User Account

All Pages

Formulate a linear program for ecu

Assignment Help Finance Basics
Reference no: EM131387459

1.The Employee Credit Union at Directional State University is planning the allocation of funds for the coming year. ECU makes four types of loans and has three additional investment instruments. Each loan/investment has a corresponding risk and liquidity factor (on a scale of 0-100, with 100 being the most risky/liquid). The various revenue-producing instruments are summarized in the table below:

Instrument                    Annual Rate of Return (%)       Risk Factor          Liquidity Factor
Automobile loans                       8                                     50                       0
Furniture loans                          10                                   60                       0
Other secured loans                   11                                   70                       0
Unsecured loans                        14                                   80                       0
Risk-free securities                    5                                     0                         100
Corporate stock fund                 9                                     60                       90
Corporate bond fund                 8                                     50                       80

ECU has $2,000,000 available for investment during the coming year. However, state laws and pesky stakeholders impose certain restrictions on choice of investment instruments. Risk-free securities may not exceed 40% of total funds available for investment. Unsecured loans may not exceed 10% of total funds invested in loans. The funds invested in automobile loans must not be less than the total of funds invested in furniture and other secured loans. The average risk factor may not exceed 60, and the average liquidity factor must be at least 40. Formulate a linear program for ECU.

Reference no: EM131387459

Questions Cloud

How could you use a counter to assist in this : Draw a block diagram showing signals between the finite state machine and the counter. Draw a revised state diagram for the combination lock incorporating your design changes.
Keynesian theory determine the demand for money : Compare and contrast the way Classical and Keynesian theory determine the Demand for Money and how it is related to the Money Supply. As a part of your comparison, indicate which of these theories developed the concept of a Liquidity Trap and what th..
Calculate corporate income tax and effective tax rate : For each of the following corporate taxable incomes, calculate A) corporate income tax, B) effective tax rate, and C) marginal tax rate.
Read the article and give your reviews : In 2006, Congress reauthorized the Voting Rights Act of 1965 ("VRA") for 25 years. Section 5 of the VRA requires certain "covered" jurisdictions to obtain federal preclearance before making any alterations to their election laws. Section 4(b) sets..
Formulate a linear program for ecu : Employee Credit Union at Directional State University is planning allocation of funds for coming year. The average risk factor may not exceed 60, and the average liquidity factor must be at least 40. Formulate a linear program for ECU.
Long-term effects of immigration on labor markets : Generally what are the short-term and long-term effects of immigration on labor markets ? Why is there so much opposition to immigration? What are the benefits of immigration ?
How should their address lines be connected : (Random-Access Memories) A microprocessor with an 8-bit-wide data bus uses RAM chips of 4096 x 1-bit capacity. How many chips are needed and how should their address lines be connected to provide a memory capacity of 16 K-bytes (1 byte = 8 bits)
What is the annual salary of an employee at the plant : A manufacturer sells bicycles for $186 in a perfectly competitive market. If the firm hires plant workers in a competitive labor market until the until the marginal product of labor is 211 bicycles per year, what is the annual salary of an employee a..
The railroad is powered by a steam locomotive : Suppose that a railroad runs beside a field in which commercial crops are grown. The railroad is powered by a steam locomotive that spews hot cinders out of its smokestack. From time to time those cinders land on the crops nearest to the track and bu..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd