Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - You receive a proposal from the manufacturer. This proposal calls for you to pay $63.00 million today for an option to acquire the aircraft for $150 million in three years time. Your consultant, an expert in options analysis, has informed you that the present value of the cash flows from the acquisition of the plane in three years is $135 million. Moreover, your consultant has informed you that this option is only worth $60.21 million, compared to the $63.00 the French supplier is requesting. Assume the consultant's estimate of s = 0.66395 is correct. You therefore inform the sales representative for the French aircraft manufacturer that the offer is just plain unacceptable.
The sales representative from the French firm e-mails you in the evening that his firm will not consider extending the time frame for you to exercise the option, but they would entertain a price discount on the final exercise price. Before you meet with him tomorrow morning, you need to calculate the maximum price you would be willing to commit to pay for the plane in three years, if you decide to go ahead and purchase it at that time. Assume the other terms of the option contract are the same as above and that the risk-free rate of return is 5 percent.
What is the maximum price you would be willing to agree to pay for the plane in three years time under the option contract?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd