Financial Management Question Question THREE a) Why is finance described as the most important activity in any organization? Use relevant examples to support your answer

Q: It is a fact that teachers receive very meager salaries. Do you think this is an injustice? Explain ...

A: Teachers are the foundation of a nation's future as they educate children and guarantee a society of...

Q: The following information relates to a proposed four-year project which is being financially evaluat...

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

Q: compute the annual equivalent repair cost over 8 years life if type writer is warranted for three ye...

A: The annual cost method is used to find the profitability of the project by allocating an equal cost ...

Q: Jones Software's stock currently sells for $22.00 a share. It just paid a dividend of $1.00 a share ...

A: Current stock price = D1/(r - g)   D1 = Current dividend x (1 + g)       = 1 x (1 + 0.07)       = 1....

Q: A futures price is currently 41 and has a volatility of 30%. The risk-free rate is 5%. The strike pr...

A: Given: Spot price = 41 Volatility = 30% Risk free rate = 5% Period = 9 months Strike price = 40

Q: An investor buys a property for $665,000 with a 25-year mortgage and monthly payments at 8.5% APR. A...

A: Given information: Interest rate: 8.5% annually  Period = 25 year  Amount of loan = $665,000 resell ...

Q: A company is considering an investment proposal to install new milling controls. The project will co...

A: Accounting rate of return(ARR) is the percentage rate of return that is expected from investment com...

Q: Jeffrey Telecom sold $300,000 worth of 120-day commercial paper for $298,000? Show Solutions and Exp...

A: Commercial Papers (CPs) are unsecured promissory notes issued by significant blue-chip firms with a ...

Q: Interest Rate Frequency of Conversion Singie Payment D83.00 due today and 144.00 due in 5 years 8% s...

A: The future value of payment includes the interest also while present value includes the payment with...

Q: A chiropractic student receives a 10-year PLUS Loan for $50,000 to complete the last 2 years of the ...

A: Loan (L) = $50000 n = 10 years = 120 months r = 5.48% per annum = 0.45667% per month Let the monthly...

Q: when you retire 40 years from now you plan to make 10 annual withdrawals from your savings accounts ...

A: The present value is calculated by multiplying all future cash flows by present value factor using d...

Q: Compare and contrast the following: A.  Dow Jones Industrial Average and S&P 500 as stock market in...

A: Dow Jones Industrial Average and S&P 500 are the stock market indices used to show the stock mov...

Q: Question 6 In terms of APR, which of the following loans would cost you the most to borrow? Principa...

A: Loan is a value which is borrowed from external sources like banks and this amount is repaid in fixe...

Q: Evaluate the purchase of existii $20000000, the building is assumed to have a 20 year functional lif...

A:

Q: 1. What is the price of a $1,000 bond with a coupon payment of $50 annually if the bond matures in 2...

A: The price of the bond is equal to the present value of all the future coupon payments from the bond ...

Q: What is the equal payment series for 8 years that is equivalent to a payment series of $15,000 at th...

A: Given information, Payment series: $15,000 Increasing amount: $1,500 Period: 10 years Interest rate:...

Q: A share of common stock just paid a dividend of $1.08. If the expected long-run growth rate for this...

A: Current dividend = $1.08 Growth rate (g) = 5.4% Next dividend (D1) = 1.08*(1+0.054) = 1.08*1.054 = $...

Q: 29. Which of the following may increase by a relatively constant amount each period. O a. First Cost...

A: First cost is the initial cost incurred in the procurement of the asset, hence the first cost is sin...

Q: Problem 2. Lexberville Company expects to make even monthly cash payments of P166,666.67 during the ...

A:

Q: The following cash flows are in actual dollars: Cash Flow (in Actual $) $25,000 4 35,000 45,000 7 55...

A: A constant dollar is the adjusted value which is used to compare the value of one period with that o...

Q: omparing Value at Risk (VAR) and Expected Shortfall (ES), which is preferred by regulators for measu...

A: VAR that is value at risk and another is ES expected shortfall these are two methods to measure the ...

Q: Suppose you run a firm and have access to an investment technology that delivers y = 1.03 · I in rea...

A: Real rate reflects true purchasing power. Nominal rate includes inflation rate. Once inflation is de...

Q: Required information As indicated, some of the cash flows are expressed in future (then-current) dol...

A: Given : Real interest rate = 10% Inflation rate = 6%   Working Note #1 Calculation of inflation adju...

Q: A Pump manufacturer expects its materials cost to be $1,000,000 this quarter and to increase by $100...

A: Present Worth(PW) is the accumulation of discounted values for all amounts in a series. It is determ...

Q: XYZ company's common shares are selling for P30.00 per share, and the company expects to set its nex...

A: Price of share (P0) = P30.00 Next dividend (D1) = P1.50 Growth rate (g) = 6% Flotation cost (F) = 20...

Q: The following sector model is given to you along with the factors Telecom sector model Factors Facto...

A: APT or Arbitrage Pricing Theory  was developed  as an alternative to  the Capital Asset Pricing Mode...

Q: Compute the following for year 2017 1. Gross Margin Ratio 2. Operating Profit Margin 3. Net Profit M...

A: The question is related to Ratio Analysis. The ratio are calculated with the help of following formu...

Q: Calculate CAPM for expected rate of return for the 3 company's in the chart Please show work   For...

A: Calculation of the expected return using CAPM method: The formula of expected return (CAPM): FM com...

Q: 3. An investor takes a long position on an FRA that is based on 90-day LIBOR and has 6 months till e...

A: A forward rate contract is a contract where the interest earned on the notional principal is exchang...

Q: Remember, an agency relationship can degenerate into an agency conflict when an agent acts in a mann...

A: The problem or conflict of the entity occurs as a result of conflict between two parties, principal ...

Q: Given data:             Sales  $2,000.000             OpCap  $1,120,000             Wacc 9%         ...

A: Here,

Q: Please define the “Interest Rate Parity Theorem” and explain the equation which describes it.

A: An interest rate parity theory is defined as an interest rate differential, which is between the two...

Q: It is a process needed in financial planning that examines the objectives using the individual's res...

A: Financial planning is very important for the personal finances and to have comfort in life.

Q: 15% of IBM's value is declared as a special dividend. How long and during what time period must a co...

A: A special Dividend can be defined as a dividend that is paid occasionally by the company to the shar...

Q: Harmeling Paint Ball (HPB) Corporation needs a new air compressor that costs $90,000. HPB will need ...

A: The lease liability is the responsibility to make rental payments based on the present value of the ...

Q: Using just a put option (which controls 100 shares) with a delta of -0.75 and a position in the unde...

A: Delta neutral is a portfolio approach in which positive and negative deltas are balanced across vari...

Q: 6.4 Differentiate between Different Types of Consumer Lender Loan products Significant features They...

A: A commercial bank is a type of financial institution that conducts all public deposit and withdrawal...

Q: Using a debit card will take money directly out of this Checking Savings Both account Best for money...

A: Checking account - It is a type of bank deposit account that is meant for daily money transactions. ...

Q: Question #9: Option Strategies Max has decided to purchase 4 Alaska Air Group (ALK) call options wit...

A: Option Strategies: Traders have developed several strategies using options to achieve certain specif...

Q: An investor has the opportunity to invest in four new retail stores. The amount that can be invested...

A: Net Present Value or NPV can be defined as the value determined by deducting the present value of ca...

Q: How long will it take to quadruple your savings if you earn 4.5 percent interest, compounded annuall...

A: Interest Rate = 4.5% per annum To Find:- Number of years to quadruple your savings

Q: nt I: Systematic risk is the inherent certainty in the market which cannot be diversified. Statem...

A: Step 1   The chance of loss connected with the entire market or market sector is referred to as syst...

Q: Assume that the following asset values (in millions of dollars) exist in Iror Category Value (Millio...

A: Given information,  Category  Value (Million) Federal Reserve Notes in circulation  $750.00 M...

Q: Select the correct sentence describing life cycle costing (LCC)     Life cycle costing tracks and a...

A: Life cycle costing is a system that tracks and accumulates the actual costs and revenues attributabl...

Q: Applications to acquire informal debt financing usually have lower standards or criteria but will re...

A: Informal debt financing usually is small in nature besides being unsecured and having short term mat...

Q: The analysis of the effect that a single variable has on the net present value of a project is calle...

A: Sensitivity analysis is also known as what if analysis. It is a tool used to analyze how different v...

Q: Caroline plc is evaluating a potential new product, the grinder, with which the following costs are ...

A:

Q: Question 15, 8.2.5 = Homework: Homework 3 Part 2 of 3 An investor purchased a 182-day, $10,000.00 T-...

A: Original Yield on the T-Bill is the annualized return earned by an Investor if the bill is hold till...

Q: Choose the letter/s of the correct answer/s. In Plant Design, one is required to compute for one ti...

A: With reference to capital budgeting, one time- independent market indicator can be defined as the th...

Q: 7. If an individual prefers $100 today to $200 a year from now but prefers $200 in two years to $100...

A: Individuals make investment in order earn some return. In this process individuals show different be...