What is the average daily balance for this account? $[ How much interest is owed this month?

Q: What is the maturity value of P12,500 if it is invested. At 15% simple interest for 250 days using…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: Wilson Industries is considering the acquisition of the Blanchard Company in a stock-for-stock…

A: Due to acquisition there are synergies due to which there is cost savings due to which there is…

Q: a. A pension fund has to pay out $750,000 to the retirees at the end of every month for the next 50…

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

Q: Q 6. An Investor has €20000 and faces an interest of 5% in the Euro Zone or he could his Euro for…

A: Exchange rate as per Interest rate parity theorem can be computed as follows Forward Rate = Spot…

Q: A Gateway Inc. has an issue of preferred stock that pays $3.40 dividend every year in perpetuity. If…

A: Annual dividend (D) = $3.40 Current price (P0) = $91 Required return (r) = ?   Required return is…

Q: ABC Corporation plans to purchase a call option for 1,000 Red Corp. ordinary shares at a strike…

A: Black Scholes Model is used to calculate the value of a call option and requires 5 variables to…

Q: ou must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine,…

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

Q: Month      Rate of return Stock  A    Market portfolio 1…

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

Q: the onset of online/digital banking nowadays, what are the risks that people are faced with when…

A: Online banking has become the order of day and has now become the part of daily life but there are…

Q: A person finances $35,500 for a new car for 6 years at 4.5% APR. What is their monthly payment?

A: Loans are paid by monthly payment that carry the payment of interest and payment for principal…

Q: What is the most we should pay for a bond with a par value of $1000, coupon rate of 4.6% paid…

A: To calculate the price of bond we will use the below formula   Value of bond =…

Q: A treasury Bond that settles on October 18 2019 matures on March 30 2038. the coupon rate is 5.30…

A: As per the given information: Coupon rate - 5.30% Yield to maturity - 4.45%  Settlement date -…

Q: Purcell Farms Inc. has the following data, and it follows the residual dividend model. Currently, it…

A: Residual dividend policy states that internal accruals (net income) will be first used to finance…

Q: BQ, Incorporated, is considering making an offer to purchase iReport Publications. The vice…

A: iReport Information  Price earning ratio = Market Price / Earnings Price earning ratio = 8.80…

Q: Achieve 225,500 at 8.35% compound continously for 8 years 135 days

A: Compound interest can be calculated annually, semi annually,quarterly monthly or daily. In these…

Q: ABC corporation bonds have a coupon rate of 8% paid semiannually and 30 years to maturity. If the…

A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…

Q: A bond is selling at $1075.12. It has 10 years to maturity and annual coupon payments. Yield is 8%.…

A: Price of bond (P) = $1075.12 Years to maturity (n) = 10 Years Yield rate (r) = 8% Face value (FV) =…

Q: stimate the annual required rate of return for BTO stock, using the Constant Dividend Growth Model.…

A: To calculate the annual required rate of return we will use the below formula   Annual required rate…

Q: Your client is considering the purchase of a bond that is currently selling for $1112.09.  The…

A: The bonds can be defined as the units of corporate debt, the companies issue the bond and…

Q: lanning for a very early retirement ou would like to retire at age 40 and have enough money saved to…

A: The retirement years can be financed by money saved today. As the value of money depletes over time,…

Q: (a) Find the present value of a payment of £500 made after 3 months using a simple rate of discount…

A: The concept of the time value of money is used to find out the actual value of money based on the…

Q: ABC and XYZ have total equity values of P5,000,000 and P10,000,000 respectively. If they merged, a…

A: We need to use constant growth model to calculate share price after merger. Stock price(P0) =D1rs -g…

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Annual cash inflow for 3 years = $5.14 million Upfront setup cost = $8.11 million Discount rate =…

Q: For the following annuity due, determine the unknown value represented by the question mark Future…

A: The Future Value of Annuity Due refers to the concept which determines the sum total of all the cash…

Q: If you deposit ​$3,500today into an account earning an annual rate of return of 11​percent, what…

A: Rate of return (r) = 0.11 or 11% Initial deposit (I) = $3,500 Future value (FV) = ?   Future value…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Mortgage/ Borrowings:  Borrowings are the loans taken by an individual, from banks or non-banking…

Q: 1.) A put option for 1,000 XYZ Corporation shares has a total value of P12,250. Its extrinsic value…

A: The extrinsic value of the option is the measure of the volatility in the price of the option. It…

Q: An investment of P40,000 has a revenue of X pesos at the end of the first and second year. Given a…

A: When net present worth is zero that means present value of cash flow is equal to initial investment…

Q: ement is considering rupees 100000 investment in a project with a 5 year life and no residual value…

A: Average rate of return is the profit earned on the investment which is done initially as percentage…

Q: yields of $1000 dollar par value zero-coupon government bonds (ignore liquidity premiums) are tabled…

A: 2 year interest rate 3 years from now is calculated using following equation [1+f(T*,T)]T =…

Q: Find the periodic payment for the following annuity due. Future Value Present Value $12,600 Payment…

A: Present value (PV) = $12,600 Monthly period (p) = 84 (i.e. 7 years * 12) Semiannual interest rate =…

Q: Mr. Angelo borrowed $50,000.00 at a compound interest rate of 3% per month, with a promise to repay…

A: Given:- Sum borrowed or say P = $50,000 Compound interest rate of 3% per month. Proposal by the…

Q: A P15,000 loan at 12% compounded quarterly is to be amortized every 3 months for 12 years. Find the…

A: Here, To Find: Quarterly payment =? Construction of amortization schedule =?

Q: A Corp. and B Company will be merging. Independently, A has forecasted annual earnings of P400,000…

A: Value of A corp will be,   = Earnings / Return%  = 400000 / 16%  =  P2,500,000   Earnings of B corp…

Q: The direct capitalization and discounted cash flow models are used primarily in income- producing…

A: You have asked two unrelated questions. I have answered the first one. Please post the second…

Q: ​(Bond valuation) A bond that matures in  11 years has a ​$1,000 par value. The annual coupon…

A: Maturity period = p = 11 years coupon rate = 0.08 or 8% Face value or maturity value = Q = $1,000…

Q: Brockman Corporation's earnings per share were $3.50 last year, and its growth rate during the prior…

A: A=P(1+r/100)^nwhereA=future valueP=present valuer=rate of interestn=time period.

Q: Darwin is a young entrepreneur trying to keep his business afloat. He has missed two payments to a…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: A family has a mortgage on a home for $295,000, amortizea over 25 years, at all Arn UI 4.5%. The…

A: Loan Amount   $                           2,95,000.00 Interest Rate 4.50% Time Period 25.00…

Q: Which of the following statements is CORRECT? A stock's standard deviations is more relevant as a…

A: Market risk is reflecting of all such risks which can never be eliminated even through…

Q: Consider the following information on options from the CBOE for Merck: MRK Oct 06, 2006 @ 14:40 ET…

A: A call option is said to be in the money when strike price is less than current market price.

Q: SS Ltd is a listed company that operates three divisions, all focused on single activities as shown…

A: Beta is an indicator of Systematic risk in security as compared to systematic risk in market. The…

Q: Given an expected return of 8% and a standard deviation of 9%, we can predict that there is a _____…

A: Given: Expected Return/Mean = 8% Standard deviation σ = 9% Observed Values = -19% and 35% Using the…

Q: 1. Sunny Day Manufacturing Company has a current stock price of $22.35 per share, and is expected to…

A: Price of the stock (P0) = $22.35 Next dividend (D1) = $1.36 Growth rate (g) = 0.094 or 9.40%…

Q: Finance A sales associate was issued by his initial Florida sales associate license last year. The…

A: Given: A sales associate was issued by his initial Florida sales associate license last year. The…

Q: lue. If the bonds are trading with a market's required yield to maturity of 18 percent, are these…

A: Price of bond is the present value of coupon payments and present value of par value of bond taken…

Q: Compute the expected return given these three economic states, their likelihoods, and the potential…

A: Probability Return 0.3 40% 0.4 15% 0.3 -15%

Q: ​(Bond valuation)  Calculate the value of a bond that matures in 13 years and has a $1,000 par…

A: Maturity period = p = 13 years Coupon rate = 0.13 or 13% Face value or maturity value = Q = $1,000…

Q: Atlas corporation's bonds currently sell for $1,297.58 with a coupon rate of 10% If the bonds mature…

A: The yield to maturity is generally reflective of the rate of return for investing in the bonds in…

Q: Your business manager forwards the following information to you. Your businesses earned a real rate…

A: To calculate the nominal rate of return we will use the below formula   Nominal rate of return =…