A. P40,000B. P60,000C. P70,000D. P65,000
If discretionary expenses are $500, cash flow before discretionary expenses are $2,000, and discretionary capital expenditures are $500, what is the discretionary payout percentage? A. 50% B. 25% C. 20% D. 250%
Help Save & Exit Su AVKAOX224 Corp. has provided the following cost, price, and sales data: Per Unit Selling price 2$ 240 Variable 54 expenses Contribution $ 186 margin AVKAOX224 is currently selling 8,000 units per month. Fixed expenses are $880,000 per month. (ID#61517) AVKAOX224's marketing manager would like to cut the selling price by $28 and increase advertising spending by $60,000 per month. The marketing manager predicts that these changes would increase monthly sales quantity by 20%. Q: What would be the overall effect on AVKAOX224's monthly net operating income of this change? (Note: A POSITIVE number indicates an INCREASE in net operating income, and a NEGATIVE number indicates a DECREASE in net operating income) Multiple Choice -31,200 dollars -15.768 dollars
Given 1275,000, S40,000 N = 5 i 16% Calculate the Capital Recovery amount a. none of the above O b. 55,000 O c. 78,171 O d. 93,509
Provided information Cash flow Million Interest Cash flow Year rate Million 12% R-638 R-638 1 12% R160 R160 2 12% R200 R200 3 12% R200 R200 4 12% R200 R200
Use the below information to answer the following questions: 20202021Sales$11,573$12,936Depreciation 1661 1736Cost of goods sold 3979 4707Other Expenses 846 924Interest Expense 776 926Cash 6067 6466Accounts Receivables 8034 9427Short-term Notes Payable 1171 1147Long-term debt 20,320 24,696Net fixed assets 50,888 54,273Accounts Payable 4384 4644Tax rate 26% 34%Inventory 14,283 15,288Payout ratio 33% 30% A. Create the Income Statements for 2020 and 2021 (including dividends paid and retained earnings).

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return compane to that Of the Spp 500 index? 5. What Wold you expect the Betas or the StP500 Fund and the T-bill fund to be2 Prob. of state S&P 500 Technology T-Bills -15% State International Fund + 1% GDP .25 8% 5% 30% + 2% GDP .50 12% 15% 15% + 3% GDP .25 16% 45% 5% 0%