• XYZ Corp. issues preferred stock that pays a dividend of Rs. 5.50 forever. Investors could invest their money at 7%. For how much value will the preferred stock sell? • Stoney Mason, Inc. has sales of $6 million, a total asset turnover ratio of 6 for the year, and net profits of $120,000. What is the company's return on assets? • The stock of the Health Corporation is currently selling for $20 a share and is expected to pay a $1 dividend at the end of the year. If you bought the stock now and sold it for $23 after receiving the dividend, what rate of return would you earn?

Q: Consider a position of two purchased calls (AT&T, three months, K30) and one written put (AT&T,…

A: Delta is a commonly used Greek letter in options trading to represent the sensitivity of an option's…

Q: Important Factors to Consider When Building a TCO Model Example of a TCO Model?

A: TCO model or Total Cost Ownership Model is an model used to estimate the cost of product or a…

Q: Describe the differences between a formula and a function?

A: A formula is an equation or expression that, when entered into a spreadsheet or other application,…

Q: Using the above information, calculate efn

A: Here, Sales is $48,800 Assets is $53,650 Spontaneous Liability (Accounts Payable) is $2,400 % Change…

Q: Select a project on the basis of PPB and IRR with a mathematical example.

A: IRR Annual growth rate of growth that is estimated to be generated from an investment.

Q: From where has the concept DU pont Analysis comes?what’s the formula?

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Write two examples of SWOT analysis

A: 2. SWOT analysis for Sedibeng Breweries Strength: Capital stock: A strong capital base has been…

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: What is Monte Carlo simulation?

A: The question is based on the concept of Monte Carlo simulation, the method is based on  stochastic…

Q: Briefly explain on Salam and Parallel Salam.

A: Salam and Parallel Salam are modes of Islamic financing which are useful for traders and small…

Q: Briefly explain the usefulness of a sensitivity graph

A: A sensitivity graph depicts all the assumption results on the final outcome in the exercise of…

Q: What is feasible set?

A: When investors manage their ‘financial assets’, like ‘bonds’, ‘shares’ and other financial…

Q: Explain

A: LCNRV method means Lower of cost and net realizable value method.

Q: What are the cell #s in the NPV formula?

A: The difference between the present value of cash inflows and the present value of cash outflows over…

Q: Give an example of each.

A: Cost standard example: The estimation to regulate the entire direct material cost standard and…

Q: Illustrates how you may obtain the true IRR by using the Goal Seek function?

A: IRR refers to the rate of return at which the net present value of a project is zero. This is the…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: Define correlation

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: What would be the equasion for solving this

A: Formula for calculating yearly payment: Yearly payment=(Loan amount * Rate%)1-1(1+Rate%)n

Q: What is a limit order?

A: Limit order It is such an order to buy or trade a security at or superior to a predefined cost. The…

Q: Modigliani and Miller's Method - discuss briefly

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Q: Consider REMICs?

A: A real estate mortgage investment conduit (REMIC) is a difficult puddle of mortgage securities…

Q: Formula for put call parity?

A: Put call parity Put-Call parity defines the value of same class European put and call options. Put…

Q: . What is linear programming? Briefly explain the usefulness of the model.

A: A mathematical optimization technique called linear programming is used to determine the optimal…

Q: What is the actual formula used to get this answer?

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: Explain an example of faithful representation.

A:

Q: Describe the three steps in solving a linear programming problem.

A: Linear programming problem: Linear programming problem is the method of the business through which…

Q: Can you explain DCF model?

A: Introduction Discounted cash flows: DCF is abbreviated as discounted cash flows. The concept of…

Q: What is CVP analysis? Give three examples?

A: CVP Analysis:CVP analysis establishes the relation between cost, volume and profit of the company.…

Q: What are the CVP assumptions?

A:

Q: Describe the process of calculating NPV.

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: What is the DCF method?

A: DCF is a complex tool for valuation which approximates the value of any investment depending upon…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Q: What is Hamada equation?

A: The Hamada Equation : The Hamada equation is a method used to analyse the cost of capital of firm.…

Q: What are the assumptions of Walter’s model?

A: The Walter Model of Careers is an influential theory in the field of career development. This model…

Q: Describe EOQ decision model.

A: Economic order quantity (EOOJ: Economic order quantity is ideal order quantity that the company…

Q: can you show this problem using a two way data table?

A: Two way data states a way or the method of displaying the relative frequencies for the categorical…

Q: What is The NPV for Machine B=

A: NPV will be calculated as follows:-NPV =

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.