You entered into a currency swap that has 4.25 years left until termination. You receive 4.3% on $10,000,000 (annual rate with annual compounding) and pay 3.8% on on €9,500,000 each settlement date. Current exchange rate is $1.10/€1. The interest rates are listed below for the USD and EUR all quoted per annum with continuous compounding. What is the value of your swap today? LOOKING FOR EXPLANATION AND IN SOME SORT OF EXCEL FORMAT PLEASE :)

Year USD EUR

0.25 3.00% 3.50%

1.25 3.50% 4.00%

2.25 4.00% 4.00%

3.25 4.25% 4.50%

4.25 4.25% 4.75%

In problem 7, Big City Manufacturing (BCM) assumed that all credit sales were paid in full, with no bad debt expense. For this problem, please assume that bad debt expense is again 0% for BCM. Purchases for next month's sales are 50% of projected sales for the next month, and April sales are estimated to be $495,000; purchases for April are paid in cash in March. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. Construct a cash budget for March using your expected cash receipts from problem 7 and calculate the average net cash flow during the month of March.

Please Reference This question below:

Big City Manufacturing (BCM) is preparing its cash budget and expects to have sales of $450,000 in January, $375,000 in February, and $555,000 in March. If 20% of the sales are for cash, 45% are credit sales paid in the month after the sale, and another 35% are credit sales paid 2 months after the sale, what are the expected cash receipts for March? The Answer for this question was 437,250.00

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.6 million and net plant and equipment equals $2.3 million. It has notes payable of $145,000, long-term debt of $745,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet.

Write out your answers completely. For example, 25 million should be entered as 25,000,000. Negative values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary.

1. What is the company's total debt?

   $  

2. What is the amount of total liabilities and equity that appears on the firm's balance sheet?

   $  

3. What is the balance of current assets on the firm's balance sheet?

   $  

4. What is the balance of current liabilities on the firm's balance sheet?

   $  

5. What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as a single line item on the firm's balance sheet.)

   $  

6. What is the firm's net working capital? If your answer is zero, enter "0".

   $  

7. What is the firm's net operating working capital?

   $  

8. What is the monetary difference between your answers to part f and g?

   $  

   What does this difference indicate?

Roxie Epoxy’s balance sheet shows a total of $50 million long-term debt with a coupon rate of 8.00% and a yield to maturity of 7.00%. This debt currently has a market value of $55 million. The balance sheet also shows that that the company has 20 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $8.50 per share; stockholders' required return, rs, is 14%; and the firm's tax rate is 25%. Based on market value weights, and assuming the firm is currently at its target capital structure, what WACC should Roxie use to evaluate capital budgeting projects? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

You have observed Mr. Jones's ownership style and you predict that Elkplain's share price will rise. You have $3,390 to invest and you are considering either buying shares of Elkplain or purchasing call options on the shares. The stock price is currently $17. The call option expires in three months, has a strike price of $17, and has a premium of $3.39 (per share). Assume that the stock price rises to $19.55. What is the rate of return on each investment? (Assume that you can buy a fractional quantity of shares.)

A) *15%; -25%

B) 15%; 20%

C) -5%; 15%

D) 20%; 5%

Looking for the process work to understand why the solution is A) 15%; -25%.

Consider the following information:
  

  
a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

  
b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Please show work

There are two types of decision-making models, one is Compensatory choice models and Non-Compensatory choice model, provide some of the advantages and disadvantages of those various decision-making models. Also, describe a specific example of a situation requiring a decision, and explain which of the models would be best to use to make a decision and why.

Linda Jones is deciding between two investment projects.

Choice 1

Linda can invest into a young biotech firm. She expects that she will need to pay this firm $35,000 at the end of each year for the next two years. After that, she expects to receive back from the firm $90,000 at the end of each year for 18 years.

Choice 2

Linda can invest $200,000 today into an AI firm. She expects to be paid $42,000 at the end of the year, and expects cash flows from the AI firm to increase by 5% every year, paid at the end of each year in perpetuity

1. “Draw” timelines (tables), showing cash flows of each investment.
2. Suppose Linda’s discount rate is 12%. Which project should she choose?
3. At which discount rate would Linda be indifferent between her two choices?

Holmes Manufacturing is considering a new machine that costs $270,000 and would reduce pretax manufacturing costs by $90,000 annually. The new machine will be fully depreciated at the time of purchase. Management thinks the machine would have a value of $23,000 at the end of its 5-year operating life. Net operating working capital would increase by $25,000 initially, but it would be recovered at the end of the project's 5-year life. Holmes's marginal tax rate is 25%, and an 11% WACC is appropriate for the project.

1. Calculate the project's NPV. Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent.
   $   
   
   Calculate the project's IRR. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
   Calculate the project's MIRR. Do not round intermediate calculations. Round your answer to two decimal places.
     %
   
   Calculate the project's payback. Do not round intermediate calculations. Round your answer to two decimal places.
     years
2. 
   
3. Assume management is unsure about the $90,000 cost savings-this figure could deviate by as much as plus or minus 20%. What would the NPV be under each of these situations? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent.
   20% savings increase: $   
   20% savings decrease: $   
   
4. Suppose the CFO wants you to do a scenario analysis with different values for the cost savings, the machine's salvage value, and the net operating working capital (NOWC) requirement. She asks you to use the following probabilities and values in the scenario analysis:

   Scenario	Probability	Cost Savings	Salvage Value	NOWC
   Worst case	0.35	$72,000	$18,000	$30,000
   Base case	0.35	$90,000	$23,000	$25,000
   Best case	0.30	$108,000	$28,000	$20,000

   
   Calculate the project's expected NPV, its standard deviation, and its coefficient of variation. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer for expected NPV and for standard deviation to the nearest cent and for coefficient of variation to two decimal places.
   

   E(NPV):	$
   σNPV:	$
   CV:

   
   Would you recommend that the project be accepted?

Consider a $2 million, 8%, 30-year mortgage with monthly payments. Compute the first three payments and the loan balance after the third payment for each of the following loan types: a) Interest Only B) CAM, C) CPM

Consider futures, forwards, options and swaps. Which derivative is the least risky choice for a risk averse public company? Why?

Clarion Enterprises is considering two potential investments with differing cash flow periods. This is the first potential investment. It has the following cash flows:

Given the above cash flows and investor's required rate of return, what is the Annualized Net Present Value for this proposed investment? Express your answers as XXXX.XX. (Note: Be sure you noticed that this is asking for an annualized Net Present Value, not the Net Present Value. This would be used in comparing potential investments with differing investment cash flow periods.)

You work for a company that has outsourced its internal audit function for several years. Yesterday, the company’s chief financial officer (CFO) called you into her office and told you that the audit committee has decided that, following the practice guidelines set forth in the Standards, the company needs a chief audit executive (CAE). She asks you to assume this role in addition to your duties as director of taxation for the company.

A. Describe what your primary role will be as the company’s CAE of an outsourced internal audit function.

B. To whom should you, as the company’s CAE, report?

C. List the specific responsibilities you will have if you carry out your role as CAE in accordance with the Standards.

D. Explain how you will handle the potential conflict your role as director of taxation might have with your new role as CAE.

For a project with normal cash flows, if IRR = the required return (discount rate), then NPV = 0, and the profitability index = 1.0.

Group of answer choices

True

False