What would be the value of investment if money invested

Assignment Help Financial Management
Reference no: EM131306299

The treasurer of a major U.S. firm has $24 million to invest for three months. The interest rate in the United States is .24 percent per month. The interest rate in Great Britain is .29 percent per month. The spot exchange rate is £.624, and the three-month forward rate is £.627.

What would be the value of the investment if the money is invested in U.S and Great Britain? (Enter your answers in dollars, not in millions of dollars, and round your answers to 2 decimal places, e.g., 1,234,567.89.)

Reference no: EM131306299

Questions Cloud

How realistic is this assumption : Why should a time-based authentication system invalidate the current password on a successful authentication?
Why do you think the yields vary with the maturity : How does the yield on Treasury securities with longer maturities differ from the yield on Treasury securities with shorter yields? Why do you think the yields vary with the maturity?
What are the specific behavioural competencies : FNS40815 CERTIFICATE IV IN FINANCE AND MORTGAGE BROKING - ASSESSMENT TASKS. It is important that staff should deliver an outstanding customer experience at all times. What are the specific behavioural competencies that this requires and how would t..
Suppose the current exchange rate for the polish zloty : Suppose the current exchange rate for the Polish zloty is Z 2.81. The expected exchange rate in three years is Z 2.87. What is the difference in the annual inflation rates for the United States and Poland over this period?
What would be the value of investment if money invested : The treasurer of a major U.S. firm has $24 million to invest for three months. The interest rate in the United States is .24 percent per month. The interest rate in Great Britain is .29 percent per month. The spot exchange rate is £.624, and the thre..
Coach of a losing football team : You are a coach of a losing football team. While you have seen improvement the team has not won a game all season.You see that your player are losing their motivation. what will you do to help your team?
Personal sales practices : Identify three different types of buyer objections that you may face as a sales person for Stillwater Wines and how you may overcome them - one relating to the products you sell, one relating to a prospective customer's current situation and one rela..
What is the limit on power that can be transmitted on line : What is the limit on power that can be transmitted on the line? What is the energy content of pulses propagating on the two infinitely long lines?
Continuously compounded libor rates : Suppose that the 3 month and 6 month continuously compounded LIBOR rates are 3% and 3.5% respectively. Assume that LIBOR is used as the risk-free discount rate. Consider a company which plans to borrow in the future and fears that short term rates wo..

Reviews

Write a Review

Financial Management Questions & Answers

  The companys capital gains yield and dividend yield

Conner Health Inc. has a stock price of $32.35 per share. The last dividend (D0) was $3.42. The long-run growth rate for the company is a constant 7 percent. What is the company's capital gains yield and dividend yield?

  Investors require a return

The Jackson–Timberlake Wardrobe Co. just paid a dividend of $9.72 per share on its stock. The dividends are expected to grow at a constant rate of 2.18 percent per year indefinitely. Investors require a return of 6.58 percent on the company's stock. ..

  Sales of the product are expected to decline

Boomer Products, Inc. manufactures "no-inhale" cigarettes. As their target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a reat of 5% (-5%) annually for..

  Correlations between input variables

Correlations between input variables

  Making up any shortfall in the spot market

The quantity of copper produced could be 10,000, 40,000 or 15,000 pounds with equal likelihood. The cash price could be $4, $6, or $11 per pound with equal likelihood. You could sell all or part of the forward now at $7 making up any shortfall in the..

  Both annuities are based on annual effective interest rate

Sisi Huang received $12,000 from a lottery. She uses this money to purchase two dif- ferent annuities, each costing $6,000. The first annuity is a 24-year annuity-immediate paying $K per year, and the second is an 8-year annuity-immediate paying $2K ..

  If behavioral finance holds

If behavioral finance holds, this implies:

  What is one share of stock worth today if rate of return

A preferred stock pays an annual dividend of $2.60. What is one share of this stock worth today if the rate of return is 11.75%

  What is the break-even point in sales dollars

Sweet Tooth Bakery bakes and sells pies. Sweet Tooth has annual fixed costs of $880,000 and a variable cost per pie of $7.50. Each pie sells for $15.50 each. The firm expects to sell 500,000 pies annually. What is the break-even point in sales dollar..

  What would have been her return in yen

Benjamin Pinkerton from New York invested in a U.S. two-year zero-coupon bond at the start of the period and sold it after one year. What was his return?

  Underlying assumption of the dividend growth model

Which of the following is an underlying assumption of the dividend growth model

  Project being considered has normal cash flows

Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows.

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!

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