1-Jan-20 100,000.00 800,000.00 26.00 Shs Outstanding SHE, in pesos MP per sh Div per sh Cost of Equity What is the market value added? 31-Dec-20 100,000.00 950,000.00 42.00 3.00 12%
Q: Use graphical approximation techniques to answer the question. When would an ordinary annuity…
A: An annuity is a type of contract usually used in the insurance industry. It provides a periodic…
Q: Carambola de Honduras. Slinger Wayne, a U.S.-based private equity firm, is trying to determine what…
A: The present worth analysis is a method of finding out the actual value of an investment based on the…
Q: Using the below informtion answer: 5.1 Payback Period of Project Tan (expressed in years, months…
A: The payback period is a method of finding out the profitability of a project. It calculates the time…
Q: What is the connection between Business Valuation and Financing Options ?
A: Business valuation: The economic worth of a firm or business unit is determined via business…
Q: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…
A: MIRR refers to modified internal rate of return. MIRR, as a capital budgeting tool, seeks to remove…
Q: Which of the following is NOT the role of Ministry of Finance under IFSA 2013 and FSA 2013?…
A: The Ministry of finance is very important of government department and has much bigger role in…
Q: A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the…
A: Deprecation is the accounting method under which cost of assets will be claimed as expenses by…
Q: The two most commonly known measures of performance measurement for managers are: a. The Sharpe and…
A: The managers of portfolio are rewarded based on the performance of portfolio and they are based on…
Q: A man secured a ₱ 9,771 loan at 2 % interest rate. Find the annual amortization to extinguish it in…
A: Present Value of Annuity Due refers to a concept which determines the value of cash flows at present…
Q: The drawee of a check is not liable on the instrument until the check is _______. a.) Accepted.…
A: Drawee is the person who is directed to pay. In case of a Cheque Bank will always be the Payee.
Q: Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is…
A: The present value analysis is used to find out the profitability of a project. It uses the concept…
Q: 2. 4. Briefly explain the following Time value of money L IL n 0 1 Doarp Difference between simple…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: Filer Manufacturing has 6,820,579 shares of common stock outstanding. The current share price is…
A: Data given: A) First bond issue Face value = $45,114,745 Coupon=0.05 n=10 years Sells for 83…
Q: A businessman plans to purchase a new house costing P 500 000. He can raise the building by issuing…
A: Here we will compare the present value of both the options and whichever gives the lower present…
Q: 6) You are loaned $300 at the end of years 1 and 2, and loaned X at the end of year 3. You pay this…
A: Value of money falls with the passage of time, this concept is called time value of money (TVM).…
Q: a. Year 0 cash flow Year 1 cash flow Year 2 cash flow Year 3 cash flow b. NPV
A: Net present value refers to the balance of the present value of cash flows compared with the…
Q: Lloyd's of London is selling a perpetual bond that will provide the bondholder with $100 / year…
A: In perpetual bond, interest income from the bond is recurring throughout life i.e., no maturity…
Q: Bruin, Incorporated, has identified the following two mutually exclusive projects: Year 0 1 2 1234 3…
A: To Find: IRR NPV NPV profile for both projects
Q: Mini Case Lewis Securities Inc. has decided to acquire a new market data and quotation system for…
A: Note: This post has several sub-questions. The first three have been answered below.
Q: The following cash flow diagram indicates the yearly payments you will make in the future. Assume…
A: The Present Value of money: The value of a cash stream to be received or paid at some time in the…
Q: ‘BNM acts as lender of a last resort’. This statement implies that Select one: BNM may provide…
A: A central bank is the lender of a last resort or comes to the fore in case of liquidity issues for…
Q: A new project will result in the annual incremental production of 5,000 sonar units. Each unit will…
A: Solution:- Operating cash flow (OCF) means the cash flow available to a firm after paying taxes on…
Q: Edna deposits $2,000 in her bank account which is earning 2% in interest per year. How much will…
A: Final Amount = Principal Amount ( 1 + Rate of Interest )time period
Q: Michelle is 25 years old and has decided to start a retirement program. Beginning in exactly one…
A: Time period is 30 years Annual savings are $15,000 Interest rate is 4% To Find: Amount saved for…
Q: Fujita, Incorporated, has no debt outstanding and a total market value of $140,000. Earnings before…
A: Earning per share: Earnings per share is defined as the profit per outstanding share of stock,…
Q: partial payment is made on the date indicated. Use the United States rule to deter the note at the…
A: As per the given information: Principal - $7,000 Rate of interest - 3% Effective date - July 15…
Q: tore offers its salespeople a table with coefficients to be applied to the cash sale value of its…
A: Coefficients are very important in calculating the monthly payments and value of these depends on…
Q: what is the bond price if priced with the assumption that it will be called on the first available…
A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…
Q: You wish to have $100,000 in 15 years. How much should you set aside today if the discount rate is…
A: Present Value: It is the current worth of a future sum of money at a fixed rate of return.…
Q: A 90-day, 8% interest bearing note for RM3000 dated 2 September 2020 is discounted on 14 November…
A: Note payable refers to those legal obligations of the company which will be paid on any specific…
Q: A4) Finance What is a pair of options that will create a payoff profile for a long straddle?
A: Solution:- Payoff means the cash flow on maturity.
Q: Which of the following projects have conventional cash-flow streams? Select all that are…
A: Solution:- Conventional cash flow stream is that cash flow stream in which the sign of cash flows…
Q: The credit analyst for Mazibuko Limited has established the following data relating to the working…
A:
Q: Question 2 A race car driver wishes to insure his car for the racing season for $50,000/=. The…
A: The following information has been provided in the question: Insurance amount =$50,000 Probability…
Q: The one-year interest rate over the next 10 years will be 1%, 2%, 3%, 4%, 5%, 6%, 7%, 8%, and 10%.…
A: One year interest rate over the next ten years will be as follows: 1st Year Interest = 1% 2nd Year…
Q: What amount of money invested today at 15% interest can provide the following scholarships: P 30 000…
A: The present value is the discounted value of future cash flows. For sustaining a scholarship the…
Q: You are considering whether to pursue a higher degree after you finish your college study. The…
A: The Tuition fees for 2 years is 10,000 which is assumed to be paid in day 1. Monthly income will be…
Q: GIVE THE FORMULAS FOR THE FOLLOWING EFFICIENCY RATIOS OF NESTLE. THANK YOU Ratio Analysis Efficiency…
A: Required:: Formulas for the following efficiency ratios: i) Asset turnover ii) Inventory turnover…
Q: Hi. I need an understanding of how to calculate a projects net investments and cash flows. The image…
A: When investing in a project we need to determine its financial viability. For this we often use…
Q: 4 B) Let’s say you are considering investing in a popcorn business. The popcorn machine costs…
A: NPV is method of Capital budgeting under which help we can take the decision on the basis of NPV…
Q: For an effective interest rate of 16% per annum, what is the equivalent nominal annual rate…
A: The periodic interest rate is multiplied by the number of periods in a year to create the nominal…
Q: Assume that today's date is August 15, 2015 and that the Kroger Bond is a semiannual-coupon bond…
A: Given: Particulars Today date 08/15/15 Face value(FV) 1000 Price 118% Coupon rate…
Q: Which one of the following is a property of a pure arbitrage portfolio? a. Negative investment. b.…
A: Arbitrage is the practice of purchasing and selling the same assets in multiple markets. This is…
Q: If interest charge for leasing is 8%, which is more favorable for the businessman, borrow and buy or…
A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…
Q: The yield on the 10-year Treasury Note this year has gone from 2% to 3.1%, as a result the price of…
A: a) Decreased
Q: 3M has famously increased its dividend for 63 straight years. Let’s assume you think this will…
A: An approach is referred as the approach, which used to assume that the dividend growth at the…
Q: Discuss the following: 1. Financial markets are institutions and systems that facilitate…
A: In this question we will be discussing the following questions : 1. Financials Markets are…
Q: What is the most crucial aspect of the transition from serial to batch processing?
A: Batch accounting is referred as the transferring system of an items from the ledger, journal, and…
Q: Better Mousetraps has developed a new trap. It can go into production for an initial investment in…
A: As per the given information: Initial investment in equipment - $6.3 million Depreciated over 6…
Q: Define credit risk and its implications for banks and other financial institutions as well as ways…
A: Credit Risk means risk which is faced by the Banks and Financial Institutions who lend money to…
What is the market value added?
Step by step
Solved in 2 steps
- (a) Calculate current Ratio and Quick Ratio from the followinginformation:Total Assets Rs. 350000Fixed Assets Rs. 175000Investment Rs. 70000Fictitious Assets Rs. 5000Share holders fund Rs. 200000Long term Debts Rs. 100000Inventory Rs. 45000(b) From the following information calculate the stock turnoverratio.Sales Rs. 200000, G.P 25% on cost, Opening Stock was 1/3rd of thevalue of closing stock. Closing stock was 30% of salesYou have the following information about Trisha Company: total asset =P350,000; common stock equity = P175,000; Return on Equity (ROE) =12.5%. What is Trisha’s earnings available for common stockholders? A. P21,875B. P43,750C. P50,000D. P47,632Assume that you are a consultant to Morton Inc., and you have been provided with the following data: D0 - $1.4: PO - $36; and g - 4.8% (constant). What is the cost of equity from retained earnings based on the DCF approach? OO Ⓒ948% 8.88% Go htt
- Nathalie Company has earnings available for commor shareholders of P700 produced by sales of P10,00O. It also has total assets of P20,000 and an assets to equity ratio of 2.5. What is Nathalie's return on common equity? 7.0% None of the choices O 17.5% O 8.75%(a) Calculate Return on Investment from the followingGross Profit Rs.100000, Office Expenses Rs. 10000, Selling and Distribution expenses Rs. 25000, Interest on Bank Loan Rs. 8000, Income tax Rs. 12000,Fixed Assets Rs. 300000, Current Assets Rs. 150000 & Current Liabilities Rs.125000(b) Calculate the earning per share from the following data15000 Equity Share of Rs. 10 each 15000010 % Preference Share Capital 100000Net Profit before Tax 55000.The following information is taken from Tanaka Bhd for the year ended 31 December2020.Preference dividend declared and fully paid in 2020: RM100,000Ordinary dividend declared and fully paid in 2020: RM3,960,000Preference share marketable price per unit at 31 December 2020: RM4.60Ordinary share marketable price per unit at 31 December 2020: RM9.00 Industry average ratioi. Current ratio 2.3 : 1ii. Quick ratio 1.1 : 1iii. Asset turnover 2.0iv. Profit margin 4.0%v. Earnings per share RM0.46vi. Rate of return on total assets 11.0% From the industry average, identify and comment on Tanaka Bhd’s profitability and shortterm liquidity.
- Assuming a business entity has a total asset of 25,000,000 its total liabilities is 1/3 of the said amount. How much is the equity? 16,000,000,00 16,666,666.67 13,333,333.33 13,000,000.00The following information is taken from Tanaka Bhd for the year ended 31 December2020.Preference dividend declared and fully paid in 2020: RM100,000Ordinary dividend declared and fully paid in 2020: RM3,960,000Preference share marketable price per unit at 31 December 2020: RM4.60Ordinary share marketable price per unit at 31 December 2020: RM9.00 Industry average ratioi. Current ratio 2.3 : 1ii. Quick ratio 1.1 : 1iii. Asset turnover 2.0iv. Profit margin 4.0%v. Earnings per share RM0.46vi. Rate of return on total assets 11.0%Assumption: all sales in credit; finance expense means interest; ordinary share outstandingthroughout both years = 10,000,000 shares. From the industry average, identify and comment on Tanaka Bhd’s profitability and shortterm liquidity.help me answer these pleaseeeeee 1. Given a price-earnings ratio of 12, EPS of P2.18, and payout ratio of 75%, compute for the dividend yield. (use 2 decimal places for your final answer, express in percentage) 2. A company's sales last year were $615,000 and its net income was $45,800. It has $465,000 in assets financed only by common equity. Determine the profit margin needed to achieve a 14.5% ROE. Use 4 decimal places in your final answer. Express in percentage 3. Net income for 2020 was P1,825,600. In 2021, it decreased by 53%. Still using the 2020 net income as the base year, by 2022, net income increased by 130%. Determine the net income for 2021 and 2022, respectively. (separate the values by a comma followed by a space ", ") 4. P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the interest rate compounded semi-annually, compute how much is in the fund at the end of 4 ½ years just after the last deposit. (use 2 decimal places for…
- Assume that Firm A is an all-equity firm with total assets of $5,000 and the following distribution of EBIT for the coming year: Fem A Unlevered Probability EBIT Interest EBT Taxes (40%) Net Income BEP ROA ROE O2.653% O 3.487% 2.800% O 3.098% Bad 3.774% 10.00% $500.00 $0.00 $500.00 -$200.00 $300.00 10.00% 6.00% 6.00% Economy Average 40.00% $700.00 $0.00 $700.00 -$280.00 $420.00 14.00% 8.40% 8.40% Now assume that the firm plans to issue $2,000 of debt, at an interest rate of 6.4 percent, and use the proceeds to repurchase equity (you may ignore potential impacts on price and assume that the firm will then have $3.000 of equity). Given this information, determine the standard deviation of the new ROE distribution. Good 50.00% $900.00 $0.00 $900.00 -$360.00 $540.00 18.00% 10.80% 10.80%Para el año que culmina el 30 de junio de 2018, Northern Air Cooling Corporation tiene: Total assets = $87,631,181 ROA = 11.67 % ROE = 21.19 % Net profit margin = 11.59 % Determina lo siguiente Net income: _____________ Sales: _____________ Debt-to-equity ratio: _____________Brilliant Corp. has total current liabilities of P22,000 and an inventory of P7,000. If its current ratio is 1.2, then what is Brilliant's quick ratio? * O .36 O .75 .64 O .88