A businessman invested P50,000 in a company that engages in the manufacture of hollow blocks. In return, he receives 3,000 per year for 5 years. Compute the rate of return on investment.
Q: A 6 month Treasury bill is currently yielding 0.15 percent.A BBB-rated bond with similar term is…
A: 6 month treasury bill Current yield – 0.15% Similar bond yield – 18.24% Expected loss in case of…
Q: Recall that on a one-year Treasury security the yield is 4.4600% and 6.0210% on a two-year Treasury…
A: One year and two year rates are available. Maturity risk premium on 2 year security is also known.…
Q: You have just taken out a $22,000 car loan with a 6% APR, compounded monthly. The loan is for five…
A: Loans are paid by the equal monthly installments these monthly payments carry the payment for…
Q: A company in a line of business similar to ABSA recently issued at par noncallable bonds with a…
A: Current value of the bond refers to the sum of interest payments and maturity value discounted at…
Q: Khiel wants to buy a car that costs $10,000, plus an extra 13% HST for a total price of $11,300. The…
A: Solved using Financial Calculator 1) Monthly payment to be made Pv = 11,300 N = 8 Years * 52 weeks…
Q: On September 1, 20x2, Jackson Company entered into a 60-day forward contract denominated in euros.…
A: Given: 1st September 20X2 spot rate = $0.75 Forward contract was entered on 1st September 20X2…
Q: 4. Present value Finding a present value is the reverse of finding a future value. is the process of…
A: Given, The amount paid $10500 Term is 13 years
Q: Investments and loans base their interest calculations on one of two possible methods: the interest…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Peter Company acquired 80 percent of the common stock of Paul Company on January 1, 2022, when Paul…
A: An investment account refers to an account that is current in nature that is linked with the…
Q: ▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond…
A: Future of the annuity is required to calculate the sinking fund amount and sinking fund is the…
Q: How would you compare Nike with Sketchers and consider which is best for investing?
A: When you select to invest than it is quite necessary to invest properly so that you achieve good…
Q: For services rendered, an attorney accepts a 120-day note for $4,300 at 7% simple interest from a…
A: Note value- $ 4300 Time – 120 days Interest rate – 7% Repaid: Amount - $4350 Time – 30 days
Q: Which is a better offer? Provide your computation to prove your answer. Angelo wants to have an…
A:
Q: Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are…
A: House Cost = $1 Million Down Payment = $300,000 Mortgage = $700,000 Time Period = 30 Years Interest…
Q: Sara sells Popsi, a new illegal drug (?), for 4.75 dollars per bottle. Its variable cost per bottle…
A: Break even no of units are the number of units which are required to be sold to earn no profit/no…
Q: The equation for the present value of Bond OPE on 24/6/2022 is given t 0, 135. -29 2 14,7…
A: We have the equation governing the price of the bond. We know how many days it has to be discounted…
Q: The Gilbert Instrument Corporation is considering replacing the wood steamer it currently uses to…
A: Net present value is helpful in determining whether the project is to be acceptable or not. It is…
Q: Currently, the balance of your savings account is $2,200. You have always earned an annual interest…
A: Here, To Find: Number of years =?
Q: The Bird Co. is considering a 7-year project that would require a cash outlay of $160,000 for…
A: Project Life is 7 years Initial cash outlay for Machinery is $160,000 Working Capital requirement is…
Q: Chandrika deposits $500 in an account paying an effective quarterly interest rate 2.01875%. Muhammad…
A: Present Value: The present value (PV) is the present sum of the future payments. The future…
Q: Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 110…
A: A) Debt-Equity Ratio=Total debt/Total shareholders' equity Total debt=Long term debt+ current…
Q: Required information You need $6,000 on 4/1/2016 and you have two options. Option A: Borrow money…
A: A loan refers to the amount that is being given to the borrower by the lender in exchange if the…
Q: The Dawson Corporation projects the following for the year 2012: Earnings before interest and taxes…
A: Given, Earnings Before Interest and Taxes (EBIT) - P35,000,000 Interest Expense = P5,000,000 Tax…
Q: You buy a share of The Ludwig Corporation stock for $22.90. You expect it to pay dividends of $1.05,…
A: 1). The growth rate in dividend is calculated using following compounded average growth rate…
Q: David sold mutual fund shares he had owned 2 years so that he could use the proceeds to return to…
A: The short-term capital gain arises when the assets sold are held for less than a year, however, the…
Q: Maple Aircraft has issued a 4¾% convertible subordinated debenture due 3 years from now. The…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: 1. Basic concepts Finance, or financial management, requires the knowledge and precise use of the…
A: The core principle of finance is the time value of money. Time value of money means sum of money in…
Q: On January 1st, 2019 you put $1000 into an account growing at 2% APR compounded daily. Starting that…
A: 1) Future value = Present value * (1 + Interest rate)n where Interest rate = 2%/365 = 0.0000547945…
Q: A 10-year bond carries a 8% coupon rate and pays interest semiannually. The market price of the bond…
A: The bonds are the securities issued by the companies to raise funds. The issuer may be a…
Q: The current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years) 1 2 3…
A: YTM means total rate of return that have been earned by the bond when all interest payments has been…
Q: Nico bought 100 shares of Cisco Systems stock for R24.00 per share on January 1, 20019. He received…
A: Option b is the correct answer. Below you will find the explanation for the same.
Q: d the present value of a 4-year $60 annuity when the stated rate is 6%, compounded monthly. Make…
A: Present value of annuity is equivalent value of today considering the the time and interest of the…
Q: ending at t Consider a deferred annuity with 15 annual payments of $100 starting at time t = 6 and…
A: We have to necessarily find the PV of a deferred annuity. We will use the PV of an annuity formula…
Q: A stock is expected to pay a dividend of $2.75 at the end of the year (i.e., D1 = $2.75), and it…
A: Quantum and timing of dividends from a stock are known to us. We have to find the stock's expected…
Q: Company A B C D PE Ratio 22.50 24.20 20.00 60.00
A: The right statical tool to determine an aggregate is mean. Mean is calculated by taking the sum of…
Q: 4. (a) Suppose you decide to short sell some GameStop shares. Their cur- rent price is $5, and you…
A: Buying on margin When some amount can be borrowed for trading securities, it is said trading on…
Q: Calculate the finance charge (in $) and the annual percentage rate for the installment loan by using…
A: Data given: Amount Financed = $100,000 nper=72 pmt=$2025.50 fv=0
Q: Which asset below is generally the most suitable benchmark measure of the risk-free return?…
A: Risk free rate is rate of return which is quite certain an can be attained without any problem and…
Q: Jane Austen purchased shares with a market price of $50 when the initial margin requirement was 70%.…
A: The initial margin requirement is the minimum amount of the shares that need to be paid to buy a…
Q: Assume that your parents wanted to have $130,000 saved for college by your 18th birthday and they…
A: Given, The amount required is $130,000 Rate is 7.5%
Q: 12-12. Using the following information for Handy Hardware, determine the capital structure that…
A:
Q: Bond X has 20 years to maturity, a 8% annual coupon, and a R 1,000 face value. The required rate of…
A: We have to find the price of the bond to be paid now, so as to get a target return on it, by holding…
Q: Jamie has taxable income of $107,812. She is single and her tax rates are 10% on the first $7,000 of…
A: Taxes are the dues and obligations which needs to be settled or paid by the individual to the…
Q: Differentiate between control risk and inherent risk.
A: What is an audit risk? The term "audit risk" refers to the risk that the material financial…
Q: During World War II, Coca-Cola Co. cut off all syrup sales to Germany in 1940, resulting in no sales…
A: Sales in Germany 1934 = 243,000 Sales in Germany 1936 = 1,000,000 Sales in Germany 1939 = 4,500,000…
Q: 4.32 Investment risk analysis. The risk of a portfolio of financial assets is sometimes called…
A: Expected loss with a probability distributon is calculated using the below formula: Expected…
Q: Toyota just issued ten-year bonds that make annual coupon payments of R50. Suppose you purchased one…
A: Here, To Find: New price of the bond =?
Q: 1. The area of finance address the issue of the efficiency of financial market in the allocation of…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: You can determine a company's cash situation by analyzing the cash flow statement. The cash flow…
A: Given, Opening balance of cash is $200 million Closing balance is $330 million
Q: What are the two types of Financial Risk? What is the risk-return tradeoff?
A: Risk The instabilities in portfolio values are known as investment risk. The level of risk depends…
PLEASE ANSWER IT IMMEDIATELY. I NEED THE ANSWER NOW
A businessman invested P50,000 in a company that engages in the manufacture of hollow blocks. In return, he receives 3,000 per year for 5 years. Compute the rate of
Step by step
Solved in 2 steps with 2 images
- I need help solving this problem below on excel. Suppose you purchased equipment and agreed to pay the manufacturer $100,000 in 4 years for the equipment. What should you record the cost of the equipment today if your cost of capital is 5%?Your cousin Vance tells you that you can invest $15,000 in his business, and he will pay you back $25,000 in 2 years' time. What is the return on this investment?An investor who recently returned from overseas decided to invest in a venture proposed by leading investment company.The investor is expected to receive ten(10) sum payment of $5000 at the end of each year for ten(10)years.However payments increased by 5% on the second(2nd),10% on the fourth (4th),15% on the sixth(6th),20% on the eighth(8th) and 25% on the tenth(10th) payment. Calculate the sum that should be payed to him at an interest of 5%
- Melannie Bayless has purchased a business building for $331,000. She expects to receive the following cash flows over a 10-year period: Year 1: $43,000 Year 2: $58,500 Year 3-10: $89,000 What is the payback period for Melannie? Round your answer to one decimal place.fill in the blank What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box).fill in the blankAn engineer invest 3m in concrete making. In return, he receives 235,000 per year for 5 years. Compute for the rate return on investment and the return on investment1. An investor who recently returned from overseas has decided to invest in a venture which has been proposed by a leading investment company.The investor is expected to receive ten (10) sum payments of $5000 at the end of each year for ten times (10) years. However payment increased on by 5% on the second , 10% on the fourth , 15% on the sixth , 20% on the eighth and 25% on the tenth payment . Calculate the sum that should be paid to him now at an interest of 5 % . 2. An office complex measuring 203m^3 has been offered for sale. The cost of replacing the assets and depreciation is estimated $1200m^2 and 10% respectively. I. Calculate the market value price. II. If an extension of 52m^2 has been made to the office complex to be used as residential facility , calculate the capital value of the residential facility at a rate of 900m^2 depression of 4% III.if land comparable land value is assessed at $30000,calculate the value of the subject property.
- You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $220,000 in three months. The payments will increase at 1.9 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer two decimal places.You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $220,000 in three months. The payments will increase at 1.9 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer two decimal places. Only type answer and give answer fast1) An engineer is establishing his own small company. He investment of P500,000 which he will recover in 15 years. It is estimated that his annual revenue will be P900,000 per year and his annual cost is P750 000. If the he expects to earn at least 20% of his capital, should he invest? Note: Use Rate of Return Method and Annual Worth Method.
- You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $600,000 today and annuity payments for the balance. The first payment will be for $280,000 in three months. The payments will increase at 1.3 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of offerAn entrepreneur would like to buy a piece of equipment for his business. The equipment cost $50,000 and will increase cash flow by $20,000 each year for 5 years. What is his IRR?a) As an investment advisor, you have been approached by a client called Mr. Sobolo, who wants some help in investment-related matters.Mr. Sobolo is currently 45 years old and has Gh₵600,000 in the bank. He plans to work for 15 more years and retire at the age of 60. Mr. Sobolo's present salary is Gh₵ 400,000 per year. He expects his salary to increase at the rate of 12 per cent per year until his retirement.Mr. Sobolo has decided to invest his bank balance and future savings in a portfolio in which stocks and bonds would be equally weighted. For the sake of simplicity, assume that these proportions will be maintained by him throughout. He also believes that bonds would provide a return of 7 per cent and stocks a return of 13 per cent. You concur with his assessment.Once Mr. Sobolo retires at the age of 60 he would like to withdraw Gh₵500,000 per year from his investments for the following 15 years as he expects to live up to the age of 75 years. He also wants to bequeath Gh₵ 1,000,000…