If i=29, the value of X in the following balanced CFD is neare 500 300 100 200 600 X

Q: The price of the stock will be $. (Round to the nearest cent.)

A: Stock Price: It refers to the current value of the stock to the buyers and sellers. Thus, it is…

Q: At 10% per year interest, how much does he have to invest each year (starting in year 1) to reach…

A: A stream of equal cash flows (CF) paid or received periodically is termed as annuity. Annuity due…

Q: The following table shows the sensitivity of four stocks to the three Fama–French factors. Estimate…

A: According to Fama Fench model there are more factors to be considered other than market premium and…

Q: A 6% German corporate bond is priced for settlement on 18 June 2015. The bond makes semiannual…

A: Solution:- Full price means the price of bond inclusive of accrued interest, whereas clean price is…

Q: Your company purchases a patent for $46,000 to attempt to compete in a usually restricted market.…

A: Patent purchased = $46,000 n = 5 years Straight-line depreciation is calculated by : Bn -…

Q: How how much will you have in the account after 10 years if the account earns an effective annual…

A: Future Value: It represents the future worth of the present stream of cash flows. It is computed by…

Q: He is getting worried about his debt and is determined to pay it off completely.

A: Loan Payments: These payments are made to the lender by the borrower for the purpose of amortizing…

Q: The Hedge Company has an average age of inventory of 65 days, an average collection period of 60…

A: The cash conversion cycle is calculated with the help of following formula  Cash Conversion Cycle =…

Q: if you were to invest your money which term will you use to compute for the interest in your…

A: Exact and Approximate times are two interest calculation times that take into two time periods. One…

Q: Info Systems Technology (IST) manufactures microprocessor chips for use in appliances and other…

A: Given: Particulars Amount   Shares outstanding 50   Share price 15.75 13.75 Possibilities…

Q: How much money is requested from the bank if the simple interest rate is 12. 987%?

A: Simple interest method is a method of computing interest on borrowed amount where interest is…

Q: When computing an interest or growth rate, the rate will increase the smaller the future value,…

A: The statement is False.

Q: David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity…

A: Weighted average cost of capital, WACC, is a company’s average cost of capital. A company gets…

Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…

A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: What effective annual rate (EAR) are they charging us on the loan?

A: Effective Annual Rate: It refers to the true annual rate on a loan/credit or on investment since it…

Q: I am thinking about buying a $100 heineken corporate bond. The bond was issued on Nov. 2005 with a…

A: Return on bond The realized return on a bond is calculated as shown below. Rate of return =Cash…

Q: lio for five years and determine that its average return is 11.8​%and the standard deviation of its…

A: Value at risk is a metric that measures the magnitude of potential financial losses in a company,…

Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…

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

Q: 4-49. Consider the accompanying cash-flow diagram. (See Figure P4-49.) a. If P = $1,000, A = $200,…

A: A.  Investment = 1000 A = 200 Interest = 12% N = ?   B.  Investment = 1000 A = 200 Interest = ? N =…

Q: an investment has been made to an account at a simple interest rate of 12.122% and is expected to…

A: Here, Simple Interest rate (r) = 12.122% Total Interest = P 350,475 Time period (n) = 8 years and 5…

Q: CP Jenney Stores generates $13,765,230 in sales, $8,735,429 in net profit, and 25% in gross margin.…

A: Cost of goods sold is the actual cost of goods being sold by the business to it's customers. Gross…

Q: ppose that you have just completed the mechanical design of a high-speed automated palletizer that…

A: In AW that is annual worth method we need to find out the annual cash flow required that would…

Q: How will investors get their money back?

A: An investor is a person who is involved in the allocation of capital with an expectation that he or…

Q: what should be the number of years to maturity? Round the year to two decimal places. Assume the par…

A: Treasury STRIPS: These are bonds that are sold at the discount and are paid at face value at the…

Q: Innovative Group Ltd, an IT company, is undertaking a new project to develop software for Fair…

A: Here, Expected Rate of Return is 12% Plowback Ratio is 0.30 Return on Equity is 24% Forecasted…

Q: Onse took a loan of P2,000 that is repaid by a payment of P2,500 made 24 months later. Find the…

A: Loan amount is P2,000 Amount repaid is P2,500

Q: A car dealer carries out the following calculations. What is the annual percentage rate?   Lis…

A: The annual percentage rate is the rate of return that is paid each year for the borrowing that is…

Q: You take out a 360-month fixed-rate mortgage for $100,000 with a monthly interest rate of 0.4%. Part…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: Organica Ltd. generates $350,000 cash flow each year. The cost of equity capital is 18% and the…

A: The question is related to the theories of Capital Structure. As per Modigliani and Miller…

Q: 3a. Determine the payback period for each project. Note: No need excle formula, thank you

A: Pay back period is the length of time required to recover the cost of Investment. It is calculated…

Q: What is the present value of a $1,000 60-month annuity, starting 6 months from today, if r is 6% APR…

A: Present Value of Deferred Annuity refers to the concept which dictates the discounted value of a sum…

Q: A retail coffee company is planning to open 105 new coffee outlets that are expected to generate…

A: For the calculation of NPV of this expansion we will use the below formula   NPV of expansion =…

Q: ______ ratios are used to measure the speed in which various assets are converted into sales or cash

A: A firm can convert its assets into cash. Those assets that can be converted into cash within a short…

Q: a man brought equipment worth P124,587 payable in 15 quarterly payments, each installment payable at…

A: Mortgage/ Borrowings:  Borrowings are the loan which is taken by the individual to meet its…

Q: A service car whose cash price was P540,000 was bought with a down payment of P162.000 and monthly…

A: The capital recovery factor measures the rate at which the initial investment is recovered. It is…

Q: After considering a number of investment opportunities, you have decided that you should be able to…

A: Nominal interest rate : The nominal interest rate (or money interest rate) is the percentage…

Q: Most managers try to​ "smooth" their dividends over time​ - they try to increase the​ dividend, but…

A: The dividends is the distribution of surplus profit by a company to its shareholders. It is given as…

Q: Which of the following statements about managers' compensation is true? a. High salaries motivate…

A: Granting Stock to managers or key employees triggers as a motivation for the employees as they…

Q: 1. Lilibeth borrowed $1,200 from her aunt to buy a book. She promised to pay her after a month. Her…

A: Simple Interest may be defined as Interest that is calculated as a simple percentage of the original…

Q: The expected return on Mike's Seafood shares is 15.8 per cent. If the expected return on the market…

A: Expected return of a stock can be calculated using Capital Asset Pricing Model (CAPM) as: = Risk…

Q: Consider the following scenario analysis: Rate of Return Stocks Bonds Scenario Recession Probability…

A: The expected return is calculated by multiplying the return by probability.  Expected Return =…

Q: Marshall’s Clothing Company has total assets of $90 million, ROA of 24%, ROE of 21% and a net profit…

A: Given, Total assets $90 million ROA is 24% Net profit margin is 12%

Q: pay-off of 2100 in three years. Now, which project should you choose when discount rates is zero, 5%…

A: Net Present Value: It represents the present worth in absolute terms for a project.  It is computed…

Q: 8. Ace Ltd. Manufactures a product and the following particulars are collected for the year ended…

A: 8.   i) Formula for Re-order quantity= √2x A x P /S Where, A= Annual consumption (units) during the…

Q: Manuel has a $300,000 loan to be paid back with 5.329% interest over 30 years. What are Manuel's…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then

A: As per Bartleby honor code, when multiple questions are asked, the expert is required to solve the…

Q: As a junior investment manager, your boss instructs you to help a client to invest $100,000 for the…

A: We will first calculate the expected return of the portfolio by taking the weight proportionately…

Q: Which of the following point is not consistent with the decision of undertaking a merger and…

A: Merger: It is an agreement in which one or more companies will convert into single company. There…

Q: If $13,376.39 was the interest earned on lending $101,000.00 for 9 years, what was the quarterly…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: Critically discuss and distinguish Informative efficiency, Fundamental Valuation efficiency and…

A: The capacity to prevent wasted resources, power, energies, currency, and time when accomplishing…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.