Answer:
the numbers are missing, so I looked fro similar questions:
Which is more economical for a $210.000 mortgage: a 30-year fixed-rate at 9% or a 20-year fixed-rate at 8.5%? How much is saved in interest?
if you take the 30 year mortgage, your monthly payment will be:
monthly payment = present value / PV annuity factor
present value = $210,000PV annuity factor, 0.75%, 360 periods = 124.2817monthly payment = $210,000 / = $1,689.71
total payments = $1,689.71 x 360 = $608,295.60
total interests paid = $608,295.60 - $210,000 = $398,295.60
if you take the 20 year mortgage, your monthly payment will be:
monthly payment = present value / PV annuity factor
present value = $210,000PV annuity factor, 0.7083%, 240 periods = 115.2308monthly payment = $210,000 / = $1,822.43
total payments = $1,822.43 x 240 = $437,383.20
total interests paid = $437,383.20 - $210,000 = $227,383.20
if you take the 20 year mortgage, you will save $398,295.60 - $227,383.20 = $161,912.40 in interests
g Suppose you invest $15,000 in Merck stock and $25,000 in Home Depot stock. You expect a return of 16% for Merck and 12% for Home Depot. What is the expected return on your portfolio?
Answer: 13.5%
Explanation:
From the question, we are informed that an individual invest $15,000 in Merck stock and $25,000 in Home Depot stock and expect a return of 16% for Merck and 12% for Home Depot.
The expected return on the portfolio will be:
= [($15,000/$40,000) × 16%] + [($25,000/$40,000) × 12%]
= (0.375 × 0.16) + (0.625 × 0.12)
= 0.06 + 0.075
= 0.135
= 13.5%
The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $50 per share for months, and you believe it is going to stay in that range for the next three months. The price of a three-month put option with an exercise price of $50 is $4, and a call with the same expiration date and exercise price sells for $7.
Required:
a. What would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement?
b. What is the most money you can make on this position? How far can the stock price move in either direction before you lose money?
c. How can you create a position involving a put, a call, and riskless lending that would have the same payoff structure as the stock at expiration? The stock will pay no dividends in the next three months. What is the net cost of establishing that position now?
Answer:
a) selling a call option to put in order to get a premium income
b) $7 + $4 = $11
c) The net cost of establishing the position = $50
Explanation:
Given data:
stock price = $50
Exercise price = $50
price of put option = $4
price of call option = $7
A) A simple option strategy would be
selling a call option to put in order to get a premium income
b) The most money that can be made = $7 + $4 = $11
C) create a position that involves a put, a call and riskless lending
The net cost of establishing the position = $50
Revenue on account amounted to $5,200. Cash collections of accounts receivable amounted to $4,900. Cash paid for expenses was $3,600. The amount of employee salaries accrued at the end of the year was $1,400. What is the net cash flow from operating activities for the year
Answer:
$5100
Explanation:
The net cash flow in this scenario can be calculated by adding all the incoming revenue of the company and subtracting all the expenses that would be outgoing. Incoming Revenue in this scenario would be the initial $5,200 and the accounts receivable of $4,900. While the outgoing expenses would be the cash for expenses of $3,600 and the employee salaries accrued of $1400. Now we can add and subtract them to calculate the net cash flow
$5200 + $4900 - $3600 - $1400 = $5100
g What is the value today of receiving $6,000 at the end of each six-month period for the next four years, assuming an interest rate of 8%
Answer: $40,396.20
Explanation:
This is a frequent amount every period so this is an annuity and the present value is the present value of an annuity.
Period = 2 * 4 years = 8 semi annums
Interest = 8%/2 = 4% per semi annum
Present Value = 6,000 * [tex]\frac{1 - (1 + 0.04) ^{-8} }{0.04}[/tex]
= 6,000 * 6.7327
= $40,396.20
Suppose you have a project that has a 0.5 chance of tripling your investment in a year and a 0.5 chance of doubling your investment in a year. What is the standard deviation of the rate of return on this investment?
Answer:
50%
Explanation:
Suppose the return form tripling = 300%
Suppose the return form doubling = 200%
Probability Return Calculation Expected return
0.50 300% 150% (0.50*300%) 150%
0.50 200% 100% (0.50*200%) 100%
Expected return 250%
Standard deviation = [tex]\sqrt{P1*(Rt - E(R))^2 + Pd*(Rd - E(R))^2}[/tex]
Standard deviation = [tex]\sqrt{0.50 * (300% - 250%)^2 + 0.50*(200% - 250%)^2}[/tex]
Standard deviation = [tex]\sqrt{1250% + 1250%}[/tex]
Standard deviation = [tex]\sqrt{2500%}[/tex]
Standard deviation = 50%
Hence, the Standard deviation is 50%
A taxable bond has a coupon rate of 5.98 percent and a YTM of 5.63 percent. If an investor has a marginal tax rate of 30 percent, what is the equivalent aftertax yield
Answer:
3.941%
Explanation:
Equivalent after tax yield = Yield to maturity*(1-tax rate)
Equivalent after tax yield = 5.63 *(1 - 30%)
Equivalent after tax yield = 5.63 *(1 - 0.30)
Equivalent after tax yield = 5.63*(0.70)
Equivalent after tax yield = 3.941%
A company issues $10,000,000, 7.8%, 20-year bonds when the market rate of interest for the bonds is 8%. The bonds were issued on January 1, 2014. Interest is paid on June 30 and December 31. The proceeds from the bonds are $9,802,072. Using effective-interest amortization, how much interest expense will the company recognize in 2014
Answer:
$784,249.08
Explanation:
The interest expense the company would recognize in the year is the sum of the interest expenses for both June and December as computed below:
Interest expense for June=$9,802,072*8%*6/12=$392,082.88
June coupon payment=$10,000,000*7.8%*6/12=$390000
June bond balance=cash proceeds+Interest expense for June-June coupon payment
June bond balance=$9,802,072+$392,082.88 -$390000
June bond balance=$9,804,154.88
December interest expense=$9,804,154.88*8%*6/12=$392,166.20
Interest expense for 2014= $392,082.88+$392,166.20
Interest expense for 2014==$784,249.08
A proposed new project has projected sales of $201,000, costs of $93,000, and depreciation of $25,400. The tax rate is 22 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Answer:
Please see below
Explanation:
• Approach 1
Tax shield approach
[(Sales - Expenses)(1-t) + Depreciation(t)]
[($201,000 - $93,000)(1-0.22) + $25,400(0.22)
Operating cash flow = $84,240 + $5,588
Operating cash flow = $89,828
• Approach 2
Free cash flow
EBIT [$201,000 - $93,000 - $25,400]
$82,600
Add: Depreciation
$25,400
Less: Taxes 22%(0.22 × $82,600)
($18,172)
Operating cash flow
$89,828
• Approach 3
Button up approach
Net income + Depreciation
Operating cash flow = $64,428 + $25,400
Operating cash flow = $89,828
• Approach 4
Top down approach
EBIT(1-t) + Depreciation
Operating cash flow = $82,600(1 - 0.22) + $25,400
Operating cash flow = $64,428 + $25,400
Operating cash flow = $89,828
. Alternative X has a first cost of $5 million and an annual maintenance cost of $200,000. Alternative Y has a first cost of $7 million, a maintenance cost of $40,000 and periodic expenditures of $100,000 every five years. If both alternatives have infinite lives, create the equation that will yield the rate of return on the incremental investment
Answer:
0 = -$2 million + $160,000 ÷ i - $100,000(A/F,i,5) ÷ i
Explanation:
The equation is shown below:
But before that first determine the following things
Incremental investment is
= $5000,000 - $7,000,000 - $200,000 - $40,000 - $100,000(P/F,I,N)
Now solve it
= -2 million + $160,000 - 100000(P/F,I,n)
As it is a perpetuity so
Present value = Periodic payment ÷ rate of interest
So,
0 = -$2 million + $160,000 ÷ i - $100,000(A/F,i,5) ÷ i
There is a probability of 25 percent that the economy will boom; otherwise, it will be normal. Stock Q is expected to return 18 percent in a boom and 9 percent otherwise. Stock R is expected to return 9 percent in a boom and 5 percent otherwise. What is the standard deviation of a portfolio that is invested 40 percent in Stock Q and 60 percent in Stock R?
a. 0.7%
b. 1.4%
c. 2.6%
d. 6.8%
e. 8.1%
Answer:
c. 2.6%
Explanation:
Calculation to determine the standard deviation
First step is to calculate E(r)Boom
E(r)Boom = (0.40 ×0.18) + (.0.60 ×0.09)
E(r)Boom= 0.126
Second step is to calculate E(r)Normal
E(r)Normal = (0.40×0.09) + (0.60×0.05)
E(r)Normal = 0.066
Third step is to calculate E(r)Portfolio
E(r)Portfolio = (0.25×0.126) + (0.75×0.066)
E(r)Portfolio = 0.081
Fourth Step is to calculate VarPortfolio
VarPortfolio = [0.25(0.126 - 0.081)^2] + [0.75(0.066- 0.081)^2]
VarPortfolio= 0.000675
Last step is to calculate Standard Deviation
Standard deviation= 0.000675^.5
Standard deviation= 2.6%
Therefore the the standard deviation is 2.6%
If a firms’ net income (i.e., profits before taxes) is $11.7 billion US Dollars and it has total assets of $90.0 Billion US Dollars, the Return on Assets (expressed as a percentage) is
Answer:
13%
Explanation:
Net income is $11.7 billion
Total assets is $90.0 billion
Therefore the return on assets as a percentage can be calculated as follows
= net income/Total assets
= 11.7 billion/90 billion
= 0.13 × 100
= 13%
Hence the ROA expressed as a percentage is 13%
Return on total assets = Net income of a company over a specific time period divided by the total assets
Return on Assets (expressed as a percentage) is 13%
Given:
Net income = $11.7 billion
Total assets = $90.0 billion
Return on asset = net income / total assets
= $11.7 billion / $90.0 billion
= 0.13
Return on asset expressed as a percentage = net income / total assets × 100
= 0.13 × 100
= 13%
Therefore, the Return on Assets (expressed as a percentage) is 13%
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An ABC 40 call is quoted at 4.25 - 4.50, and an ABC 45 call is quoted at 1.50 - 2.00. What is the cost of establishing a debit spread
Answer:
$300
Explanation:
Calculation to the cost of establishing a debit spread
Based on the information given in order to establish a debit spread we were told that the investor bought a 40 call at the ask price of the amount of $4.50 in which the investor also sells a 45 call at the bid price of the amount of $1.50 which means that we are going to calculate the net premium of the amount that was paid in order for us to know the cost of establishing a debit spread
Hence,
Net premium= ($4.50 - $1.50) × 100 shares
Net premium=$3×100 shares
Net premium=$300
Therefore the cost of establishing a debit spread is $300
Kai decides to add color and keep his price the same. This will increase variable costs by $0.40 per issue. What will be the new unit volume (copies per issue) required to maintain $500 profits and cover the increased fixed and variable costs?
Answer:
the first part of the question is missing, so I looked it up:
Kai sells a small magazine full of celebrity gossip to college students for $2.05 per copy. Hiring the printing press for one day, the only fixed cost, is $431 an issue. The variable cost of printing each issue is $1.19 per copy.
before color is added, the contribution margin and break even point were:
contribution margin = $2.05 - $1.19 = $0.86
break even point in units = $431 / $0.86 = 501.16 ≈ 502 units
break even point in $ = 502 x $2.05 = $1,029.10
if Kai wants to earn $500 in profits = $931 / $0.86 = 1,082.56 ≈ 1,083, Kai must sell 1,083 copies
after color is added:
contribution margin = $2.05 - $1.19 = $0.46
break even point in units = $431 / $0.46 = 936.96 ≈ 937 units
break even point in $ = 937 x $2.05 = $1,920.85
if Kai wants to earn $500 in profits = $931 / $0.46 = 2,023.91 ≈ 2,024, Kai must sell 2,024 copies
A company manufacture parts using either domestic contractor (A) or competing oversea contractor (B). Find the break-even quantity of parts
Answer:
The table is missing in the question. The table is :
Contractor Overhead Cost Shipping Cost Import tax Part cost
Domestic A 350 0.50 0 8.25
Overseas B 200 1.20 12 5.50
The answer is : The two contractors will never achieve even and the overseas contractor will be cheaper than the domestic contractor.
Explanation:
Finding the number of the parts the two contractors i.e the domestic A as well as the overseas B will cost the same to the company.
Let us suppose the x number of parts that the two contractors will be breaking even. So we get,
350 + 0.5x + 8.25x = 200 + 1.2x + 0.12x + 5.5x
350 + 8.75x = 200 + 6.82x
8.75x - 6.82x = 200- 350
x = -77.72
Since, we get x as negative, it means that the contractor will never get even. Thus the overseas contractor will always be cheaper.
One of Hartman Company's activity cost pools is inspecting, with estimated overhead of $140,000. Hartman produces throw rugs (700 inspections) and area rugs (1,300 inspections). How much of the inspecting cost pool should be assigned to throw rugs
Answer:
the cost assigned to throw rugs is $49,000
Explanation:
The computation of the cost assigned to throw rugs is shown below:
Cost assigned is
= Estimated overhead × number of inspections ÷ total number of inspections
= $140,000 × 700 ÷ (700 + 1300)
= $49,000
hence, the cost assigned to throw rugs is $49,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
I think my friend like me in a romantic way, but I don't feel the same. any advice?
Answer:
Just talk to him/her/them about it. When you tell them try to be gentle and let them know you still value and would like to continue their friendship. Maybe even help them find someone else. The most important thing is to be nice and try to make them feel comfortable because they might be embarrased.
Explanation:
Activity based costing system differs from traditional costing systems in the treatment of ________.
Answer:
Indirect costs.
Explanation:
The total cost of a product varies with allocation of indirect costs. Direct costs don't seem to be making problems as they will be directly identifiable. Stebacks in traditional ranges from its pools of all the indirect costs and allocates them using the allocation bases to departments. This allocation method in certain cases doesn't be because it pools the indirect costs of all products of various stages while within the cost of individual activities are assigned first and are directly used because the basis of assigning cost to the final word cost objects. Implying that it assigns over heads to every activity first, then reallocates that cost to the individual product or service.
A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing company
Answer: An accounting firm specializing in tax returns
Explanation:
A Job-order costing system is used when a job is unique and so the costs associated with the different jobs cannot be accounted for in the same manner.
An Accounting firm that is specializing in tax returns will face unique costs per client that they provide their services for so they will have to use a Job order costing method to account for the costs associated with their individual clients.
You would like to have enough money saved to receive $150,000 per year perpetuity after retirement so that you and your family can lead a good life. How much would you need to save in your retirement fund to achieve this goal
Answer:
$2,500,000
Explanation:
The computation of the saving amount is shown below
The Present value of a perpetuity is
= Annual cash flows ÷ interest rate
= $150,000 ÷ 0.06
= $2,500,000
By dividing the annual cash flows from the rate of interest we can get the present value of a perpetuity and the same is to be considered
We simply applied the above formula so that the correct value could come
The amount you would need to save in your retirement fund to achieve this goal is $2,500,000.
Present value:Using this formula
Present value =Annual cash flows per year ÷ Interest rate
Where:
Annual cash flows per year=$150,000
Interest rate=10% or 0.10
Let plug in the formula
Annual cash flows per year = $150,000 ÷ 0.06
Annual cash flows per year = $2,500,000
Inconclusion the amount you would need to save in your retirement fund to achieve this goal is $2,500,000.
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Suppose you deposited $1,000 in a credit union that pays a nominal rate of 7% with daily compounding and a 365-day year. How much could you withdraw after nine months, assuming this is three-fourths of a year?
a. $1,011.02
b. $1,053.90
c. $ 951.27
d. $1,073.56
e. $ 980.69
Answer:
FV= $1,054.01
Explanation:
Giving the following information:
Initial investment (PV)= $1,000
Number of periods= 365*0.75= 274
Interest rate= 0.07/365= 0.000192
To calculate the future value (FV), we need to use the following formula:
FV= PV*(1+i)^n
FV= 1,000*(1.000192^274)
FV= $1,054.01
Greg Noronha has been told the expected return on Merchants Bank is 7.00%, He knows the risk-free rate is 2.10%, the market risk premium is 6.45%, and Merchants' beta is 0.78. Based on the Capital Asset Pricing Model, Merchants Bank is:
Answer:
Merchants Bank is overvalued
Explanation:
In the first, we need to determine the required rate of return on Merchant Bank stock using the Capital Asset Pricing Model formula for the required rate of return found below:
The required rate of return=risk-free rate+beta*market risk premium
risk-free rate=2.10%
beta=0.78
market risk premium=6.45%
The required rate of return=2.10%+(0.78*6.45%)
the required rate of return=7.13%
Since the expected return(discount rate) used in valuing Merchant Bank is lower viz-a-viz the required rate of return of 7.13%, the stock is said to overvalued
In order to be fully rested before Angel’s big History test, she should get at least________hours of sleep.
a.
8
c.
9
b.
7
d.
10
Please select the best answer from the choices provided
A
B
C
D
Answer:
B. 7 hours
Explanation:
right on edg
Answer: B. 7 hours
Explanation: On Edge!
Using the axes as constructed below, depict marginal revenue and marginal cost curves that would support the conclusion that the optimal short run output is q = 1000. Be sure to label all important values. upload graph.
Question 1B
Is this a short run equilibrium? Explain.
Question 2A
Reproduce your graph from Question 1, but add an average total cost curve to the picture in such a way that the firm is earning zero profits (π = 0).
Upload your graph.
Question 2B
Does your graph in Question 2A depict a short run equilibrium? If so, explain why. If not, explain why not.
Question 3A
Again, reproduce your graph from Question 1. For this question, depict a different ATC curve, one where the firm has negative profits (π < 0) at the profit maximizing output of 1000. Add an additional average cost curve that will allow you to determine whether to shutdown or keep producing at Q = 1000.
Upload your graph.
Question 3B
Should the firm produce Q = 1000 in the short run or should it shutdown, producing Q = 0?
Answer:
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The type of information that will need to be collected during a project and who will receive this information can be found in the project __________ plan.
Answer:
Communication
Explanation:
The communication plan is the plan i.e. being communicated to the people who are engaged in some kind of project. Without communicating, the plan cannot be executed and also many misunderstanding could be created that ultimately delay the plan execution
Therefore the information i.e. needed to be collected during the time of project so it would be the case of the communication plan
The same is to be considered
Calculate current liabilities Sales Revenue $25,000 Accounts Payable $1,200 Accounts Receivable $2,600 Inventory $3,200 Supplies $300 Cost of Goods Sold $16,000 Notes Payable (due in 2 years) $24,000 Equipment $40,000 Accumulated Depreciation $12,000 Land $30,000 Unearned Revenue $1,100 Taxes Payable $1,400 Prepaid Rent (3 months) $2,100 Cash $5,200
Answer:
$3,700
Explanation:
Calculation for the current liabilities
CURRENT LIABILITIES
Account Payables $1,200
Unearned revenues $1,100
Taxes Payable $1,400
Total current liabilities $3,700
Therefore the Total current liabilities is $3,700
Johnson sells $111,000 of product to Robbins, and also purchases $12,200 of advertising services from Robbins. The advertising services have a fair value of $9,100. Johnson should recognize total revenue to account for these events of: rev: 01_03_2020_QC_CS-190391 Multiple Choice $101,900 $98,800 $107,900 $111,000
Answer:
$107,900
Explanation:
Calculation for the amount of total revenue to account for these events
Sale $111,000
Less Difference in advertising fair value $3,100 (12,200-9,100)
Total Revenue $107,900
Therefore the amount of total revenue to account for these events will be $107,900
4. Murphy started putting $100/month into his 401(k) earning 6% APR when he was 25 years old. How much will be in his account when he retires at age 65, if interest is compounded monthly
Answer:
The amount in his account is $199,149.07
Explanation:
The computation of the amount in his account is shown below:
= {Compounding period × per month amount × {(1 + rate of interest ÷ Compounding period)^Compounding period × years - 1}} ÷ { rate of interest}
= {12 × $100 × {(1 + 0.06 ÷ 12)^12 × 40 - 1}} ÷ {0.06}
= $199,149.07
Years should be
= 65 - 25
= 40
Hence, the amount in his account is $199,149.07
All of the following are true except: a. Projects have a finite timeline, while programs may exist as long as the parent organization does. b. A program manager has the discretion to make trade-offs in regard to which projects to pursue. c. A portfolio may contain multiple programs and projects. d. A project manager has the discretion to make trade-offs in regard to which programs to pursue.
Answer: d. A project manager has the discretion to make trade-offs in regard to which programs to pursue
Explanation:
A project manager is an individual who is responsible for planning and executing of a project using the available resources and within a specified time frame to achieve the goals and objectives of the project.
A project is a task that has a start and ending and must be completed within a specific time frame using the available resources. A Portfolio simply means the collection of projects, or programs.
Based on the explanation, the answer is option D. "A project manager has the discretion to make trade-offs in regard to which programs to pursue".
A project manager doesn't have the discretion to make trade-offs in regard to which programs to pursue. That is the role of a program manager and not the project manager. The project manager only has discretion when it has to do with making trade-offs regarding the projects to pursue.
Option D is the right answer.
The false statement is option d. A project manager has the discretion to make trade-offs in regard to which programs to pursue.
Trade-off theory:The trade-off theory of capital structure shows that corporate leverage is measured by balancing the tax-saving benefits of debt against dead-weight costs of bankruptcy. The project should contains the finite timeline. Also, the project manager should considered the trade-off theory for pursue it not for the program.
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Suppose that in a country people gain more confidence in the banking system and so hold relatively less currency and more deposits. As a result, bank reserves will a. decrease and the money supply will eventually decrease. b. decrease and the money supply will eventually increase. c. increase and the money supply will eventually decrease. g
Answer: increase and the money supply will eventually decrease
Explanation:
Bank reserve simply means that the minimum funds that the commercial banks must have so that they'll be able to meet the requirements of the central bank.
When the people in a country gain more confidence in the banking system and so hold relatively less currency and more deposits, this will lead to an increase in the bank reserves. Since bank reserve has risen, the amount of money available that is, money supply will decrease due to the fact that the funds have been reserved and kept. It is a form of contractionary policy which is usually used when there's too much money in circulation.
When ___ differ from one global financial center to another, ____ profit opportunities are said to exist but __________..
Answer: cross rates, arbitrage, disappear quickly
Explanation:
When cross rates differ from one global financial center to another, arbitrage profit opportunities are said to exist but disappear quickly.
Cross rates simply means the foreign exchanges rates for currencies of countries. It should be noted that when the cross rates of countries differs, it brings about arbitrage profit which simply means the profit one makes due to the different rates utilized on different markets. It should be noted that when though this profits occur, they disappear quickly.