Reference no: EM131975038
At the beginning of January, the South Carolina sportsplex has $150,000 of cash on hand. The firm's forecasts of cash flows for the first six months of the year are given here in ($1,000's). The S.C. Sportsplex wants to maintain a cash balance of at least $100,000 at all times. If the balance falls below that level, the firm will borrow to bring its balance up to $100,000. If more than $100,000 of cash is available, it will use the excess to reduce its short-term borrowing. Show the monthly net cash flow, borrowing (if any), loan repayments, cash balance, and cumulative borrowing balance.
January - June
Cash Inflows: 100,120,150, 320, 350, 240
Cash Outflows: 150, 180, 200, 290, 240, 180
At the end of June:
a. borrowing will be $30,000 and the cash balance will be $100,000
b. borrowing will be $10,000 and the cash balance will be $100,000
c. borrowing will be $0 and the cash balance will be $110,000
d. borrowing will be $0 and the cash balance will be $130,000
e. borrowing will be $0 and the cash balance will be $150,000
f. borrowing will be $0 and the cash balance will be $170,000
g. borrowing will be $0 and the cash balance will be $190,000
|
How might the results influence the decision to hedge
: A firm has just begun to do business in Japan and the financial manager anticipates approximately 10,000,000 japanese yen sales per month outstanding.
|
|
Calculate the conversion price in dollars
: Calculate the conversion price in dollars and the premium as a percentage
|
|
Determine the cost recovery deduction
: Question - Cora purchased an apartment building on May 17, 2015 for $3,000,000. Determine the cost recovery deduction for 2016
|
|
Amount of capital the bank needs to have to buffer
: Find the value-at-risk at the confidence level 95%, that is, the amount of capital the bank needs to have to buffer its possible losses with probability 95%
|
|
Use the excess to reduce its short-term borrowing
: If more than $100,000 of cash is available, it will use the excess to reduce its short-term borrowing.
|
|
What should be the current share price for the firm
: A firm has just announced that because of a new joint venture, its earnings will likely grow at a rate of 12% for the next five years, after which the earnings.
|
|
Find the expectation-variance and moment generating
: Consder the random variable U:= 2X - 4Y - Z + 5. Find the expectation, variance, and the moment generating function for U.
|
|
Develop applications involving complex component technology
: Develop applications involving complex component technology. Design and implement technical solutions addressing connectivity between components.
|
|
Calculate the budgeted cash receipts for december
: Selling and administrative expenses are budgeted at $99,000 for December and are paid in cash. Calculate the budgeted cash receipts for December
|