At what annual interest rate must $232,000 be invested so that it will grow to be $452,000 in 14 years? 4.88% 3.90% 6.49% 5.52% 8.10%

Q: ardware Co. is estimating its optimal capital structure. Hardware Co. has a capital structure that c...

A: Equity = 80% Debt = 20% Tax rate = 40% Risk free rate = 6%  Market return = 11% Cost of equity = 12%...

Q: What is the project's IRR?

A: Internal Rate of Return (IRR): It is the rate at which a project or investment yields zero net pres...

Q: What is the future value factor for a cash flow to be received in seven years, where the interest ra...

A: Interest rate (r) = 15% Period (n) = 7 Years

Q: 3. Mr. Wales borrowed P2,000.00 from Mr. Yap on June 1, 1928 and P500.00 on June 1, 1930, agreeing t...

A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for y...

Q: For each of the following annuities, calculate the future value. (Do not round intermediate calculat...

A: Given: Annual payment(PMT) Years(NPER) Interest rate(Rate) $1,760 10 7% $8,300 32 8% $4,200...

Q: Use the future value formula to find the indicated value FV=5,000; i = 0.03; PMT = $400; n=? n= (Rou...

A: Data given: FV= $ 5000 i= 0.03 PMT = $ 400   Required:: n   Formula to be used :: FV= PMT*(1+i)n-1i ...

Q: Suppose you win a small lottery and have the choice of two ways to be paid: You can accept the money...

A: Lum-sum = $2,950 Today's payment = $1,000 Payment 1 year from today = $1,000 Payment 2 year from tod...

Q: Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded quarte...

A: Answer -  Formula for Future Value Calculation =  FV  = Principal / ( 1+i ) t Therefore,  Formula fo...

Q: ases a $1000 face value bond for $950. you held the bond for 10 years until it doubles in face value...

A: Value of money grow with time and according to interest rate and more is compounding more is the int...

Q: example of exact interest and explain in 5 sentences when and where to apply this

A: Interest is the amount of money gained by an investor or lender in addition to the principal amount ...

Q: tion of the financial system allows funds to flow from the surplus spending units to the deficit spe...

A: Step 1 One of the most significant components of contemporary civilization is the financial system.I...

Q: 4. Sovereign-Tea Company projected to make even monthly cash payments of P150,000 during the year. T...

A: Total annual payments (T) = P 150000 * 12 = P 1800000 Fixed cost (F) = P 250 r = 8%

Q: Create a data table that calculates the Future Value of a 401(k) using the following information: Fu...

A: Periodic Payment = $100 APR = 6% Future Value = $100,000

Q: The current stock price of National Co. is P89. The current dividend for National Co. is P2.50, and ...

A: Required return = [Dividend(1 + Growth rate) / Current price] + Growth rate where, Dividend = P2.50 ...

Q: 1. Þalagang Pilipina Company needs P5,000,000 short-term credit for 90 days. To produce the amount, ...

A:

Q: YIELD CURVES Plots interest rates on different securities of similar default risk for a given day Us...

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...

Q: Consider the following statement: "If you are 20 years of age and save $1.00 each day for the rest o...

A: The rate of inflation reduces the purchasing power of money due to an increase in the price of commo...

Q: What is meant by the goal of maximization of shareholder wealth?

A: Shareholders are the owners of a company and they are the people who hold shares of the business. Th...

Q: Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home i...

A: Cost of House is $110,000 Time period is 20 years or 20×12=240 months Interest rate is 3%  Monthly i...

Q: mium of $1.03. A put option with exercise price of $25 has a premium of $4.83. If David uses these t...

A: Given information : Number of shares 100 Stock market price  $   33.67 Call option exercise p...

Q: A customer deposits money into a bank which was able to create $10 000 000 in credit from it. The RR...

A:

Q: he risk-free rate is 5 percent.  The Market Portfolio’s expected return and standard deviation are 1...

A: The portfolio is a combination of multiple assets, the return and risk of a portfolio depend on thes...

Q: 6. A concrete pavement on a street would cost P 20,000 and would last for 5 years with negligible re...

A: Current cost (C) = P 20,000 Period (n) =  5 Years Removal cost (RC) = P 1500 Interest rate (r) = 5%

Q: McCue Inc.'s bonds currently sell for $1,175. They pay a $90 annual coupon, have a 25-year maturity,...

A: Current price = $1175 Face value (F) = $1000 Coupon (C) = $90 Years to maturity (n) = 25 years Calla...

Q: Please see the picture below. I need help making a retained earnings statement, a balance statement,...

A: Retained earnings statement Gross profit margin rate Net profit margin rate

Q: Claire needs to borrow $7000 to pay for NHL season tickets for her family. She borrows from a credit...

A: Savings are the resources that remain after expenditure and other obligations have been deducted fro...

Q: “Merger may be profitable but are they good for the economy?” Explain your answer towards this state...

A: Mergers:- A merger is a corporate combination that brings two or more companies together to establis...

Q: What if I created a financial instrument which offered interest once every 2 years? To explore the ...

A: Financial instrument is a financial security through which an amount is invested for the period. Som...

Q: 8. Calculate the capitalized cost of a project that has an initial cost of P 3,000,000 and an additi...

A: Initial cost = P 3,000,000 Additional cost every 10 years = P 1,000,000 Annual cost = P 100,000 for ...

Q: On January 1, 2021, Grace Corp. created a special building fund by depositing a single sum of P300,0...

A: The present and future value: The value of an amount to be received or paid at some time in the futu...

Q: If P500 is invested at the end of each year for 6 years at an effective annual interest rate of 7%. ...

A: Periodic Payment = P500 Time Period = 6 Years Interest Rate = 7%

Q: 7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P...

A:

Q: 1.) The valuation of an investment can be defined in numerous ways. Which is FALSE? A.) It is depen...

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts ...

Q: The company invested $300,000 on September 30, 20XA at 4% for 4 months. Determine interest revenue f...

A:

Q: Lux Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. Lux has th...

A: The questiom is related to Baumol Cash model. The optimum cosh conversion size is calculated with th...

Q: Solve the following problem PV= $24,376; n = 101; i= 0.026; PMT = ? PMT= $ (Round two decimal places...

A: The above problem can be solved using the Present Value of ordinary annuity formula. Ordinary annuit...

Q: Which approach would most likely be used to appraise an apartment building? O Investment Method Sale...

A: Appraisal is very important in the case of property as appraisal will lead to the approval of loans....

Q: The British government has a bond outstanding that pays £100 in interest each year for 18 years. Ass...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: Provide an explanation for excessive redemption requirements.

A: The repayment of a fixed-income product, such as a Treasury note, certificate of deposit, or bond, o...

Q: 7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P...

A: The annual cost of an asset can be calculated as an annuity of the costs associated with procuring a...

Q: Copy of Find the amount at the end of 3 years and 10 months if P3,000 is invested at 89% compounded ...

A: The worth of a present asset at some point in the future based on a projected growth rate is referre...

Q: Given the following spot rates, calculate the value of a 3-year, 6% annual-coupon bond. Spot rates:...

A: Time period is 3 years Annual Coupon rate is 6% To Find: Value of the bond

Q: You are an investment advisor. During a consultation a client says to you "I want to diversify my po...

A: The question is based on the concept of portfolio management and diversification of risk. Diversific...

Q: The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $50...

A: The present value of bond is calculated by discounting all future payments using the required rate o...

Q: An air purifier for use in manufacturing semiconductors is placed in service with a first cost of $5...

A: Given: Life = 8 Years Income less expenses = $14,000 Tax rate = 25%

Q: what is the best thing to consider in solving general ordinary annuity?

A: Annuity means a set of finite number of payments which are the same in size and made in equal interv...

Q: 2. Mala-Inse Company sells its products on account payable in 30 days from the date of sale. Custome...

A: Percentage of customers who pay in 10 days = 40% Percentage of customers who pay in 45 days = 60% Sa...

Q: Using AFN formula in financial forecasting approach, given the following accounting information assu...

A: The liabilities which are referred as the obligations of business entity when immediately changes be...

Q: the interest rate in % compounded annually if t pur answer in 3 decimal places.

A: Given information : Compound factor  1.969 Years 8 Since the question have not mentioned any...

Q: (Refer to this word problem The accumulated value of a 3-month loan of P5,000 is P5,085. What is the...

A: Principal (P) = P 5000 Accumulated value (F) = P 5085 n = 3 months = 0.25 years Let r = Simple inter...

Functions of the Federal Reserve System

The Federal Reserve System looks after the financial activities and operations of the banking system. It is the apex body that has complete control over the banking regulations. All the guidelines regarding the banking system, money supply, and formulation of the monetary policy come under the purview of the Federal Reserve System. The New York Fed also helps in drafting the monetary policy and supervising the financial system.

Elastic and Inelastic Markets

Measuring the change in percentage of an economic variable with respect to change in a different economic variable is known as elasticity. This change in percentage results in a change in price concerning changes in other factors. In simple terms, when one factor brings a change to another factor, it is called elasticity.