what is means activity ratio, liquidity ratio, and Profitability Ratio for a company?

Q: U.S. Bancorp and Wells Fargo & Company entered into the fixed-for floating interest rate swap with…

A: Notional principal = $1,00,00,000.00 Fixed rate = 6.50% Floating rate = 4.6% + 220bps Frequency of…

Q: Various types of budgets facilitate understanding about the big picture of a business. There are…

A: Budget A budget is the estimate of incomes and expenses over a specified period. A budget helps in…

Q: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 million; rD =…

A: Debt (D) = $100 million Equity (E) = $300 million Total capital = $400 million (i.e. $100 million +…

Q: Which is TRUE OR FALSE? I. Assets do not remove money from your pocket. II. Sponsorships are…

A: Assets are the resources owned by the business that helps the business in generating cash flow and…

Q: Consider the following two stocks:  - Stock A is expected to pay a dividend of $12 forever;  -…

A: Value of stock can be found out from the constant dividend growth model and from dividends and…

Q: You want to construct a portfolio containing equal amounts of U.S. Treasury bills, stock A, and…

A: Proportion invested in Stock A, Stock B and Treasury Bills are equal that is 1/3 Beta of Stock A is…

Q: at what price should the bonds sell

A: Bond is a type corporate loan issued by companies to finance their operations. The current price of…

Q: 40) What is the expected portfolio's return if: Sharpe ratio of the optimal risky portfolio:…

A: Sharpe Ratio:- The excess return earned over the risk free return on portfolio to the portfolio’s…

Q: Rayleene is getting a loan to buy a used car from a seller. The price of the car is $8200.00. She…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: o buy equipment ; current price of it is ( $ 50,000 ) . So , he requested the help of a bank , the…

A: A bank costs a borrower an interest rate that is a percent of the principle, or the amount…

Q: Shawn is buying a new Jet Ski for $12,500. He is considering two credit options. Option A offers a 6…

A: There are various alternatives to financing. Taking a loan from a third party is an easily…

Q: Assume the following data for a stock: Beta = 1.5; risk-free rate = 4 percent; market rate of return…

A: Beta (b) = 1.5 Risk free rate (Rf) = 0.04 Market rate of return (Rm) = 0.12 Fair return = ? Expected…

Q: Since only one sign change occurs in the net cash flow series, the project is a simple investment,…

A: Initial Investment = 2,500,000 Periodic Payment = 7,725,000 Lumpsum Payment at 15 Years = 80,000…

Q: A stock model has the parameters u = 1.6, d = 0.4, So = 18. A European call option, expiring at t =…

A: All calculations are done in excel, So, there is no intermediate rounding. Workings: If upward…

Q: A 20-year loan of 20, 000 may be repaid under the following two methods: i. amortization method with…

A: given that: Loan Amount=20000 Loan period= 20 years The excel formula is:

Q: 31) Today, Dexter is investing $24,000 at 5.5 percent, compounded annually, for 6 years. How much…

A: Compounding technique is an important concept of Time Value of Money, where, the interest earned on…

Q: The face value of a bond is ₱100, 000, 4-year maturity period, and 3.2% coupon. How much interest…

A: Face value = P100,000 Years to maturity = 4 Years Coupon rate = 3.2%

Q: An investor is considering an investment in a short-term debt instrument with time to expiration of…

A: Face value (F) = 150,000 EUR Maturity period (t) = 87 Days Discount rate (r) = 0.038 Days in a year…

Q: Mr Price, has no debt outstanding and a total market value of R150,000. Earnings before interest and…

A: Here, To Find: % Change in EPS when the economy expands =?

Q: Is the value of money affected by time, and if it is, in which direction? O a. It is not affected O…

A: The value of time of money is the idea that the money currently available is worth more than the…

Q: Suppose that the CAPM holds and that BP’s stock has a beta of 2. If the expected market return is…

A: Required rate of return on stock may ne calculated using CAPM formula as given below   Required rate…

Q: You have 4 types of assets in your portfolio: Corporate bonds earn 5% return and make up 15% of…

A: A portfolio is a basket of securities. Many investors purchases diversified stock in order to reduce…

Q: D6 Suppose the ASX200 Index is currently at 7,406, the expected dividend yield on the index is 2…

A:

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

A: Future Value = Present Value*(1+Interest rate)n Where n = Time period

Q: A 25-year coupon bond pays an annual coupon of 5 and has a face value of 100. If the current price…

A: Annual Interest = 5% FV = Face Value of the Bond = 100 Price = Current Market Price = 100 Maturity =…

Q: Debt payments of $1,650 and $2,400 are due in five months and nine months, respectively. What single…

A: Payment in five months (m5) = $1,650 Period of first payment (t1) = 5 months Payment in nine months…

Q: What is a beta of common shares of Revolve Group, Inc., if: The correlation coefficient between the…

A: Beta is the sensitivity of a stock relative to the overall market. Beta is a measure of systematic…

Q: ou have 3 accounts: Account A has a $100 balance and a $300 credit limit. Account B has a $100…

A: The debt to credit ratio is the percentage of Credits availed divided by the Credit Limit Available.…

Q: Mr. Cruz borrowed P100,000 from BPI at a stated rate of 6% payable over a period of one-year. What…

A: Loan amount = P100,000 Interest rate = 0.06 Interest amount = P6,000 (i.e. P100,000 * 0.06)…

Q: Sinar Harapan Berhad just paid a dividend of RM3.20 per share yesterday. The financial analyst has…

A: The question is related to Dividend discount growth model. The price of share will be calculated…

Q: Our company, Mom and Pop Inc is at the the end of the fiscal year. We observe that in the market our…

A: Dividend Growth Model: It is  valuation model,  where  fair worth of stock is determined , assuming…

Q: series during those five years to provide the amount to be paid directly. What is the amount of…

A: Loan Amount: It refers to the amount of credit provided by the lender to the borrower. The borrower…

Q: 1.Beloit Co. is a manufacturer of mini-doughnut machine makers. Early in 2018 a customer asked…

A: Answer -  Where,  Salvage value = 12% * P, where P is Purchase price Cash flow = $140,000 Rate of…

Q: Imagine there are two companies, East Wafer and West Wafer, which produce silicon wafers, the base…

A: A cartel is a group that independent companies form in order to fix prices or limit the amount of…

Q: in conducting valuation analysis, critically discuss activities which determine the value of a firm,…

A: The process of estimating the approximate value or worth of an asset, whether it be a business,…

Q: Albreit Doghut, a portfolio manager of the Danielson Financial Group meets with Kristina Teqward, a…

A: Investment policy statement:- Investment policy statement(IPS) is an official or formal document…

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…

Q: If a stock consistently goes down (up) by 1.3% when the market portfolio goes down (up) by 1.01%,…

A: Data given: Change in stock return=1.3% Change in market return=1.01%

Q: Fifteen years ago, Jackson Supply set aside $130,000 in case of a financial emergency. Today, that…

A: To calculate the interest rate we will use the below formula   Interest rate = (FV/PV)1/N-1 Where FV…

Q: 3. A firm borrowed $1.8 million at 10% per year interest. If the firm repaid the loan in a one…

A: Amount of payment can be calculated as: = Amount borrowed * (1 + rate)^ periods

Q: A person try to buy an apartment five years from now , assuming that the first deposit was ( $ 3000…

A: Accumulated value after 5 years =  3000*(1+i)^4 + 3300*(1+i)^3 + 3600*(1+i)^2 + 3900*(1+i)^1 + 4200…

Q: i) Based on the information provided above, apply Gordon’s growth model to compute the dividend…

A: Gordon Growth Model: This model helps in valuing the share of a company by discounting all the…

Q: Your Company is considering a new project that will require $2,000,000 of new equipment at the start…

A: Solution:- Depreciation is a tax deductible expense and therefore companies get tax shield on…

Q: One should determine the after-tax weighted average cost of capital by   Multiple Choice A)…

A: After-tax weighted average cost of capital = Weighted average after tax cost of debt + Weighted…

Q: You have 4 types of assets in your portfolio: Corporate bonds shares are valued at $250 and make up…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: Liliac Berhad is a unlevered firm with the cost of equity 20 percent per year. Based on the current…

A: Unleveraged firm means a firm in which there is no debt in the capital structure. In other words it…

Q: RUZTIN 204/E2I Financial Manageme Networking capital equals. O a. Current Assets minus Current…

A: Working capital is the amount required to run day to day business operation. It is also known as…

Q: Return on asset is a term often used to express income earned on capital invested in a business…

A: The financial ratio of a company's profitability to total assets is known as return on assets (ROA).…

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: You have a certain investment with the shown cash flow diagram. The investment rate is 15% and the…

A: To Find: Value of X