Financial markets promote economic efficiency by * A.channeling funds from investors to savers. B. creating inflation. C.causing recessions. D. channeling funds from savers to investors.

Q: If money is worth 12% compounded monthly, determine the present value of the following: a. An ann...

A: Annual payment (P) = 10000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1%

Q: EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income? O $7...

A: EBIT = $12000 Interest expenses = $3000 Tax rate = 20%

Q: The furniture store offers you no-money-down on a new set of living room furniture. Further, you may...

A: To find: Present value of furniture payments

Q: Find the compound interest if $2000 is invested for 12 years at 8% compounded quarterly. $3036 $1920...

A: Compound interest is the amount of interest which is charged or received on the principal or interes...

Q: An Active manager of AMF Fund has delivered the following six -monthly returns in the last 5 Years v...

A: The information ratio is widely used by fund managers, as it only sees retun and volatility. It is a...

Q: 5. David was having a heated argument with Sue that the business should consider more than sharehold...

A: The question is based on the concept of different approaches used in corporate finance for the finan...

Q: Assume the ASX 200 forward earnings yield is 6 percent and the 10-year T-note yield is 5.6 percent. ...

A: Forward earnings yield = 6% 10 year Treasury note yield = 5.6%    

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: account A pays a 4.98 percent annual percentage rate, compounded quarterly. Account B pays a 4.80 pe...

A: Interest rate Number of compounding 4.98% 4 4.80% 12

Q: ABC Corporation will be issuing serial preference share. A piece has a par value of 6000, coupon rat...

A: Par value = 6000 Coupon = 14% of 6000 = 840 n = 3 years r = 15%

Q: Which of the following statements is most likely FALSE? A. We should use the general dividend discou...

A: The dividend discount model values a company by discounting the future dividends. The present value ...

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

A: Here, Cash Price of Motorcycle is Php325,000 Time Period (n) is 1.5 years Interest Rate (r) is 9% Co...

Q: What is the difference between a fixed rate and an adjustable rate money market instrument?

A: Money Market instruments are the financial instruments available to the investor for the short term ...

Q: If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving     ...

A: The present value is the value of the sum received at time 0. It is the current value of the sum tha...

Q: Suppose the interest rate on a 3-year Treasury Note is 2.25%, and 5-year Notes are yielding 4.00%. B...

A: To calculate the 2-year treasury note market rate, it is required to use the following formula: PVF ...

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: feCem Deumen 20bud Risk P (Risk Probability) I (Cost Impact) Risk Contingency P*lc A .7 £20,000 .4 £...

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

Q: Albert Ang invested ₱88,000 at ABC Credit Union at 12% interest compounded quarterly.  What is the e...

A: The effective rate of investment is calculated as the Effective Annual Rate(EAR).

Q: EBIT is $12,000 and interest expense is $3,000. If the tax rate is 20%, what is the net income? O $4...

A: Income taxes is the amount of taxes which needs to be paid by the individual or business to the gove...

Q: Condensed financial data are presented below for the Phoenix Corporation:     20X2   20X1 Accounts ...

A:

Q: You own 100 shares of a "C" Corporation.  The corporation earns $5.00 per share before taxes.  Once ...

A: Number of shares owned = 100 Earning per share before tax = 5 Corporate tax rate = 40% Personal tax ...

Q: An Active manager of AMF Fund has delivered the following six -monthly returns in the last 5 Years v...

A: The information ratio is widely used by fund managers, as it only sees retun and volatility. It is a...

Q: ecovered investment is greater than the annual cash flow, the payback period is "1". If the unrecove...

A: Pay back period is the period required to recover the initial investment of the project.

Q: What would be the most likely reason for an equal-weighted index out performing a market-capitalisat...

A: Equal weighted index is the index in which investment is made into small cap securities, where as in...

Q: The most likely outcomes for a particular project are estimated as follows: Unit price Variable cost...

A: With reference to variable cost, the decrease in variable cost would be categorized as best case sce...

Q: You submitted an lOC (immediate-or-cancel), buy order for 200 shares at a limit price of $30 per sha...

A: The immediate or cancel order will match the bid with the best available ask at the limit price. If ...

Q: Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit mar...

A: Gross Profit ratio = [(Sales - Cost of goods sold)/Sales]

Q: Assume the real risk-free rate of interest is 2%, inflation will be 3% for the next 2 years then inf...

A: Real risk free rate = 2% Inflation for next 2 years = 3% Inflation thereafter = 4% Maturity risk pre...

Q: You are offered an investment opportunity in which you will receive $25,000 in one year in exchange ...

A: Given Information :  Amount to be paid today = $23,750 Cash flow received in 1 year = $25,000 Annual...

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: The invoice date for a bill is September 15 with the terms 2/15, n/40. The discount date and due dat...

A:

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...

A: Given: Future Value “FV” = Php5,500,000 Present Value “PV” = Php3,500,000 Number of years = 13 Numbe...

Q: Troy Long wishes to deposit a single sum of money into a savings account so that five equal annual. ...

A: Total number of periods or years is 5 years Interest rate is 5% Annual withdrawal is $2000 To Find: ...

Q: Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The effecti...

A: Interest rate (r) = 12% Number of compounding per year (m) = 4

Q: Negative net working capital, is when current assets exceed current liabilities     True False   Mar...

A: The net working capital refers to the difference between the current assets and current liabilities....

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: ABC has a major supplier that offers a credit term of 2/15, n/45. Cash not yet used for payments are...

A: To calculate simple effective cost and compounded annual effective cost , it is required to calculat...

Q: A margin account requires an initial margin of 50% and a margin call will occur if the stock price d...

A: Initial price = $20 Margin call price = $13.33 Initial margin = 50% Let the maintenance margin = x

Q: Which option gives the right to buy an asset any time prior or to maturity? * A. European Call B. Am...

A: An option is a financial derivative instrument that derives its value from an underlying. The option...

Q: 4. At i= 4% per year, A for years 1 through 6 of the cash flows shown below is closest to: 1 2 3 5 6...

A: A = Annual cashflow i = 4% n = 6 years We need to find the present value of the given cashflows firs...

Q: Juancho is required to pay P1,800 at the beginning of each quarter for the next 3 years for his loan...

A: Due to compounding the interest on the increase with increase in compounding. So effective rate is m...

Q: discuss in detail the adminstration of financial management within the public sector

A: Financial management include applying general management concepts to the enterprise's financial reso...

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: # 7 A debt of P10,000 with interest at 6 % payable quarterly will be discharged, interest included, ...

A: A loan refers to the amount of money which is being borrowed by one party say borrower  from another...

Q: If Expected return of stock A is 12%, Expected return of stock B is 15% and Expected return of stock...

A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated...

Q: Mr. JC Santaren promised to pay P 40,000 at the end of 60 days. He was offered a 10% discount if he ...

A: Given: Discount = 10% Discount value = 10%*40000 = P 4000 Amount required to be paid in 30 days (60 ...

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is:

A: Future value = Present value(1 + Rate)^Time  

Q: Please answer this question correctly ASAP. Thank you

A: Annual return = (Current value / Past value)^(1/Time) - 1  

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.