Why do insurance companies, both life and property and casualty, invest large amounts in money market securities? Explain.

Q: Question 5 The Income Statement and additional data of Crawford Properties, Inc., follows: CRAWFORD…

A: Cash flow statement is classified into three categories: 1) Cash flow from operating activities 2)…

Q: converted quarterly. What should be Stella's quarterly deposit?

A: Information Provided: Future value = 350,000 Period = 4.5 years Interest rate = 8%

Q: Compute the total and annual return on the following investment.   Three years after paying $3400…

A: When we make an investment we always look for a return. Return can be said to be the gain that we…

Q: Assume that the real risk free rate is 2% and the average expected inflation rate is 3% for each…

A: Given, Real risk-free rate is 2% Average expected inflation rate (IP) is 3% Default risk premium…

Q: In which month does the amount of principal in a monthly payment first exceed the amount of…

A: Information Provided: Mortgage amount = $500,000 Period = 30 years Interests rate = 4.24%

Q: Compute the IRR, NPV, PI, and payback period for the following two projects.  Assume the required…

A: Given,  Cashflows of Project A Cashflows of project B

Q: Adanola enjoys buying and selling sports cards (baseball, football, basketball). She thinks that she…

A: We have the behavior of Adanola, who buys and sells items as her hobby. Now, she is thinking of…

Q: Treasury securities that mature in 6 years currently have an interest rate of 7.75 percent.…

A: Data given: Nominal interest rate = 7.75% Maturity period (t)=6 years Expected Inflation= 5 % in…

Q: new solid waste treatment plant is to be constructed in Washington County. The initial installation…

A: Capitlized cost is the equivalent cost of all cost that are going to occur in the future in the life…

Q: Giovanna gave a note amounting to Php15,000 to Alessandro on October 12, 2011 which matures after 2…

A: Simple interest is very simple straight forward that means there in no compounding of interest and…

Q: Susan bought a 18-year bond when it was issued by Octodan Corporation 2 years ago (NOTE: the bond…

A: The bonds are the units of the debt instrument issued by either the corporation or government, the…

Q: Assume that time is measured in years and that interest rates are constant.  A cashflow of amount…

A: The present value at time 0 of the cashflows  = Annual Cash Flow * PVA of $1 at 3% for 20 periods

Q: From the chart below, what is the correct Return on Equity percentage? Current Assets $1,350…

A: Return on equity measures the percentage of income from the equity investment of a firm. Return on…

Q: Citadel LLC is one of largest hedge fund firms in the United States. Citadel now holds $360 billion…

A: Here, Hedge fund balance = $360 billion Management fees = 2% Incentive fees = 20% Appreciation in…

Q: Discount rate Year Costs Benefits Cashflow Discount factor Present Net Value (NPV) Discounted costs…

A: Discount Rate 8% Year 0 1 2 Cost                                               140,000.00…

Q: Suppose you are the money manager of a $4.66 million investment fund. The fund consists of four…

A: Market return (Rm) = 0.10 Risk free rate (Rf) = 0.05 Investment in fund = $4,660,000   We will use…

Q: The Sisyphean Corporation is considering investing in a new cane manufacturing machine  that has an…

A:

Q: offered to sell a specific generator set to B for P300,000. B sent a letter for acceptance to S on…

A: The contract is perfected when payment is received in full and party is solvent and if conditions of…

Q: why must financial institutions be regulated?

A: Financial institution operations are governed by laws and regulations known as financial…

Q: A pension fund manager decides to invest a total of at most $45 million in U.S. Treasury bonds…

A: Information Provided: Total amount of investment = $45 million Treasury bond interest rate = 6%…

Q: Conduct the economic feasibility analysis to find out the overall NPV, ROI and breakeven point of…

A: ROI represents the return provided by investment, it is a comparison of the profit earned on the…

Q: XYZ corp. is considering investing in a new machine. The new machine cost will $ 8,000 installed.…

A:

Q: 1. Jenkins Security has learned that a rival has offered to supply a parking garage with security…

A: We need to find the equivalent annual annuity in case and equate them to get the missing figure.

Q: uppose that a two-factor model, where the factors are the market return (Factor 1) and the rowth…

A: As per 2 factor Arbitrage Pricing Theory,  Expected Return = Rf + ( b1f1) + (b2f2) Where, Rf = Risk…

Q: The net present value (NPV) of a project is positive when the discount rate used is: Group of…

A: IRR is the rate at which present value of cashinflows is equal to present value of cash outflows If…

Q: Suppose that a default-risk-free zero-coupon bond with a face value of $100 and 5 years to maturity…

A: Information related to the returns and yields of a default free and a prone to default bond are…

Q: hat's the importance of considering the audience for financial statement analys

A: When you publish anything you must guarantee that what you want to say is passed properly and proper…

Q: What is the project IRR?

A: As per the given information: Vehicle acquisition cost - $48,000 Useful life - 1 Tax rate - 25%…

Q: Starting at 1 January 2020, the effective rate of interest will be 5% per half-year for 12 months,…

A: This is a question based on the concept of time value of money, a major difference being that…

Q: Find the savings plan balance after 9 months with an APR of 4% and monthly payments of $150. The…

A: Information Provided: APR = 4% Monthly payment = $150 Period = 9 months

Q: Assume you take out a $3000 loan, compounded monthly, for 2 and a half years at 8.5% APR. What is…

A: Interest The cost of borrowing an amount is called interest. Interest is paid on a regular basis at…

Q: Question 5 Sarah invested Php150,000 for 4 years in Malayan Bank that yields 3% compounded semi-…

A: We were expecting that we retained the interest when we received it while dealing with simple…

Q: Consider the following information on stocks I and II: State of probability of Rate of Return if…

A: Here,

Q: mula or a calculator application to find the total interest paid for the home mortgage of ​$279,185…

A: Homes are purchased by the mortgage loans and mortgage loans are secured loans and there is…

Q: Identify the specific entities in Barbaoos are tasked with regulating financial institutions. It may…

A: We have to identify the specific entities in Barbaoos that are tasked with regulating financial…

Q: t what interest rate will the 13,250 amounted to 17,500 for the period of march 2, 2000 to april 2,…

A: Furture Value = Present Value * ( 1 + r)n where r = periodic interest rate Future Value = 17,500…

Q: Your venture has net income of $600, taxable income of $1,000, operating profit of $1,200, total…

A: The Economic Value Added EVA as a residual income measure of financial performance is simply the…

Q: Stocks A and B have the following probability distributions of expected future returns: Probability…

A: a) Expected Rate of return is determined as the sum of the probability* returns. Result: Answer:…

Q: your view, what is the most important prediction of the Capital Asset Pricing Model? Among the…

A: 1) Capital asset pricing model is a model used to determine the required rate of return of an asset…

Q: 1. What is the profit for the month when the income is $14,000 and the expenses are $12,500?

A: Profit is the amount remaining from revenue/income after deducting expenses. This is the financial…

Q: Anthony found two feasible options for an apartment to rent for the next 2 years. Option A requires…

A: Present value is the equivalent value today of the future payments to be received based on the…

Q: Find the discount interest rate charged if Php42,000 is the present value of Php48,000 due in 20…

A: Future Value = Present Value * (1+r)n Where r =   periodic Interest rate N = time period = 20 months…

Q: Nineteen-year-old Spanish tennis sensation, Carlos Alcaraz, beat 23-year-old Norwegian Casper Ruud…

A: This is a typical question using the concepts of time value of money (TVM). There are popular TVM…

Q: Norman won P 150,000 in a national television quiz show. He invested his winnings at 15% compounded…

A: This is a question based on time value of money concept. PV of all the future withdrawals today,…

Q: After paying off a car loan or credit card, don't remove this amount from your budget. Instead,…

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

Q: Assume that the expected rates of inflation over the next 5 years are 9 percent, 7 percent, 10…

A: Given, Inflation for the years 1 to 5 are 9%,7%,10%,8% and 6% respectively.

Q: Assume that the DPI of a 10-year fund at the end of its 4th year is 1.1x and that, by that time,…

A: As in the given case, a standard fee refers to the annual management fee which is levied by the…

Q: Ch9) You are in need of a replacement water heater and are deciding betwee xpensive option (A) with…

A: When the equipments have different life spans than each equipment can be compared with other on the…

Q: Suze Orman wants to pay $1,490 semiannually to her granddaughter for 10 years for helping her around…

A: If you do proper financial planning on the time than you can achieve the good results in the future…

Q: The anwswer is not correct

A: Here, Annual deposits = $1,400 Annual interest rate = 5% Total years to annual deposits = 10 years…