Reference no: EM13728724
The employs credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union inverts in risk-free securities to stabilize income. The various revenue producing investments together with annual rates of return are as follows:
Type of Loan/Investment Annual Rate of Return (%)
Automobile loans 8
Furniture loans 10
Other secured loans 11
Signature loans 12
Rosk-free securities 9
The credit union will have $2 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the coming position of the loans and investments:
* Rish-free securities may not exceed 30% of the total funds available for investment.
* Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).
* Furniture loans plus other secured loans may not exceed the automobile loans.
* Other secured loans plus signature loans may not exceed the funds invested in risk-free securities.
Suppose the following changes have occurred:
The total amount available for investment is $1 million.
An additional constraint is: auto loans plus furniture loans must not exceed 30% of the funds invested in all loans (automobile, furniture, other secured, and signature loans).
Write down the corresponding TWO constraints. Use variable names:
A = $ automobile loans
F = $ furniture loans
O = $ other secured loans
s = $ signature loans
R = $ "rish free" securities
|
Selecting a new administrative assistant
: The College of Business Administration is selecting a new administrative assistant. The Chair is overlooking a more highly qualified candidate in favor of a candidate who personally met with the Chair. The Chair seems quite "taken" with the lesser-qu..
|
|
Statements relating to market efficiency and current ratio
: Which of the following statements relating to Market Efficiency is most correct? Which of the following transactions would decrease a firm’s Current Ratio?
|
|
Assume interest payments are semi-annual
: Compute the price of a 5.4 percent coupon bond with 10 years left to maturity and a market interest rate of 8.6 percent.
|
|
What is valences share price
: Valence Electronics has 217 million shares outstanding. It expects earnings at the end of the year of $760 million. Valence pays out 40% of its earnings in total. 15% paid out as dividends and 25% used to repurchase shares. If Valence's earnings are ..
|
|
Revenue producing investments together with annual rates
: The employs credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union inverts in risk-free securities to stabilize income. Rish-f..
|
|
Find the equilibrium price and quantity
: Graph the supply and demand curves - Find the equilibrium price and quantity and Find the new equilibrium price and quantity, and show this on your graph.
|
|
Discuss ways to minimize the likelihood of discrimination
: Based on your reading of the major EEO laws, discuss ways to minimize the likelihood of discrimination and maximize the benefits of diversity in the workplace.
|
|
What was its return on total assets
: Barnes Corp's total assets at the end of last year were $415,000,000 and its net income after taxes was $17,750,000. What was its return on total assets?
|
|
What is their total mortgage payment-principal-interest
: Mary and Carlos want to buy a $400,000 house. They have $50,000 for a down payment. Their lender is offering them a 30 year mortgage at 6.2%. What is their total mortgage payment (principal & interest + escrow)?
|