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!
a) Microsoft, whose global sales are generally dollar denominated, finds it has excess cash of $1,500,000,000, which it can invest for up to three years. It has determined that its best options are either a three-year Euro-dollar ($) deposit paying 3.5% or a three-year Euro denominated deposit paying 4.5% since it expects the Euro to depreciate 1% per annum against the dollar over the next three years. Using cash flow analysis, determine in which currency Microsoft should invest. Be sure to show your complete calculations of the annual return and conversion of Euro back to dollars at the end of the three-year term. Assume that the annual interest amount is reinvested, i.e. compounds, at the same annual interest rates. Would your answer change if Microsoft revised its outlook for the Euro to depreciate 1.25% per year?
b) British Oxygen whose global sales are generally dollar denominated needs to borrow $75,000,000 for working capital and intends using a 5-year multi-currency revolving credit. It can borrow in US$ at 3.5% p.a. or in SFr at 2.5% p.a. However, it expects the SFr to appreciate on average 1.5% p.a. over the next five years. Using a cash-flow analysis determine in which currency BOC should borrow. Would your answer change if BOC could issue SFr commercial paper supported by the revolving credit at 1.5%?
What is the cash flow if I have sales revenue 13,000. depreciation 4,000, operating cost 6,000 and tax rate 35%.
n July, Lee Realty sold 10 homes at the following prices: $140,000; $166,000; $80,000; $98,000; $185,000; $150,000; $108,000; $114,000; $142,000; and $250,000. Calculate the mean and median.
If you purchase a 5-year, zero-coupon bond for $691.72, how much could it be sold for 3 years later if interest rates have remained stable?
Which of the following statements is most accurate concerning which shareholders will receive the dividend payment?
Lassen bought the machine for $55,000 and has claimed $15,000 of depreciation ex- pense on the machine. What gain or loss does Lassen realize on the transaction?
You are paying $750 down in cash and financing the balance for 45 months at 8.45%. What is the amount of each loan payment?
You will receive a payment of $10,000 per year forever; however the first payment will not begin for 9 years. If the appropriate interest rate is 7%.
which of the following events are likely to increase the market value of a call option on a common stock? explain.a. an
If RWE uses a 10% discount rate to evaluate investments of this type, what is the net present value of the project? What does this NPV indicate about the potential value RWE might create by purchasing the new production line
Are the lending institutions to blame for the relatively small increase in the total amount of loans extended to households and businesses?
You just won the grand prize in a national writing contest! As your prize, you will receive $2,000 a month for ten years. If you can earn 7 percent on your money, what is this prize worth to you today?
which firms are most likely to use bank financing rather than to issue bonds or stocks to finance their activities?
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