Finance Question

Q: On a Saturday morning in late September 2015, Desiree Mofakye sat over her breakfast, which was rapi...

A: Calculation of mean return, S.D, covariance and correlation Annual returns (%) Year ALUWORKS ri-r...

Q: Company XYZ expects the profit for next year to be higher than this year's profit. Assume that the s...

A: If profit is expected to be higher than this year profit and selling price per unit, variable cost p...

Q: Zachary has opened a retirement account that will pay 4% interest each year. He plans to deposit 8% ...

A: Interest Rate = 4%   Year N (Time to last deposit) Salary Sample Working Deposit Sample Working F...

Q: What is the solution for the attached quesjtom and the method? Thank you very much.

A: price of bond formula: price of bond = pv of coupon + pv of par=c×1-11+rnr+par1+rn where, c= coupon ...

Q: Give examples of stocks that would be described as cyclical. Defend answers.

A: Cyclical stocks are stocks the prices of which would be effected by economic cycles like expansion, ...

Q: Assume the interest is 8% compounded quarterly. a)Find the quarterly effective interest rate for 8% ...

A: a) Effective rate can be computed in excel as follows: Answer would be:

Q: Question 9. Part 2. Please complete the rest of this question. A similar question with answer is att...

A: Best Efforts Arrangement is an agreement that is made by a service provider in order to do whatever ...

Q: Question 4

A: The amount of loan repayment which is required to be paid on a monthly basis is known as monthly loa...

Q: You have $15,000 that you would like to invest for the next 22 years. Your other option is to invest...

A: Formula to calculate the value in the future: A = P(1+r)^n Where A is the future value P is the prin...

Q: On a Saturday morning in late September 2015, Desiree Mofakye sat over her breakfast, which was rapi...

A: Beta is a measure of volatility (systematic risk), showing how an asset moves in response to the ove...

Q: 1.What is meant by risk? Why must it be managed properly?

A: Risk can be defined as the probability of an event occurring and having consequences. Standard devia...

Q: An analyst observes a 10- year, 10% semi annual-pay bond. The face amount is £1,000. The analyst bel...

A: PRICE OF BOND CAN BE CALCULATED USING THE FOLLOWING FORMULA: Price of bond = pv of coupon +pv of mat...

Q: Explain to me more about the topic of "Introduction to Finance-What is Finance "

A: Finance is a system that involves the exchange of funds between the borrowers and the lenders and in...

Q: When he became the president of Jem Incorporated, John Smith changed the date of the weekly payday f...

A: Annual savings refers to the amount that that has been saved by the person from their income or earn...

Q: Question 2

A: The required rate of return (RRR) and the cost of capital are key fundamental metrics in finance and...

Q: Compare debt and equity financing.If you were a manager in a company, explain which funding method(s...

A: Debt financing is when the firm tries to borrow the required amount from outsiders in return for tim...

Q: The Campbell Company is considering adding a robotic paint sprayer to its production line. The spray...

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: What is the market economy?How dothe financial marketsinteractwith product and labor markets to allo...

A: The Market economy is an economy model in which all the decision regarding the demand and supply of ...

Q: 10.2 Samuel was offered two options for a car she was purchasing: Lease option: Pay lease amounts ...

A: Given:

Q: NewCo is trying to fully acquire OldCo in an all cash offer. NewCo will assume all the debt of OldCo...

A: Given, Expected Synergies from acquisition = $700 million Before acquisition no. of shares = 25 mill...

Q: Moonscape has just completed an initial public offering. The firm sold 3 million shares at an offer ...

A: Flotation cost is the cost a company incurred at the time of issue of its new shares it includes und...

Q: Fishwick Enterprises has 201,500 shares outstanding, half of which are owned by Jennifer Fishwick an...

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If y...

Q: You have set up a commodity portfolio with two holdings: a holding in gold of £120m, and a holding i...

A: The mathematical equation for computing:

Q: Help me answer this question. Please provide two examples. Give two examples of where a vertical ana...

A: Vertical analysis is an accounting technique that makes it possible for records, such as financial s...

Q: A1) see picture

A: Annual dividend next D1=3 Growth rate =8% Price of equity =37

Q: VALUES OF OBLIGATION 1. A ₱ 35 000 obligation due in 2 years bears an interest of 12% compounded mon...

A: money =35000 interest rate =8.5% compounding semiannual  semiannual interest =4.25%

Q: Which type of market efficiency is not true? Why?

A: An efficient market is one where the market price is unbiased and reflects all known information. If...

Q: 8. A bond has just been issued. The bond has an annual coupon rate of 12% and coupons are paid annua...

A: Duration: It is the time within which the bond’s price is recovered after cash inflows.

Q: Consider a stock that pays no dividends on which a futurescontract, a call option, and a put option ...

A: The question is based on the concept of call put parity theorem.  

Q: 9.    Whirlwind Inc recently borrowed $250,000 from First Bank. At that time, the prime rate was 4%....

A: Interest on a loan refers to the amount paid by the borrower of the loan to the lender in return for...

Q: What is the value of a security? What is the price of a security? How are security value and price l...

A: Value of a security : In simple words, the value or the intrinsic value of the security relates to t...

Q: You have $15,000 that you would like to invest for the next 32 years. One option is to invest the mo...

A: One way to calculate the future value of any invest is to calculate its value after specific period ...

Q: If you are looking for a 4% real return (inflation-free interest) on your investment, would you be i...

A: Real interest rate=4%Market interest rate=9%Inflation rate = 5%

Q: OLA #11.2 Due to a restricted budget, a company can only undertake one of the following projects:Pro...

A: The IRR is an annualized measure of return the investment is expected to generate every year. At thi...

Q: Ethelbert.com is a young software company owned by two entrepreneurs. It currently needs to raise $7...

A: Venture Capital may be equity or equity-related investment and is generally deployed in growth-orien...

Q: Solve this finance question early.  A loan of $A is taken out today at j4 = 6%, repaid over n-years ...

A: An amortized loan is a type of loan with scheduled, periodic payments that are applied to both the l...

Q: Rich Ltd provided the following information about its capital structure and costs of capital compone...

A: Debt components =40% After tax cost of debt =10% Equity components =60% Cost of equity =14%

Q: The winner of a $10,000,000 prize has the following payment choices. If the interest rate is 10%, wh...

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific ...

Q: On a Saturday morning in late September 2015, Desiree Mofakye sat over her breakfast, which was rapi...

A: Hai there. Thank you for the question. As per company guidelines expert can answer only first three ...

Q: Smith Investors places $50,000 in an investment fund. One year after making the investment, Smith re...

A: IRR(internal rate of return) is the rate of return an investment generates in its lifetime expressed...

Q: For a fully discrete whole life insurance of 100,000 on (45): (i) whole life annuity on 45, a45 = 14...

A: Net premium: It is an insurance term that is calculated by subtracting PV of future premium from PV ...

Q: (7) Solve the problem using present worth, annual cost and internal rate of return for the given cas...

A: Incremental IRR or Incremental internal rate of return is an analysis of the return over investment ...

Q: Payroll Accounting under FUTA, what conditions must be met for a person or business to be considere...

A: Because you have posted multiple question we will answer the first question only and for thr remaini...