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Six months ago, Qualitybank issued a $120 million, one-year-maturity CD, denominated in British pounds (Euro CD). On the same date, $70 million was invested in a £-denominated loan and $50 million in a U.S. Treasury bill. The exchange rate on this date was £1.5382 for $1. If you assume no repayment of principal and if today’s exchange rate is £1.1905 for $1: a. What is the current value of the Euro CD principal in dollars and pounds? (Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) Euro CD principal in pounds £ Euro CD principal in dollars $ b. What is the current value of the British loan principal in dollars and pounds? (Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) British loan principal in pounds £ British loan principal in dollars $ c. What is the current value of the U.S. Treasury bill in dollars and pounds? (Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) U.S. Treasury bill in pounds £ U.S. Treasury bill in dollars $ d. What is Qualitybank’s profit/loss from this transaction in dollars and pounds? (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions. Round your answers to 2 decimal places. (e.g., 32.16)) Qualitybank’s in pounds £ Qualitybank’s in dollars.
A share of common stock has an expected long-run constant dividend growth rate of 8%, and next year dividend D1 expected to be $3.00./share the required rate of return on the common stock is 14%. Then, using the dividend growth model, calculate the c..
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The investor's annualized HPR with compounding equals __________.
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AJI Limited current share price is $20 and it has just paid a $1 dividend. As AJI is a mature firm, this $1 dividend is expected to grow at a rate of 4% per year. What is an estimate of the return shareholders of AJI Ltd expected to earn? AJI has iss..
Given the following data, find the expected rate of inflation during the next year. r*, the real risk-free rate= 3% maturity risk premium on 10-year Treasury bonds=2%, but zero on 1-year bonds default risk premium on 10-year, A-rated bonds=1.5% liqui..
You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get extra 70, 000 every seven years, starting seven years from now. What is the present value of this incentive if you plan to work for the compa..
Bayworth is 50000 square foot office building in Wyoming. A preferred return incentive structure is incorporated in the partnership agreement of Worth Ventures.
You currently hold a 7-year fixed rate bond 5% annually. You would like to hedge against changes in the level and the slope of the yield curve and you plan to use a 1-year zero coupon bond and a 7-year zero coupon bond. Use the following table to com..
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