Jaylin makes a 25-year loan of 150,000 to Susan. Susan needs to repay this loan by level end of year payments R. Jaylin will replace her capital via a savings account which offers annual effective interest rate 6% and earn an APY of 4%. Find R.

After a careful evaluation of investment alternatives and​ opportunities, Masters School Supplies has developed a​ CAPM-type relationship linking a risk index to the required return​ (RADR), as shown in the table

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The firm is considering two mutually exclusive​ projects, A and B. Following are the data the firm has been able to gather about the projects.

All the​ firm's cash flows for each project have already been adjusted for taxes.

a. Evaluate the projects using ​risk-adjusted discount

rates.

b. Discuss your findings in part

​(a​),

and recommend the preferred project.

a. The net present value for project A is

​$______

  ​(Round to the nearest​ cent.)

Study the information below and answer the questions that follow:

Information
Zakiv Limited is considering investing in a project. The following information/data is available
for the project:

The company estimates that its cost of capital is 10%.
Required:
3.1 Calculate the Accounting Rate of Return for the project.
3.2 Calculate the Net Present Value for the project.

How does change in risk impacts return and firm's value.

Study the following Pro-Forma Statement of Comprehensive Income of Dhikim Ltd for the
month ending 28 February 2019.

You will be required to use the information provided to:
2.1 Calculate the following for February 2019.
2.1.1 Cost of Sales (1 mark)
2.1.2 Taxation (1 mark)
2.1.3 Profit after Taxation (1 mark)


2.2 Prepare the Pro-Forma Statement of Comprehensive Income for the month ending March
2019.

Note: use the format provided for February 2019
Information

Pro-Forma Statement of Comprehensive income of Dhikim Ltd for the month ending 28
February 2019

Additional information
- Sales is forecasted to increase by 10% in March 2019
- The Gross Margin for March 2019 remains unchanged from February 2019
- Operating Income and Operating Expenses for March 2019 will vary in proportion to sales
from February 2019 (percentage of sales).
- There was no change to interest receipts and payments for March 2019 from February
2019
- The tax rate remains the same for March 2019

An 8-year $1,000 par Treasury bond pays a 7 percent semi-annual coupon. The bond has a conversion factor of 1.025. The risk-free is 6 percent and the annual yield on the bond is 7 percent. The bond just made a coupon payment. The price of a 15-month futures contract is closest to:

A. $1 049.32

B. $979.00

C. $983.32

Samsung is spending $8 billion to try to gain an edge on other big tech companies that are piling into autos.

What do you think about Samsung's decision to invest in cars?

1. Currently, 1 Euro is equivalent to 0.88 GBP (i.e., British pounds). Assume that the interest rate over one (annual) timestep in Britain is rGB = 3.5%, and in Europe, it is rE = 2.0%. Operate in CRR notation with u = 1.1, and d = 1/u throughout this question, and be careful to specify which currency you are using in all answers. (a) Assume that your domestic currency is GBP. (i) Calculate the risk neutral probability for an exchange rate option. Let each time step represent one year, so you can use the interest rates given without conversion. (ii) Construct a 4-step binomial tree for the exchange rate. (iii) Assume the strike rate of an exchange rate (European) call option is k = 1.00 GBP/EUR, and the face value is F = EUR10,000. Construct a binomial tree and calculate the premium of this call option, in GBP. (iv) Using the same strike rate and face value, calculate the premium of an exchange rate European put (in GBP).

Mary Inc. is considering mutually exclusive Projects A and B, whose cash flows are shown below. If the decision is made by choosing the project with the higher IRR, will there be any value loss due to the IRR-based decision? If there is a loss, how much value will be forgone? The WACC is assumed to be 9.5%.

Use a financial calculator and show all steps from the calculator used. DO NOT USE EXCEL. Thank you and show all steps

A sinking fund earning interest at j₂ = 6% now contains $10 000.

a) What quarterly equal deposits for the next 5 years will cause the sinking fund to grow to $20 000?

b) Within these 5 years from now, how much is in the sinking fund at the end of 4 years?

1. Explain how uncertainty concerning future interest rates would affect the decision to refund a bond issue.

2. Define the following: direct lease, sale-leaseback arrangement, leveraged lease, and financial (capital) lease.

3. What elements must be included in a lease in order for it to be considered a financial (capital) lease?

Finco Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This calculator will sell for $100. The company feels that sales will be 12,500, 13,000, 14,000, 13,200, and 12,500 units per year for the next 5 years. Variable costs will be 25% of sales, and fixed costs are $300,000 per year. The firm hired a marketing team to analyze the viability of the product and the marketing analysis cost $1,500,000. The company plans to use a vacant warehouse to manufacture and store the calculators. Based on a recent appraisal the warehouse and the property is worth $2.5 million on an after-tax basis. If the company does not sell the property today then it will sell the property 5 years from today at the currently appraised value. This project will require an injection of net working capital at the onset of the project in the amount of $100,000. This networking capital will be fully recovered at the end of the project. The firm will need to purchase some equipment in the amount of $1,200,000 to produce the new calculators. The machine has a 7-year life and will be depreciated using the straight-line method. At the end of the project, the anticipated market value of the machine is $150,000. The firm requires a 10% return on its investment and has a tax rate of 21%.

Calculate the after tax salvage value at the end of year 5. (Round to two decimals)

Calculate the operating cash flows at the end of year 1. (Round to two decimals)

Calculate the initial cash outflow (e.g. the time 0 cash flow). (Enter a negative value and round to two decimals)

Calculate the cash flow from assets at the end of year 5. (Round to two decimals)

Calculate the net present value for the project. (Round to 2 decimals)

Jill buys a house for $800k, lives there for exactly 10 years and sells it.

Suppose Jill’s annual cost of ownership is exactly equal to the annual rent she would have paid to live in the same house.

Suppose the price of Jill’s house grows 3.4% annually.

Buying expenses are 5% of purchase price and selling expenses are 8% of sale price.

Compute Jill’s annual IRR from owning net of renting.

(hint: look at the buy vs rent slides, assume no mortgage.)

Refer to the search you performed in the Learning Activities on the U.S. Securities and Exchange Commission's (SEC) website. This search should have produced a variety of financial documents for the publically traded companies you searched. Identify one of said companies from the SEC site and discuss the nature of the information provided in the documents. What statements were provided? Why were these particular documents provided? What was there purpose?