How incrising minimun wages affect compensation ?

Q: Luis won the lottery; however, the lottery company gave him the following two options to receive his…

A: Given,  Amount earns 4.5% p.a simple Interest  So, Per month Interest = 4.5%/12 = 0.375% Two months…

Q: can be replaced by a loan at an interest rate of 6% at a cost of 8% of the outstanding loan amount…

A: Loan payments: These represent payments made by the borrower to the lender for amortizing the loan…

Q: In a Modigliani and Miller world with no taxes, a 100% equity financed company has generated £1m…

A: Modigliani Miller theory states that in a perfect market the value of a company is the present value…

Q: 2. A stock is expected to pay a dividend of 50 pence per share in two months and in five months. The…

A:

Q: You nave just purchased a nome and taken out a $560,000 mortgage. The mortgage has a 30-year term…

A: Here we will have to make an amortized loan schedule. It should be noted that an amortized loan is…

Q: Discuss different financing alternatives based on the processing industry and market using Private…

A: The US Small Business Administration defines it as “financial support from external sources other…

Q: ABC Corporation acquired a call option for 5,000 pieces of P1,000-face value bonds of XYZ Corp. at a…

A: A call option is an option where the buyer of the option has the right but not the obligation to…

Q: The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its…

A: Given, The cost of equity is 16% Before tax cost of debt is 12%

Q: On the average, the announcement of a decrease in dividends can be interpreted by investors as bad…

A: A financial manager has to take three types of decisions for the company. They are investing…

Q: advantages and disadvantages of regulatory forbearance in banking. How useful has it been in…

A: Regulatory forbearance is the regulators' refusal to exercise their right to close down an insolvent…

Q: Why was land registration a critical issue in maintaining property rights?

A: The primary goal of property rights, as well as their primary accomplishment, is to eliminate…

Q: XYZ Foods is considering producing a new candy, Tira-Tira. XYZ has spent two years and P450,000…

A: NPV or net present value  is defined as the sum of the present values of all future cash inflows…

Q: Which of the following is a middle manager?

A: Branch manager is a middle manager which helps in sales acheive goals and overall position.

Q: Calculate the expected return for each stock assuming the Capital Asset Pricing Model (CAPM) is…

A: Risk free rate = 5% Expected return on market = 11% Beta of stock A = 0.7 Beta of stock B = 1.4

Q: XYZ is considering an investment which will cost $259,000. The investment produces no cash flows for…

A: Payback period is the period within which initial investment is recovered. Payback period = Years…

Q: Why would so many people invest in a company like AFCO? What could investors have done to prevent…

A: Most people invest in companies that are similar to AFCO in order to get faster and more profitable…

Q: BJI Funds is a hedge fund with a value of $110 million at initiation. BJI Funds charges a 2%…

A: Hurdle rate is the minimum acceptable rate of return  for an investment. High water mark - Highest…

Q: A stock has an expected return of 8% and a volatility of 9%. The stock is currently traded at price…

A: Computation of the price of a European call option on the stock.

Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: Fist we need to calculate monthly mortgage payment by using PMT function in excel…

Q: Which project below would you consider acceptable? One whose IRR is greater than the MARR One whose…

A: Solution: Internal Rate of Return (IRR) is the rate of return which the project yields ie. the…

Q: Construct a table showing the amortization of the loan.

A: Amortization: It is the process of paying the loan amount in periodic payments by the borrower to…

Q: QUESTION 38   ABC Inc. plans to issue $500,000 face value bonds with a stated interest rate of 10%…

A: Bond refers to debt instrument that is used to raise funds. It carries coupon payment that is…

Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: First we need to calculate monthly payment by using PMT function in excel.  Monthly payment…

Q: Jefferson's recently paid an annual dividend of $2 per share. The dividend is expected to decrease…

A: The Gordon growth model is used to determine the stock price based on a future series of dividends…

Q: Suppose TELSA's stock price is currently $20. A six-month call option on TELSA's stock with an…

A: One of the most fundamental concepts in current financial theory is the Black-Scholes model, often…

Q: As an Analyst you were tasked to compute for the Weighted Average Cost of Capital of various…

A: Weighted average cost of capital (WACC) is the average cost of capital of the firm from all sources…

Q: Mary bought a bike payable monthly for 10 months starting at the end of the month. How much is the…

A: Mortgage is a loan to buy an asset. The cost of the asset will be paid in equal instalments of…

Q: Sue is a customer account representative for ABC Company. She recently acquired several new accounts…

A: A scenario is defined as a set of events that are expected to occur. This is an example of a…

Q: Location A would require an investrment of $3.4 million and $55,000 per ycar to maintain. Location B…

A: Potential investments and chosen based on their benefits and costs. The investment option which…

Q: Did did the principal became 25600?

A: Cost of trade credits is the cost which a buyer will incur if he takes the trade credit. In the…

Q: into a short forward contract for 1,000 tons of potato at a price of P12,250 to be exercised one…

A: When you short the contract than you are in profit if the prices goes down your short prices and…

Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…

A: Loan: It is the amount of credit taken by the borrower from the lender. The borrower makes periodic…

Q: If both deals fail, then A will have a more negative return than B.

A: Merger arbitrage refers to the business in which stocks are traded by the companies which are…

Q: Please help with multiple choice questions.

A: Payback period refers to the time period within which a certain investment may be recovered. It is a…

Q: amoose plc is a company based in the Teeside which manufactures components for the motorised…

A: The Accounting rate of return The accounting rate of return considers the net income of a project…

Q: Suppose you take out a fixed payment loan of £1000 for 5 years. You will repay it in annual…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: 6. The U.S. manufacture sells the tools to a German company and has Euro receivable in 3 months. How…

A: Solution:- Futures means entering into an agreement to buy or sell something on a future date at the…

Q: If you want to have $60.000 in 8 years, how much do you need to deposit in the bank today if the…

A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…

Q: What was the earning per share on Abercrombie & Fitch for the year July 7, 2015 through July 7,…

A: Earnings Per Share: It represents the earnings made by the company relative to each share…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: Evaluation of the project on the basis of initial cash flow and earnings before taxes.

Q: ABC Corporation will be acquiring a P3,000,000 face value loan three months from now. It entered…

A: Interest rate Guarantee: It is the arrangement with bank to fix a most extreme  financing cost to be…

Q: Archer Arrow Company examined its cash management policy and found that it takes an average of 5…

A: Answer -    Part 1 -  Calculation of Disbursement float - = Amount of Checks written per day *…

Q: a. Calculate the average rate of return for each stock during the 5-year period. Do not round…

A: Expected return refers to the return earn by an investor on the amount invested during a period of…

Q: Contrast and compare sources of business finance and assess various determinants of the cost of…

A: There are different financing options available to the firm. It includes, preference shares, debt,…

Q: Determining whether an amount is of a capital or a revenue nature forms part of the subjective test.…

A: Capital is the amount invested in the particular asset, while revenue is the amount earned on the…

Q: Eric has an option position on Langdon stock that results in a zero dollar payoff when the stock…

A: Purchasing a put option means the right to sell at certain security only if stock price is less than…

Q: Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow.…

A: Ratio Analysis is the financial analysis technique to analyse the company's financial position. It…

Q: Suppose the current 1-year discount rate on US government bonds is 3% and the 2- year rate is at 6%.…

A: 1 year rate (r1) = 3% 2 year rate (r2) = 6% Let 1 year rate next year = i

Q: An initial investment of $12,000 on an Artificial Intelligence (AI) powered cyber defense project is…

A: Net Present Value is the difference between present value of cash inflows and cash outflows. At IRR,…

Q: The Cookie Jar bakes 80 dozen cookies at a cost of $1.08 per dozen. If a markup of 60% om selling…

A: Solution:- We know, markup means the percentage margin added either on cost or sales price.

Workers Compensation Plan

Workers' compensation is the benefit provided by the employer to the employee in the form of insurance to cover for their lost wages, medical expenses, disabilities, and death that occurred during the course of employment. It is a government-mandated system and is offered by the employer during the course of employment. Small business owners also have the liability to provide compensation benefits under the government-mandated system.