For the following questions, let supply and demand be given by: QD = 40- 23 P Qs = P-20

Q: Please calculate the NOWC.

A: Information Provided: Cash Balance = $200,000 Accounts Balance = $500,000 Inventory Balance =…

Q: A benchmark index has three stocks priced at $50, $26, and $30. The number of outstanding shares for…

A: Index value today= (Market capitalization today/Market capitalization on previous day)*Index value…

Q: A hardware store purchased a tool at P20,000 per unit. At what price should the tool be sold so that…

A: Profit is made when a business entity sells an item to any other party. Profit amount is the selling…

Q: If you were Jad, which bank will offer you the best plan? A) Bank (3) B) Bank (4) C) Bank (2) D)…

A: answer 5= bank a)

Q: BookFinders Inc. is making a decision about investing in new technology. It currently expects to…

A: The firm is making a decision about investing in new technology. This will lead to a permanent…

Q: A) Can the government tax its own agencies or instrumentalities? Explain.

A: Agencies- A body providing specific  service for a government i.e., such bodies are formed to…

Q: The four stages of an economic cycle would not include Group of answer choices stagnation. peak…

A: Economic cycle is nothing but a changing phases of an economy from the the phases of economic growth…

Q: Deep Excavating Inc. is purchasing a bulldozer. The equipment has a price of $106,000.…

A: The concept of TVM states that money has an interest-earning capacity which makes the money earned…

Q: Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be…

A: Material cost = $11  Labor cost = $4 Overhead cost = $7,000 Interest in March = $8,200 Employee…

Q: Dawnguard Hotel Group       Current Stock Price $75.00                  Required:         Using the…

A: Solution:- Intrinsic value of an option means the value upto which it is in the money. Intrinsic…

Q: Andrew purchased a stock for $250 and sold it for $175 one year later. If he earned a dividend…

A: Solution:- Stock yield means that how much the investor earns by investing in the stock. Stock yield…

Q: A construction company in Manila will bid on the digging of an irrigation canal in a nearby province…

A: Solution:

Q: if the cash flow is grow for indefinite period then isn't the present value calculated as  = Cash…

A: A cash flow that grows for an indefinite period is called a perpetuity. A perpetuity, essentially,…

Q: Storico Co. just paid a dividend of $2.00 per share. The company will increase its dividend by 20…

A: In the dividend discount model, the present value of all future cashflows total will be the share…

Q: On Sunday, February 19, 2012 The Boston Globe reported that: " ... [The MBTA] provides 1.3 million…

A: We have the tariff earlier and proposed now. We have to find the absolute and relative increase.…

Q: The common shares of Twitter, Incorporated (TWTR) recently traded on the NYSE for $73 per share You…

A: Black Scholes-Merton model It is an option pricing model. It uses six variables to price an option.…

Q: Mr. Smith takes out a $100,000.00 loan with an effective yearly interest rate of 10%. He must repay…

A: Given: Particulars Amount Loan (PV) $100,000 Interest rate 10% Years 30

Q: Subject: Logistic management calculate EVA and suggest favorable or not ? Investment 1 mio…

A: EVA is economic value added by the business or investment. This is one of the performance…

Q: CASE: Merritt Enterprises needs P500,000.00 for its November expenses. Given the scenarios below,…

A: The commercial paper is usually issued by the company for raising funds for short-term needs and it…

Q: Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that…

A: Initial deposit (I) = P500,000.00 Annual interest rate = 0.08 Monthly period (n) = 14 months Value…

Q: For the cash flows below determine the amount in  year 1, if the annual worth in years 1 through 9…

A: Annual Cash flow (CF) = $3500 Interest rate (r) = 0.10 Period (n) = 9 Years Amount in year 1 (P1) =…

Q: Using the information in the tables above (the Company, the Broker, and the Investor), solve the…

A: NOTE: As per our policy, we only answer up to three sub-questions when multiple sub-questions are…

Q: Your firm is looking at 3 projects, each costing $500,000: A is estimated to save $125,000 per year…

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

Q: Using the percent-of-sales method, determine whether the company has external financing needs, or a…

A: External Financing Needed: It refers to the additional funds required by the company or…

Q: Alex invested P25,000.00 to a business. The ROR is 9 % compounded quarterly and he expects to have…

A: Given that  Amount invested =  P25,000 Rate of return (ROR) = 9% compounded quarterly So quarterly…

Q: Here are simplified financial statements for Phone Corporation in a recent year:    INCOME…

A: Answer -  A.  Return on Equity - = Net IncomeOpening Shareholders Equity+Closing Shareholders Equity…

Q: 2. If the current inflation rate is 3.6% and you have an investment opportunity that pays 10.9%,…

A: Inflation rate = 0.036 Nominal interest rate = 0.109 Real rate of interest = ?   Real rate of…

Q: Problem no 20 (Ref. 3) You have just completed your post-graduation in Finance from Tribhuvan…

A: Hi, since you have psoted a question with multiple sub-parts, we will answer the first three, as per…

Q: For each of the following scenarios determine the value as of the beginning of 2012 of the…

A: Forecast of dividend in 2016 Long-Run Growth Forecast Cost of Capital Scenario A 28 4% 11%…

Q: A non-traditional lending source offers Megan a loan for $5,400. They require the loan to be repaid…

A: Cash flows to Megan; Year 0 = $5,400 Year 1-3 = - $2,100 Interest rate = ?   We will calculate…

Q: If you wish to withdraw the annual payment series in the figure below, how much do you need to…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: 31. Supercall plc has conducted a stakeholder mapping exercise. This produced the following results…

A: There are two multiple  choice Questions on disconnected topics. The first one is about the type of…

Q: Which of the following statements is correct? Group of answer choices Corporations and partnerships…

A: Analysis of the given options: 1. Corporations and partnerships have an advantage over…

Q: 3. For each of the following, compute the future value (Do not round intermediate calculations and…

A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: Option 1; Annual salary = $77,000 Monthly salary (m) = $6416.66666666667 (i.e. $77000 / 12) Monthly…

Q: 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: A trusted friend told you that a cash flow sequence  that started at $3000 in year 1 and increased…

A: Solution:- When a sequence of cash flows is invested somewhere, it earns interest on it.

Q: Suppose you want to withdraw $30,000 at the end of year 3 and another $30,000 at the end of year 5.…

A: Solution:- When some amount is deposited somewhere, it earns interest on it. The amount initially…

Q: If the discount rate is 5 percent, then the project's NPV is $ (Round to the nearest dollar.)

A: First, we need to find PV of net cash inflows using an ordinary annuity formula as below PV = P1 -…

Q: Required: Some in the academic world contend that corporate risk management is a zero-sum game.…

A: Every business is attached with Risk, It differs from industry to industry,. There are internal…

Q: Which of the following statements is most correct? Group of answer choices None of these. A firm…

A: The Weighted Average cost of capital: The weighted average cost of capital is a single number used…

Q: A put option on Intel stock with an expiration date of January 20, 2023 has a strike price of $55.…

A: Given, Strike price is $55 Current market price is $53 Option premium is $5

Q: Can the government tax its own agencies or instrumentalities? Explain.

A: Agencies and instrumentalities are the divisions of the federal government that are for the serving…

Q: Shaw Ltd has received a large order from its long-established and valued South African customer…

A: Solution:- When goods are sold to a person outside the country, it is known as export. When goods…

Q: why this settlement date i.e. 8-03-2022 should be considered instead of 8-03-2020 ?? Please reply

A: Bonds are debt instruments that carry the annual coupon payment and face value to be paid on the…

Q: The three parts of your balance sheet are Group of answer choices assets, liabilities, net worth.…

A: Balance Sheet is a snapshot of financial position of any entity. A balance sheet shows the financial…

Q: A sports store sells 68 pairs of swimming flippers per day for $20.00 each. The owner estimates that…

A: Here, Selling quantity per day = 68 pairs Price per pair = $20.00  Increase in price = $3.00…

Q: Trux Ltd is a listed company in the heavy vehicle industry. The market value of Trux Ltd's net debt…

A: Present Value  - This is the value of future cash flows in present time, it can be calculated by…

Q: 1. A portfolio of 2 mutual funds, one investing in stocks and the other in bonds: ● ● Stock fund:…

A: As per the given information: Expected returnAllocationVarCovStock fund12%.5030090%Bond fund8%.50200…

Q: Question: If you were in Staci’s situation, what would you do? Ethical Dilemma Staci  Sutter…

A: Analysis of Ethical Dilemma: Staci Sutter had issue on the following points: i) An e-mail from a…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.