explain each of Highest added value activity, to increase switching cost, and to increase entry barrier. (either what problems it solves or what are benefits).

Q: Wila is a risk-analyst at Deli Bank (DB), a commercial bank with operations in Zambia. DB is…

A: A portfolio is a collection of financial assets such as stocks, bonds, commodities, cash, and cash…

Q: If the asset turnover decreased by 20% and profit margin decreased also by 20%, the ROI would a.…

A: The ROI is calculated as profit margin multiplied by the asset turnover.

Q: .) Which of the following statements is most correct? a. A 5-year P100 annuity due will have a…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: A large profitable corporation is considering a capital investment of $50,000. The equipment has a…

A: After tax cash flow for Year 2 can be calculated by using this equation  After tax cash flow for…

Q: Given the following historical returns, what is the variance? Year Return 1 7 percent 3 percent 3.…

A: Return in year 1 (R1) = 7% R2 = 3% R3 = 19% R4 = -11% R5 = -1% Let R = Average return

Q: Marble Cohst uction estimates that itS WACC IS 11% if equity comes from retained earnings. However,…

A: Answer -  The Projects are independent here,given the set of projects that should be accepted should…

Q: The following table lists prices of Amazon options in January 2018 when Amazon stock was selling for…

A: Options are categorized into two major types as calls and puts where call provides a buying right to…

Q: A debt of $6434is to be settled by two equal payments due in 1 month and 7 months respectively.…

A: Let equal payments be X: X*PVF(6%/12,1) + X*PVF(6%/12,7) = Total debt Hence, the Equal payments can…

Q: Suppose you decide to take the tour now and use a 15% credit card for the purchase. Use the…

A: Given that: The formula sheet of above able is:

Q: Which of the following roles is considered a main objective of credit rating agencies? a. Granting…

A: A credit rating agency is a company that assigns credit ratings that assess a debtor's ability to…

Q: Compute the present value of the following single amount: 2. P250,000 in 8 years compounded annually…

A: The present value can be calculated with the help of time value of money function

Q: What would be r in this problem? A $100,000 loan is to be paid monthly for 2 years with an interest…

A: Here, Loan Amount is $100,000 Time Period is 2 years Payment Period (p) is Monthly i.e 12 Interest…

Q: Describe how Investment Managers measure the non-systematic risk of their portfolio

A: Non-systematic risk refers to firm specific risk factors. This type of risk is usually eliminated or…

Q: required retum for Stock X and

A: The required rate of return refers to the minimum amount of profit that an investor will receive…

Q: olly purchased a car. She paid ₱150,000 as down payment and pays ₱5,500 at  the end of each month…

A: A part of the cost of an asset paid at the time of purchase of an asset is known as a down payment.…

Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…

A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…

Q: In what circumstance would a property insurance claim be rejected?

A: An insurance claim is a written request for coverage or compensation from an insurance company for a…

Q: 10.7 Efficient Markets Hypothesis What are the implications of the efficient markets hypothesis for…

A: The Efficient Market Hypothesis (EMH) hypothesis states that stock prices are exchanged clearly at…

Q: ABC Company had sold 500 pieces of handbags at 150 pesos each in just one month period. The company…

A: Sales in the first month = no. of bags sold * price per bag = 500 bags * 150 pesos per bag = 75,000…

Q: The financial manager of a firm determines the following schedules of cost of debt and cost of…

A: Given, The determination of the financial manager of the firm . Following are the schedules of cost…

Q: You plan to retire in exactly20 years. Your goal is to create a fund that will allow you to receive…

A: Here, Amount of annuity = $200,000 Interest rate = 11% Years to death after retirement = 30 years…

Q: 4. Suppose the current zero-coupon yield curve for risk-free bonds is as follows: Maturity (years)…

A: Zero-coupon bond can be defined as the type of bond which pays lumpsum amount at the end of the…

Q: role of SEBI in safeguarding interests of retail investor in IPO's and actions taken by SEBI in this…

A: An investor is an individual or other legal entity (such as a company or investment fund) that…

Q: Huang Industries is considering a proposed project whose estimated NPV is $12 million. This es…

A: Answer -  Calculation of Expected NPV -   The expected NPV of the project is the probability…

Q: Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round…

A: Year 0 1 2 3 4 5 Cash flows -1,000 350 480 520 300 100

Q: Direction: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS…

A: There are two types of annuities one is annuity due and other is ordinary annuity that is being paid…

Q: You were offered 2 investment opportunities, Stock M and Stock D. Your decision as to which…

A: Decision would be taken based on calculating expected rate of return using CAPM formula.   Required…

Q: Market participants, including financial institutions, fund managers and corporations, must…

A: Business cycles are periods of economic expansion followed by periods of economic contraction. They…

Q: Beltway Co. is considering purchasing equipment that has an initial investment of $41,000. The…

A: The profitability index is calculated as ratio of present value of cash inflows and in initial…

Q: Complete the following table and compute the project’s conventional payback period. For full credit,…

A: Payback period is the period within which the sum invested by the company in a project will be…

Q: How much approx., would be the FW of $30,000 be worth after 50 years if a rate of 10%/yr (compounded…

A: Solved using Financial Calculator  PV = +/- 30,000 N = 50*12 = 600 I/Y = 10/12 = 0.8333 CPT FV =…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The present worth is calculated as sum of present value of the cash flows.

Q: What is the difference between yield to maturity on outstanding debt and coupon rate? Which is a…

A: Solution of Question 6: The yield to maturity (YTM) is the annual percentage rate of return on a…

Q: QUESTION 8 Consider the following Taylor rule i=0.02+0.75y+0.25(x-2% ) Notice that the central bank…

A: The production approach measures bank output by treating banks as businesses that produce various…

Q: Greg owes two debt payments – a payment of $5316 that was due in 13 months ago and a payment of…

A: The date at which values of all payments are calculated by compounding past and discounting future…

Q: From the interest statement of 18% per year, compounded monthly, determine the value for compounding…

A: Compounding period is referred as the period, which is the span of time that are between the…

Q: The next expected dividend for Stock P is 10 and the current price of the stock is P40. The risk…

A: Expected Return: The expected return is the minimum required rate of return which an investor…

Q: 1. Red Bull F1 has 1 million shares outstanding with a total market value of $20 million. The firm…

A: Here, No. of Outstanding Shares is 1,000,000 Total Market Value is $20,000,000 Price Per Share will…

Q: Cash flows estimation and capital budgeting: You are the head of finance department in XYZ Company.…

A: The present value method is a method of finding the profitability of a project by discounting its…

Q: In your own words, Explain and write the qualifications and individual characteristics of the…

A: Student Driver's Permit: 'Student Driver's Permit' allows to drive a privately owned vehicle once…

Q: What is your prospect about how the Philippine Financial system will evolve in the next 10 years?

A: The financial system is a group of institutions that enable the exchange of funds, such as banks,…

Q: A loan in the amount of $280,000, is contracted over a period of 25 years to finance the purchase of…

A: Here,

Q: 1.886 1.859 1.833 | 1.808 | 1.783 | 1.759| 1.736 1.713 1.690 1.668 | 1.647 1.626 1.6051.585 1.566 |…

A: Present Value = Annual Installment received * PVIF( r, n) = 53,000 * PVAF( 10%, 20) ( from annuity…

Q: million investment today and have expected NPVs of $600,000. Management conducted a full risk…

A: Beta and standard deviation are used to calculate the risk level of a portfolio or fund.Standard…

Q: 7. Ch.11/13 Determine the depletion charges using the percentage depletion methods for the first…

A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…

Q: Year 1 Sales (Revenues in $) Cost of Goods Sold (50% of Sales) Depreciation EBIT 100,000 50,000…

A: NPV NPV is a capital budgeting tool to decide on whether the capital project should be accepted or…

Q: Compute the present value of growth opportunities if the dividend payout ratio is 35%, the return on…

A: Here, Dividend Pay-out Ratio is 35% EPS is $5 Risk Free Rate is 4.2% Company's Risk Premium 5%…

Q: Managed funds are often categorised by the type of investments purchased by the fund. These include…

A: An investment is an asset or item purchased for the purpose of generating an increase in income or…

Q: 5. Suppose you have an opportunity to buy an annuity that pays $3,500 at the end of each year for 6…

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

Q: Find the due date of the following : Date of loan               Time July 31, 2019         118…

A: The Due Date: The due date is the date on which a debt, loan or obligation needs to be repaid/met.…