Question 10 3-month SA treasury bill rate 2% beta coefficient 0,491289463 market risk premium 8 % What is the cost of retained earnings? Answer %
Q: I $ I E S ($/E) F ($/E) 5% 6% 1.5 1.4985 I $ - annual interest on 1 year US deposit; I…
A: In order to get arbitrage interest profit, it is recommended to borrow at a lower interest rate and…
Q: Net sales Cost of goods sold Gross profit Expenses: Operating expenses Depreciation expense Loss on…
A: The ratio is the technique used by the prospective investor or an individual or strategist to read…
Q: Part A Using the following free cash flows and cost of equity = 7%, discount FCF year 1 back to time…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: EACS 1463490 Constant payout ratio 39 % Target capital structure Long-term debt 40 % Preferred stock…
A: Capital budgeting is a process of evaluating major projects or investments of the business.
Q: Current Price $100 Expected Price in 1 year Expected Dividend T-year T Bond yield $107.98 Beta 2.0…
A: Holding period return is referred to the total return received from holding an asset or portfolio of…
Q: Present Value Interest Factors Number of Periods 1 2 3 4 5 5% 9524 .9070 8638 8227 7835 Interest…
A: The table consists of the different number of time periods (usually the number of years) and the…
Q: Paycheck, Inc. has a beta of 1.27. If the market return is expected to be 14.70 percent and the…
A: We can find the solution by using the Capital Asset pricing Model (CAPM)Expected Return on stock =…
Q: If the return on U.S. Treasury bills is 7.02%, the risk premium is 2.32%, and the inflation rate is…
A: Real Rate of Return = Nominal Rate - Inflation Rate
Q: Which alternative offers you the lowest effective rate of return? APR Compounding a.…
A: The below expression can be used to calculate EAR:
Q: QUESTION 18 Suppose that the 1-year, 2-year, 3-year, and 4-year spot rates are observed as follows:…
A: Liquidity Preference Theory and Expected ReturnThe liquidity preference theory suggests that…
Q: Only typed answer Suppose that the current 4-year treasury security rate is 5.5 percent and the…
A: The expectations theory states that the forward rates of the short-term securities clubbed together…
Q: ge ann 1-month U.S. equity T-bills 3.30 0.93 3.59 6.98 1.66 Excess return 8.87 9.33 6.63 11.00 8.50…
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: he expected dividend of Sony Company for next year has the following probability distributions: 30%…
A: Market price per share = expected dividend / required arte Expected dividend = 2* 30% + 2.890…
Q: Consider the following money market information being quoted: Which of the following statements is…
A: The terms "ask" and "bid" refer to the prices at which assets like stocks, bonds, or currencies are…
Q: Determine the future value of the following single amounts: No. of Periods Invested Amount Interest…
A: Future Value of Investment can be computed using the below formula:
Q: Question 2: Given the interest rate determinants information below: Scenario A Scenario B…
A: Interest rates depicts the cost of borrowings that a borrower has to bear in order to acquire funds…
Q: Question 1 The following are annual rates of return for T-bills in Ghana and Share on the Ghana…
A: Return on investment is the minimum required rate that is expected by the investor for the fund…
Q: Determine the future value of the following single amounts: Invested Amount…
A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…
Q: CAPM Elements Risk-free rate (TRF) Market risk premium (RPM) Happy Corp. stock's beta Required rate…
A: The securities market line (SML) is a line on a chart that graphically depicts the capital asset…
Q: QUESTION 8 Consider the following Taylor rule i=0.02+0.75y+0.25(x-2% ) Notice that the central bank…
A: The production approach measures bank output by treating banks as businesses that produce various…
Q: Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…
A: R10.65%E(2r1)1.80%L20.04%E(3r1)1.90%L30.08%E(4r1)2.20%L40.10%
Q: Assume these were the inflation rates and U.S. stock market and Treasury bill returns between 1929…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: stion 26 Consider the following data: D₁-$1.55: Po-$49.50. g-3.70% (constant); and F-2.00% What is…
A: The cost of equity can be defined as the return required by the equity shareholders. Equity…
Q: Answer the following requirements assuming a discount rate (WACC) of 735, a terminal period growth…
A: The discount cash flow is a valuation model that helps to compute the valuation of the company by…
Q: FV $1,000 PMT $30 N 12 PV -$980 what is the yield to maturity rate? use a financial calculator
A: Given information : FV $1,000 PMT $30 N 12 PV -$980 The yield to maturity can be…
Q: Use the data in the table Date 12/31/2018 12/31/2019 12/31/2020 12/31/2021 O a. 28.7% O b.7.5%…
A: Geometric average is based on the compounding effect and used in calculation of rate of return in…
Q: 4 - Based on economistsAc€?c forecasts and analysis, 1-year Treasury bill rates and liquidity…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Present Value $282.00 $15,277.00 $36,202.00 $27,930.00 Interest Rate 4% 6.5% 10.5% 16.5% Number of…
A: Future value is the estimated current value of future cash flows that are likely to be received in…
Q: Future Value $630.00 $87,377.00 $358,483.00 $27,604.96 Interest Rate 5% 8% 11.5% 17% Number of…
A: The present value is the sum of the total discounted value of future cash flows. In other words, the…
Q: Year 2019 2020 2021 2022 Refer to the information above to answer this question. What is the value…
A: Nominal GDP of 2020 = $648 billionReal GDP of 2020 = $629 billion
Q: Determine the present value of the following single amounts: Future Amount…
A: Present value is the current value of a future amount that is to be received or paid out. Future…
Q: Q4. A) Find the Present value? B) Find the Future Value? j= 8.2% 123456 10 11 12 -300 -255 -275 -285…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Step by step
Solved in 2 steps
- ACCOUNTING ASAP Assume the following data: EBIT = 100; Depreciation = 40; Interest = 20; Dividends = 10. Calculate the cash coverage ratio. Select one: a. 7.0x b. 4.7x c. 14.0x d. 5.0xPLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash Accounts receivable Inventory Investments $242,000 98,000 105,000 5,000 $ 130,000 102,000 90,000 3,000 Long-term assets: Land Equipment Less: Accumulated depreciation 580,000 890,000 (528,000) $1,392,000 580,000 770,000 (368,000) $1,307,000 Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Interest payab le Income tax payable Long-term liabilities: Notes payable Stockholders' equity: Common stock Retained earnings $ 109,000 7,000 9,000 95,000 13,000 6,000 2$ 110,000 220,000 800,000 357,000 $1,392,000 $1,307,000 800,000 173,000 Total liabilities and stockholders' equity Additional information for 2021: 1. Net income is $184,000. 2. Sales on account are $1,890,000. 3. Cost of goods sold is $1,394,250.Sh7
- Year Cash Flow 0 −$8,200 1 2,500 2 4,100 3 3,900 What is the profitability index for the cash flows if the relevant discount rate is 10 percent? A. 1.079 B. 1.100 C. 0.995 D. 1.016 E. 1.048 What is the profitability index for the cash flows if the relevant discount rate is 16 percent? A. 0.939 B. 0.967 C. 0.986 D. 0.892 E. 0.911 What is the profitability index for the cash flows if the relevant discount rate is 26 percent? A. 0.795 B. 0.819 C. 0.834 D. 0.755 E. 0.771Consider the following timeline: Date Cash flow 0 ? 1 OA. $472 B. $944 C. $600 D. $614 $100 2 $200 3 $300 If the current market rate of interest is 11%, then the present value (PV) of this timeline as of year 0 is closest to:S Year 0 1 2 3 Cash Flow -$ 9,900 2,300 2,900 5,200 a. What is the profitability index for the cash flows if the relevant discount rate is 6 percent? Profitability index 0.949 0.967 0.875 0.893 0.921 b. What is the profitability index for the cash flows if the relevant discount rate is 16 percent? Profitability index c. What is the profitability index for the cash flows if the relevant discount rate is 23 percent?
- H1.Assignment 1: Financial Statement Analysis and Interpretation of the Results • Select two different corporations (from the same industry) publicly traded in the US Stock Exchange Markets. (NYSE, NASDAQ) o Make sure the companies you select are traded in same currency (USD, Euro, GBP) o Please get the approval for the names of the firm before you start your work. • The analysis of same company by different students will not be graded • Download the necessary financial statements for the companies for 2021 and 2020 o For data collection you can use: finance.yahoo.com or finance.google.com Part 1: Apply the financial analysis for the last two years using ratios covered in Chapter 3. Use excel formulas for calculation of the ratios on a separate sheet (manual calculations will not be graded!) You are not responsible for Part 5 (V. Market Value) ratios Some companies may not have all the data due to their variations in industries. If you face missing data just skip that ratio (mention as…Tasks/ calculation these questions are :- by 6 functions are : 1. Accumulative (future) money value 1/ Simple interest FV=PV*(1+* ? *N) 2/ Aggregate interest FV=PV (1+ ? )N 2. Present money value PV = FV * ^note N- total times of getting income^ R= ?????? ??? / N n- frequency of income generation per year 3. Present payment value PV = PMT * 4. Future payment value (PMT) FV = PMT * 5. Amortization payment PMT = PV * 6. Solatium fond factor (SFF) PMT = FV * Q1/ The investor wants to invest in the purchase of an office building. He suggests he can rent it out for 10 years at an annual rent of 1,850,000. At the end of the tenth year it is expected to sell the company for 18 million d.e. Income rate 20% What is the current value of the building?