Question 3: Use the following information on Assets to calculate the weighted average duration for each asset type in the "fill in the box" at the bottom of table. Assets: 3 year Consumer Loans with an average interest rate of 7% Cash Flow (CF) $561,300 $766,010 $2,702,883 $0 $0 Present Value Factor (PVF) 5 Year Commercial Loans with an average interest rate of 10% Cash Flow (CF) $755,299 $1,254,503 $1,855,631 $3,214,131 $4,005,543 Present Value Factor (PVF) A. Calculate the weighted average duration for 3-year consumer loans. show in the x.xx format | B. Calculate the weighted average duration for 5-year commercial loans. show in the x.xx format .935 .873 .816 N/A N/A .909 .826 .751 .683 .621
Q: Spot price of silver is $26.36/oz and the quoted interest rate is 2.76% for 3 months. There are no…
A: Arbitrage results from different prices of the same asset in different markets. Many sellers take…
Q: A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 -$ 27,000 1…
A: Dear student, kindly check the answer in the explanation box below.Explanation:Dear student, kindly…
Q: Your company sponsors a 401(k) plan into which you deposit 12 percent of your $60,000 annual income.…
A: A retirement plan for employees is initiated by the company in which the company also contributed…
Q: Suppose you want to figure out the relationship between duration and maturity, so you consider the…
A: Duration of bond shows that how much the bond is sensitive to the change in prices of bonds with…
Q: ces Problem 6-1 Present Value and Multiple Cash Flows [LO1] Mendez Company has identified an…
A: Present value is the discounted value all the future cash flows to the present using appropriate…
Q: Nikul
A: The objective of this question is to calculate the total cost of the loan including the principal,…
Q: Bright Inc. will be receiving $5,400 at the end of every month for the next 3 years. If these…
A: The future value refers to the projected worth of an investment or asset at a specific point in the…
Q: Bill plans to open a service center. The equipment will cost $50,000. Bill expects the after-tax…
A: Profitability index (PI) is the ratio of the present value of the cash inflows from the investment…
Q: The following is part of the computer output from a regression of monthly returns on Waterworks…
A: The term "portfolio hedging" describes the employment of several financial tools or techniques to…
Q: "Consider an all-equity financed firm withe 50,000 shares outstanding priced at $10. The cost of…
A: The objective of the question is to find the new number of shares outstanding after the firm has…
Q: Question 2 Mad Cat Inc. is debating between two alternative earth moving machines to use for the…
A: The objective of the question is to determine which of the two earth moving machines, from Double…
Q: Monthly loan payments Personal Finance Problem Tim Smith is shopping for a used luxury car. He has…
A: The time value of money (TVM) is a concept in finance that suggests money has different worth at…
Q: Problem 3-14 Sustainable Growth Rate (LG3-6) Last year Lakesha's Lounge Furniture Corporation had an…
A: Sustainable growth rate is the type of growth rate which can be achieved by a company in long run…
Q: Use Table 11-1 to calculate the compound amount (in $) on an investment of $3,500 at 10% interest,…
A: Time value of money is a financial concept which is used to analyze various investments and…
Q: A car loan of $22989 is to be repaid by making payments each month for 6 years. If interest is 9%…
A: The time Value of money is a financial concept that states that the value of money is not constant…
Q: 18. Jerome Corporation's bonds have 15 years to maturity, a coupon rate of 8.75%, semiannual coupon…
A: The yield to call is the rate of return that an investor can expect if they hold a callable bond…
Q: A company with 2 million shares outstanding and no debt currently has a net income of $4 million.…
A: Dilution refers to a decrease in the ownership percentage or earnings per share of existing…
Q: a. If an investor had 5,750 shares before the split, how many shares will the investor have after…
A: In reverse stock split the small stocks are converted into large single stock to increase value of…
Q: Your pension is reduced by 0.6% of the monthly payment for every month before age 65 that you…
A: Option 1:Monthly payment starting at age 65 = $1364.6Age when you start receiving CPP = 65Planned…
Q: The following is part of the computer output from a regression of monthly returns on Waterworks…
A: Portfolio hedging is a risk management strategy used by investors to protect their investment…
Q: wo alternative investments are being considered. Design A has an initial cost of $3 million and…
A:
Q: Yosemite Corporation has an outstanding debt of $10.09 million on which it pays a 5 percent fixed…
A: Given data:Fixed rate = 4.3%Nominal principal amount = 10090000Current libor = 5%Year 1 Libor =…
Q: You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that…
A: Growth Amount = $450,000Payment for year 0 = p0 = $1 milllionPayment for year 1 = p1 = 1 + 0.45 =…
Q: You originally purchased Hershey stock at $161. It paid a dividend of $3.00 in the last year.…
A: The term stock basically depicts the ownership for a corporation, including the number of shares or…
Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 34-year…
A: Loan period: 34 yearsPurchase price: $3,240,000Monthly payment: $15,700Loan percentage: 80%
Q: Mansukh
A: The objective of this question is to find out how many months it will take to pay off an unpaid…
Q: You find a zero coupon bond with a par value of $10,000 and 16 years to maturity. The yield to…
A: Zero-coupon bond is the bond which pays no coupon or interest payment. This bond only redeems the…
Q: A share of common stock just paid an annual dividend of $4.45. If the expected long-run annual…
A: In the given case, we have provided the annual dividend paid per share. The given expected long-run…
Q: Complete the following using ordinary interest (Use Days in a year table) Note: Do not round…
A: In ordinary interest method, simple interest is calculated based on total 360 days (not 365 or 366)…
Q: You have taken out a 60-month, $26,000 car loan with an APR of 8%, compounded monthly. The monthly…
A: A loan refers to a contract between two parties where money is forwarded by one party to the other…
Q: Rate of return-Annuity What is the rate of return on an investment of $11,733 if the investor will…
A: The rate of return on an investment is the discount rate at which the present value of the future…
Q: The Two Sisters Corp. has a retum on assets of 9 percent, retum on equity 12 percent and a dividend…
A: Return on Assets = 9%Return on Equity = 12%Dividend Payout Ratio = 75% or 0.75We will calculate the…
Q: The following table shows your stock positions at the beginning of the year, the dividends that each…
A: The percentage growth or decrease in the value of a diverse group of investments over a specified…
Q: You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you…
A: Compound = 7 yearPayment = p = $67,000Time = t = 42Interest Rate = r = 4%
Q: A property-casualty insurer brings in $6.25 million in premiums on its homeowners MP line of…
A: Hence, the question has been solved in detail explanation manner. RatioPercentageLoss Ratio69.5…
Q: A woman buys a house for a $260,000. She pays $20,000 down and takes out a mortgage at 5.1% for…
A: Purchase Price of House = pp = $260,000Down Payment = dp = $20,000Compound = Monthly = 12Interest…
Q: Bird's Eye Treehouses, Incorporated, a Kentucky company, has determined that a majority of its…
A: Net present value (NPV) is a financial metric used to assess the profitability of an investment. It…
Q: you deposit 850 in an account that pays an annual rate of 7.9%. find the future value of the…
A: The future value of an investment is compounded value of investment in the future after compounding…
Q: Assume that you contribute $300 per month to a retirement plan for 15 years. Then you are able to…
A: Future value (FV) in the back signifies the anticipated worth of a venture or resource at an…
Q: You invest $2,000 in a complete portfolio. The complete portfolio is composed of a risky asset with…
A: Investment=$2000Treasury bill with a rate of return= 6%Treasury bill have=zero standard…
Q: Steps 1, 2: Analyze Fundamentals The corporate financial system is driven by a firm's goals,…
A: The provided text outlines a comprehensive framework for analyzing corporate financial systems and…
Q: The Fillmore Fan Company sets aside $28,500 from each quarter's profits and invests the money in a…
A: Variables in the question:PMT=$28500Rate=4.75%N=3 yearsWorking Note#1Computation of quarterly…
Q: You have a credit card that has a balance of $5810 at an APR of 17.99 %. You plan to pay $400 each…
A: Credit card balance: $5810APR: 17.99%Monthly payment: $400
Q: (Present value of a growing perpetuity) As a result of winning the Gates Energy Innovation Award,…
A: First payment = $10,000Growth rate = 6%Interest rate = 11%
Q: Your grandfather put some money in an account for you on the day you were born. You are now 16 years…
A: See below.Explanation:To solve this problem step by step, we can use the formula for compound…
Q: A stock trades for $45 per share. A call option on that stock has a strike price of $55 and an…
A: A call option refers to a derivative instrument that provides the holder the choice to purchase the…
Q: How much must be deposited today into the following account in order to have a college fund in 11…
A: The time value of money is a concept in finance that takes into account the effect of compounding in…
Q: You hold a diversified $100, 000 portfolio consisting of 20 stocks with $5,000 invested in each. The…
A: A portfolio can be defined as a collection of assets. Instead of investing the money in a single…
Q: Live Forever Insurance Company is selling a perpetual annuity contract that pays $2,700 monthly. The…
A: An annuity is a financial product where you make regular payments, and in return, you receive a…
Q: Consider the following Options Kuala Lumpur Index (OKLI) traded at BMDB: Option Type Option Price 33…
A: Synthetic strategies involve combining options to create positions that mimic the payoff of other…
Step by step
Solved in 4 steps
- You are given the following information. What is your liquidity ratio? Annual disposable income: $45,000 Total liabilities: $17,400 Annual savings: $2,400 Long-term assets: $85,000 Current ratio: 2 Debt-to-asset ratio: 0.2 Select one: a. 0.90 b. 0.56 c. 0.89 d. 0.53Assume that you are given the following ratios: Asset turn-over: -1.5x Return on Assets: -3% Return on equity: -5% What is the debt ratio?Given the following information, calculate the duration of assets and liabilities. Assets Amount Rate Duration Cash 90 Loans 800 12% 2 years Treasuries 110 9% 8 years Liabilities and Equity Time deposits 500 6% 1.75 years CDs 425 8% 2.50 years Equity 75
- r. Principal s refers to the amount of money borrowed or invested on the origin 4. refers to the amount of time in years the money is borrowed or ted. 5. Dme term MOHurity value 6. Futuie value refers to the amount after t years that the lender receives from orrower on the maturity date. efers to the amount paid or earned for the use of the money. 7. Inferest FOMPLETION: Complete the table by finding the unknowns. IMPLE INTEREST Maturity Value (F) Principal (P) Rate (r) Time (t) Interest (I) 10, 000 1002.5% nonl year 3, 500 20, 000 2 years 10,000 30, 000 30, 000 20% 3 years 48, 000 40, 000 15% 24, 000 64, 000 10% 6 months 2, 500 52, 500lonic Exploration Company reported these figures for 2018 and 2017: E (Click the icon to view the figures.) Compute the rate of return on total assets for 2018. (Round to two decimals.) Select the formula, then enter the amounts to compute the rate of return on total assets for 2018. (Enter the rate of return as a percent rounded to two decimal places, X.XX%.) Rate of return on total assets %3D Data Table S: Income Statement-partial: 2018 2017 Interest Expense $ 17,800,000 $ 14,500,000 Net Income 18,400,000 14,600,000 Balance Sheet-partial: Dec. 31, 2018 Dec. 31, 2017 Total Assets $ 322,000,000 $ 320,000,000 Print Donea. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows: Total margin 3.5% Total asset turnover 1.5 Equity multiplier 2.5 Return on equity (ROE) 13.1% b. Calculate and interpret the following ratios: Industry Average Return on assets (ROA) Current ratio 5.2% 2.0 Days cash on hand 22 days Average collection period 19 days Debt ratio 71% Debt-to-equity ratio 2.5 Times interest earned (TIE) ratio 2.6 Fixed asset turnover ratio 1.4 c. Assume that there are 10,000 shares of Green Valley's stock outstanding and that some recently sold for $45 per share. • What is the firm's price/earnings ratio? What is its market/book ratio? (Hint: These ratios are discussed in the supplement to this chapter.)
- Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets $ 25,494 29,800 $ 52,676 69,608 7,901 216,273 Cash $ Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net 73,888 91,962 8,459 236,656 30,737 40,577 42,778 3,348 189,960 Total assets $ 436,459 $ 376, 258 $ 307,400 Liabilities and Equity $ 106,505 64, 223 $ 40,577 Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock, $10 par value Retained earnings $ 83,695 68,615 162,500 35,708 $ 376, 258 $ 307,400 89,136 162,500 162,500 83,759 60,399 Total liabilities and equity $ 436,459 (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three year period?Calculate the interest rate using following information (Enter your answer in percentage. Round your answer to 2 decimal places): Administrative costs Cost of debt Cost of equity Probability of loss The average reserve requirement Capital policy 2% 4% 5% 0.65% 5% 90% debt capital, 10% equity capital 2Calculate the following ratios for 2025 and 2026. (Round current ratio to 2 decimal places, e.g. 12.61, debts to assets and gross profit rate to 0 decimal places, e.g.12, and all other answers to 1 decimal place, e.g. 12.6%) Please show your work. 1. Current ratio 2. Debts to assets 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2024, were $35,180) 6. Return on common stockholder's equity (Total common stockholders' equity at November 1, 2024, was $25, 180. Dividends on preferred stock were $16,800 in 2025 and $18,000 in 2026)
- For each of the investments below, calculate the rate of return earned over the period. Investment ABCDE Cash Flow During Beginning-of-Period End-of-Period Value Period Value - $400 13,000 4,000 60 1,700 $1,700 140,000 60,000 800 14,500 $800 117,000 46,000 400 12,6001. Construct a partial amortization schedule showing the last 2 payments. PMT Setting N I/Y P/Y C/Y PV PMT FV Payment NumberPaymentInterest PaidPrincipal RepaidOutstanding Principal 2. Determine the total amount paid to settle the loan. Show work, not just the answer. 3. Determine the total principal repaid. 4. Determine the total amount of interest paid. Show work, not just the answer.a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio More Info a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done Choose from any list or enter any number in the input fields a Financial Statements Balance Sheet: Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: Net Credit Sales Cost of Goods Sold $ Current Year Preceding Year 15,000 $ 11,000 56,000 64,000 13,000 159,000 132,000 465,000 317,000 29,000 27,000 94,000 82,000 7,000 239,000 89,000