Below are events, for each event, identify the type of risk the event entails, classify your identified risk as either systematic or unsystematic risk; Public policy Boards’ risk blindness: risk Information glass ceiling Managerial inefficiency and ineffectiveness Risk assessment strategy.

Q: Marginal Incorporated (MI) has determined that its after-tax cost of debt is 9.0%. Its cost of…

A: A firm will have to switch from the internal accruals to external equity if the internal accruals…

Q: What is the maximum amount an investor should pay for a 25-year bond with a $20,000 face value and…

A: Given: Particulars Amount Face value (FV) $20,000 Years 25 Coupon rate 8% Interest rate…

Q: es The next dividend payment by Im, Incorporated, will be $1.48 per share. The dividen are…

A: Dividend yield = dividend per share/Current Market price =  1.48/27 =0.054815 = 5.48%

Q: This morning a corporate bond of Carnival Corp Inc was being traded at par of $1,000. By midday, the…

A: To calculate the bond price we will use the below formula   Bond price = FV/(1+r)n Where FV - Face…

Q: Paul and Sandy Moede signed an $8,100 note at Citizen's Bank. Citizen's charges a 6.4% discount…

A: A note is a debt instrument where the borrowing party promises to pay back the face value of the…

Q: why do you think some of the p/e ratios are lower than the others?

A: P/e ratio means the price at which the investor is willing to buy the stock of that company.

Q: Calculate the Net Investment of this project, Calculate the Net Cash Flows for the five (5)…

A: Net Present Value: It is a measure of profitability used in capital budgeting to determine the…

Q: ABC Corporation plans to issue a 9%, 10-year, P5,000,000 face value bonds. It will incur P500,000 as…

A: Yield to maturity is rate of return realized on the bond when bond is held till the maturity period…

Q: The beneficiary of a life insurance policy is to receive $2000 a year for 5 years, the first payment…

A: Value of the annuity at the time of the death is calculated as the present value of annuity due…

Q: Use the following information to determine the value of a currency swap in US dollars. Under the…

A: A swap is an agreement between two counterparties in the financial world to exchange financial…

Q: Common stock valuation​) Abercrombie​ & Fitch's common stock pays a dividend of 2.75. It is…

A: Dividend growth Model - As per dividend growth Model current price per share can be calculated as…

Q: Isn't the final payment going to be $144.78? How did you get final payment of $138.51

A: Table showing the final payment: Snapshot:

Q: You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, &…

A: We have to find the AFN for the coming year under two different scenarios of payout ratio. We have…

Q: You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to…

A: Number of withdrawals = 18 Monthly interest rate = 1% First deposit of $108 in 6 months. Increase in…

Q: A few years ago a couple purchased an office space by financing RA for n years, paying installment…

A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…

Q: 5) Consider a retirement savings account where the monthly contribution is $125 for the first 10…

A: Monthly contribution for first 10 years is $125 Monthly contribution for next 25 years is $225…

Q: uppose the world price of notebooks is $4.00. Suppose the pre-trade price of notebooks in France is…

A: Now days business is international levels and companies take advantage of the export and import to…

Q: Jason is driving his car down the street. All of a sudden, the new Taylor Swift song comes on the…

A: Solution: Option B is correct  B)  Breach of duty  Explanation :-  Because he has harmed another…

Q: The TLC Yogurt Company has decided to capitalize on the exercise fad and plans to open an exercise…

A: NPV is defined as the sum of the present values of all future cash inflows less the sum of the…

Q: Evaluate three commonly used approaches to qualifying financial risks.

A: Risk management is the process of assessing risk and then based on the assessment, develop…

Q: Wilma wants to buy a car that costs $52,000. She has arranged to borrow the total purchase price of…

A: In this case Wilma will make fixed monthly payments. The amount of these payments will be the same…

Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…

A: Semiannual interest rate (r) = 0.06 (i.e. 0.12 / 2) Number of deposits (n) = 20 Semiannual period…

Q: As of 2022 Company (as of October 2022) Apple Microsoft Amazon McDonald's AT&T PE Ratio 23.12 25.46…

A: P/E ratios of various companies have been given. We have to figure out why P/E ratio is lower for…

Q: Suppose that you are thinking about buying a car and have narrowed down your choices to two options.…

A: Here, To Find: Difference in the monthly payments between the two options =?

Q: A bond has a Current Yield of 10%.  If the bond is paying a coupon Rate of 7%, for how much is the…

A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…

Q: On December 31, 2020, SSNIT and SIC (non-life) entered into a six year swap arrangement with first…

A: Notional Principal = $50 million SIC interest Rate = 5% SSNIT interest Rate = LIBOR +1.25% LIBOR =…

Q: Which of the following statements is correct? Financial institutions perform complex asset…

A: Asset transformation-It is a process of transforming bank liabilities, usually mobilized funds like…

Q: You are called in as a financial analyst to appraise the bonds of Olsen's Clothing Stores. The…

A: To Find: Price of the bond

Q: In April 2019, Van Dyck Exponents offered 130 shares for sale in an IPO. Half of the shares were…

A: a-1) Information provided: Half of 130 shares is for company @ $56. Hence, Proceeds of the issue to…

Q: What is financial repression and why does it exist?

A: Financial repression is the phrase used to describe policies used by governments to funnel money…

Q: A young engineering company is a subcontractor in an effort to develop technology that will reliably…

A: Effecive Annual rate is the rate earned after considering the impact of compounding. Higher the…

Q: The Lee family is buying a new 3,500-square-foot house in Muncie, Indiana, and will borrow $237,100…

A: The periodic payment is the equal amount of payment at regular intervals. The periodic payment…

Q: When we use Excel to perform a regression analysis, the independent variable data must be contiguous…

A: The question states how data should be placed while conducting a regression analysis in excel. We…

Q: Suppose we have five (5) shares with a beta factor and expected return, each, as in the table below.…

A:

Q: Which of the following statement is wrong? Group of answer choices a)the coupon rate of a newly…

A: a) Coupon rate on abond is the stated interest rate. it means that the invrstors will get a definite…

Q: + nt card has a balance of $5400 and an annual interest rate of 1 there are no further purchases…

A: Loans are paid by the equal monthly payments and these payments carry the payment for interest and…

Q: In purchasing of house, a man makes P720,000 down payment and agrees to pay P1,200,000 5 years…

A: Solution:- Cash value means the value of asset in today’s terms. It is the summation of down payment…

Q: You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You…

A: Regular bi-weekly payment  One payment per every two weeks is made. This implies that a new…

Q: A Japanese company has a bond outstanding that sells for 94 percent of its ¥100,000 par value. The…

A: Par value = 100,000 Current price = 100,000 * 0.94 = 94,000 Annual coupon amount = 6100 (i.e.…

Q: Western Gold Property Development Company is refurbishing a 200-unit condominium complex at a cost…

A: Initial cost = $1,875,000 Annual cash flow = $415,350 Period = 7 years

Q: What is the real interest rate if the nominal interest rate is 3% and inflation is 2%?

A: Inflation rate will be the part of real interest rate. Inflation rate means increase in prices which…

Q: The stated interest rate on your account is 5.6%, interest paid quarterly. Your effective rate of…

A: Effective interest rate is calculated using following equation Effective interest rate = (1+Stated…

Q: The amount of annuity that is payable for 5 years at 12% compounded monthly is Php25,000. How much…

A: Given: Years =5 Interest rate = 12% Future value = $25,000

Q: It is a sequence of equal payments made at equal time intervals. annuity compound interest ол

A: An annuity is a fixed amount of money that will be made at equal intervals and they are classified…

Q: Transfers between the Petty Cash Book and the Bank Account are called Contra- entries. Such cash…

A: There are golden rules for the items to be debited and credited as mentioned below. Increase in…

Q: whenever i divide 1.3 by 8.2 I get 15.85 but on the answer sheet its saying the answer should be…

A: =Wp×kp =Weight of preference share x Cost of preference share

Q: The Ting Hai effect is a Hong Kong stock market phenomenon in which there is a sudden and…

A: Market efficiency- According to market efficiency theory, price of a stock reflects all available…

Q: Bonds from XYZ Inc. offer an after-tax YTM of 5%. They have 15 years left to mature and offer a…

A: Given, After tax ytm is 5% Term to maturity is 15 years Coupon rate is 6%

Q: e at the The net revenue at the end of year 2 is $4,000. The net revenue at the end of year 3 is…

A: Annual level revenue is that revenue which is equivalent to total revenue considering the time and…

Q: Ms. Brown purchases a house for $300,000. She borrows $200,000 from a mortgage company at the rate…

A: In a leveraged sale purchase transaction of a house, we have to find the average annual rate of…