Q: The ABC Incorporated paid a dividend of Php142.60 per share last year. Yesterday's last price is…
A: Dividends are the distribution of a company’s profits to its shareholders. Dividends are paid out of…
Q: Assuming that four annual deposits of ($1000) are occurred but the first payment deposit at end of…
A: The annual payments are going to occur will be equivalent to the future value of annual payment that…
Q: The nominal rate of return is ______% earned by an investor in a bond that was purchased for $963,…
A: Bond It is an obligation security, where borrowers issue securities to fund-raise from financial…
Q: i. If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of…
A: i)The Share splits is for every 3 Shares the Shareholders will get 5 Shares. If Sebonia Berhad has…
Q: Ann wants to buy an office building which costs $2,000,000. She obtains a 30 year, Interest Only…
A: Loans are to be paid by the monthly payment that carry the payment of interest and payment for…
Q: Making payments on time is part of (a. payment history b. amount owed c. length of credit history d.…
A: The answer is option a. payment history Payment history is indeed a history of all payments made to…
Q: How can she earn the time premium? I am very confused. How can she sell it without buying first?
A: Deep in the money is the option where expercise price is very lower than the the spot price. Time…
Q: Liliac Berhad is a unlevered firm with the cost of equity 20 percent per year. Based on the current…
A: Unleveraged firm means a firm in which there is no debt in the capital structure. In other words it…
Q: Find the exact interest on ₱16,800 for 105 days at 8.15% simple interest
A: Answer - Simple Interest - ( P × R × T ) / 100 Given, P = Principal Amount = 16,800 R = Interest…
Q: What is the principal invested at 8.75% simple interest on May 21, 2015 that will amount to, ₱34,600…
A: Simple Interest can be calculated using the formula as below: = Principal * Rate * Number of Days /…
Q: The CWI for common stocks (S&P 500) for 1926-2010 (85 years) was $5364.78 based on a geometric mean…
A: Data given: CWI for common stocks (S&P 500) for 1926-2010 (85 years) = $5364.78 Average…
Q: “Financial reporting plays a key role in facilitating informed business decision making and…
A: Financial reporting refers to the financial results and financial statements of a company or an…
Q: offer by a broker of 350,000 shares worth Rp. 400/sheet. You only have cash to buy 220,000 shares.…
A: Brokers gives margin on trading and customers can take and enjoy more trading on account but they…
Q: How much interest is earned at 2.5% if an amount of P10,500 was invested on October 3, 2021 and will…
A: Interest is calculated on the principal value for the time due that remains unpaid. It is a time…
Q: The number of years it will take for $500 to grow to $1,039.50 at 5% compounded annually is how many…
A: To calculate the period we will use below equation FV = PV*(1+r)n Where FV - Future value i.e.…
Q: Compute the payback statistic for Project Y and recommend whether the firm should accept or reject…
A: Answer - Payback Period - Payback Period is defined by calculating the time needed (usually…
Q: Fun Tyne plc declares a dividend payment of 20p per share. Ignoring taxes and the time value of…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: The incremental operating cash flows of an investment may include the following: Group of answer…
A: Incremental cash flow is the additional operating cash flow that the company will incur or receive…
Q: my Jolly deposited $2 000 in a savings account. The annual rate is 10 per cent compounded…
A: The future value of money includes the money deposited and interest accumulated over the period of…
Q: If a stock consistently goes down (up) by 1.3% when the market portfolio goes down (up) by 1.01%,…
A: Data given: Change in stock return=1.3% Change in market return=1.01%
Q: The annual interest rate, compounded annually, at which $520 must be invested for it to grow to…
A: To calculate the interest rate we will use the below formula Interest rate = (FV/PV)1/n-1 Where FV…
Q: The forecast for Discomfort’s free cash flows for next year is provided in the table. Assume that…
A: Here, Last Year Next Year Sales…
Q: Suppose one estimates that they can afford to repay £1200 a month for 25 years on a mortgage.…
A: Here, Monthly Payment is £1,200 Interest Rate (r) is 4.3% Compounding Period (m) is Monthly Time…
Q: 36) Based on the information provided below, estimate the correlation coefficient of returns…
A: The correlation coefficient helps to measure the correlation between two securities. It shows the…
Q: n asset for drilling was purchased and placed in service by a petroleum production company. Its cost…
A: The declining balance method is the most commonly used method of depreciation. Under this method…
Q: The Saleemi Corporation's $1,000 bonds pay 5 percent interest annually and have 13 years until…
A: Bonds are long-term financing debt. It is a company that raises funds for its business. In return, a…
Q: Suppose we have the following table of yields on government benchmark bonds. Maturity 2-year 5-year…
A: In this question, the table for the Government bond Yield is given: Government Bond Yield…
Q: Explain what is meant Market Risk and by Specific risk. How can an investor reduce these risks?
A: Risk is referred to as the chance that an outcome or an investment's actual gains will differ from…
Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…
A: To calculate the bond price we will use below formula Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…
Q: Suppose a young couple deposits $900 at the end of each quarter in an account that earns 7.6%,…
A: This question is an application of annuity. The future value of an annuity with equal periodic…
Q: Bionictech Sdn Bhd is a pharmaceutical company operated in Malaysia is currently participate in…
A: The Net Present Value of the project equals 0 at the Internal Rate of Return. In general, the higher…
Q: A company is considering expanding a factory. The expansion requires 500 MUD investment immediately.…
A: The Net Present value is calculated with the help of following formula Net Present Value = Present…
Q: A) compute the current price of Bond A
A: Market value of a bond is the present value of all future cash flows that comes from a bond. The…
Q: If you deposit 3500 today into an account earning an annual rate of 11% what would your account be…
A: To calculate the amount of account after 40 years by using below formula Value of account after 40…
Q: Regarding individual investor behaviour, which of the following is FALSE? Individual investors…
A: The answer is option 2. Individual investors are more likely to sell stocks recently covered by the…
Q: Suppose the ASX200 Index is currently at 7,406, the expected dividend yield on the index is 2…
A: Futures are financial derivatives in which one party agrees with another to buy or sell an asset at…
Q: Ann wants to buy a building. The asking price is $7,500,000. Her lender has a maximum LTV…
A: LTV means Loan To Value ratio. It is the maximum amount of loan that can be borrowed against the…
Q: QUESTION 8 You observe that the cap rate for Central Business District (CBD) office buildings in…
A: Data given:: Cap rate=4.25% Return on these building=8.25% Required:: Expected NOI growth rate of…
Q: A firm has an expected return on equity of 16% and an after-tax cost of debt of 8%. What debt-equity…
A: The sum of a company's short-term debt, long-term debt, and other fixed payment commitments (such as…
Q: ) Reported annual total returns (%) of Vanguard FTSE Emerging Markets Index Fund ETF Shares for the…
A: To Find: Average growth rate which takes effect of compounding is 1.59%
Q: (b) A design company seeks a return on investment of 6. The wafer costs $2500 and holds 450 gross…
A: Data given:: Wafer costs =$2500 Gross die per wafer = 450 Die yield per wafer =70% Packaging…
Q: w's Mites, Jesus explains to his disciples that the small sacrifices of the poor mean more to God…
A: The future value of money grow with time and interest rate and compounding of interest and will be…
Q: 2. On January 1, 2022, Marites deposited P15,000 in a bank that offered 2.5% annual interest…
A: Account Balance: Account balance is the monetary value representing the total amount that a…
Q: You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and…
A: Proportion invested in Stock A, Stock B and Treasury Bills are equal that is 1/3 Beta of Stock A is…
Q: You borrow $18826 to buy a car. You will have to repay this loan by making equal monthly payments…
A: Borrowed amount is $18826 Time period is 5 years APR is 12% To Find: Monthly payment
Q: Based on the following information, estimate the justified leading P/E ratio Return on Equity:…
A: Given, The EPS is $6.20 Return on equity (r) is 18% Growth rate (g) is 6.09%
Q: Lyceum of Aparri purchased an asset for P 12,555.00 and plans to keep it for 19 years. If the…
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…
Q: Project A costs $40,000 to start and makes. mouth. Project cost $20,000 to steart month Project A…
A: The EUAW is uniform equivalent annual worth which is equivalent all cash inflows and outflows…
Q: A stock of 9 is currently priced at $38. A call option with an expiration of one year has an…
A:
Q: P₁ =? 2000 U 1000 U 1 3000 U 2 3 i= 15%
A: The present value of the investment can be calculated using an appropriate discount rate. Present…
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Explain
Step by step
Solved in 2 steps
- An analyst gathered the following year-end price level data for an economy: 2014 2018 2019 191 207.3 213.8 a. What is the economy's annual inflation rate for 2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Inflation rate % b. What is the average compounded inflation rate for 2014-2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Average rate %An analyst gathered the following year-end price level data for an economy: 2014 2018 2019 a. What is the economy's annual inflation rate for 2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Inflation rate 178 194.3 200.8 Average rate % b. What is the average compounded inflation rate for 2014-2019? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) %Assume the CPI increases from 139.2 to 142.6 over the period. What is the inflation rate implied by this CPI change over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
- Real rates are defined as nominal rates that have been adjusted for inflation.Select one:TrueFalseRequired: Based on the following formula and the expression for inflation rate, calculate the H DE HIF EHIF = PH-PF π F= 3% EH/F=0.7341 EHF=0.7361 country. T denotes the growth rate in price level (inflation). Note: H- Home country; F - ForeignCorrect Use the following information to answer the question below. CPI means Consumer Price Index. CPt changes (as a %) are used to calculate inflation rates. US CPI Japan CP Spot exchange rate UPY/USD) 2017 100 100 102.17 105.09 2018 108 105 106 In 2017, what did PPP predict the spot exchange rate (JPY/USD) would be in 2018 jenter your answer with two decimals?
- Assume you want to determine whether the monthly movements in the Polish zloty against the dollar are more volatile than the monthly movements in some other currencies against the dollar. The zloty was valued at $0.5102 on May 1, $0.5209 on June 1, $0.5888 on July 1, $0.5406 on August 1, and $0.5260 on September 1. Compute the standard deviation (a measure of volatility) of the zloty's monthly exchange rate movements. O 6.21% O9.02% O 1.06% O 1.76% O None of the above is correct.3. The following table gives actual data on the U.S. CPI and the S&P 500 total return index (SPTRI). CPI SPTRI 12/3 1/2011 226 2159 12/3 1/2012 230 2504 12/3 1/2013 233 3316 12/3 1/2014 235 3769 А. Use this data to compute the average annual nominal return and real return for two consecutive 1- year holding period returns of a sto ck portfolio that matches the S&P 500 total return index. (for example you could compute 2011-12 and 2012-2013) Please use continuous compounding. Express your final answer in percentage. В. Now compute the average annual real return to a 2-year holding -period portfolio of your two consecutive years. С. You have a friend who has been studying the stock market for the last few years and is about to invest $10,000 in a highly diversified portfolio. After 10 years, your friend expects to have over $66,000 in real dollars. You recall from your favorite report in Econ 135 that the average 10 year holding period return is about 7% with a standard deviation of 6%.…In an inflationary period, what is the difference between (a) inflated dollars and “then-current” future dollars, and (b) “then-current” future dollars and constant-value future dollars?
- (b) Assume AUD = 0.58 GBP and inflation is 3.5% pa in Australia and 7% pa in Great Britain. Estimate the AUD/GBP spot rate in one year's time and comment on the accuracy of this estimate.Suppose the spot and three-month forward rates for the yen are ¥114.37 and ¥113.89, respectively. a. Is the yen expected to get stronger or weaker? b. What would you estimate is the difference between the inflation rates of the United States and Japan? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. Yen expected to get strong or weaker b. Difference between the inflation rates %Suppose the spot and three-month forward rates for the yen are ¥79.45 and ¥78.84, respectively. What would you estimate is the difference between the annual inflation rates of the United States and Japan? (A negative answer should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual inflation rate differential %