Give an example assuming that  the Compounding Period equals to Payment Period?

Q: Distinguish the nominal rate of return from the real rate of return.

A:

Q: Attractions, buildings & equipment, at cost 64,892,000 62,111,000 58,589,000 55,238,000 54,043,000…

A: Total liability = long term liability + current liability  Total debt consist of total obligation of…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: Determine the principal P that must be invested at rate r = 3%, compounded monthly, so that $700,000…

A: Future value (FV) = $700,000 Interest rate = 3.50% Monthly interest rate (r) = 3.50%/12 =…

Q: Question III (7 H: Provide a justified policy recommendation considering the case described below:…

A: Pay back period is the time period in which the initial invested cost is recovered by obtaining the…

Q: Explain the sequential payout tranche structure?

A: Sequential payout tranche structure In this type of structure interest payments are received by…

Q: What is the basis for the discount rate in a DCF analysis? Describe how this rate mightbe estimated.

A: Basis of discount rate in DCF analysis is to compute the PVF of future Cash Flows expected as it is…

Q: What do we mean by a uniform series payment?

A: Under uniform series of payment, payment of same amount is made or received at a regular time…

Q: How much is the estimated payment to liabilities with priority?

A: The determination of estimated payment to Liabilities with priority is shown hereunder : The…

Q: Comparison of NPV, IRR or Payback period

A: The net present value (NPV) is the difference between the present value of cash inflows and…

Q: Please explain the difference between the terms interest rate and required return by defining each.

A: The amount which is charged by the lender to the borrower in order the use assets is known as the…

Q: How is the payback period determined?

A:

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: Interest cost is calculated by multiplying the______by the ______?

A: Interest cost is calculated by multiplying the  Principle amount by one plus the annual interest…

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: What is the factor form equation to get EUAB/Annuity (A) ?

A: Interest Rate = 5% N = 7 Cash Flows: Year Cash Flow 0   1   2   3   4 1000.00 5…

Q: What are the different terms used to refer to the rate of return?

A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…

Q: Project 1 Years 1 2 3 Cash Flow -5000 500 2000 3000 1000 Cumulative Cash Flow -5000 -4500 -2500 500…

A: payback period is the period during which the firm recovers its initial investment. Formula: payback…

Q: Define the term the annuity factor?

A: An annuity factor is financial value that, when multiplied by a periodic amount, then it shows the…

Q: Create a chart reflecting the convention payback period?

A: The chart is presented below:

Q: S1 82 83 84 7.0% 7.3% 7.7% 8.1% What is the discount rate d(0, 4)? (Recall that interest rates are…

A: Discount rate d(0,4):

Q: Date 8/1/23 Adj Date TSLA Return AMZN Return MCD Return Risk-Free S&P 500 Return TSLA excess r AMZN…

A: TSLA return-3.50%AMZN return3.24%MCD return-3.63%Risk free0.45%S&P return-4.87%

Q: What is the formula to calculate CAPM Req. Return

A: CAPM The financial model that helps investors to calculate the return from an asset is known as…

Q: Illustrate the methods of calculating Interest?

A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…

Q: E6-10 Godfreid Company has accounts receivable of $95,400 at March 3 31, 2017, there is a $2,100…

A: Total estimated Uncollectible  = Balances on 31 March 2017 ×  Estimated % uncollectible

Q: What are annuities received? Also, how does the calculation of expected return and the calculation…

A: It is considered as a payment stream of an equal amount which would likely occur at a regular time…

Q: What is the Effective Rate per Payment Period?

A: Answer: The effective rate is nothing but the yearly rate under average compounding, will have…

Q: ow do to interpret ( holding period return and hold

A: Holding Period Return  Holding period return (HPR), is the total return earned  by an investment…

Q: Explain briefly LIBOR and OIS rates.

A: The money market is the place where the trading can be done on a short-term debt basis. This market…

Q: A dealer in securities has the following for the year 2018: Sales, shares held for sale in the…

A: Taxes: Taxes are the obligation imposed on the income earned by every taxpayer on yearly basis.…