29.1. A company caps a 3-month floating rate at 2% per annum. The principal amount is $20 million. On a reset date, the floating rate is 4% per annum. What payment would this lead to under the cap? When would the payment be made?
Q: Suppose you own a mutual fund that has 10,311,515 shares outstanding. If its total assets are…
A: NAV = (Total Assets - Total liabilities) / No of units Total Assets = $36,600,019 Total liabilities…
Q: Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50)…
A: To determine the cash payback period, we first need to determine the average cash flow using the…
Q: If you borrow $6,000 for 4 years and agree to pay back $8000, what simple interest rate will you end…
A: Simple interest is the type of interest that is calculated only on the principal amount. Simple…
Q: Finance part b only : Prepare a schedule of cash payments on accounts payable for each month and…
A: Data given: Cash payment schedule CASH PAYMENT Budgeted Purchase July Aug Sept June…
Q: Masonry Ltd. The CEO has come to Jason with some questions about cash budgeting and whether the…
A: The concept of cash budget is associated with the cash management of inflow and out flow on an…
Q: Please read your answer once again
A: Bonds are safe investments and annual coupons are paid on that as per the rate mentioned and the par…
Q: A closed-end fund starts the year with a net asset value of $31. By year-end, NAV equals $33.00. At…
A: Given, Net Asset value = $31 NAV = $33 3% premium to NAV Income and capital gains = $3.40
Q: Consider two local banks. Bank A has 89 loans outstanding, each for $1.0 million, that it expects…
A: Expected returns are calculated by taking the product of the returns & the probability of their…
Q: You have $50,000 in your retirement fund that is earning 5.5 percent per year, compounded quarterly.…
A: Amount present in fund = $50,000 Interest rate = 5.5% compounded quarterly
Q: iv. Treynor measure 9.8330
A: First, I'm going to list the formula used to determine the Missing value (Treynor's measure) for…
Q: Assume that NASA is allowed to select one of three commercial projects for the next space shuttle…
A: Economic value added is the firm’s economic value added by its operations. Formula for EVA =Net…
Q: [The following information applies to the questions displayed below] Nick's Novelties, Incorporated,…
A: Payback period is the capital budgeting technique used for making investment decisions. Payback…
Q: You saving up to buy a car. You plan on making your first savings deposit a end of each year. Year 1…
A: Future Value refers to the worth of the nominal amount after definite period. It is calculated using…
Q: The real risk-free rate of interest, k* is 3 percent. Inflation is expected to be 4 percent this…
A: Data given: Real risk-free rate of interest, k*= 3%. Inflation this year= 4 % Inflation next year=5…
Q: Suppose today is January 1, 2024 and you are given two options: a. an annuity that pays you 1000…
A: Annuity is fixed amount being paid at each year for the fixed period of time Perpetuity is fixed…
Q: Crane's Custom Construction Company is considering three new projects, each requiring an equipment…
A: Npv is also known as Net present value. It is a capital budgeting techniques which help in decision…
Q: Exercise 26-9 (Static) Payback period; net present value; unequal cash flows LO P1, P3 Gonzalez…
A: Capital budgeting refers to the process of evaluating and selecting long-term investment projects or…
Q: In Q1, suppose the company gives up the cash dividend plan because of shareholder opposition.…
A: Introduction: MM model- A company can finance their operations or fuel their growth and expansion…
Q: From the following facts, complete a depreciation schedule by using the straight-line method: Note:…
A: The depreciation of an asset refers to the reduction in the book value of the asset throughout its…
Q: Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each…
A: Compound = monthly = 12 Payment = p = $140 Interest rate = r = 6 / 12 = 0.5% Time = t = 15 months
Q: Give typing answer with explanation and conclusion you want to borrow $71,400 from your local bank…
A: The idea of the time value of money (TVM) holds that a quantity of currency is valuable currently…
Q: The stockholders required rate of return is 6.0% and the stock has a beta of -60. The risk-free rate…
A: Required rate of return =6.0% Beta=-60 Risk-free rate=8% Required: Market Return=?
Q: Acompany needs financial objectives: to indicate to employees that financial objectives always take…
A: Financial objectives refer to specific goals and targets set by a company or organization related to…
Q: a) What is the price of a European put option on the same stock that expires in 8months and has a…
A: Using Put Call Parity formula, we can determine the price of the put option. The formula is as…
Q: Corporation issued $100,000 of 5-year bonds with a stated interest rate of 8%. The bonds pay…
A: Bonds are long term and safe source of finance for the companies and bonds carry the periodic…
Q: 2. Compute the overall cost of capital based the following data. Which weight is preferable? Why?…
A: It is a case of finding a cost of capital for the firm where the firm deploys capital from different…
Q: Consider the following cash flows: Year Cash flow 0 -25000 1 7000 2 6000 3 5000 4 3000 5 3000 6…
A: Here, Year Cash flow 0 -25000 1 7000 2 6000 3 5000 4 3000 5 3000 6 1500 7 1500…
Q: Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $40 per…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1 st sub 3 parts…
Q: Consider a European call and a European put with the same strike price and time to maturity. Show…
A: Explanation: Let c1= Value of the call p1= Value of the put When Volatility=σ1 Similarly Let c2=…
Q: Pinas Corporation issued 16% p.a., 10-year Debenture bond, P6,000 face value, interest due every 4…
A: Here, Face Value of Bond is P6,000 Coupon Rate of Bond is 16% Offered Price is 96-1/2 Required Rate…
Q: OptiLux is considering investing in an automated manufacturing system. The system requires an…
A: Internal Rate of Return is the rate of return where present value of cash inflows is equal to…
Q: An investor purchased a fixed-coupon bond at a time when the bond's yield to maturity was 6.9%. The…
A: whenever market interest rates increases,bond prices decreases Fixed coupon bonds will have coupon…
Q: What outcomes are possible with speculative risk?
A: Speculative risk is a form of risk in which the outcome is unknown and there is a chance of both…
Q: Bramble Corporation had net credit sales of $14100000 and cost of goods sold of $9370000 for the…
A: Here, Net Credit Sales is $14100000 Cost of Goods Sold is $9370000 Average Inventory is $1171250
Q: Suppose that every time a fund manager trades stock, transaction costs such as commissions and…
A: Rate of return is the amount expressed in terms of percentage which an investor expects from the…
Q: 16. What is the total variance of the following portfolio including 2 assets invested in the ratio…
A: Formula to be used: Portfolio variance=(WA2 x σ2A)+(WB2 x σ2B)+ (2 x WA x σA x WB x σB x r) Data…
Q: Find the selling price. Cost to store: $80 Markup: 60%
A: In the given case, we have given the cost to store and the markup. Selling price is the summation…
Q: You have been provided the following data on the securities of three firms, the market portfolio,…
A: By using the below equation we calculate the missing figures for different stocks. Correlation…
Q: Bramble Corporation had net credit sales of $14100000 and cost of goods sold of $9370000 for the…
A: Inventory turn over ratio show how much time inventory has been rolled over during the year and it…
Q: Problem 1 A retiree strongly believe that investing in a non-dividend paying growth firm will…
A: "Since there are multiple questions asked, as per the guidelines I am answering Problem 1. In case…
Q: Bramble Corporation had net credit sales of $14100000 and cost of goods sold of $9370000 for the…
A: Here, Net Credit Sales is $14100000 Cost of Goods Sold is $9370000 Average Inventory is $1171250
Q: Denali Inc. is acquiring Whitney Corp. at an exchange ratio of 2:1. After the deal is announced,…
A: Merger arbitrage refers to the opportunity of earning profits from the disparity of the stock prices…
Q: The EIC analysis means that, as a portfolio manager, you should: a. define your expectations about…
A: The correct option is c. Define your expectations about the business cycle first, choose the…
Q: An investor has $1000 initial wealth for investment and he borrows another $1000 at the risk free…
A: Beta coefficient measures the amount of systematic risk of an investment.
Q: Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the…
A: Annuity = a = $1300 Time = t = 26 years Interest rate = r = 8%
Q: You are given two options: Option 1: 2,000 dollars cash on January 1st Option 2: 150 dollars on…
A: The concept of TVM refers to the increase in the value of money received earlier because of interest…
Q: If a business unit generated $3,600,000 in BEFORE TAX PROFIT and had invested capital of $18,000,000…
A: An indicator of the financial success of ongoing initiatives, Economic Value Added (EVA), also…
Q: X Ltd. has 10 lakhs equity shares outstanding at the beginning of the accounting year 2016. The…
A: Given: Equity shares = 10,00,000 Industry P/E ratio = 8.35 Earnings per share = 20 P/E ratio of the…
Q: MAX 1934 Ans: $1296 There were 30% more cars registered in October than in September. In November,…
A: Total number is the sum of the individual line item in a given period of time.
Step by step
Solved in 3 steps
- 19. Rublin Company applies for a one-year, P1 million loan from RY Bank. The term of the loan requires 12% per annum interest, compounded semi-monthly and will be paid together with the principal at the end of the year. How much total interest will be paid at the end of the year?A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. (Assume a 365-day year.) A. The number of compounding period is ___. B. How much is the rate per period? C. How many days are there per period? D. What is the annual nominal rate of not taking this discount?7. A company borrows US dollars at 5.1% for 183 days and then at maturity refinances the principal and interest at 5.3% for a further 92 days. What is the simple cost of borrowing over the 9 months?
- A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. (Assume a 365-day year.) How much is the rate per period? The number of compounding period is ___ How many days are there per periodA firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. (Assume a 365-day year.) A. The number of compounding period is _. B. How much is the rate per period? C. What is the annual nominal rate of not taking this discount?A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. (Assume a 365-day year.) Questions: - What is the annual nominal rate of not taking this discount? - How much is the rate per period?
- 1.A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. Questions: - What is the annual nominal rate of not taking this discount? - How much is the rate per period?A firm is offered trade credit terms of 3/15, net 30 days. The firm does not take the discount, and it pays after 50 days. (Assume a 365-day year) a. What is the effective annual cost of not taking this discount? b. How many days are there per period? c. How much is the rate per period? d. The number of compounding period is_? e. What is the annual nominal rate of not taking this discount?a. If a firm buys under terms of 3/15, net 30, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? Assume a 365-day year. Do not round intermediate calculations. Round your answer to two decimal places. %
- PROBLEMS 1. What is the annual rate of interest if P265 is earned in four months on an investment of P15,000? Ans. 5.3% 2. A loan of P2,000 is made for a period of 13 months, from January 1 to January 31 the following year, at a simple interest rate of 20%. What future amount is due at the end of the loan period? Ans. P2.433.33 3. If you borrow money from your friend with simple interest of 12%, find the present worth of P20,000, which is due at the end of nine months. Ans. P18.348.6221. Using simple interest formula, determine the simple interest that will be paid on a P300,000.00 loan at an interest rate of 5% for the period March 3 to May 31. Note: The exact number of days from March 3 to May 3 is 61. This means that year will be 61/360 because there are 360 days in a year. Show computation.A firm is offered trade credit terms of 3/15, net 45 days. The firm does not take the discount, and it pays after 67 days. What is the nominal annual cost of not taking the discount? (Assume a 365-day year.) Show your completesolution.