1) The financial management decisions can be classified into four basic kinds, Investment Decisions, Financing Decisions, Liquidity Decisions and Dividend Decisions. True False

Q: Which one of the following statements is correct? If NPV is positive, IRR will be less than…

A: Bartleby Honor Code suggests when multiple questions are asked, the expert should solve only the…

Q: You deposited PHP1, 500 in a bank with an interest rate of 5% for 1 year. What is the future value…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: What annuity is required over 10 yrs. to equate a future amount of P 15,000. assume  interest of 5…

A: Given, Future Value of annuity = 15,000 Need to find annual Installments to be made over 10 years

Q: The following are forecasts of sales and purchases for KWANGYA Company: Sales Purchases April…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: You just graduated with MBA in Accounting and Finance from the University of Professional Studies…

A:

Q: Suppose that the price of a Treasury bill with 85 days to maturity and a $25,000 face value is…

A: Bond equivalent yield can be calculated by using the below equation. Bond equivalent yield =(face…

Q: The following three Fls dominate a local market and their total assets are given below. Institution…

A: In finance the HHI index is often used to determine the market concentration of an industry. FIs…

Q: XYZ Foods is considering producing a new candy, Tira-Tira. XYZ has spent two years and P450,000…

A: NPV or net present value  is defined as the sum of the present values of all future cash inflows…

Q: Master Machines, Inc. 2017 2018 Sales $1,240 $1,385 COGS 820 910 Interest 25 20 Dividends 25.50…

A: Operating cash flow is cash flow available after the payment of all operating expenses including the…

Q: When a stock repurchase occurs, which of the following is not correct? a. EPS decreases b. Shares…

A: Solution:- Share repurchase means that the company (ie. the issuer) buybacks the shares from the…

Q: 13. Explain what is meant by basis risk in the situation where a company knows it will be…

A: The financial risk that offsetting investments in a hedging strategy may not suffer price movements…

Q: How much will you have saved after 6 years by contributing $1200 at the end of each year if you…

A: Future value refers to the value that an amount would assume at a future time period after…

Q: What is the present value of a 20-year annuity of $2,900 per year; i = 6%. Present value %24

A: Present Value (Ordinary Annuity) = C*(((1-(1+i)-n)/i)) Where C = cash flow per period ($2900) i   =…

Q: Analyze the income statement of any company on an excel sheet using Graphs.   Please share the…

A: Target Corporation is an American department store chain  and it is eighth  largest retailer  in the…

Q: Develop an integer programming model to maximize the NPV in this situation. Use excel to solve this…

A: NPV stands for net present value. It is an important capital budgeting tool that we use to analyze…

Q: Bob wants $300,000 in his retirement account when he retires in 30 years. How much does he need to…

A: This question can be answered in light of future value of annuity. Annuity is a payment of equal…

Q: When establishing their optimal capital structure, firms should strive to     minimize the amount of…

A: The capital structure is said to be optimum capital structure when the firm has selected such a…

Q: What will be your annual payment if you take nowa loan of $164,000 with annual equal repayments over…

A: Loan amount = $164,000 Loan period = 11 years Interest rate = 0.08 (i.e. 8%) Amount of annual…

Q: Becky is a corporate account manager at a company that sells athletic equipment to other businesses.…

A: Bonus is the salary paid to an employee by the employer in addition to the basic salary. Bonuses…

Q: MMB issued 10-year bonds with a coupon rate of 8%.  The bond makes semiannual payments.  If these…

A: Band is a financial instrument that pays a series of equal payments at equal interval till the…

Q: Smart Company is expecting temporary idle cash. Hence, it is considering investing in marketable…

A: Here, Per Transaction Cost id P10 Interest Rate is 6% Cash Payment is P12,000,000 monthly

Q: (b) Consider the following two financial assets: (1) an ordinary share that is expected to pay a…

A: The dividend discount model states that we can find out the price of a stock based on the present…

Q: Archer Arrow Company examined its cash management policy and found that it takes an average of 5…

A: Answer -    Part 1 -  Calculation of Disbursement float - = Amount of Checks written per day *…

Q: Suppose that $10,000 of a 6-year fixed-principal Treasury note with a coupon rate of 6.5% is…

A: Treasury notes: Treasury notes are fixed principal coupon paying bonds that pay a semi-annual…

Q: Solve manually using formulas. A fund earning 8% annual effective rate of interest is being…

A: Present Value of annuity-The present value of an annuity is the amount of money required to fund a…

Q: following table shows the nominal returns on Brazilian stocks and the rate of inflation.    Year…

A: Nominal Interest rate = Real Interest rate + Inflation Real Interest rate = Nominal Interest rate -…

Q: Where did global financial crisis begin?

A: After the great depression of 1930 the global financial crisis was seen in 2007-2008 based on…

Q: A trust fund is to be formed by depositing ₱4,000 every six months for 25 years in a bank that…

A: Semi-annual deposit - 4000 Time period - 25 years  Amount at maturity - 300,000 Formula for…

Q: Find the simple interest on a $3,500 principal deposited for four years at 2.45% A. $2,143.75 B.…

A: Simple Interest = Principal * Interest rate * Time period

Q: What is the present value of a 12 year lease arrangement with an interest rate of 7.5% that requires…

A: As per the information provided:  C= Cash flow = $4,250i = Interest rate = 0.075n = Number of…

Q: If the billing cycle is from the first day of April to the last day of April, how many days are in…

A: Billing cycle is the time period between two statement closing dates. It is also called billing…

Q: The most important feature of Limited Liability Companies is that it provides limited liability for…

A: limited liability company benefits the members provide limited liability.

Q: 1. Find the ordinary interest and exact interest of the given data: A Php15,000 loan at 21% p.a made…

A: Interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed or…

Q: Question 3 Your firm has net income of $273 on total sales of $1,180. Costs are $660 and…

A: As per  formula   Operating cash flow = Net income+Depreciation Where Net income = $273 Depreciation…

Q: Additional Information:   (a) Gross profit rate for 2019 is 50%, which decreased by 5% in 2020 due…

A: Gross Profit is calculated as the excess of net sales over cost of goods sold. Accordingly, Gross…

Q: ex is at £411.79. Find the intrinsic value and the time valı

A: The price of options have two components one is intrinsic value and other is time value of option…

Q: Burns Company's bonds have a $1,000 face value, pay an 10% coupon, and mature in 30 years. What is…

A: Face value of the bond = $1,000 Coupon rate = 0.10 Annual coupon amount (C) = $100 (i.e. $1000 *…

Q: 25) What is the present value of the following set of cash flows, discounted at 15% per year? Year 1…

A: Present Value=Future value/(1+r)n rate=15%

Q: Calculate the break even sales dollars if the fixed expenses are $7000 and the contribution ratio is…

A: Break even analysis is used for identifying the number of units that the firm needs to produce in…

Q: Determine the PW (Present worth) at 8% of the given cash-flow diagram. Use MS Excel

A:

Q: Find the present value of a deferred annuity of ₱6399 every six months for 3 years that is deferred…

A: To calculate the present value of annuity we will use present value of annuity formula, since first…

Q: A put option gives the holder the right to sell a stock or other financial securities at a specified…

A: The answer is option C. S1 is true. A put option gives the holder the right but not an obligation to…

Q: 10. Scott bought a $5,975 boat on the installment plan. The agreement included a 20% down payment…

A: In the installment purchase system, part of the price is paid upfront called 'Down payment'. Rest is…

Q: interest rate risk differs between mortgage companies and other financial institutions

A: The mortgage company is a financial firm that gives out its own loans. They use their own funds or…

Q: firm has zero debt in its capital structure.  Its overall cost of capital is 10%.  The firm is…

A: Weighted average cost of capital = (weight of Debt * Cost of debt) + (weight of Equity * Cost of…

Q: BNP Paribas has 800 depositors. Each depositor deposits $1,000 into the bank at t=0. BNP Paribas…

A: Simple Interest: Interest refers to the cost of borrowing money.  When the interest is charged only…

Q: Discuss and critically compare sensitivity analysis and scenario analysis as means of  estimating a…

A: In capital budgeting we look at different projects and determine their financial viability and then…

Q: Hail & Sons operates for 240 days in a year. It has been offered credit terms of 4/30, net 90

A: Cost of non free credit would be the cost of discount given to the customer for doing early payment.

Q: bought a smartphone worth Php72,000 and made a downpayment of Php15,000. The remaining balance must…

A: The periodic payments are paid for the loan and these loans carry the payment of interest and…

Q: School fees at a certain school are due at the beginning of the year. The fees are set at R12000 for…

A: The amount that have to be invested at the beginning of year 2018 is the sum of present value of…