Letters d and e only a. If the one-year discount factor is 0.9217, what is the one-year interest rate? (Do not round intermediate calculations. Enter youranswer as a percent rounded to 2 decimal places.)b. If the two-year interest rate is 8.5%, what is the two-year discount factor? (Do not round intermediate calculations. Round youranswer to 4 decimal places.)c. Given these one- and two-year discount factors, calculate the two-year annuity factor. (Do not round intermediate calculations.Round your answer to 4 decimal places.)d. If the PV of $10 a year for three years is $25.54, what is the three-year annuity factor? (Do not round intermediate calculations.Round your answer to 4 decimal places.)e. From your answers to (c) and (d), calculate the three-year discount factor. (Do not round intermediate calculations. Round youranswer to 4 decimal places.)a. Interest rate8.50 %b. Discount factor0.8495c. Annuity factor1.7712d. Annuity factore. Discount factor

Annuity: When a series of payments are made periodically for a period of time, such payments are…

Answered: d. If the PV of $10 a year for three…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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M a k e a n R e f l e c t i v e J o u r n a l i n e a c h o f t h e f o l l o w i n g M a n a g i n g B a s i c A s s e t s : C a s h a n d S a v i n g s M a n a g i n g B a s i c A s s e t s : A u t o m o b i l e a n d H o u s i n g D e c i s i o n s M a n a g i n g C r e d i t : U s i n g C r e d i t N o t e : R e f l e c t i v e j o u r n a l s h o u l d b e q u i t e l o n g f o r m e t o u n d e r s t a n d m o r e . T h a n k y o u
B r i e f l y d e s c r i b e t h e b a s i c f o r m a t o f t h e c a s h b u d g e t . W h y d o e s t h e p r e s e n c e o f f i x e d c o s t s c a u s e t h e p e r c e n t - o f - s a l e s m e t h o d o f p r o f o r m a i n c o m e s t a t e m e n t p r e p a r a t i o n t o f a i l ? W h a t i s a b e t t e r m e t h o d ? D e s c r i b e t h e j u d g m e n t a l a p p r o a c h f o r s i m p l i f i e d p r e p a r a t i o n o f t h e p r o f o r m a b a l a n c e s h e e t .
C a s e 1 . J a n e M c D o n a l d , a f i n a n c i a l a n a l y s t f o r C a r r o l l C o m p a n y , h a s p r e p a r e d t h e f o l l o w i n g s a l e s a n d c a s h d i s b u r s e m e n t e s t i m a t e s f o r t h e p e r i o d F e b r u a r y t o J u n e o f t h e c u r r e n t y e a r . M o n t h S a l e s C a s h d i s b u r s e m e n tF e b . $ 5 0 0 $ 4 0 0M a r c h 6 0 0 3 0 0A p r i l 4 0 0 6 0 0M a y 2 0 0 5 0 0J u n e 2 0 0 2 0 0 M c D o n a l d n o t e s t h a t h i s t o r i c a l l y , 3 0 % o f s a l e s h a v e b e e n f o r c a s h . O f c r e d i t s a l e s ,…
T o p i c : F o r e c a s t i n g T e c h n i q u e s W h a t i s t h e f i n a n c i a l p l a n n i n g p r o c e s s ? C o n t r a s t l o n g - t e r m ( s t r a t e g i c ) f i n a n c i a l p l a n s a n d s h o r t - t e r m ( o p e r a t i n g ) f i n a n c i a l p l a n s. W h a t i s t h e p u r p o s e o f t h e c a s h b u d g e t ? W h a t r o l e d o e s t h e s a l e s f o r e c a s t p l a y i n i t s p r e p a r a t i o n ? B r i e f l y d e s c r i b e t h e b a s i c f o r m a t o f t h e c a s h b u d g e t . W h y d o e s t h e p r e s e n c e o f f i x e d c o s t s c a u s e t h e p e r c e n t - o f - s a l e s m e t h o d o f p r o f o r m a i n c o m e s t a t e m e n t p r e p a r a t i o n t o f a i l ? W h a t i s a b e t t e r m e t h o d ? D e s c r i b e t h e j u d g m e n t a l a p p r o a c h f o r s i m p l…
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HOW TO COPY FORMULA FROM RANGE B8:B11 TO RANGE C8:H11?
C a p i t a l S t r u c t u r e : S t o c k V a l u a t i o n D e s c r i b e t h e e v e n t s t h a t o c c u r i n a n e f f i c i e n t m a r k e t i n r e s p o n s e t o n e w i n f o r m a t i o n t h a t c a u s e s t h e e x p e c t e d r e t u r n t o e x c e e d t h e r e q u i r e d r e t u r n . W h a t h a p p e n s t o t h e m a r k e t v a l u e ? W h a t d o e s t h e e f f i c i e n t - m a r k e t h y p o t h e s i s ( E M H ) s a y a b o u t ( a ) s e c u r i t i e s p r i c e s , ( b ) t h e i r r e a c t i o n t o n e w i n f o r m a t i o n , a n d ( c ) i n v e s t o r o p p o r t u n i t i e s t o p r o f i t ? W h a t i s t h e b e h a v i o r a l f i n a n c e c h a l l e n g e t o t h i s h y p o t h es i s ? D e s c r i b e t h e f r e e c a s h f l o w v a l u a t i o n m o d e l a n d e x p l a i n h o w i t d…
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1 . A n g e l i n e M a e d e l a C r u z h a s j u s t g r a d u a t e d f r o m c o l l e g e a n d n e e d s t o b u y a c a r t o c o m m u t e t o w o r k . S h e e s t im a t e s t h a t s h e ca n a f fo r d t o p a y a b o u t P 1 4 , 5 0 0 . 0 0 p e r m o n t h f o r a l oa n o r l e a s e a n d h a s a b o u t P 2 0 0 , 0 0 0. 0 0 i n s a v i n g s t o u s e f o r a d o w n p a y m e n t . • D e v e l o p a p l a n t o g u i d e h e r t h r o u g h h e r f i r s t c a r - b u y i n g e x p e r i e n c e , i n c l u d i n g r e s e a r c h i n g c a r t y p e , d e c i d i n g w he t h e r t o b u y a n e w o r u s e d c a r , n e g o t i a t i n g t h e p r i c e a n d t e r m s , a n d f i n a n c in g t h e t r a n s a c t i o n 2 . F i n d t h e m o n t h l y m o r t g a g e p a y m e n t s o n t h e…
1 . W h a t a r e t h e r o l e s o f m a n a g e m e n t a n d t h e a u d i t o r i n t h e p r e p a r a t i o n a n d i n t e g r i t y o f t h e f i n a n c i a l s t a t e m e n t s ? 2 . W h y d o s o m e u n q u a l i f i e d o p i n i o n s h a v e e x p l a n a t o r y p a r a g r a p h s ? 3 . W i l l t h e a c c o u n t a n t e x p r e s s a n o p i n i o n o n r e v i e w e d f i n a n c i a l s t a t e m e n t s ? D e s c r i b e t h e a c c o u n t a n t ’ s r e p o r t f o r r e v i e w e d f i n a n c i a l s t a t e m e n t s . 4 . W h y a r e n o t e s t o s t a t e m e n t s n e c e s s a r y ? 5 . W h a t i s t h e r e l a t i o n s h i p b e t w e e n t h e a c c o u n t i n g e q u a t i o n a n d t h e d o u b l e - e n t r y s y s t e m o f r e c o r d i n g t r a n s a c t i o n s ?
A n s w e r t h e f o l l o w i n g , y o u m a y f i n d t h e a n s w e r s i n a n y w e b s i t e a n d a l s o p u t a r e f e r e n c e T o p i c : F r i n g e B e n e f i t s T a x C o m p o n e n t s o f N o n - T a x a b l e F r i n g e B e n e f i t s C o m p o n e n t s o f D e - m i n i m i s B e n e f i t s C o m p o n e n t s o f U n s p e c i f i e d T a x a b l e f r i n g e b e n e f i t s N o t e : A n s w e r s h o u l d b e q u i t e l o n g f o r m e t o u n d e r s t a n d m o r e
Joint processing costs up to the split-off point total $75,000 per quarter. The company allocates these costs to the joint products on the basis of their relative sales value at the split-off point. Unit selling prices and total output at the split-off point are as follows: Product Selling Price 5 per pound Quarterly Output 10,000 pounds A $ B $ 7 per pound 22,000 pounds C $ 11 per gallon 5,000 gallons Each product can be processed further after the split-off point. Additional processing requires no special facilities. The additional processing costs (per quarter) and unit selling prices after further processing are given below: Additional Product Processing Costs Selling Price A $ 53,000 $ 8 per pound B $ 38,000 $ 13 per pound с $ 18,000 $ 20 per gallon Which products should be processed further?

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