What is its net working capital

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Reference no: EM132053110

1. A firm has: Amount ($ millions) Cash 50 Other Current Assets 96 Current Liabilities 62 What is its Net Working Capital?

2. A firm wishes to borrow $86,000 The line of credit with its bank requires a 4% compensating balance requirement. What is the loan amount they have to borrow?

3. Suppose you have bought an interest only tranche from a mortgage backed CDO (collateralized debt obligation). Carefully explain two risks you face.

Reference no: EM132053110

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