Finance Answers

Question:
Payments of $670 are being made at the end of each month for 5 years at an interest rate of 8% compounded monthly. Calculate the Present value?

Project is required in initial investment of ruppes 500000 cash flow after for its estimated life of 4 years are as follows

Year. CFAT
1. 100000
2. 200000
3. 150000
4. 160000

A company requires an investment of rupees 500000. expected life of project is 5 year with salvage value of rupees 50000. Tax rate is 50%. depreciation calculated using straight line method. If estimated cash flow before depreciation and tax is as follows. Calculate payback period and net present value for the project at 10% rate of discount.
Year. CFBDT
1. 150000
2. 140000
3. 130000
4. 130000
5. 150000

Suppose you plan to create a portfolio with two securities: Rolie and Polie. Rolie has an expected return of 6 percent with a standard deviation of 5 percent. Polie has an expected return of 18 percent with a standard deviation of 15 percent. The correlation between the returns of these two securities is perfectly negative. What percentage of your investment should be in Polie to make the portfolio risk free? What would be the expected return on the portfolio?

Sarah is looking to refinance her loan because rates have gone down since she has taken the loan 5 years ago. She started with a 30-year fixed-rate mortgage of $276,000 at an annual rate of 7.30%. She has to make monthly payments. She can now get a 25-year fixed-rate loan at an annual rate of 4.30% on the remaining balance of her initial loan. This loan also requires monthly payments. In order to re-finance, Sarah will need to pay closing costs of $3,700. These costs are out of pocket and cannot be rolled into the new loan. How much will refinancing save Sarah? or What is the NPV of the refinancing decision?)

Wildcat Ltd, a manufacturing company sold a machinery for Rs 8 lacs at the year end. The company had purchased the machinery four years back for Rs 15 lacs and had depreciated the same using written down value method of depreciation @ 20%. As an accounts executive of Wildcat Ltd, calculate the WDV of the asset for the four years, accumulated depreciation for four years and profit/loss on sale, if any.

You
the owner of a small business thinks that something is wrong with their accounting system because the following information has been reported form September 2018.

Net Profit after tax $5400
net cash from operations $2300

can you help the owners understand why this might occur?
your explanation should be refer to relevant accounting principles

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price to $9.50, he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is $4 per shirt, what is his desired markup and what is his initial actual markup? Was raising the price profitable?

The stock of Townships Ski Resorts Inc. just paid a dividend of $0.78. What is the expected capital gains yield if the stock is selling for $28.25 today and the required rate of return is 15 percent?

Sandhill Co. just paid a dividend of $2.45 per share and its EPS is $17.15. Its book value per share (BVPS) is $120.05. Calculate Sandhill’s sustainable growth rate.