Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. The present value of the investment is Php50,010 while the future value is Php60,072.82.

Q: The nominal interest rate is adjusted based on _______ from the real interest rate.

A: Nominal interest rate is that interest rate before taking inflation into account. On the other hand ...

Q: For items 1-10, refer to the following The owner of Dawn Winery decided to lend kegs of we amounting...

A: The rate of interest is the rate at which an investment grows. In the case of compounding, the inves...

Q: Suppose Capital One is advertising a 60​-month,5.85% APR motorcycle loan. If you need to borrow $7,1...

A: Loan amount (PV) = $7100 Interest rate = 5.85% Monthly interest rate (r) = 5.85%/12 = 0.4875% Period...

Q: + Explanation of Time Needed for Payback with uneven cash flows Note: For each year in which the unr...

A: The payback period is the amount of time that is required to break even, i.e., to recover the initia...

Q: Which of the following statements is false? A) In bankruptcy, management is given the opportunity t...

A:

Q: An annuity that pays $13,000 a year at an annual interest rate of 4.42 percent costs $140,000 today....

A: Annual payment (P) = $13000 Interest rate (r) = 4.42% Present value (PV) = $140,000 Period = n

Q: Coval, Jurek, and Stafford describe a 2007 phone call in which Fitch stated that a 1-2% drop in hous...

A: Fitch is a credit rating agency and like other credit rating agencies Fitch rates different debt ins...

Q: An all equity corporation has net income of $63,313and a required rate of return of 0.14%. What woul...

A: Given: Net income = 63313 Require rate of return = 0.14%

Q: .Net Sales is equal to P200, 000 and Cost of Goods Sold totaled P65, 000. What is the Gross Profit? ...

A: Gross Profit is the sum of all salaries, wages, interests, etc. before any deductions and taxes. Ope...

Q: 15. Scarlet Knight Corporation's bonds have a face value of $1.000 anda 9% coupon paid semiannually:...

A: The current yield of the bond is the Annual return paid by the bond divided by its current market pr...

Q: why is profit maximization supposedly not the most important goal of a company

A: Profit Maximization: The process of raising the profit earning capacity of the business is known as ...

Q: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%, ...

A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month

Q: For minimum variance portfolio,the weight of Asset A1 Ltd in two asset portfolio ,having correlation...

A:

Q: The Janna Company is planning to purchase a new machine. The payback period will be six years. The c...

A: The payback period is the time taken by the investment to recover its cost. The payback does not con...

Q: Fiat money has an intrinsic value based on the full faith and trust in government institutions.   ...

A: Fiat money - This type of money is not backed by any commodity such as  gold or silver , but such mo...

Q: Consider two stocks M and N with a standard deviation of 25% and 40% respectively. The returns of th...

A: Standard Deviation of M is 25% Standard Deviation of N is 40% Corrleation Coefficient is -1 Let Weig...

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The f...

A: An annuity is a series of cash flows that involve an equivalent periodic amount over a specific time...

Q: Rank the following funds based on Sharpe Ratio, Treynor Ratio, Jensen’s Alpha, Sortino Ratio, M squa...

A:

Q: SECTION B (TRUE/FALSE) 1. Financial markets include the capital markets which mainly deal in short-t...

A: There are two types of financial markets are there: 1. Capital market 2. Money market  

Q: my house cost $249,900 my down payment is 20% my interest rate 3.65% my loan type is 30 years. what ...

A: House Cost = $249,900 Down Payment = 20% Interest Rate = 3.65% Time Period = 30 Years

Q: the rule of 72

A: Given information : Initial investment = $100 Interest rate = 7%  

Q: 3. The Kasibu Cooperative has invested a 145,000 new mechanical grading/sorter system which is proje...

A: The future worth method of project appraisal includes the calculation of the future value of all cas...

Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...

A:

Q: orksheet Net worksheet Using the information provided, complete Figure 1.1, Seller Net Worksheet. Se...

A: Seller Net Worksheet Various issues to consider.

Q: A solar lighting system is to be purchased and installed for 310,000. This system will save approxim...

A: PW is one of the methods of evaluating the profitability of the project. It considered the PV of cas...

Q: ank loaned P5,000,000 to Caticlan Company on January 1, 2021. The terms of the loan require principa...

A: Carrying amount is the present value of loan payments that are balance during the period.

Q: November 2009, Perrigo Co. (PRGO) had a share price of $39.20.  They had 91.33 million shares outsta...

A: market capitalization = Number of shares outstanding × Market price per share

Q: The investor has set aside an amount of Rs 5,00,00 to be equally divided into aggressive and defensi...

A: Trigger point is 20%  

Q: teel Series Holdings has a number of investments. Investment X offers an 8% expected return with a s...

A: In the investment we consider two things one is return and other is risk and investment is said to b...

Q: The cash price of a motorcycle is Php325,000. A fixed amount is to be paid at every end of the mont...

A: Cash price (PV) = Php 325,000 Interest rate = 9% Monthly interest rate (r) = 9%/12 = 0.75% Period = ...

Q: Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 Ibs $100 $120 $200 $240 $400...

A: Cost = Distance rate * Price per 100 Lbs

Q: 19. Rachel, the chief financial officer of Sunrise Fruit Snacks, needed to determine the company’s p...

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any sp...

Q: Which of the following is a false statement of the market price of risk found in the Capital Market ...

A: Capital Market Line represents portfolios that optimally combine risk and return.  

Q: Daryl borrowed $5,440 for 4 years. If the loan's annual simple discount rate was 4.1%, how much did ...

A: Amount borrowed (P) = $5,440 Time (T) = 4 years Rate (R) = 4.1% Total amount to be returned = Princi...

Q: Your uncle Fred just purchased a new boat. He brags to you about the low 6.9% interest rate​ (APR, m...

A:

Q: You will invest $31 per month. If the rate is 8.07%, how much will you have in 6 years?

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper...

Q: 1 ) In capital budgeting, risk can be measured from three perspectives. Explain THREE  (3)  measures...

A: Capital budgeting can be defined as the process of assessing the employment of asset or project in t...

Q: Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can...

A: maximum Southern Tours should pay today to acquire Holiday Vacations = present value of future cash ...

Q: Identify the concept of an optimal capital structure for a business firm.

A: We already know that a firm needs finances to run its business. Broadly we classify these finances i...

Q: Your best taxable investment opportunity has an EAR of 4.9%. Your best tax-free investment opportuni...

A:

Q: what are hedge funds role with direct listings?

A: A direct listing is a process by which a company can go public by selling existing shares instead of...

Q: Sungsam Electronics has to choose between two investment options Each alternative involves an initia...

A: Initial Investment = 100,000 Cash Flows: Year Cash Flow - A Cash Flow - B 0 -100,000 -100,000 ...

Q: What is this bond's annual coupon rate as of October 31, 2016?

A: Coupon Rate: It refers to the nominal yield paid by the issuer on fixed income security. It is compu...

Q: Bob has $2,500 invested in a bank that pays 1% annually. How long will it take for his funds to doub...

A: A fund is a collection of money set aside for a certain purpose. A fund can be formed for a variety ...

Q: Bob has $2,500 invested in a bank that pays 1% annually. How long will it take for his funds to doub...

A: Given, 2500 invested now Amount doubled = 2500 + 2500 = 5000 So, Maturity Value = 5000

Q: PINANIA is a famous chocolate factory in Switzerland. Each year, the company must produce as many as...

A:

Q: Presented below are financial statements (except cash flows) for two not-for-profit organizations. N...

A: Answer -    Part 1 -  Program Expenses Ratio -  = Total Program Service Expenses / Total Expenses.  ...

Q: launching new software with in 5 months  at a cost of $ 5000 can be categorized under a.   Scope ...

A:

Q: a river. The estimated cost and benefits are listed below. (i) If a 6% per year rate applies and dam...

A: Benefit/Cost Ratio: It is a profitability measure applied in cost-benefit analysis to decide the via...

Q: Perform profitability analysis for the two quotas

A: Profitability analysis is a type of analysis or a financial ratio which helps in assessing the profi...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.