Assume the current U.S. dollar-British spot rate is 0.6134£/$. If the current nominal one-year interest rate in the U.S. is 2.5% and the comparable rate in Britain is 3.5%, what is the approximate forward exchange rate for 360 days?

Calculate the estimated intrinsic value of the stock today : RT has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 15% annual growth rate for the next 5 years. Calculate the estimated intrinsic v.. |

Highest credit risk to lowest risk the bonds : Rank order from highest credit risk to lowest risk the following bonds, with the same time to maturity, by their yield to maturity: JM Corporate bond with yield of 4.25 percent, IB Corporate bond with yield of 6.49 percent, TC Corporate bond with yie.. |

What is its depreciation tax shield : ABC transportation has a depreciation expense of $300,000 and has a marginal tax rate of 30%. What is its depreciation tax shield? |

About the approximate forward exchange rate : Assume the current U.S. dollar-British spot rate is 0.6134£/$. If the current nominal one-year interest rate in the U.S. is 2.5% and the comparable rate in Britain is 3.5%, what is the approximate forward exchange rate for 360 days? |

Compute the percentage growth in net sales : Compute the percentage growth in net sales for each product line from fiscal year 2010 to 2011. Round percents to one decimal. |

Statement relevant cash flows : In a financial decision, what is meant by the statement “Relevant Cash Flows”? How do you assure cash flows are relevant? |

Price of loans of equivalent risk and maturity increases : A $500,000 loan requires monthly payments for 20 years. The annual interest rate on the loan is 3%. Immediately after the loan has been finalized, the price of loans of equivalent risk and maturity increases by 50 basis points (3.0% to 3.5%). How muc.. |

What is estimated value per share of your firms stock : Assume that the average firm in your company’s industry is expected to grow at a constant rate of 6% and that its dividend yield is 7%. Your company is about as risky as the average firm in the industry, what is the estimated value per share of your .. |

## Difference between a value-added and a non-value-added costWhat is the difference between a value-added and a non-value-added cost? Give an example of each. |

## Assume that money that is not withdrawn remains in accountIn five years, you plan on starting graduate school to earn your MBA. You know that graduate school can be expensive and you expect you will need $15,000 per year for tuition and other school expenses. Assume that money that is not withdrawn remains .. |

## Wall mart has decided to buy a chain storeWall Mart has decided to buy a chain store in South Africa and now has an exposure to the South African Rand. How should it hedge its short term and long term foreign exchange exposures related to this transaction |

## What is the new price of the bond using durationYou find a bond with 25 years until maturity that has a coupon rate of 10.0 percent and a yield to maturity of 8.5 percent. Suppose the yield to maturity on the bond increases by .25 percent. What is the new price of the bond using duration? |

## What is the net income under the worst-case scenarioWilson’s Market is reviewing a project with sales of 6,200 units plus or minus 2 percent at a sales price of $29 plus or minus 1 percent per unit. The expected variable cost per unit is $11 plus or minus 3 percent and the expected fixed costs are $87.. |

## Accrual income versus cash flow for a periodAccrual income versus cash flow for a period Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a pro-viso that they must be paid for within 30 days but can be returned for a full refund cre.. |

## A bond is purchased for 985557 it is kept for 5 years anda bond is purchased for 9855.57. it is kept for 5 years and interest is received at the end of each year. immediately |

## What is the purpose of outsourcingWhat is the purpose of outsourcing? How can it be helpful to a company's growth? How can it be harmful? Give examples to support your answer. |

## Cease paying dividends foreverGruber Corp. pays a constant $8.00 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price? |

## What is the relationship between two companiesWhat is the relationship between your companies (Walmart and Target) and their respective employees and investors? How do these relationships affect financial performance? Are there any issues outstanding for your companies? Provide a rationale for y.. |

## Convertibles securities add value to firms using themIt is always better to finance long term projects with equity rather than debts. Discuss. |

## What will you receive if you sell the bondYou purchase a $325,000 Town home and you pay 25% down. You obtain a 30 year fixed-rate mortgage with an annual interest rate of 5.75%. After 5 years you refinance the mortgage for 25 years at a 5.1% annual interest rate. A.T. bond with a $1000 par i.. |

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