Pepito Catamco is excited to own a brand new Toyota car. Toyota is selling the for P1.2million. The required down-payment is 25% of the selling price. Banco de Coco is willing to finance the unit at 12% annual interest. Pepito wants to pay on a quarterly basis good for three years only. How much is the quarterly payment of the loan for three years? How much is the outstanding balance of the loan after paying for one year?

Q: Calculate the Payback period   2. Calculate the Net Present Value (NPV) of both projects   3.…

A: Payback Period: It represents the period in which a project or an investment will recover the cost…

Q: A typical telecom satellite costs $250 million. The launch with an Ariane rocket costs another $220…

A: The net present value (NPV) is a financial metric that helps in finding out the total value of an…

Q: Your investment portfolio consists of $15,000 invested in only one stock-Microsoft. Suppose the…

A: Given,  Investment portfolio = $15,000 Risk free rate = 5% Expected return = 12% Standard deviation…

Q: Determine the hourly owning and operating cost for the third year of operation for the wheel loader…

A: The company uses fixed assets to run the business such as equipment, plant, machinery, and motor…

Q: Question 3 Saving... The risk-free rate is 1%. The market returns 6% on average with a volatility of…

A: The dividend discount model says that dividends are good indicators of the price of the stock. The…

Q: Given the following information, what is the expected return and standard deviation for this stock?…

A: In the given case, the probability and the rate of return of each state of economy . Expected return…

Q: Let say a person have bought a bus worth of Rs 7,300,000 to rent it out in the market. The bus is…

A: Net present value refers to the difference between the cash inflows and outflows in an organization.…

Q: B.E. Kemper, LLC (KEMPER) is a custom parts fabricator supporting the classic auto and recreational…

A: The multiple funding sources of an entity constitute its capital structure. It comprises both debt…

Q: 7. How many months will it take to pay off a $525 loan, with monthly payments of $15 at the end of…

A: Loan: It refers to the amount borrowed and given by the lender for the borrower to purchase assets…

Q: QUESTION 1 MONETARY UNIT SAMPLING We are going to use MUS for testing additions to property plant…

A: STEP 1 A formal data collection technique called monetary unit sampling (MUS) is used to check…

Q: Discuss why the existence of financial market Cor financial System. helps improve the Social…

A: Financial markets are critical to the proper operation of capitalist economies because they allocate…

Q: The spot rate is KZT 467.02864 per US dollar.  The one-year interest rate in the U.S. is 4.5 %…

A: The exchange rate refers to the value of one currency in terms of the currency of another country.…

Q: You are considering investing RM66000 in new equipment. You estimate that the net cash flows will be…

A: Equivalent annual cost: Equivalent annual cost includes all the costs related to an asset in which…

Q: "Mia plans to make 27 annual contributions to a college saving account, with the first contribution…

A: Annual contributions refer to the amount that is contributed for the saving purpose on which…

Q: 6. The data below describe a three-stock financial market that satisfies the single-index model. The…

A: Covariance: Covariance represents a tool of statistics employed to determine the association…

Q: Assume XYZ company has 25million shares of common stock outstanding, 90,000 shares of 12 percent…

A: Cost of Equity as per CAPM = risk free rate + market risk premium * beta  = 9 + 14*1.8 = 34.20 %…

Q: Which of the following does not appear in a corporate income statement? a) The income or loss from…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Ms. White has started her job and wanted to save her money in one way or other. But instead of…

A: Duration of bond is said to to be the average time taken to repay the bond price in present value…

Q: Which of the following investment rules may not use all possible cash flows in its calculation? A…

A: Profitability Index: PI represents the measure of a project's or an investment's attractiveness.…

Q: Bermuda Cruises issues only common stock and coupon bonds.  The firm has a debt-equity ratio of…

A: In the given case, there is given cost of equity , pre tax cost of debt and the tax rate . So, from…

Q: How do you identify intangible assets such as usufruct in modern transactions? Justify with examples

A: Usufruct is the lawful right to a person, business, party that gives the temporary right to use the…

Q: A Polish currency dealer has good credit and can borrow either €1,600,000 or $2,000,000 for one…

A: Covered interest rate parity It provides the forward exchange rate that is based on the difference…

Q: Today is June 4, 2020. Stock X is selling at $150 per share. The stock has a dividend yield of 5%…

A: Spot Price

Q: 5. Shares in Circumbendibus Wheels trade at $25. The interest rate is 6% (with continuous…

A: STEP 1 First, realise that we'll need a return of at least 6% after a year. At this point, we'll…

Q: from the table below. Assuming the risk free rate is 5%. A. Choose the best portfolio according to…

A: Sharpe Ratio: It is used for determining how an asset or the security has been performing using its…

Q: Suppose MMC Industries has calculated its external funds needed (EFN) to be $23,000,000, but now…

A: If the dividend payout ratio is increased from 35% to 40%, it means that a higher portion of the…

Q: Estimating Share Value Using the ROPI Model Following are forecasted sales, NOPAT, and NOA for…

A: The net operating profit after tax (NOPAT) and net operating assets are the main components of the…

Q: Ann Is buying a new home for $365,000.  She is choosing between 2 loan options. Loan A is a 15-year…

A: Data given Particulars Loan amount ($) Monthly rate N (years) Period Monthly payment ($) Loan A…

Q: David has a savings account with a 1,000 balance today. The account earns an annual percentage rate…

A: Compound interest is the interest which gets reinvested along with principal to get the interest on…

Q: Dj 1 finance An ARM is made for $240,000 for 30 years with the following terms: Initial interest…

A: STEP 1 Interest is stated to be 7% for the first year. Interest rates are determined for each of the…

Q: 3

A: Arbitrage is an investment strategy where traders simultaneously buys and sells an asset in…

Q: The simple interest charged on a 5-month loan of $51,000 is $356. Find the simple interest rate.…

A: Simple interest rate refers to the method for calculating the amount of interest applied on the…

Q: A pharmaceutical company has some existing semiautomated production equipment that they are…

A: The distinction here between earnings before interest and taxes and losses over time, is known as…

Q: Look for at least 3 (three) existing Venture Capital, then do it comparison by explaining the…

A: Introduction:- Venture capital is a form of private equity investment typically made into young,…

Q: 3. Given the following information, compute the (1) portfolio return and (2) the portfolio risk…

A: Portfolio Return: It refers to the return expected by an investor on a portfolio containing various…

Q: The PX exchange uses maker/taker pricing: orders that add liquidity receive a rebate of $0.001 per…

A: a) The price paid by Sam net of maker-taker pricing is $ 19.01 Soon thereafter Mona placed a bid…

Q: QUESTION 7 Mergers which attempt to bootstrap earnings may obtain increased earnings per share at…

A: In mergers and acquisition, bootstrap effect is when there is a short-term increase in merged…

Q: If a borrower with a fixed rate entered into a swap (to change his rate to floating) in an…

A: Interest rates are also said as yield curve which is used for depicting the interest rates for…

Q: Use the information for the question below Alaska North Slope Crude Oil (ANS) West Texas…

A: In a barter system, one product is exchanged for another product, and one product is valued in terms…

Q: Assume that you made a repo transaction in which you sold securities for 50 million TL and will buy…

A: The repurchase agreement is a type of money market transaction in which the security will be sold…

Q: Mf3. (a) In relation to the underlying risk insured, explain why the use of funds differs for…

A: Introduction:   Insurance companies: The insurance company is a company that provides insurance…

Q: The overthecounter ​(OTC) market is​ ________.   A.a market where​ smaller, unlisted securities…

A: The financial market is related to the market where buyers and sellers trade financial instruments…

Q: The Australian dollar - Japanese Yen exchange rate is currently given by $A 1= Yen 100. Australian…

A: We have a spot rate and interest rates in two currencies. We need to find the appropriate action for…

Q: why is it important to identify weaknesses in key risk indicator's?

A: Risk is defined as future uncertainty, which is a probability event for the organization. Because…

Q: A pharmaceutical company has some existing semiautomated production equipment that they are…

A: Data given: MARR=12% Tax rate=25% n=5 years   Working Note #1 Description Amount ($) Market…

Q: Bassett Fruit Farm expects its EBIT to be $393,000 a year forever.  Currently, the firm has no debt.…

A: EBIT A company's profitability can be determined using EBIT. It includes all of a company's income…

Q: 55. A borrower has secured a 30-year, $150,000 loan at 7% with monthly payments of $1,000. Ten years…

A: Return on investment refers to the profit earned by the investors over the total cost of…

Q: (Future value of a complex annuity) Springfield mogul Montgomery Burns, age 70, wants to retire at…

A: Data given: Amount to be withdrawn = $1,000,000,000 n=10 years Rate=21% annually No. of end of the…

Q: Which of the following describes the expenses of a triple net lease tenant?   the tenant does not…

A: Triple net lease is an agreement in which the tenant agrees to pay the property expenses such as…

Q: Assume coupons are paid annually. Here are the prices of three bonds with 10-year maturities. Assume…

A: Face Value = $100 Time = 10 year YTM Calculations Formula to be used: Price = (Coupon Payment / r) *…

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.