Reference no: EM131325751
QUESTION AGAIN
#1 Interest rates, the cost of money, influence most all factors related to personal and corporate capital budgeting. The more obvious personal information for the cost of money is the rates associated with a mortgage or car loan. As a CFO you would "shop" interest rates to find the best rate for your financing needs.
• Would you, as the CFO, finance your projects as soon as possible if cost of capital was expected to drop? Please explain.
• More importantly where do you find the information to analyze expected changes in interest rates?
#2 Time Value of Money, Practical Applications in Business and Personal Decisions
If you have put money in a savings account, made monthly auto or mortgage payments, or paid down your student loan ahead of time you have inherently applied TVM.
• Discuss how you may have used TVM in a recent investment or loan decision and explain some of the TVM details that may have been involved in your transaction.
• If you have not used TVM in the past financial transactions explain potential TVM applications you would encounter in future business or personal transactions.
#3 Compounding Interest and the Banker
There are many factors influencing the cost of money for both individuals and corporations. Suppose you deposit money in an interest bearing account and at the same time borrow a bit of money from the same bank.
• In which account would the bank apply quarterly compounding factors versus simple interest?
• Explain your choices and your reasoning. You may want to check your personal accounts in regard to this type of transaction.
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Help of the principle of redistribution
: "All large-scale economies ... were run with the help of the principle of redistribution". (Polanyi, 1957: 51). Discuss with reference to Greece. (Athens). Include mention of whether or not Athenian redistribution was entirely centric.
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Determine value of portfolio if the domestic stock increases
: Determine the value of the portfolio if the domestic stock increases by 2 percent, the domestic stock futures contract increases by 1.8 percent, the foreign stock increases by 1.2 percent.
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Calculate the equilibrium prices andquantities
: (a) If ABC is able to engage in international dumping, calculate the equilibrium prices andquantities in each market as well as their profits. (b) In the absence of international dumping, calculate the equilibrium price and quantity as well as thei..
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Exploring contemporary issues in criminal justice
: With the focus of this class being on exploring contemporary issues and futures in criminal justice - my question is - at what level could are law-enforcement agencies potentially violating privacy issues when using some of the emerging technolog..
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Discuss how you may have used tvm in a recent investment
: Discuss how you may have used TVM in a recent investment or loan decision and explain some of the TVM details that may have been involved in your transaction.
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Determine most cost effective way to accomplish manager goal
: Determine the most cost-effective way to accomplish the manager's goal of converting the portfolio to a risk-free position for one month and then converting it back.
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Purchasing power parity predicts
: Suppose a Big Mac costs $5.00 in the United States and 25 Chinese yuan in China. If the exchange rate is 6.9 Chinese yuan per dollar, purchasing power parity predicts.
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Generalize this result in two dimensions
: Consider a linear filter whose impulse response is the second derivative of the Gaussian kernel exp( -x 2/2a 2).
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Relevant market interest rate
: Suppose a Treasury bond will mature in 3 years. If the bond pays a coupon of $100 per year and will make a final par value payment of $3,000 at maturity, what is its price if the relevant market interest rate is 7%?
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