4. It is a form of security that indicates the holder has proportionate ownership in the issuing corporation. A. Bond C. Deposit D. Investment B. Stock 5. An income based on the outstanding principal and current interest rate. A. Active income C. Passive income
Q: True or False a.) Generally, even though the acquisitions are recent, the net realizable value of…
A: Synergy: Synergy occurs when two entities combine together their resources to accomplish more…
Q: The National Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: A two-year project has sales of $582,960, cash costs of $411,015, and depreciation expense of…
A: Depreciation expense = $68,109 Tax rate = 0.24 Depreciation tax shield is also known as saving of…
Q: The real risk-free rate of interest, r*, is 3%. Inflation is expected to be 4% this year, 5 percent…
A: Bonds: It is an agreement by a borrower to pay a a money lender their principal and usually…
Q: The table below contains the covariance matrix of stock returns and the market. Assume that the…
A: Risk is the possibility of loss for an organization and risk management is one of the most important…
Q: 1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: Given below is the Income Statement of Reaper Corporation for 31 Dec 2019. Net Sales 2000 COGS -1200…
A: Earning before interest and taxes (EBIT) = 700 Tax rate = 0.20 Depreciation = 100 Operating cash…
Q: Reported annual total returns (%) of Vanguard FTSE Emerging Markets Index Fund ETF Shares for the…
A: Compound annual growth Annual growth rate is calculated as shown below. Annual growth rate=Ending…
Q: Income Statement: A small food stall owned by Ms. Lopez is located at San Fernando Pampanga. She…
A: It is given that: Sales in 2018- 285000 – increase by 10% Cost of goods sold – 10% of projected…
Q: Co. has a debt to equity ratio of 25% and a weighted average cost of capital at 25%. The firm used…
A: Debt to equity ratio = 0.25 Therefore; Debt = 0.25 Equity = 1 Total capital = 1.25 (i.e. 0.25 + 1)…
Q: . A bank offers a 272 – day discounted loan at a simple discount rate of 12%. (a) How much money…
A: a) Discounted loan is a loan which doesn't have to pay interest periodically. This type of loan…
Q: Given fixed costs is Rs 1,00,000 selling price per unit is Rs 10 and variable cost per unit is Rs 6.…
A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…
Q: 4. When her granddaughter was born, Melay invested P 20 000 at 12% compounded quarterly. How much…
A: PV = Present value = P20,000 FV = Future value = ? r = Rate of interest = 12% = 0.12 n =Number of…
Q: Mr. Dalisay applied for a bank loan with a principal of P150,000 to be paid after five years in…
A: Principal loan amount = P150,000 Loan period = 5 years Current market rate = 0.10 Principal will…
Q: company's discount rate is 12%, then the net present value for this investment is closest to:…
A: NPV= Present value of cashinflows - Present value of cashoutflows.
Q: You decide to invest P35,000 in RX Pharmaceuticals, P35,000 in TS Banks, and P10,000 in each of the…
A: The expected return of Portfolio is calculated by multiple the expected return of each security with…
Q: Calculating missing cash flow On the timeline below, what is the missing cash flow at time 2? The…
A: Future Value: It is the worth of a resource at a particular date which measures nominal future sum…
Q: equired: Calculate the project's net Without making any calcul
A: NPV = Present value of cashinflows - Present value of cashoutflows.
Q: Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t…
A: Cash flow; Year 0 = -150,000 Year 1 = -250,000 Year 2 = -250,000 Year 3 = 1,000,000 Internal rate…
Q: Identify which anti-hostile takeover strategies are being described. [S1] A merger will only push…
A: When a prospective merger or acquisition needs to be thwarted then there are several anti-hostile…
Q: Steve wants to have $5,000, after 3 years, in a savings account that pays 4% interest compounded…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: The standardized approach for calculating operational risk capital requirements uses beta factors…
A: Beta factor indicates that amount of risk involved and how much the change in market will impact on…
Q: You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized…
A: A loan is an agreement where an amount is forwarded in exchange for periodic payments that cover the…
Q: . How long will it take an investment earning 18% compounded monthly to double in value? a. 3.64…
A: Lets assume initial investment (PV) = 1 Therefore future value (FV) = 2 Monthly interest rate (r) =…
Q: Allergan Industries' stock is currently selling for $93 and is expected to pay a dividend of D1 =…
A: Current stock price (P0) = $93 Stock price at the end of year 4 (P4) = ? Growth rate (g) = ? Beta…
Q: The following are bad consequences of inadequacy of financial risk management EXCEPT a. The entity…
A: Risk management is the process which involves a proper identification of the risks that an…
Q: Create a plan of investment on a bank and solve its interest with respect to the rate offered and…
A: Simple interest is computed on the loan's initial main amount, but compound interest is calculated…
Q: Contraction risk is the risk that loan principal will be repaid more rapidly than expected,…
A: The statement is FALSE. Correct Statement: Contraction risk is the risk that loan principal will be…
Q: Would you rather receive $1,000 now and $2,000 in two years or $2,500 in one year, using a 4%…
A: Present value = C0 + (C1 * (1+r)-1) + (C2*(1+r)-2) Where C0 = Cash flow year 0 C1 = Cash flow year 1…
Q: Which of the following would constitute an Agency Problem in the context of Business? Check all of…
A: An agency problem is a conflict of interest between an agent and a principal. An agent can be an…
Q: A 3-year, 1000 par value bond with a 3% annual coupon is trading to yield 4%. What is the current…
A: Current yield is the rate of return an investor earning on the current value of its investment, in…
Q: Consider the following cash flows. The interest rate is 10%. What is the total wealth after 2 years…
A: It is given that: Year Cash flow 1 150 2 120 3 100 4 200 And the Expected…
Q: Total amount of depreciation of an asset cannot exceed its: None of these O Scrap value O…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Panelli's is analyzing a project with an initial cost of $139,000 and cash inflows of $74,000 in…
A: WACC = ( weight of equity * Cost of equity) + ( weight of debt * after Tax cost of debt) = ( 1/1.39…
Q: Do you believe that elections have an impact on a country's Investments market (stocks, bonds,…
A: A share of ownership in a firm or corporation is referred to as stock. When a firm does well, stock…
Q: What is idiosyncratic risk? How does it differ from market risk?
A: Idiosyncratic risk or unsystematic risk or specific risk is that risk which belongs to specific…
Q: What should be the firm’s growth rate in order to attain a weighted average cost of capital of…
A: Dividend discount model refers to a stock valuation model which is used by the company for…
Q: XYZ just went public. As a growing firm, it is not expected to pay a dividend for the first five…
A: Price of stock may be calculated using dividend discount method with following formula Present…
Q: If the risk-free rate is 2.2 percent, the inflation rate is 1.9 percent, and the market rate of…
A: The risk premium on the U.S. Treasury bond will be zero as it is backed by US government and as…
Q: Consider the following cash flows. The interest rate is 8%. What is the duration (hint: you need…
A: Interest rate = 0.08 Cash flow duration is the weighted-average time to maturity of the cash…
Q: You deposit $4000 into a retirement account each year. The account pays 8℅ interest. How much will…
A: Annual deposit (A) = $4000 Interest rate (r) = 0.08 Period (p) = 25 years Amount in 25 years (P25) =…
Q: ABC Co. bought 20 long forward contracts for corn at strike price of $3.67 per bushel (each contract…
A: To calculate the profit on forward contract we will use the formula as follows: Profit = (Market…
Q: List 5 examples of contents in the Prospectus
A: The 5 examples of content that are available in a prospectus are as follows: A synopsis of the…
Q: Determine the rate of return for the cash flows show with two trials with 5% and 10% interest rates)…
A: Rate of return can be determined from interpolation or doing trial and error methods both are useful…
Q: a-1. Using the information above, compute the amount of Roy's Toys quick assets. (Enter your answer…
A: Quick Assets: These are assets that can be easily converted to cash. Therefore, quick assets…
Q: Cálčulăté the capital recovery for the following cash flow. Assume i= 8% per year.
A: Capital recovery is annual amount that is obtained after paying for all cost and salvage value and…
Q: Given the following spot and forward rates: Current 1-year spot rate is 3.12%. One-year forward…
A: A bond is a debt instrument used to raise capital by a company or government. It can be traded on…
Q: 6. Find the amount at the end of 15 years if P 55 000 is invested at an interest rate of 5%…
A: Initial investment (I) = ₱55,000 Interest rate for first 10 year = 0.05 Semiannual interest rate for…
Q: Describe a situation when a. Investor would want to use a limit order.
A: The limit order's primary objective is to set a specific price of a security in order to buy or sell…
Q: What is the present value of an investment that pays $103 at the end of each of years 1, 2, and 3?…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Step by step
Solved in 4 steps
- Which of the following is an example of long term instruments? (select all that apply) a. Asset backed securities b. Commercial paper С. Repo d. Treasury billIf a company have a patent and it will not generate probable future economic benefits, in this case the company will: Select one: a. Derecognition. O b. None of the options. c. Not recorded. O d. Record it as an assetLiability management increases a bank's _________ risk and _________ risk.A. interest rate; priceB. liquidity; financialC. interest rate; financialD. price; interest rate
- Charges in the fair value of the effective portion of a hedging financial instrument are recognized as a part of current earnings of the period for which of the following? Cash Flow Hedge Far Value Hedge a b с d yes no yes no yes yes no no1._____ is the opposite of a sinking fund. A. Accrual B. Compounding C. Amortization D. Depreciation 2. A(n) _____ is any loan in which real property is used as security for a debt. A. annuity B. mortgage C.escrow D.unsecured loanIdentify investments as an investment in either debt (D) securities or equity (E) securities. Certificate of deposit
- 1. Investments in debt and equity securities that are held for current resale by banks and stockbrokerage firms are termed a. available-for-sale securitiesb. trading securitiesc. held-to-maturity securitiesd. marketable securitiesNegotiable instruments of ownership or debt such as stocks and bonds are examples of a. securities. b. debentures. c. portfolios. d. collateral.1. When a company purchases another company's bonds as an investment, an account called investments- XXXX is used. What type of an account and normal balance does this investment account have? a. Asset with a debit balance b. Asset with a credit balance c. liability with a debit balance d. liability with a credit balance 2. What does the word accrued mean when talking about accrued interest? a. The interest has not been earned, but it has been received b. The interest has been earned, but it has not been received c. The interest has not been earned nor received d. The interest is being deferred
- When borrowers borrow funds from the financial market through a financial intermediary, it is known as : Direct financing Indirect financing Insurance financing 2.Is an example of a financial instrument. Shares Bond All of the abovein relation to receivables, an entity is required by PFRSs toa. All of theseb. disclose any receivables pledged as collateralc. classify receivables as current and non-current in the statement of financial positiond. disclose all significant concentration of credit risk arising from receivables1. Anton wants to have a portion of ownership of a certain company. Which of the following should he invest? A. Annuity B. Bonds C. Shares D. Stocks 2. What writtwn contract is exhibited by a debtor that is legally binding which stipulates the amount borrowed at a specified tine in the future? A. Stocks B. Annuity C. Amortization D. Bonds 3. Which of the following covers when the frequency of the regular payment is different from the frequency of interest conversion? A. Bonds B. Ammortilation C. General annuity D. Simple annuity 4. What term is refers to the type of arrangement where composition is important but not order? A. Courting B. Permutation C. Multiplication rulw D. Combination 5. If p q is a tautology, then what can you inter about p and q? A. P and Q are either true or false but not both B. P and Q are always false C. P and Q are always true D. P and Q are either both true or false both false