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A: Segregated fund : It is an investment fund i.e., it invests in securities like bond, stocks, debentu...
Q: what are the differences among common stocks preferred stocks and debt securities
A: A business needs finance to run its business and this can be raised by various means such as Common ...
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A: Net profit margin = 4.0% Asset to turnover ratio = 2.2 Assets = $525 million Turnover = Assets*Asset...
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A: A loan's PMI or Private mortgage insurance is a kind of mortgage insurance that is used by lenders w...
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...
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A: The information ratio is widely used by fund managers, as it only sees retun and volatility. It is a...
Q: Why is trading volume an important consideration when undertaking technical analysis?
A: Trading volume refers to the number of shares that was traded for a security for a given period of t...
Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...
A: future value of an investment is Php5,500,000 present value is Php3,500,000 Time period of 13 years ...
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A: Real interest rate has been adjusted to remove the effects of inflation while the nominal interest r...
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A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Navistar Electric issued 1000 debenture bonds 5 years ago with a face value of $5,000 each and a bon...
A: A Bond is an instrument that represents the loan that is made by the investor to the company and af...
Q: In bankruptcy, which of the following lose (choose all that apply)? The community Clients/suppliers ...
A: Bankruptcy is the state where an individual or a business organization is bound to surrender itself ...
Q: What equal annual payment must be deposited into a sinking fund to accu- mulate $60,000 in 20 years ...
A: Sinking Funds refers to an arrangement of annuity for a definite time period for the accumulation of...
Q: A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assum...
A: Ordinary interest = Principle * Interest rate * Number of days of loan taken / 360 days in a year
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A: Covariance shows the relationship between two stocks and how the two stocks are related to each othe...
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A: Net profit margin (NPM) or return on sales measures the profitability of the company. Higher the rat...
Q: A preferred stock will pay a dividend of $1 per quarter. If the annual return is 6.06%, what is the ...
A: Here, Dividend per Quarter is $1 Therefore, Dividend per year will be: =$1*4 =$4 Annual Return is 6....
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A: B/C ratio is the ratio of present value of benefits to the initial cost and quite extensively used t...
Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of 1...
A: Time Value of money states that each dollar has earning capacity hence a dollar today is worth more ...
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: f market is efficient, in managing an equity portfolio, you will adopt a. Indexing strategy b. Stock...
A: An efficient market is one where the security prices reflect all information available about that se...
Q: Pete's Wheels n' Spokes has a rate of markup on cost of 20% on a model of bikes. This represents a m...
A: Markup on cost = 20% Markup amount = $56
Q: 6. Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and wit...
A: In the book value method, we find the book value of the firm, which is considered as the value of th...
Q: Suppose the term structure of risk-free interest rates is as shown below: Term 1 yr 2 yr 3 yr 5 yr 7...
A: Interest rates: To Find: Present value in each case
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A: Sources of Financial Capital for Entrepreneurs are Equity share capital, preference share capital, p...
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Q: the rule of 72
A: Given information : Initial investment = $100 Interest rate = 7%
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Q: Total Current Assets 700 610 Plant and Equipment 1,800 1,470 Less: Accumulated Depreciation 500 400 ...
A: Total Assets on the balance sheet is the sum of the current assets and fixed assets adjusted for dep...
Q: why is profit maximization supposedly not the most important goal of a company
A: Profit Maximization: The process of raising the profit earning capacity of the business is known as ...
Q: Your insurance agent is trying to sell you an annuity that costs $50,000 today. By buying this annui...
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Q: e of the investment, knowing that inflation is 3% cumulative annually and that the required profitab...
A: The internal rate of return (IRR) is a financial metric for determining the profitability of potenti...
Q: Selected information from the comparative financial statements of AppleVerse Company for the year en...
A: Receivables turnover ratio measures the number of times in a year the company collects its overdues....
Q: If Alex Corporation takes out a bank loan to purchase a machine used in production and every...
A: Equity Multiplier: It represents the portion of the firm's assets financed by the shareholder's equi...
Q: a river. The estimated cost and benefits are listed below. (i) If a 6% per year rate applies and dam...
A: Modified Benefit/Ratio: It is an indicator of profitability applied in the analysis of cost benefits...
Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is: O $96.36...
A: Compound interest is the amount of interest which is being charged or received on amount of principa...
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: Use the figure for the question(s) below. Consider the following graph of the security market line: ...
A: Portfolio B falls below the SML, hence statement (A) is incorrect.
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: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%, ...
A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month
Q: Which of the following measures reflects the excess return earned on a portfolio per unit of its sys...
A: Treynor's measure is the measure of excess return earned per unit of beta of portfolio. Treynor Ra...
Q: Stock A has a beta of 0.6 and return as per CAPM 8% and stock B has a beta of 1.2 with a return as p...
A:
Q: If the interest rate in USD is 1%, and is 1.2% for Canadian Dollar deposits, find the forward price ...
A: The forward contract is an instrument that determines a defined rate to be paid at a predetermined t...
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A: To calculate the Total Annual Equivalent cost, it is required to evaluate the present value of all f...
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A: The monthly deduction of $125 is an annuity. As the amounts are being deducted and deposited at the ...
Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest ...
A: When a certain amount is deposited at a certain interest with compounding, the accumulated amount is...
Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is: O $106.2...
A: Deposit amount (PV) = $60 Interest rate (r) = 10% Period (n) = 6 Years
Q: Calculate the IRR of the previous project. Justify for what type of discount this investment will be...
A: Internal Rate of Return: It is the rate at which the project's net present value is equal to zero. H...
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