Identify the major types of financial institutions and their significance in the financial system. Describe how the institutions were affected by the financial crisis.

GEM, Inc., has two bonds outstanding in the market. Both Bond X and Bond Y have 7 percent coupons, make semiannual payments, and are priced at par value. Bond X has 20 years to maturity, whereas Bond Y has 5 years to maturity.

1. If interest rates suddenly rise by 2 percent (percentage points), what is the percentage change in the price of the two bonds?

2. If rates were to suddenly fall by 2 percent (percentage points) instead, what would be the percentage change in the price of the two bonds?

USING EXCEL FORMULAS PLEASE

Working capital: Mukhopadhya Network Associates has a current ratio of 1.60, where the current ratio is defined as follows: Current ratio = Current assets/Current liabilities. The firm's current assets are equal to $1,233,265, its accounts payables are $419,357, and its notes payables are $351,663. Its inventory is currently at $721,599. The company plans to raise funds in the short-term debt market and invest the entire amount in additional inventory. How much can note payable increase without the current ratio falling below 1.50?

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $2 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.

Create a 350-word memo to management including the following:

• Describe the use of internal rate of return (IRR), net present value (NPV), and the payback method in evaluating project cash flows.
• Describe the break-even point and its importance.
• Describe the advantages and disadvantages of each method.

Capital Budgeting Methods

Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years.

Calculate the two projects' NPVs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to the nearest cent.

Project S: $  ???

Project L: $  ???

Which project would be selected, assuming they are mutually exclusive?

Based on the NPV values, [SELECT: Project S, Project L] would be selected.

Calculate the two projects' IRRs. Do not round intermediate calculations. Round your answers to two decimal places.

Project S: ???  %

Project L: ???  %.

Which project would be selected, assuming they are mutually exclusive?

Based on the IRR values, [SELECT: Project S, Project L] would be selected.

Calculate the two projects' MIRRs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to two decimal places.

Project S: ???  %

Project L: ???  %

Which project would be selected, assuming they are mutually exclusive?

Based on the MIRR values, [SELECT: Project S, Project L] would be selected.

Calculate the two projects' PIs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to three decimal places.

Project S:   ???

Project L: ???

Which project would be selected, assuming they are mutually exclusive?

Based on the PI values, [SELECT: Project S, Project L] would be selected.

Which project should actually be selected?

[SELECT: Project S, Project L] should actually be selected.

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $6 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 4%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.

The Doak Company has projected the following quarterly sales amounts for the coming year: Q1 Q2 Q3 Q4 Sales $3,900 $4,700 $4,300 $3,600 Accounts receivable at the beginning of the year are $1,700.

a. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

b. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

c. The company has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

You are the manager of a U.S. company situated in Los Angeles and manages the import/export division of the company. The company distributes (resells) a variety of consumer products imported to the U.S.A from France and also exports goods manufactured in the U.S.A. to Britain.

Therefore, your company is very much dependent on the impact of current and future exchange rates on the performance of the company.

Scenario 1:

You have to estimate the expected exchange rates one year from now between your home currency and the other currencies of the major other countries that you deal with in terms of both imports and exports. The reason is that increases in the values of other currencies compared to the U.S. Dollar may impact your imports negatively, whilst it may on the other hand, be good for exports. To do this estimate, you obtain the following spot exchange rate information:

You also obtain the following rates that you regard as similar to the annual risk free rates applying in the countries:

Your focus is presently to estimate the 12 month forward rates in order to consider the impact that it will have on the import and export sales of the company. Calculate the forward rates of the $ in terms of all the currencies by using simple interest rate parity e.g. 10% annual interest rate = 10/2 = 5% for six months. Do not apply effective annual interest rate compounding. Show all your workings in table 1 on the separate answer sheet by using the correct formula provided in your formula sheet.

Provide an indication about what will happen to the value of the US$ based on the forward exchange rate calculations by calculating the expected discount/premium of it for each of the currencies in Table 2 on the separate answer sheet. Also show whether the impact will be positive (P) or negative (N) for imports and exports. For example:

(1) What is the market economy? How do the financial markets interact with product and labor markets to allocate scarce resources efficiently in the market economy?

1. Ron is considering investing in a bond issued by the City of San Diego. The bond pays semiannual coupons, has a face value of $1,000, has a coupon rate of 8% and matures in 4 years. If the bond has an effective annual yield to maturity of 5.0625%, what fair price should Ron expect to pay for the bond?

2) An analyst gathers the following information for a market capitalization (value) weighted index comprised of securities MNO, QRS, and XYZ:

*DPS= Dividends per share

1. (1 point) What is the price return of the index?
2. (1 point) What is the total return of the index?

Logan Distributing Company of Atlanta sells fans and heaters to retail outlets throughout the Southeast. Joe Logan, the president of the company, is thinking about changing the firm's credit policy to attract customers away from competitors. The present policy calls for a 1/10, net 30 cash discount. The new policy would call for a 3/10, net 50 cash discount. Currently, 30 percent of Logan customers are taking the discount, and it is anticipated that this number would go up to 50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $397,000 to $610,000 as a result of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 14,830 to 22,700 units. The ordering cost for each order is $199, and the carrying cost per unit is $1.45 (these values will not change with the discount). The average inventory is based on EOQ/2. Each unit in inventory has an average cost of $12. Cost of goods sold is equal to 65 percent of net sales; general and administrative expenses are 15 percent of net sales; and interest payments of 14 percent will only be necessary for the increase in the accounts receivable and inventory balances. Taxes will be 40 percent of before-tax income. For average collection period, assume the customer pays on the last day possible (if they are getting the discount, that is day 10; if not, that is day 30 with the original policy and day 50 with the proposed policy).

EOQ is 2017.57/2=1008.79

1008.79*12= 12,105.42

EOQ is 2496.15/2=1,248.075

1,248.075*12=14,976.90

what am I doing wrong?