What amount will be paid at the beginning of every month for 10 years if the present value is 20O, 000 and the interest is paid at 6% monthly? Question: What type of Annuity is indicated in the problem above?

Q: 14 Zoom has inventory turnover of 4x, it has sales of $300,000, in addition it has current assets of...

A: Current assets = $270,000 Current liabilities = $80,000 Inventory turnover ratio = 4x Sales = $300,0...

Q: You got asked to analyze a 5-year project for your firm. The project produces an annual revenue of $...

A: Initial Investment  $  20,000.00 Annual revenue  $  28,500.00 Labor and materials cost  $    5,0...

Q: How much would you be willing to pay for this investment if you required a 12 percent rate of return...

A: Present Value of Annuity: It represents the present worth of the future annuity stream of cash flow...

Q: An engineer wishes to set up a special fund by making uniform semiannual end-of-period deposits for ...

A: The net amount of cash and cash equivalents being transferred in and out of a company is referred to...

Q: The interest rate in Japan is 1%. The yen to dollar spot exchange rate is ¥100 per dollar and the f...

A: Covered Interest rate parity It provides relationships among  interest rates and exchange rates (spo...

Q: Galvanized Products is considering purchasing a new computer system for their enterprise data manage...

A: 1. Computation of loan amount. Amount of loan = 100000 × 25% = 25000 Loan including interest = 25000...

Q: Pls Briefly explain these four.  1. The process of assessing overall risks can be difficult and bal...

A: The process of identifying, analyzing, and accepting or mitigating uncertainty in investment decisio...

Q: Comparisons of income can be very difficult for two companies, even though they sell the same produc...

A: The amount of income reported by a company depends on two main things. First is its revenues. Second...

Q: Kolby's Korndogs is looking at a new sausage system with an installed cost of $695,000. This cost wi...

A: Installed Cost is $695,000 Life of project is 5 years Initial Investment in net working capital is $...

Q: If money is worth 5% compounded semi-annually, find the present value of a sequence of 12 semi-annua...

A: Present value of sequence is value today considering the interest rate and the period of annuity and...

Q: A $14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was pur...

A: Face value (F) = $14500 Coupon (C) = (5.80% * 14500) / 2 = $420.50 n = 5 years = 10 periods t = 6 pe...

Q: 4. Capital Markets are the financial markets for stocks and for intermediate or long-term debt (one ...

A: Solution:- There are two types of financial markets:- 1. Money Market 2. Capital Market

Q: PROBLEM 3: A P2 000 loan was originally made at 8% simple interest for 4 years . At the end of this ...

A: Loan (L) = P 2000 Simple interest rate for 4 years (r) = 8% Interest rate for 3 more years (6 semian...

Q: You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise pri...

A: Time period is 1 year Exercise price is $2.02million Market Value is $1.72million Interest rate is 1...

Q: Contributions of $146.30 are made at the beginning of every three months into an RRSP for 17 years. ...

A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth...

Q: The effective cost of the preference share is closest to * a. 8.40% b. 7.50% c. 9.40% d. 5.88%

A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in...

Q: With a 50% debt ratio and 2,000,000 worth of capital, the company posted dividends amounting to one ...

A: Here, Debt ratio = 50% Capital = 2,000,000 Dividend = 1/5th of retained earnings  Retained earnings ...

Q: You invest $900 in stock A and $900 in stock B. If you earn 10 percent on stock A and 5 percent on s...

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

Q: In order to pay a baseball uniforms , a school takes out a simple interest loan forPhp20,000 for 7 m...

A: Simple Interest: It is the easiest and simplest way to compute the interest charge on a loan. It is...

Q: What advantage does the fixed charge coverage ratio offer over simply using times interest earned?

A: The fixed-charge coverage ratio (FCCR) assesses a company's ability to cover fixed costs such as deb...

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into...

A: Future value is the amount accumulated on the deposit made along with interest earned on the deposit...

Q: Simtek currently pays a $3.5 dividend (D0) per share. Next year’s dividend is expected to be $4 per ...

A: Stock price is defined as the maximum price that an investor is ready to pay for a stock. It is calc...

Q: You recently went to work for Allied Components Company, a supplier of auto repair parts used in the...

A: Here, Discount rate = 10% To Find: IRR of each project =? Payback Period =?

Q: has made the decision to finance next year’s capital projects through debt rather than additional eq...

A: Step 1 Taking out debt is nearly always a better alternative than putting your firm up for sale. By ...

Q: Rolling Company bonds have a coupon rate of 6.00 percent, 24 years to maturity, and a current price ...

A: Solution:- Yield to maturity (YTM) of a bond means the rate of return the bond is yielding. We know,...

Q: Which arrangement of the different modes of financing appropriately reflects the related cost of cap...

A: Highest cost capital modes of fiannacing is cost of equity.  

Q: Bond P is a premium bond with a coupon of 7.8 percent, a YTM of 6.55 percent, and 15 years to maturi...

A: Bonds are the highly secured debt securities for which the company pays interest to the bondholder. ...

Q: Determine the following: 1. Total present amount of the obligations. 2. Total future amount of the o...

A: Present value can be defined as the amount of money that have to be invested today to earn a require...

Q: Proposal 1 requires dredging the canal. The state is planning to purchase the dredging equipment and...

A: Annual Worth (AW) is easy to understand by anyone familiar with annual amounts because for example, ...

Q: 5. Assuming making four annual deposits of ($ 1000), and the first payment occurs at the end of the ...

A: Annuity can be defined as a series of payments or receipts of equal amounts of money at equal interv...

Q: Assume Highline Company has just paid an annual dividend of $0.98. Analysts are predicting an 11.2% ...

A: Answer -    Computation of Value of​ Highline's stock -   Year Dividend PV @ 9.2% Present Value ...

Q: Zebra Corporation currently has 2,500,000 shares of stock outstanding that sell for RM45 per share. ...

A: Shares Outstanding = 2,500,000 Share Price = RM45 per share

Q: If an individual stock's beta is higher than 1, that stock is riskier than the market

A: If individual stocks beta greater than 1 has risker than market and more volatile.  CAPM cost of equ...

Q: ook Problem 17-03 An investor buys shares in a mutual fund for $22. At the end of the year the fund...

A: Annual rate of return the dividend received and also capital gain achieved on the initial purchase p...

Q: A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the ...

A: Equivalent monthly cost is total cost of machine and monthly operating cost that is required for kee...

Q: money right now. Find FV Annuity: If you deposit your annual payments into an account earning 2% per...

A: Payments = $10,000 Interest rate = 2% Time period = 10 years

Q: The sale of a company rose from $ 60,000 in the month of August to $ 69,000 in the month of Septembe...

A: Concept Seasonal index is a measure of how a particular season through some cycle compares with aver...

Q: Achi Corp. has preferred stock with an annual dividend of $2.83. If the required return on​ Achi's p...

A: Annual dividend = $2.83 Required return = 7.5%

Q: 19. Firm X has a Return on Equity (ROE) equal to 10%, a total debt ratio equal to 0.6. If the firm h...

A: Note: Hi! Thank you for the question, as per the honour code, we are allowed to answer one question ...

Q: Which of the following is part of the journal entry to backflushes costs to inventory accounts?

A: RIP= units * cost per unit + RM

Q: Suppose a recent college graduate's first job alows her to deposit S100 at the end of each month ina...

A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth...

Q: which of the following entities would relative valuation be appropriate? a.) a cooperative b.) a p...

A: To assess a firm's financial worth, a relative valuation model compares its value to that of its riv...

Q: The present worth of package K is $ and that of package Lis $ (Click to select) offers the lower pre...

A: Net present value (NPV) of an alternative refers to the variance between the initial investment or p...

Q: Motorhed Inc is currently trading at $8 per share with 2.5 billion shares on issue. It announces a 2...

A: Current price -$8 No of shares – 2.5 billion Total value of shares = 2.5*8 = $20 billion   Right iss...

Q: 6. I plan to borrow $350,000 from a bank to buy an apartment. The interest rate is a nominal 4% comp...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: a. Discuss two technical points that can affect short selling. b. Do your own research on ASX. What ...

A: a) Short selling occurs when an investor borrows a security and sells it on the open market with the...

Q: LLL Company is listed on its country’s stock exchange. The following individuals serve on the board ...

A: The board of directors of a company constitute sub committees which play an important role in corpor...

Q: What is the difference between a budget deficit and a budget surplus?

A: A budget deficit is when the expenses outweigh the revenue brought in by a project. Conversely, a bu...

Q: Jana, now 23 years old, is a grade school teacher in Batangas City. She has been invited by her high...

A: A deposit or payment of equal amount of money at equal intervals of time is called annuity. Insuranc...

Q: A loan should be fully repaid in 30 monthly installments of Rp3.750.000. If the loan is Rp100.000.00...

A: Flat interest rate is simple interest rate without considering the impact of the compounding and add...

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.