What are the advantages or disadvantages of Fama-French 5-factors in comparison with Fama-Frech 3-factors that was developed in 1993

Q: A fund to replace a deteriorating machine will be formed by depositing $2000 at the beginning of…

A: Semiannual deposit (C) = $2000 Semiannual interest rate (r) = 0.035 (i.e. 0.07 / 2)   a.  Semiannual…

Q: Capital Gain Tax consequences of the above transaction.

A: Capital gain means profit arising on sale of assets after deducting all expenses.

Q: Use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected?

A: Net Present Value: It shows the current worth of a project or investment and is used primarily in…

Q: 1. A tank behind Tom’s service station has leaked a large quantity of heating oil into the soil…

A: Risk relates to uncertainty. In business, in finance, in investing and in all aspect of life we…

Q: Lesson 2: Funding the Future Cool Down: A Different Account An account grows at an annual interest…

A: Future value of amount is amount that is deposited in the account and amount of interest being…

Q: The Digital Electronic Quotation System (DEQS) Corporation pays no cash dividends currently and is…

A:

Q: Market Data Return  Standard Deviation Beta       Market Data 0.120 0.200 1.000       Risk-Free Rate…

A: Market Data Return  Standard Deviation Beta Market Data 0.12 0.2 1 Risk-Free Rate 0.025 0 0…

Q: Complete the following table. Note: Round your "gross pay" to the nearest cent. Employee Donna Swan…

A: Gross pay is the total amount earned by the employee for the time he worked. It also includes…

Q: What is the maturity value of a $8,500 note dated June 17, 2020, if it matures on November 15, 2020…

A: As the name implies, maturity is the point at which a financial instrument, such as a bond, etc.,…

Q: Part A.  The current 10 year treasury note is approaching the important threshold of: a) 2.75% b)…

A: Since you have posted multiple question , we will solve first question for you. If you want any…

Q: semiannual compounding) guaranteed to remain the same over the next four years. How much money must…

A: Information Provided: APR = 3.6% compounded semi-annually Total number of payments = 8 Size of…

Q: Elaborate further on the settlement of a future contract based on the numbers in the diagram. (1)…

A: We have to explain and elaborate the settlement process evident in the diagram.

Q: Which of the following is not a dominant risk that might affect the price of a bond?   A Deferred…

A: Bond is a fixed income instrument. Bond represent a loan made to corporate and government in return…

Q: Here is a list of bond transactions on May 15, 2009. For each transaction list the transaction…

A: Quotes for several bonds that were transacted on a particular day had been given. We need to…

Q: On January​ 20, Sullivan ​Inc., sold 10 million shares of stock in an SEO. The market price of…

A: Information providedMarket price = $40.25Number of shares sold by Sullivan = 4 million or…

Q: Jane wants to have $200,000 in an account in 20 years. If her account earns 11 percent per annum…

A: In this case we are provided with the future value amount and we have to compute the periodic saving…

Q: In Millions of USD except Per Share 12 Months Ending Revenue Passenger Other Freight Revenue Growth…

A: In a financial modeling exercise, we have to find the pat trends and make forecast for the next…

Q: jacques purchased x shares of a corporation that pays a y dollar annual dividend. what is his annual…

A: Annual dividend income is calculated using following equation Annual dividend income = Number of…

Q: If Epic, Inc. has an ROE = 29%, equity multiplier = 3.6, a profit margin of 12.4%, what is the total…

A: Information Provided: ROE = 29% Equity multiplier = 3.6 Profit margin = 12.4%

Q: QUESTION IS IN IMAGE Your company has been doing well, reaching $1.09 million in earnings, and is…

A: In the NPV analysis, we compute the present value of all future benefits. This present value is then…

Q: A project has an initial cost of $65,000, expected net cash inflows of $12,000 per year for 8 years,…

A: The NPV of a project is a measure of its profitability. It uses the concept of TVM to discount the…

Q: Where does the information on step one comes from?

A: The excess of an asset's expected investment return above the risk-free rate of return is known as…

Q: A $8,000 CD is purchased through a local bank that pays 3.50% interest compounded quarterly for…

A: The following questions have given as follows: 1. $8,000 as Principle 2.  Pays 3.50% interest…

Q: For ethical reasons, researchers can begin analyzing data prior to establishing the p-value criteria…

A: A p-value of less than 0.05 is considered statistically significant, and the null hypothesis should…

Q: Panorama Rama Holdings has been growing rapidly and has therefore have decided to increase their…

A: The question is related to the Dividend Discount Model or Gorden's Model. The intrinsic Value of…

Q: Suppose Josh’s current salary is $72, 000 per year, and she is planning to retire 25 years from now.…

A: The FV of a payment series determines the value that the asset has at the time of maturity…

Q: What rate of interest compounded annually is required to triple an investment in 20 years? The rate…

A: P= Amount investedr = rateA= Amount after Boyars = 3Pt = 30 years

Q: Is there a way to set this up in Excel, please?

A: Face Value  $       1,000.00 Time Period (Years) 10 Price of Bond  $         311.05

Q: Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and if…

A: Amount = P500 Time Period = 4 Years Nominal Rate = 5% Compounded Continuously Rate = 5%

Q: You invest $9000 in an account that pays simple interest of 2% for 13 years. What is the interest…

A: Simple interest The method used to calculate interest on an amount charged or paid at a specified…

Q: A variety of interested parties-including existing and prospective creditors (such as lenders and…

A: Liquidity ratios These ratios measure the company's ability to meet its short term obligations.…

Q: An investment offers a total return of 13.8 percent over the coming year. You believe the total real…

A: We have the nominal return and real return. Using them we have to quantify inflation. We will do it…

Q: Modern corporate governance implies several layers of separation between ownership and control of…

A: We have a statement. We have to comment on the statement along with a conclusion.

Q: John signed a 90-day note with a face value of $6,000 and a discount rate of 14.57%. How much did…

A: Ordinary time means day convention of 360 days. Here, the proceed or amount received from bank is…

Q: Account A and Account B each receive a deposit at the same time. Account A earns interest at an…

A: In compound interest, the interest earned during a period gets added to the principal, and the new…

Q: Consider a pair of call and put options with the same expiration date but different strike prices.…

A: We have to take a position in the call and put options. We have to plot the profit/(loss) from the…

Q: Ife wants to save $55,856.00. Each period, she will save twice as much as the period before,…

A: This is the case of a growing annuity and as the amount saved is doubling in each period we can say…

Q: You are the general manager for your favorite MLB team. Your team owner has agreed to let you spend…

A: A group of two or more people who pool their resources in support of a single aim or purpose is…

Q: Automotive art Net Present Valueo    N/A •    Return on Investment (ROI) •    Anticipated Benefits…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: A company is evaluating whether a new potential project should be taken on. The project will require…

A: Life of project is 6 years Cost of Capital is 9% To Find: Discounted payback period Net present…

Q: everything else being equal, you should invest if the discounted value of the security’s expected…

A: An investment is profitable and should be considered only if the present value of all expected…

Q: Compute the yield to maturity on a bond with a $1000 par value, a coupon rate of 3.75% with…

A: The yield to maturity rate of return realized by holding the bond till the maturity of bond and…

Q: The MoMi Corporation’s cash flow from operations before interest and taxes was $2.2 million in the…

A: The free cash flow represents the cash left to the company after paying for all the operating…

Q: If you get paid $5,460 per month gross and 10% of that paycheck was chheld for federal income taxes…

A: Monthly gross income = $5,460 Federal income taxes = 10% State income taxes = 6%

Q: statements is false

A: Investors who sell short assume the stock's price will fall in value. If the price falls, you can…

Q: Lassiter Industries has annual sales of $220,000 with 12,000 shares of stock outstanding. The firm…

A: Price earning Ratio - In simple words we can say how much money investor pay for the stock to earn…

Q: USE 4 DECIMAL PLACES Nominal Rate 5% compounded semi annually 5% compounded quarterly 5% compounded…

A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…

Q: ently, the spot exchang annum in the U.S. and 5.84% per annum in the U.K. Assume that you can bor e…

A: Arbitrage risk less profit available due to the mispricing in the two market and it is short term…

Q: Q20 An obligation of $500 falls due at the end of 3 years. Find an equivalent debt at the end of a.…

A:

Financial Ratios

A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.

Return on Equity

The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.