Question
1. You are now 19 years old and would want to have P1.0million in your 40th birthday. You intend to attain this goal by making
1. You are now 19 years old and would want to have P1.0million in your 40th birthday. You intend to attain this goal by making 10 annual deposits to earn 15% annual interest and subsequently roll over whatever amount you would have in your 29th birthday until your 40th year. How much be your annual deposit for the next 10 until you have P1.0million in your 40th birthday?
2. For the year 2020, NewLook Corp. has a net profit margin of 4% and an equity multiplier of 1.75. Its net sales are P235million, and it has a total assets of P104.5million. a) What is the total assets turnover? b) What is the ROA c) What is the ROE?
3. Ms. Tissa Gaparada is excited to own a brand new Toyota car. Toyota is selling car for P1.2million. The required down-payment is 25% of the selling price. BDO is willing to finance the unit at 12% annual interest.Ms. Gaparada wants to pay the loan on a quarterly basis good for three years. . a) How much is the quarterly payment of the loan for three years? b) How much is the outstanding balance of the loan after paying for one year?
4. Suppose you are the money manager of a P4.0 investment portfolio consists of four stocks with the following investment and betas:
Stock | Beta |
A - P 400K | 1.5 |
B - 600K | (0.50) |
C - 1M | 1.25 |
D - 2M | 0.75 |
If the market required return is 14% and the risk free rate is 6%, What is a) What is the portfolio beta? b) What is the portfolio required rate of return?
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