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

Business Finance – Management homework

see attached HOMEWORK 1: 5 pages with 2 references Instructions: This homework assignment is meant to ensure understanding of the material contained within the module and reading assignments. Utilizing information contained within the module, text, and additional research, answer the following questions. 1. Describe each part of the DMAIC model.

share your definition of critical thinking

share your definition of critical thinking. Give an example of how you have utilized critical thinking in the workplace. In addition, search the open job listings on the web. Identify and post one new open position that requires business analysis skills. Cite the source about the job opening. Describe and

BUSINESS( NO PLAGARISM A+ WORK, ON TIME)

3 business economics questions 1. ASSIGNMENT ( NO MORE THAN 300 WORDS) Why study managerial economics? The most important task of a business manager is to make decisions. Decisions are the means by which organizations turn ideas into action and can have a positive or a negative impact. However, decision

Journal Article 1

See attachments  BUSI 613 Journal Article Review Assignment Instructions Overview MBA programs around the country are starting to require their students to become more effective writers. This is in response to industry’s urging for grad schools to improve the writing skills of graduate students. Writing at the MBA level should

Prof Double R

 Electronic Health Record  Answer the following questions: What is an EHR? What types of information are found in an EHR? Who manages an EHR? How is it used? Does an EHR follow the patient to other health facilities? Explain.

Microeconomics 6

Assignment in attachment  1. The following graph shows a firm operating in a monopolistically competitive market. How many haircuts will the firm perform in the short term, and at what price? At this point, what will its total revenue, total cost, and total profit be? Given your answers, what would

Microeconomics 7

Assignment in attachment  1. What are the four most important ways a firm becomes a monopoly? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain. 2. Assume the graph below represents the market for a monopolist. What quantity will the monopolist produce, and

Microeconomics 2

Assignment in attachment  1. The graph below represents the market for flank steak in a specific town. Calculate the value of consumer surplus: A. When the market price is allowed to prevail, and B. When the town passes a law setting a price ceiling for flank steak of $13 per

MBA 699 4-2 Milestone 2

   1. Current employee demographics: Summarize the current employee demographics for the organization from the course scenario. a. Use Tableau to visualize the demographic data such as age, sex, marital status, education, and experience, and include the corresponding screenshots in your summary. Choose the graphs or charts that are best

HRM 6301 III

1 Three Keys to Success Joshua A. Learner Columbia Southern University LSS 1300: Learning Strategies for Success Dr. John Doe July 10, 2020 SAMPLE FORMAL ESSAY The title page includes the title of the assignment in bold font, the student’s name, the name of the university, the course name, the

ECO 6301 III

2 Economics for Managers ECO 6301 Unit III Essay Unit III Essay This 3-to-5-page essay measures your mastery of ULOs 1.1, 1.2, 2.1, 6.1, 6.2 and 7.1. Elasticity Assignment objective: Unit I introduced the benefits of markets to improving outcomes for producers and consumers. Unit II examined the role of

RCH 5301

2 Research Design and Methods RCH 5301 Unit II DB Describe a quantitative research project you would be interested in starting now or in the near future. Explain the problem and why this would be important for you to study. Why is a quantitative methodology an appropriate research strategy for

Business Finance – Accounting excel assignment

need this excel assignment done by tomorrow at 11:59. need formulas to be put in excel not just the answers Sheet1 Porsche and Mercedes-Benz, both based in Germany, are two of the largest automobile manufacturers in the world. The following information was provided in each company’s 2019 annual report. Porsche

Business Finance – Economics Global economics assignments

see attached READ ENTIRELY!  Assignments Week 2-6 NO AI!!! Week 2: DUE JULY 19 The role of government in the economy is often debated by economists and businesspeople. The debate ranges from having little to no government intervention to having a strong government presence in both business and social settings.

HRM 6301

2 Human Resources Management Methods HRM 6301 Equal employment opportunity and subsequent discrimination are major factors in today’s workplace. For a quick review, you can access the U.S. Equal Employment Opportunity Commission’s  Employees & Job Applicants webpage to review discrimination by type.  Considering the many types of employment discrimination, share which

dbs global economics

See attached DB1 Week 1 DUE JULY 09 Define capitalism and socialism and provide examples of countries that govern using each structure. Discuss why capitalism and socialism are currently spotlighted in U.S. politics giving the pros and cons of each organizational structure. Be specific and give supporting facts, not just

ECO 6301 II

2 Economics for Managers ECO 6301 Unit II This unit’s readings include information on pricing. You are introduced to the shutdown price, using elasticity to determine the effects of price changes, and cost-based pricing. Discuss the importance of considering elasticity in pricing decisions and the danger of relying solely on