Q: stion 4 Ellen now has $125. How much would she have after 8 years if she leaves it invested at 8.5…
A: The future value of money includes the amount being deposited today and compound interest being…
Q: Kohwe Corporation plans to issue equity to raise $50 million to finance a new investment. After…
A: As per the given information: Investment amount - $50 millionFree cash flows - $10 millionShares…
Q: All rates in this question use semi-annual compounding. You observe a two year spot rate of 5.10%,…
A: Given: 2 year spot rate r2= 5.10% 1 year forward rate 2 years from now "f3" = 4.80% 3 year spot rate…
Q: What is the PRESENT VALUE and the AMOUNT of a Php7,500 ordinary annuity payable quarterly for 12…
A: Quarterly payment (C) = Php7,500 Quarterly period (p) = 48 (i.e. 12 years * 4) Quarterly interest…
Q: please choose an Exchange Traded Fund (ETF) and discuss the characteristics of this ETF. Pick any…
A: The chosen ETF is SPDR S&P 500 ETF Trust SPDR stands for Standard & Poor Depositary Receipts…
Q: d) What is the WACC of e) What would be the firm's value and overall cost of capital, value) debt in…
A: MM Proposition II with taxes: The MM Proposition I with taxes states that the value of the levered…
Q: Accumulate P30,000 for 3 years and 6 months at 16% compounded semiannually.
A: Future Value = P30,000 Time Period = 3 Years and 6 Months Interest Rate = 16%
Q: n two different markets, you see the following prices. Market #1: 20 Call = 5.50, 20 Put = 3.50,…
A: Call option means right to buy, while put option means right to sell. The options are quoted at…
Q: odaFizz paid a dividend of $2 per share last year; its dividend has been growing at a rate of 2% per…
A: The dividend is paid to equity shareholders as a share in the profit. The dividends are the amount…
Q: All stocks pay dividends, and therefore one can count on them having a dividend yield. OA. True OB.…
A: The company pays a part of its ptofit as Dividend and a part of profit is retained by the company…
Q: Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics,…
A: Par Value is $1,000 Coupon rate is 8% Compounding frequency is Semi-annual Current Selling price is…
Q: Use the ‘Liquidity Premium Theory’ to explain the shape of the yield curve.
A: Liquidity Premium Theory states that investors will require a higher rate of return(interest rate or…
Q: discuss and describe in detail Small and Medium Enterprises?
A:
Q: A new robot has a first cost of $380,000, and an annual operating cost of $88,000 in years 1 and 2,…
A:
Q: Zeta Printers is considering replacing the existing press with a more efficient press. The new press…
A: After tax salvage value of the fixed asset is calculated as shown below. After tax salvage…
Q: The lower the MARR (minimum attractive rate of return), the higher the price that a company should…
A: MARR is often known as the hurdle rate in finance. Now any type of investment is associated with…
Q: A stock price is currently $100. It is known that at the end of 1 month it will be either $90 or…
A: Current Stock Price is $100 Time period is 1 month Stock price at the end of 1 month can be $90 or…
Q: present value of $153,000 to be received in 14 years from today. Assume a per annum discount rate…
A: The present value of the amount can be computed as follows:- Present value= Amount/ (1+r)^n Amount =…
Q: The discount rate can also be referred to as the?
A:
Q: Identify the main ethical arguments that
A: Insider trading is considered as unethical in corporate world and there are huge punishment for…
Q: Finance Which one of the following statements is not correct? a) Market timing theory argues that…
A: The wrong statement is b) According to static trade-off theory agency costs of equity increase when…
Q: )Alex Karev has taken out a $180,000loan with an annual rate of 9 percent compounded monthly to pay…
A: Payment per month refers to the amount every month for a particular period of time up to the…
Q: QUESTION 11 Use the formula A= P(1 + rt) to find the indicated quantity. Allan borrowed $5500 from…
A: Principal amount borrowed (P) = $5500 Interest rate (r) = 0.05 Period (t) = 10 / 12 (i.e. 10 months…
Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…
A: Bond 1: Annual coupon rate = 6% Semi-annual rate = 6%/2 = 3% Dirty price “P” = $99.50 Let Face Value…
Q: I am currently 42. If you are going to retire at 65, post-retirement living expenses are $20,000…
A: Time Value of money: The time value of money (TVM) theory states that because of its potential for…
Q: What is the initial book value of a new piece of equipment given the following information? Note…
A: Book value refers to the amount of an asset according to the books or accounts as shown in the…
Q: Mrs Galicia gave her sisters $3000 each to invest. The investment will last 8 years. The table shows…
A: Future Value: It shows the future value of the present amount of investment. It is estimated by…
Q: Monthly Income or Expense Item Allowance Video Games Babysitting Earnings Snacks Art Supplies…
A: As we are provided with the expense and income structure of both the individuals. First have to find…
Q: The price of a stock on February 1 is $124. A trader sells 200 put options on the stock with a…
A: Put option is a right to sell particular security. The option buyer will have the right to sell the…
Q: Describe the order of claimants and how it impacts the returns that various providers of capital…
A: Claimants refer to the creditors who are entitled to receive the payments, from the debtor…
Q: Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned…
A: IRR Internal rate of return (IRR) is the rate to be earned from a capital project. It is the…
Q: The DISADVANTAGES of equity finance are KELEMAHAN kewangan ekuiti i. Entrepreneur…
A: A firm can obtain financing mainly in two ways. One is equity financing and the other one is debt…
Q: What is lease assignment? What is subletting? Explain at least one main difference between these…
A: In the world of finance in general and letting out of properties in particular the concepts of lease…
Q: Adrian pays P718822 cash and the balance in 43 quarterly payments of P29243 for a house and lot. If…
A: A mortgage is a covered loan taken out for the purchase or maintenance of a property. It is covered…
Q: An automobile manufacturer is considering the installation of a high-tech material handling system…
A: IRR is a method to evaluate the profitability of the potential investment. IRR is a rate where the…
Q: Zootopia farms is consider replacing one off its tractors. The tractor in question was purchased 2…
A: Given: Cost of tractor is $50,000 Tax rate =35% Life = 4 years Discount rate = 14%
Q: The Bloomberg screen below shows the Nasdaq Index price over the last year. Describe the technical…
A: In the chart, there are 3 technical indicators used:50 day simple moving average (SMA) - pink…
Q: ou purchased some shares in Bandicoots R Us on 25 October 2022, at price $68.29. On 09 April 2023…
A: The selling price and dividends are the cash inflows while the purchase price is the cash outflow…
Q: Underwriting Spread (LO15-2) Solar Energy Corp. has $4 million in earnings with four million shares…
A: Let us calculate EPS (earnings per share)EPS = Total earnings/number of shares outstanding=…
Q: 1. Given following information: Paula previous balance Purchase clothing and dining Leisure and…
A: Credit cards are paid on monthly basis and interest and finance charges are calculated based on the…
Q: First holding period return need to be calculated, then annualized return.
A: Annual rate of return for first 10 years (r1) = 0.12 or 12% Annual rate of return for 10 to 15 years…
Q: Required: a. What will total fees be for Fund (A)? For Fund (B)? b. Would one of the fee…
A: Subpart a) Total fees charge for the fund A will be fees on capital commited @0.45% plus fees on…
Q: Financial analysis is very important factor for a successful project, discuss its strength and…
A:
Q:
A: As given : The fund manager outperformed the CAPM by 4% per year for last 30 years. But the charges…
Q: Approximately , what is the value of ( P ) it F - 114140 , n - 9 years , and in 8 % per year ? a .…
A:
Q: As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a…
A: Operating cash flow of the project helps in understanding if the business is able to generate…
Q: Earnest T needs $900 for his next trip to Raleigh. He has $660 in cash. How long in years will it…
A: Current value (P0) = $660 Future value (FV) = $900 Quarterly interest rate (r) = 0.03325 (i.e. 0.133…
Q: Assuming an interest rate of 5%, which three cash flows have the best Net Present Value? (Remember…
A: PVF (5%,1year) = 0.9524 PVF (5%,2year) = 0.9070 PVF (5%,3year) = 0.8638 PVF (5%,4year) = 0.8227 PVF…
Q: You just purchased a parcel of land for $40,000. To earn a 9% annual rate of return on your…
A: Future value of a present amount The future value (FV) for a present value (PV) that earns annual…
Q: At 15% compounded annually, approximately how long will it take $750 to double based on the Rule of…
A: Rule 72 method is an approximated way of determining the number of years it will take to double the…
Step by step
Solved in 3 steps with 4 images
- The General Hospital is evaluating new office equipment offered by three companies. Cost Annual benefit End of useful life salvage value Useful life (yrs) Company A $500 $130 SO Select one: 14.0 9.0 19.0 24.0 5 Company B $600 $115 $250 5 Company C $700 $100 $180 12 The incremental rate of return between Company B and Company C is close to (%)The Royal Victoria Hospital is evaluating new office equipment offered by three companies. Company A Company B Company C Cost $500 $600 $700 Annual benefit 130 115 100 End of useful life salvage value 0 250 180 Useful life (yrs) 5 10 15 The incremental rate of return between Company A and Company B is close to: Select one: a. 30% b. 25% c. 9.5% d. 8.5%Bennington Health purchased three dialysis systems each at an installed cost of $100,000 for different locations in the city. The AOC over 2 years varied as shown. (All values are costs.) The load factor in terms of percentage of clients at each location is shown in decimal form. Find the expected AW of costs for each location at i = 15% per year. Location North South West Load 0.50 0.35 0.15 Year AOC Per Year 0 100,000 100,000 100,000 1 20,000 15,000 12,000 2 8,600 11,500 5,600
- Maintenance costs for a machine with an expected 10-year life are estimated to be $1,700 each year for the first 5 years Followed by a $2,000 expenditure in year 8 and a $2,500 expenditure in the year 10. What is the equivalent present worth cost? Assume i= 6% per year. Select one: O a.-10,233 O b.-11.497 Oc-9,812 O d.-8,127 O e.-6863General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services Fixed $10,000,000 Variable cost per inpatient day 200 Charge (revenue) per inpatient day 1000 The hospital expects to have a patient load of 15,000 inpatient days next year. a. Construct the hospital’s base case projected P&L statement. b. What is the hospital’s breakeven point? c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? d. Now, assume that 20 percent of the hospital’s inpatient days come from a managed care plan that requests a 25 percent discount from charges. Should the hospital agree to the discount proposal?3. St Barnabas Hospital is opening a satellite office. Your financial projections for the first year of operations are as follows:Revenues (10,000) $500,000Wages and Benefits $350,000Rent 8,000Depreciation 50,000Utilities 4,500Medical Supplies 70,000Administrative Supplies 20,000Assume that all cost are fixed except supply costs, which are variable. Furthermore, assume that the clinic must pay taxes at a 30 percent rate.a. Construct the clinics projected P & L statement.Insert your response here. b. What number of visit is required to break-even?Insert your response here. c. What number of visits is required to provide you with an after-tax profit of $100,000?Insert your response here.
- Problem 1c: Consider the following information for Rosebud Lane Hospital. The number of admissions for the year are expected to equal 1000, but could vary from 750 to 1250. Rosebud's fee-for-service is $2,000 under a prospective payment system. Under a capitation reimbursement system, Rosebud must cover 1000 patients at a capitation payment of $2,000. Rosebud's annual fixed costs are $500,000 and it variable cost per admission is $1,500. 1c. Calculate Rosebud's net profit under the Fee For Service Reimbursement method if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.) 1d. Calculate Rosebud's net profit under Capitation if admissions are 1250. (Answer to the nearest dollar. Do not include the dollar sign in your answer.)sing ACM, determine hourly rate to charge for this scenario: Machine cost $350,000 (w/tires) Regular maintenance $20,000 per yr Tires replaced once after 3 years; cost $4,000 present and in future Major repair in year 3 for $10,000 Salvage for $90,000 after 6 years 1,800 hrs/yr MARR = 6%5-64 Austin General Hospital is evaluating new lab equip- ment. The interest rate is 12% and in each case the equipment's useful life is 5 years. Use NPW analysis to pick which company you should purchase from. Company A B First cost $13,500 $20,000 $15,000 1,500 1,800 1,100 9,000 O&M costs Annual benefit 9,500 11,000 Salvage value 3,500 6,000 4,000
- A company is considering two types of equipment with the following informations. Using benefit - cost ratio which equipment must be adopted if money is worth 10% per annum. Туре А P5,000.00 1,250.00 1,080.00- 2,380.00 Туре В MP11,750.00 3,750.00 1,130.00 3,880.00 First Cost Salvage Value Annual Maintenance Cost Annual Benefits Life, years 12 G00.02.A thermoplastic film manufacturer is trying to decide between 8 types of thermoforming molding processes to be added to its molding operation. The estimated costs and revenues are shown below. Compare them on the basis of the IRR method and determine which process should be selected if the company's MARR is 7% per year. B C D E F G Initial Costs $13,000 $12,00o $11,000 $12,500 $16,000 $26,000 $19,500 Annual expenses $6,550 $9,125 $7,000 $8,000 $7,000 $11,000 $12,000 $13,000 Annual revenue $9,000 $10,000 $9,500 $13,500 $16,000 $16,200 Lifetime(years) 9. 9 9. 9. IRR 11.54% 6.88% 9.17% 11.81% 5.24% 4.86% 6.48% Perform an IRR-incremental analysis to find the best alternative.A company is going to buy a new equipment for manufacturing itsproduct. Four different equipment’s are available; costs, operating and otherexpenses are as follows:Equipment A B C DFirst Cost Php 24,000 Php 30,000 Php 49,600 Php 52,000Power per year Php 1300 Php 1360 Php 2400 Php 2520Labor per year Php 10,600 Php 9320 Php 4200 Php 2700Maintenance/year Php 2800 Php 1900 Php1300 Php 700Taxes & Insurance 2% 2% 2% 2%Life; years 5 5 5 5 Money is worth 10% before taxes to the company. Which equipment shouldbe purchased ? Choose which method is applicable.
