Discount rate Year Costs Benefits Cashflow Discount factor Present Net Value (NPV) Discounted costs 140,000 O 48000 8% 2 40,000 200,000 40,000 200,000 160,000 160,000 Return on Investment (Rol) Total

Q: Required: a. Calculate the standard deviation of returns of each service provider. b. Which service…

A: In finance we use standard deviation as a measure of risk. Now standard deviation of returns is a…

Q: Compute for the effective interest rate per seminannual. Nominal rate = 7.43% compounded bi-monthly

A: Nominal rate = 0.0743 Number of compounding = 6 Effective interest rate per semiannual = ?…

Q: Town station is saving money to build a new loading platform. Three years ago they set aside 23,000…

A: Future Value = Present Value * ( 1 + Interest rate) n Interest rate = [ (Future Value/Present…

Q: As a financial consultant, you are given the following information about two companies, one levered…

A: Concept. 1.Value of firm = net income ÷ cost of capital(WACC) 2. Value of firm  = value of debt +…

Q: Stock R has a beta of 1.5, Stock S has a beta of 0.85, the required return on an average stock is…

A: Investors anticipate receiving compensation for the time value of money and risk. The time value of…

Q: How to calculate the projected annual revenue.

A: The annual revenue represents the total revenues for an accounting period. The revenues refer to the…

Q: Question 17 What is the amount of an annuity that is payable for 2 years at 6% compounded monthly if…

A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…

Q: Amount Interest

A: Future value means the amount which we get at some future time by investing the initial amount at…

Q: valuate three commonly used approaches to quantifying financial risks. Not satisfied with the first…

A: Risk management is the process of assessing risk and based upon the assessment, develop strategies…

Q: An important application of compound interest involves amortized loans. Some common types of…

A: Amortization of loan means the repayment process in which the principal amount and the interest on…

Q: I am going to invest $30,000 in a product that will generate a daily return of one to two…

A: The future value of money: The amount of money that is avalable from an investment at the end of the…

Q: The Ting Hai effect is a Hong Kong stock market phenomenon in which there is a sudden and…

A: Market efficiency- According to market efficiency theory, price of a stock reflects all available…

Q: period. structures, due to passage of time. one where equal payments are made at the end of each…

A: An annuity is a set of equal monetary payments made at equidistant periods in time, such as monthly,…

Q: Find out the 1- standard deviation 2- variance weight Investment*expected return stock weight…

A: Standard deviation The standard deviation of an investment refers to the level of risk associated…

Q: . Will Stephanie have enough funds for her investment in stocks and bonds, when needed? What will be…

A: Given: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00…

Q: Compute each stock's average return, standard deviation, and coefficient of variation. (Round your…

A: Return The profit or loss an investor makes from an investment is called a return. All investors'…

Q: Delta Games Private Limited is a digital gaming company creating fun-to-play games for millenials.…

A: As per the given information: Series-A investment - $5 Mn in the DeltaExpected rate of return -…

Q: Economic distress and mismanagement are events, identify the types of risk each of them entails and…

A: Systematic risk-This type of risk is undiversifiable risk because systematic risk is inherent to the…

Q: What type of firm generally has the highest proportion of fixed assets to total assets? a)…

A: The fixed assets are the long-term tangible assets like plant machines, equipment building, etc that…

Q: Question 6 If Php10,568 is the proceeds obtained after Php13,500 is discounted for 10 months, what…

A: Solution:- Discount rate means the annual percentage rate which is used for providing a discount. We…

Q: You have just purchased a car and taken out a $42,000 loan. The loan has a five-year term with…

A: Given Loan taken is $42000 term of loan is 5 years APR is 6.4%

Q: hat is the monthly investment amount required to generate a corpus of 10000000 in 8 years at return…

A: Future value of investment includes the amount being deposited and amount of interest accumulated…

Q: If the company chooses to drill today, what is the project's net present value?

A: The formula to calculate the PV of cash inflows is as follows: PV of cash inflows = CF1 - (1+r)-nr…

Q: uppose that Nintendo Co., Ltd. (NTDOY) is currently trading at $180 per share. Mark buys 200 shares,…

A: Brokers provide margins to client for trading and so that they can trade more and so that client and…

Q: To establish a revenue stream for your retirement, you deposit $89000 in an account with a nominal…

A: Information Provided: Initial Deposit = $89,000 Monthly payments = $311.50 Interest rate = 4.20%…

Q: Question 14 Find the present value of Php54,000 due in 4 years if money is worth 12% compounded…

A: Future value (FV) = Php 54000 Interest rate (r) = 12% Number of compounding per year (m) = 2 Period…

Q: Given the following probability distributions, what are the expected returns for the Market and for…

A: We will calculate probability weighted return for both the returns i.e. market return and security J…

Q: Question 8 What is the future value of a lump sum of $4,351 invested for 7 years at 5.4 percent…

A: Initial investment (I) = $4,351 Interest rate (r) = 0.054 Period (n) = 7 Years Future value = ?…

Q: What is financial repression and why does it exist?

A: Financial repression is the phrase used to describe policies used by governments to funnel money…

Q: I love South Africa, I really do. I love everything from the beautifully crisp beaches to the…

A: South Africa, the land which abodes colorful culture is known for its pristine beauty.   On the…

Q: Gregory invested an amount of $12,000 in a mutual fund. After 3 years and 3 months the accumulated…

A: Semi annual period means a period of 6 months. Hence there are two semiannual periods in a year.

Q: I have one question, I was instructed that the answer is 17.39 years and while it's a very small…

A: Here, Bond type = zero coupon bond Market Price (PV) = $318.46 Face Value of bond (FV) = $1,000…

Q: 1) Based on the data in the table below in which the average yield, the standard deviation of…

A: concept. 1.  systematic risk.  Systematic risk is also called the undiversifiable risk, market risk,…

Q: Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Company A 30% 7% 18% -22% -14% 10% 26% -10%…

A: We have to design two portfolios and then find their average return, standard deviation of return…

Q: 4. (a) Suppose you decide to short sell some GameStop shares. Their cur- rent price is $5, and you…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: just to make sure: in order to calculate the expected return of stock in our case the Rm is 7% or…

A: Formula for E(R) = Risk-free rate(Rf) + Beta of the stock x (Market Return(Rm) - Risk free rate(Rf))

Q: Which do you prefer: a bank account that pays 5.0% per year (EAR) for three years or a. An account…

A: Given, 5% per year for 3 years  Amount is $1

Q: y Miami just paid annual dividend of $25 today. The dividend is expected to grow at 8% for the next…

A: The price of stock can be calculated as the present value of future dividends and also the present…

Q: You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You…

A: Amount of mortgage is $480,000 Time period is 16 years APR is of 2.5% Compounded semi annually To…

Q: How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to…

A: Part 2: Interest Rate = 12% Time period = 8 years Amount required = P1,200,000

Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…

A: Principal (P) = $15,900 Rate (r) = 0.02 Time (t) = 11 Years Amount (FV) = ? Interest = ?     We will…

Q: Tom Inc. bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest…

A: Par value  (FV) = $1000 Annual coupon amount (C) = 65/2 = $32.50 Years to maturity = 8 Years Number…

Q: ABC Corporation plans to issue a 9%, 10-year, P5,000,000 face value bonds. It will incur P500,000 as…

A: Yield to maturity: Yield to maturity (YTM) is the total rate of return a bond will have achieved…

Q: What is the Current Yield of a Bond selling at $897 and has a Coupon Rate of 5%?     5.57%…

A: Solution:- Current Yield means the percentage of coupon amount to the current market price of bond.…

Q: Kawesha Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon,…

A: Information Provided: Kawesha Corporation Coupon rate = 9% Kawesha Corporation YTM rate = 7%…

Q: Consumer prices rose 1.0% in May 2022 and 1.3% in June 2022. One of your relatives made the claim…

A: In finance changes in consumer prices is used as barometer of inflation. Here the consumer prices…

Q: what is the expected present value of the benefit from the policy?

A: We get present value by discounting the future value with the discounting factor and dividing the…

Q: Complete the following table for the simple discount notes. Use the ordinary interest method. Note:…

A: Amount due at maturity = $4,400 Discount rate = 0.0625 or 6.25% Time = 170 days Bank discount = ?…

Q: If you invest $1,200 for 40 years at an 8.1% rate of return, you will have accumulated: (Keep 2…

A: Future value of a present amount With present value (PV), annual rate of return (r) and period (n),…

Q: The ABC corporation issues a 4% coupon bond that matures on June 30, 2032. You are talking to the…

A: Bonds are paid annual coupon payment periodically based on the agreed rate of interest on the bond.…