With a quoted interest rate of 5% and a 10% compensating balance, what is the effective rate of interest (use $200,000 loans proceeds amount) 2. With the average accounts receivable of $5 million and credit sales of $24 million, you factor receivables by discounting them 2%. What is the effective rate of interest?

European put on the futures with a strike price : A futures price is currently 55, its volatility is 20% per annum, and the risk-free rate is 6% per annum. What is the value of a 5-month European put on the futures with a strike price of 65? |

Contemplating replacing current fleet of delivery vehicles : Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans, which you think you can sell for $3,800 apiece and which you could probably use for another 2 years .. |

Maximum initial cost of company would be willing to pay : Och, Inc., is considering a project that will result in initial aftertax cash savings of $1.76 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. What is the maximum initial cost of company.. |

The firms financial break even point : A corporation has $5,000,000 of 8% bonds and $3,000,000 of 10% preferred stock outstanding. The firm's financial break even (assuming a 40% tax rate) is? |

With a quoted interest rate : With a quoted interest rate of 5% and a 10% compensating balance, what is the effective rate of interest (use $200,000 loans proceeds amount) 2. With the average accounts receivable of $5 million and credit sales of $24 million, you factor receivable.. |

Equally weighted portfolio of these three stocks : Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.62 0.09 0.17 0.35 Bust 0.38 0.20 0.10 − 0.06 a. What is the expected return on an equally weighted port.. |

Hedge through covered interest arbitrage : You are expecting to receive 10M Euros 3-months from now. The interest rates are 3% in the US and 5% in Germany. Current spot exchange rate: $1.20/Euro and 3-month Forward rates: $1.15/Euro. How much $ will you have 3-months from now if you hedge thr.. |

Which is best futures contract to hedge accounts payable : You would like to hedge your accounts payable due one-year from now of Indian Rupees (IR) 10 million in the Futures market. But there are no Futures contract available on Indian Rupees. However, Futures contract on Singapore dollar (S$) and Hong Kong.. |

What bid price should you submit on the contract : Consider a project to supply 100 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $1,900,000 five years ago; if the land were sold today, it would net you $2,100,0.. |

## How does monetary policy aim to avoid inflationWhat are the factors that would influence the Federal Reserve in adjusting the discount rate? How does the discount rate affect the decisions of banks in setting their specific interest rates? How does monetary policy aim to avoid inflation? |

## Explain what the value means conceptuallyWhat is the breakeven point in units? What is the DOL at the breakeven point? Explain what this value means conceptually. |

## Expected return on market-what must the risk-free rateA stock has an expected return of 13.6 percent and a beta of 1.17, and the expected return on the market is 12.6 percent. What must the risk-free rate be? |

## Number of tables and chairs to produce to maximize profitA small furniture manufacturer produces tables and chairs. Each product must go through three stages of the manufacturing process: assembly, finishing, and inspection. Each table requires 3 hours of assembly, 2 hours of finishing, and 1.5 hour of ins.. |

## Importance of decision making as a management activityHas what you have learned in this subject created an increased awareness of the importance of decision making as a management activity? Why or why not? |

## The u.s. financial system has many complexitiesThe U.S. financial system has many complexities, and it is impacted by several environmental factors, including federal regulations and the economy. |

## Difference between domestic and international financeWhat is the need of International Financial Management and List out the difference between domestic Finance & International Finance - How much should he deposit each year in his bank account, if yearly interest rate is 10 %? |

## The npv for upgrading to the new grill is closest toTwo years ago the Krusty Krab Restaurant purchased a grill for $50,000. The owner, Eugene Krabs, has learned that a new grill is available that will cook Krabby Patties twice as fast as the existing grill. If the Krusty Krab's opportunity cost of cap.. |

## Cash flow and the required rate of return dataTerrius Company considers a new project that has the following cash flow and the required rate of return (WACC) data. What is the project's profitability index (PI)? Do you think the company should accept the project? |

## Value of the account-assume no inter period compoundingAt time =0 an engineer deposited $10000 into an account that pays interest at 8% per year,, compounded quarterly. If she withdrew $1000 in months 2, 11, and 23, what was the total value of the account at the end of 2 years? Assume NO inter period com.. |

## Anthonys orchard case study mediaWhat-if analyses are valuable aids in assessing a variety of planned and unplanned events. You will utilise the analysis you conduct here as part of the Final Project. |

## What is the expected return on the market-risk-free rateYou have been given the following information on two corporations; you are to assume that the securities are correctly priced. My Corp, Inc. has a Beta of 1.35 and an Expected Return of .075; Your Corp, Inc. has a Beta of .65 and an Expected Return o.. |

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