RUZTIN 204/E2I Financial Manageme Networking capital equals. O a. Current Assets minus Current Liabilities O b. None of them is correct O c. Current Assets add Current Liabilities O d. Current Assets multiply Current Liabilities

Q: The cost price of 35 pairs of sport shoes was $350 per pair. AG Sport Center plan to sell all the…

A: Concept. Gross profit = selling price - cost of goods sold. Hence , Selling price = gross profit +…

Q: 18. Troy's Tire Mart has a replacement value of $965, 000 and is insured for $588, 000, with an 80%…

A: The following information has been provided in the question: Replacement value =$965,000 Insurance…

Q: The cost price of 35 pairs of sport shoes was $350 per pair. AG Sport Center plan to sell all the…

A: Mark down is effectively devaluation of a product. That is, the seller reduces the actual list price…

Q: Sololo Sloes has sold a home to the American First Family in Nairobi Karen area for $12 million. The…

A: Foreign Exchange risk: It  is a financial risk that exists when a monetary exchange is designated…

Q: PT. BFI, currently has a capital structure of 20% debt and 80% equity. BFI's debt is in the form of…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: True or False. 1. Financial goals can be classified as to timing and purpose. 2. Consumable-product…

A: Financial goals- are the target i.e., saving target, spending target , investment target, etc., set…

Q: A homeowner just obtained a 30-year (360-month) mortgage for $120,000. The mortgage has a fixed…

A: Loan amount (P) = $120,000 Monthly interest rate (r) = 0.00666666666666667 (i.e. 0.08 / 12) Monthly…

Q: Investment Banks operate and earn profits by:   a) Purchasing undervalued securities on the market…

A: The answer is option f). None of the other answers.

Q: Galaxy Satellite Co. is attempting to select the best group of independent projects competing for…

A: NPV and IRR are two techniques of capital budgeting. These techniques are used to evaluate the…

Q: According to the CAPM, the expected return of an asset that has just diversifiable risk and no…

A: As per CAPM,  Expected Return = Rf + ( Beta * (Rm -Rf)) Rf = Risk free rate of return Rm = Market…

Q: 13. A discounted loan of $3,000 at a simple discount rate of 6.5% is offered to Mr. Jones. If the…

A: The amount of discount depends on the period and interest rate and amount of the loan taken and cash…

Q: 3. Maricel borrows P 10 000 with interest at 15% compounded monthly. How much should she pay at the…

A: To calculate the due amount we will use the following formula   Amount due = P*(1+r/m)t*m Where P -…

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: Determine the present value of the following single amounts (EV of $1. PV of S1. EVA of S1 EVA.of…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: In 1999, the euro was trading at $0.82 per euro. If the euro is now trading at $0.99 per euro, what…

A: To calculate the percentage change in euro's value we will use following formula   Percentage change…

Q: Discuss the Crowdfunding Campaign process with appropriate examples.

A: Crowdfunding is defined as the method or techniques used for raising the finances or funds from the…

Q: XYZ just went public. As a growing firm, it is not expected to pay a dividend for the first five…

A: To calculate the stock price we will use following formula   Stock price = (D6/r)/(1+r)n Where D6 -…

Q: An analyst is studying the movement of the stock ABC. His research and came up with a different…

A: Probability of Economic conditions; Strong (Ps) = 0.30 Normal (Pn) = 0.50 Weak (Pw) = 0.20     Rate…

Q: Provide an evaluation of the two proposed projects whose cash flow forecasts are found below:…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Using the corporate valuation model approach, what should be the company's stock price today?

A: Free cash flow = (EBIT*(1-T)) + Depreciation exp. - Capital expenditure - Changes in working capital…

Q: Hamilton set the reproduction cost of a building at $750,000. If it has lost 35% of value and sites…

A: Value of Property = Value of building + Value of site   Value of building = Cost of building * (1-…

Q: With credit tranching, the subordinated tranches may absorb credit losses as they occur.   Select…

A: Credit Tranching:- It is a system which is generally used by the international monetary funds. under…

Q: Fample Problem: Principal = P150,000 Period P I A rate = 18% 1 term = 1 year compounding mode…

A: The more is compounding more is accumulated interest and more is the future value of money…

Q: corporate issue will be brought to the market at a spread of T+ 68bp. Explain what this means and…

A: Corporate bonds are issued with some benchmark interest rate and some addition to some benchmark…

Q: s funded by both debt and equity with a debt to equity ratio of 100%. If Gs Co. has a retained…

A: In this given case, debt to equity ratio is 100% which means debt is 100% of equity , so this lead…

Q: The current exchange rate between the Japanese yen and the U.S. dollar is ¥90 per dollar. If the…

A: The exchange rate is the rate at which one currency can be bought for another. Depreciation of a…

Q: Discuss the differences between the three forms of capital market efficiency?

A: Capital market efficiency- It is related to a condition where all the information pertaining to the…

Q: The invoice date for a bill is April 14 with the terms 2/15 ROG. If the goods were received on June…

A: Discount date: April 29 Due Date: May 19

Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…

A: Here, Cost of Route is $15 million Cost Saving is 17,500 people $100 per year Yearly Expense is…

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: A 11-year, semiannual coupon bond sells for $938.52. The bond has a par value of $1,000 and a yield…

A: Price of the bond (P0) = $938.52 Maturity value of the bond (Z) = $1000 Semiannual yield to maturity…

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: True or False The following statements relate to liquidation. a.) Compared to a forced liquidation,…

A: Liquidation value is total value of the company's physical assets when these assets are sold out.

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: has an expected return of 14%, its stock is currently trading at a price of does this indicate the…

A: Growth rate of dividends can be found from constant growth of dividend model assuming that dividend…

Q: What is the company’s after-tax weighted average cost of capital if National Co. pays 25% taxes?…

A: Weight of long term liabilities (Wl) = 0.30 Weight of preferred stock (Wp) = 0.30 Weight of common…

Q: You are the financial manager of the firm LAB.inc which does research in the medical field, your…

A: Given, The yearly payments $100,000

Q: Phillips Equipment has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with…

A: Weighted average cost of capital (WACC) When a firm has different sources of financing, the cost of…

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: What is the price of a U.S. Treasury bill with 36 days to maturity quoted at a discount yield of…

A: Treasury bills are referred to as short-term debt obligations which are backed up by the U.S.…

Q: Mang Moises needed a refrigerator for his canteen. The refrigerator, which costs P:26,000, may be…

A: In financing, amortization is the amount of loan, in which principal loan paid according to the…

Q: The future value of $3000 deposited a year of 4 years earning 6 percent would be

A: The question is related to Time Value of money. Future Value  is the value at some future time of a…

Q: Which of the following statements is/are true? Statement 1: A key role of financial markets is to…

A: Corporate finance activity involves activities such as the amount of fund required to obtained,…

Q: Art purchase a house and lot worth ₱1,410,000, he made a down payment of ₱150, 000 and the remaining…

A: A home loan taken from a bank or a financial institution is termed as mortgage. The home and the…

Q: Two mutually exclusive alternatives are being considered for the environmental protection equipment…

A: Annual Worth: It  is  the  equivalent uniform yearly worth of all estimated  receipts  and costs…

Q: our department is choosing between two technology projects to launch in the upcoming quarter.…

A: Net present value is the difference between the present value of cash flow and initial investment of…

Q: he value of your investment increased by 9.77% last year, and your purchasing power decreased by…

A: Inflation is a situation of general increase in prices. Inflation leads to decrease in purchasing…

Q: A bank applies a semi-annually capitalized nominal rate of 11.8% for an investment. Calculate…

A: The effective rate for any period refers to the actual proportionate cost which will be paid for…

Q: The GS Co has a debt ratio of 30%. The unlevered beta of GS Co. is the 1.50 while the applicable tax…

A: As per formula   Levered beta = Unlevered beta*[1+(1-Tax rate)*(Debt/Equity)] Where Unlevered beta =…

Q: A tractor was purchased for $74486 and at the bank interest rate of 4.67% per year. The residual…

A: Compounding:  A compounding is the interest charged on interest. When any investment is made for…