Kibata

Sign In

Our Services

Get 15% Discount on your First Order

Order Now
[rank_math_breadcrumb]

Prof Double R

Do the uploaded assignment below

Remove or Replace: Header Is Not Doc Title

Final Exam

1. Why are forecasting and budgeting essential practices for businesses, governmental agencies, and individuals, and how do these processes help in planning for the amount, sources, and uses of cash?

2. Explain the relationship between microeconomics and macroeconomics. How do individual decisions in microeconomics, such as consumer spending and business production, affect the larger economy? Provide examples of how changes in macroeconomic factors like inflation or unemployment can influence everyday decisions made by households and firms.

3. You purchased a house on January 1, 2022, for
$300,000. You made a down payment of
15% of the house’s value, and the remaining
85% was financed through a
25-year loan with an annual percentage rate (APR) of
4.5%, compounded monthly. Monthly payments are to begin on January 1, 2022. You want to calculate the amount of your
monthly mortgage payment.

Answer: The formula to calculate the monthly payment for a mortgage is:

Excel:

1.
Excel: Open Excel.

1. In cell
A1, type Loan Amount.

1. In cell
B1, type 255000.

1. In cell
A2, type Annual Interest Rate.

1. In cell
B2, type 4.5%.

1. In cell
A3, type Number of Years.

1. In cell
B3, type 25.

1. In cell
A4, type Monthly Payment.

Now, use the
PMT function to calculate the monthly payment:

1. In cell
B4, type the formula:

scss

Copy code

=PMT(B2/12, B3*12, -B1)

Explanation of the formula:

· B2/12 is the monthly interest rate (4.5% / 12 months).

· B3*12 is the total number of monthly payments (25 years × 12 months).

· -B1 is the loan amount ($255,000). It’s negative because it represents an outgoing payment.

1. Press
Enter.

Excel will calculate the monthly payment, which should display:

4.
USA Widgets Inc. issues preferred stock that pays an annual dividend of
$4.50 per share. The dividends are expected to grow each year at a rate of
0.25% (a growing perpetuity). The required rate of return for this type of stock is
3.5%. What is the approximate price at which this preferred stock will most likely sell today?

Answer:

Excel: Open Excel.

1. In cell
A1, type Dividend Today.

1. In cell
B1, type 4.50.

1. In cell
A2, type Growth Rate.

1. In cell
B2, type 0.25%.

1. In cell
A3, type Required Rate of Return.

1. In cell
B3, type 3.5%.

1. In cell
A4, type Price Today.

Now, use the formula for the price of a growing perpetuity:

1. In cell
B4, type the formula:

scss

Copy code

=B1 * (1 + B2) / (B3 – B2)

Explanation of the formula:

· B1 is the dividend today ($4.50).

· B2 is the growth rate (0.25%).

· B3 is the required rate of return (3.5%).

1. Press
Enter.

Excel will calculate the stock price, which should display:

5. A
$2,000 bond from
Expo Corp. has a coupon rate of
6%, pays interest semiannually, and matures in
eight years. If the yield to maturity (YTM) is
8%, what is the bond’s value today?

Answer:

Excel:

1. Open Excel.

1. In cell
A1, type Face Value.

1. In cell
B1, type 2000.

1. In cell
A2, type Coupon Payment.

1. In cell
B2, type 60.

1. In cell
A3, type Number of Periods.

1. In cell
B3, type 16.

1. In cell
A4, type YTM (Per Period).

1. In cell
B4, type 4%.

Now, calculate the bond value using the
PV function for the coupon payments and the face value.

For the coupon payments: 10. In cell
A5, type PV of Coupons. 11. In cell
B5, type the formula:

scss

Copy code

=PV(B4, B3, -B2, 0)

For the face value: 12. In cell
A6, type PV of Face Value. 13. In cell
B6, type the formula:

scss

Copy code

=PV(B4, B3, 0, -B1)

Finally, calculate the total bond value: 14. In cell
A7, type Bond Value. 15. In cell
B7, type the formula:

Copy code

=B5 + B6

Excel will calculate the bond’s value, which should display:

6.
Ocean Blue Ltd. has issued preferred stock (cumulative) with a par value of
$150.00 and an annual dividend rate of
6.5%. The preferred stock is currently selling for
$50.00 per share. What is the yield or return on this preferred stock?

Answer:

Excel:

1. Open Excel.

1. In cell
A1, type Par Value.

1. In cell
B1, type 150.

1. In cell
A2, type Dividend Rate.

1. In cell
B2, type 6.5%.

1. In cell
A3, type Current Price.

1. In cell
B3, type 50.

Calculate the Annual Dividend:

1. In cell
A4, type Annual Dividend.

1. In cell
B4, type the formula:
=B1*B2

1. Press
Enter. This will calculate the annual dividend as:

Calculate the Yield:

1. In cell
A5, type Yield or Return.

1. In cell
B5, type the formula:
=B4/B3

1. Press
Enter. The result will be:

7. You purchase
150 shares of
ABC Corp at
$350 per share. After
four months, you sell the shares for
$365 per share, and you receive a dividend of
$1.25 per share during that time. What is your total dollar return on the investment, including both capital gains and dividend income?

Answer:

Excel:

1. Open Excel.

1. In cell
A1, type Number of Shares.

1. In cell
B1, type 150.

1. In cell
A2, type Purchase Price per Share.

1. In cell
B2, type 350.

1. In cell
A3, type Selling Price per Share.

1. In cell
B3, type 365.

1. In cell
A4, type Dividend per Share.

1. In cell
B4, type 1.25.

Step 1: Calculate the Capital Gain

1. In cell
A5, type Capital Gain.

1. In cell
B5, type the formula:

scss

Copy code

=(B3 – B2) * B1

Press
Enter. This will give you the capital gain of:.

Step 2: Calculate the Dividend Income

1. In cell
A6, type Dividend Income.

1. In cell
B6, type the formula:

Copy code

=B4 * B1

Press
Enter. This will give you the dividend income of:

Step 3: Calculate the Total Dollar Return

1. In cell
A7, type Total Dollar Return.

1. In cell
B7, type the formula:

Copy code

=B5 + B6

Press
Enter. This will give you the total dollar return of:

8. How does the
standard deviation of returns in a portfolio change as the number of stocks within the portfolio increases? Explain the role of diversification in reducing portfolio risk and whether there is a limit to the benefits of adding more stocks to the portfolio.

9. You are considering investing in a new project that requires an initial investment of
$50,000. The project is expected to generate cash flows of
$15,000 at the end of each of the next
5 years. The required rate of return (discount rate) for this project is
10%. What is the
Net Present Value (NPV) of this investment, and should you proceed with the project?

Answer:

Excel:

1. Open Excel.

1. In cell
A1, type Year.

1. In cells
A2

, type the years
1,
2,
3,
4, and
5 (for the 5 years of cash flows).

1. In cell
B1, type Cash Flow.

1. In cells
B2

, enter the cash flows for each year, which is
15,000 for each year.

1. In cell
B7, type Initial Investment.

1. In cell
C7, enter the
initial investment as
-50,000 (negative because it’s an outflow).

1. In cell
A8, type Discount Rate.

1. In cell
B8, enter the discount rate, which is
10% (0.10).

Step 1: Calculate the NPV using the NPV function:

1. In cell
A9, type NPV.

1. In cell
B9, type the formula:

scss

Copy code

=NPV(B8, B2:B6) + C7

·
B8 is the discount rate (10%),

·
B2

are the cash flows for years 1 to 5,

·
C7 is the initial investment (-$50,000).

1. Press
Enter.

Excel will calculate the NPV and display the result, which should be:.

10. John owns five stocks:
United Healthcare,
Pfizer,
Johnson & Johnson,
CVS Health, and
Merck.
Sara owns five stocks:
Microsoft,
Coca-Cola,
Netflix,
Amazon, and
Nike. Based on the industries these companies operate in, who has a more diversified portfolio, and why is diversification important for reducing risk in an investment strategy?

1

1

image1.emf

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Order Now

Related Questions

Oil 568

Reflective Analysis Module 5: Networks Reflection Indent and start your reflection. Write approximately 2 pages, but no less. Reaction Answer the following questions in paragraph form making connections between the film, the content of the module and the topic of the week. Include the questions in this portion of your

Business case

  Using the marketing mix (i.e., product, price, place, promotion), determine what changes Wendy’s might have to make to its operations if it opens restaurants in the foreign markets highlighted in the case  

Business 231

  Business 231  Business 231 Homework #13 Go beyond the textbook and presentation definitions. Answer questions in an essay format. Document any sources of quoted or paraphrased material or outside information, including the textbook. Detailed responses are required. 1. Assume you manage a small online business that sells herbal supplements.

Product -process Matrix

   Consider a restaurant that you are familiar with. Using the concepts of the product-process matrix explain the best way to structure the kitchen. Is the current design structured for effectiveness and efficiency?

Knowledge Check: Summarizing a Research Article

please keep the article use on this activity for future assignments. please read direction very thoroughly.  Knowledge Check: Summarizing a Research Article As you continue in your doctoral program, you will develop the skills to understand the entire research article. At this point, however, you want to focus on certain

Project Management

INTRODUCTION (~1 page) Undoubtedly, what we know as conventional project management is continuing to evolve as a result of an ever changing and increasingly complex environment in today’s society (Jaafari, 2003). By definition, project management is the application of knowledge, skills, and tools necessary to achieve the project’s requirements. The

595w7

· Cover Page: Include your name, the project or company name, and the course name and number. · Risk Strategy: Describe the general approach to managing risk on your selected project. · Methodology: Define the specific approaches, tools, and data sources that will be used to perform risk management on

marketing

A hot dog vendor might have the most complex inventory management and marketing combination of any business. From the management of how many hot dogs to cook, have on hand, and have access for the next day to the extent that they can market to customers to increase sales, which

powerpoint

I need flashcards with information from this book Business Ethics (Byars & Stanberry, 2018), that correspond with the PowerPoint  

ogl 530 wk 5

Module 5: Reading Response Ogl 530  I have attached to the references for this assignment which is chapter 7 of the textbook · Points 50  This response is intended to be “semi-formal” in nature. On one hand, it should be polished, clearly written, and should include in-text citations that demonstrate you have

w7

I need some help! For this assignment, you will have the opportunity to develop an advertisement for a brand new product or service you are offering. You must make clear the 4Ps. Include a minimum of three (3) academic sources to support your thoughts in either option. Newspaper Advertisement: Newspaper

Data Sciences

Attached two files , one for the data you will work on in excel file and file discription for the data in PDF As a data scientist please study the data and answer the following questions  1- what is the primerly diagnosis ? 2- What potential risk factors were there?

Business & Finance Data analytical assignment week 5 assignment 2

please review the assignment instructions attached, will need to download JASP to complete the assignment Jeffreys’s Amazing Software Program ($0.00) · JASP v19.03 available for free download · Download JASP – JASP – Free and User-Friendly Statistical SoftwareLinks to an external site. This Assignment will use the same Texas STAAR

Business

Please see attachment for instructions. Article also attached  Anna Tsing’s The Mushroom at the End of the World introduces the concept of salvage rhythms. Begin by defining salvage rhythms in your own words and explain what the salvage rhythms of dumpster diving might reflect about our current social and economic

Module 5 field notes

The Strength of Weak Ties Mark S. Granovetter The American Journal of Sociology, Vol. 78, No. 6. (May, 1973), pp. 1360-1380. Stable URL: The American Journal of Sociology is currently published by The University of Chicago Press. Your use of the JSTOR archive indicates your acceptance of JSTOR’s Terms and

wk 5 ogl photo voice

The Strength of Weak Ties Mark S. Granovetter The American Journal of Sociology, Vol. 78, No. 6. (May, 1973), pp. 1360-1380. Stable URL: The American Journal of Sociology is currently published by The University of Chicago Press. Your use of the JSTOR archive indicates your acceptance of JSTOR’s Terms and

module 7

  Create the Communication Matrix/Receiver Based demonstrated in the book  in Figure 7.1 in a Microsoft Excel format and save it to your hard or flash drive so you will have a template when you need one.  Upload your newly constructed version with “Your Name” in the Project Manager column.