A family takes out a mortgage for $277,400.00 from the local bank. The loan is for 30 years of monthly payments at a 4.32% APR (monthly compounding). What will the family’s balance be on the mortgage after 6.00 years?

A couple has just purchased a home for $384,100.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of 5.64% APR with monthly compounding. The mortgage has a term of 30 years.

How much interest is paid in the first year?

Illustrate the different types of exchange rate risk and ways firms manage exchange rate risk

examples as well

What considerations does the company have regarding structuring its debt?

Sara purchased 50 shares of Apple stock at $190.97 per share using the prevailing minimum initial margin requirement of 55%.

She held the stock for exactly 4 months and sold it without any brokerage costs at the end of that period. During the 4​-month holding​ period, the stock paid $1.49 per share in cash dividends.

Sara was charged 4.8% annual interest on the margin loan. The minimum maintenance margin was 25%.

a. Calculate the initial value of the​ transaction, the debit balance​, and the equity position on​ Sara's transaction.

b. For each of the following share​ prices, calculate the actual margin​ percentage, and indicate whether​ Sara's margin account would have excess​ equity, would be​ restricted, or would be subject to a margin​ call: ​(1)$174.81​, (2)$206.54​,and​ (3)$122.35.

c. Calculate the dollar amount of​ (1) dividends received and​ (2) interest paid on the margin loan during the 4​-month holding period.

d. Use each of the following sale prices at the end of the 4​-month holding period to calculate​ Sara's annualized rate of return on the Apple stock​ transaction: (1)$185.83​, (2) $195.99​, and​ (3)$205.89.

1.A woman wants to withdraw $80,000 per year for the next 30 years. Her retirement funds will be invested in assets that are expected to earn an annual rate of return of 6%. Assume her first withdraw comes one year after her date of retirement. How much money does she need in her retirement fund on her retirement date.

1b. It is 50 years prior to her retirement date. Starting one year from today, she plans to begin funding her retirement play by investing in assets that are expected to earn an annual rate of 8%. Find the size of the equal annual payments that she needs to make into her account, for the next 50 years, in order to have amassed the dollar amount you found in part a by the day she retires.

2. An interest rate of 3% per year, with compounding monthly interest, on its CD. If you invest $10,000, how many months will it take for your investment to grow to 12,000?

In a bid to gain greater acceptance in Asian markets, Wide Bay Cookies Ltd is evaluating an opportunity to produce and distribute its products from a new manufacturing plant in Vietnam. Wide Bay will invest AUD $3,000,000 to set up the factory and provide working capital for operations. AUD $2,000,000 of this initial outlay will be recovered when the project is terminated in four years’ time. Wide Bay expect to receive 13,000,000,000 Vietnamese Dong (VND) after tax for each of the four years of operation. The current spot rate is AUD VND 15 746.72.

The risk free rate in Australia is 1% while it is 4.45% in Vietnam. You should assume that interest rate parity exists. Wide Bay Cookies works on the assumptions that the one year forward rate predicts the spot rate in one years’ time and that the change in the exchange rate in the first year will be repeated for each year of the project. Wide Bay’s annual required return for the project is 12%.

Rice Paper Ltd is an Australian company that imports Vietnamese products. Rice Paper’s contracts are written in Vietnamese Dong and they agree to take 13,000,000,000 each year from Wide Bay Cookies at the rate of AUD VND 14 000.

a) Ignoring any tax implications, what is the net present value of the project for Wide Bay Cookies if it does not hedge the project’s cash flows?

b) Ignoring any tax implications, what is the net present value of the project for Wide Bay Cookies if it engages in the currency swap?

c) Should Wide Bay undertake the project? Justify your answer.

Bynum and Crumpton Inc. (B&C), a small jewelry manufacturer, has been successful and has enjoyed a positive growth trend. Now B&C is planning to go public with an issue of common stock, and it faces the problem of setting an appropriate price for the stock. The company and its investment banks believe that the proper procedure is to conduct a valuation and select several similar firms with publicly traded common stock and to make relevant comparisons.
Several jewelry manufacturers are reasonably similar to B&C with respect to product mix, asset composition, and debt/equity proportions. Of these companies, Abercrombe Jewelers and Gunter Fashions are most similar. When analyzing the following data, assume that the most recent year has been reasonably "normal" in the sense that it was neither especially good nor especially bad in terms of sales, earnings, and free cash flows. Abercrombe is listed on the AMEX and Gunter on the NYSE, while B&C will be traded in the Nasdaq market.

The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

1. B&C is a closely held corporation with only 500,000 shares outstanding. Free cash flows have been low and in some years negative due to B&C's recent high sales growth rates, but as its expansion phase comes to an end B&C's free cash flows should increase. B&C anticipates the following free cash flows over the next 5 years:

   Year	1	2	3	4	5
   FCF	1,000,000	1,050,000	1,208,000	1,329,000	1,462,000

   After Year 5, free cash flow growth will be stable at 7% per year. Currently, B&C has no non-operating assets, and its WACC is 12%. Using the free cash flow valuation model, estimate B&C's intrinsic value of equity and intrinsic per share price. Do not round intermediate calculations. Round your answer for the value of equity to the nearest dollar. Round your answer for the value of equity per share to the nearest cent.

   Value of equity	$
   Per share value of equity	$

2. Calculate debt to total assets, P/E, market to book, P/FCF, and ROE for Abercrombe, Gunter, and B&C. For calculations that require a price for B&C, use the per share price you obtained with the corporate valuation model in part a. Do not round intermediate calculations. Round your answers to two decimal places.

   	Abercrombe		Gunter		B&C
   D/A	%		%		%
   P/E
   Market/Book
   ROE	%		%		%
   P/FCF

3. Using Abercrombe's and Gunter's P/E, Market/Book, and Price/FCF ratios, calculate the range of prices for B&C's stock that would be consistent with these ratios. For example, if you multiply B&C's earnings per share by Abercrombe's P/E ratio you get a price. What range of prices do you get? Do not round intermediate calculations. Round your answers to the nearest cent.

   The range of prices:
   from $   to $  

McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $950 per set and have a variable cost of $425 per set. The company has spent $145,000 for a marketing study that determined the company will sell 48,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,000 sets of its high-priced clubs. The high-priced clubs sell at $1,450 and have variable costs of $580. The company also will increase sales of its cheap clubs by 11,600 sets. The cheap clubs sell for $425 and have variable costs of $155 per set. The fixed costs each year will be $9,400,000. The company has also spent $1,050,000 on research and development for the new clubs. The plant and equipment required will cost $29,400,000 and will be depreciated on a straight-line basis to a zero salvage value. The new clubs also will require an increase in net working capital of $2,380,000 that will be returned at the end of the project. The tax rate is 22 percent and the cost of capital is 14 percent. Suppose you feel that the values are accurate to within only ±10 percent. What are the best-case and worst-case NPVs? (Hint: The price and variable costs for the two existing sets of clubs are known with certainty; only the sales gained or lost are uncertain.) (A negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

With the advancements made in technology we all use some form of it daily. Whether we are using a computer, smartphone, the internet and social media, etc., these things have been incorporated into our daily living. Most people are required to use some form of technology at work, we are entertained with them and it is the most used form of communication. With that technology and the internet have been very important for companies for the purpose of working, communicating, and even advertising. "Using social media for business marketing has been a hot topic for years now, but brands are still trying to harness the power of the digital socialsphere to discover the best ways to directly impact their bottom lines. As social media use advances, so does the frequency in which brands are reaching out to their audiences to engage them through these channels" (Gleeson, n.d.).

The use of social media for a company can have both negative and positive benefits, however the use of social media can create substantial benefits for a company when communicating both internally and externally. Social media can be a tool to facilitate faster and better change management decisions to accelerate and promote internal changes. A company can build trust internally through social media by promoting the positive actions of their employees and progress in their work. By promoting their employee on social media the company can build trust and motivation within the company. By making an employee feel valued in their job they will be better motivated to perform better in the future.

A company can build trust externally by listening to and responding to their customer complaints and suggestions. By responding to their customers in a timely manner the company will gain the trust and loyalty of a valuable customer. "When social media are used for professional purposes, teams can communicate more efficiently; companies can interface more responsively with customers, clients, and suppliers; customers and other interested individuals can be directly involved in the development of products and services; and anyone with shared professional interests can communicate easily, not needing to travel to see one another" (Cardon, 2017).

Social media is also a great tool to address many public relations issues that might arise. If the company has an issue arise or there is bad news for the company that leaks out the company should already have a policy to handle it. Within this policy or plan the company should be able to identify the issue before trying to solve it. The company needs to make sure that the information is accurate when it is presented to make the company look its best.

Social media can also be to support the culture, strategic vision, values, and mission of the company. This information can be created for the company and then placed on its social media platform for potential customer, investors, and employees to see and make their decision about the company based on the facts of the company. Companies could gain from this tactic since social media is in real time and can be shared and viewed by many people quickly.

Required

Give examples of organizations that have used social media effectively in the ways your peers described. Why do you believe the organizations effectively communicated the intended messages from the perspectives of the target audiences?

McGilla Golf is evaluating a new line of golf clubs. The clubs will sell for $1,070 per set and have a variable cost of $485 per set. The company has spent $175,000 for a marketing study that determined the company will sell 54,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 10,200 sets of its high-priced clubs. The high-priced clubs sell at $1,570 and have variable costs of $700. The company also will increase sales of its cheap clubs by 12,800 sets. The cheap clubs sell for $485 and have variable costs of $215 per set. The fixed costs each year will be $10,000,000. The company has also spent $1,350,000 on research and development for the new clubs. The plant and equipment required will cost $33,600,000 and will be depreciated on a straight-line basis to a zero salvage value. The new clubs also will require an increase in net working capital of $2,740,000 that will be returned at the end of the project. The tax rate is 24 percent and the cost of capital is 14 percent. Calculate the payback period. (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

McGilla Golf is evaluating a new golf club. The clubs will sell for $960 per set and have a variable cost of $430 per set. The company has spent $147,500 for a marketing study that determined the company will sell 48,500 sets per year for seven years. The marketing study also determined that the company will lose sales of 9,100 sets of its high-priced clubs. The high-priced clubs sell at $1,460 and have variable costs of $590. The company also will increase sales of its cheap clubs by 11,700 sets. The cheap clubs sell for $430 and have variable costs of $160 per set. The fixed costs each year will be $9,450,000. The company has also spent $1,075,000 on research and development for the new clubs. The plant and equipment required will cost $29,750,000 and will be depreciated on a straight-line basis to a zero salvage value. The new clubs also will also require an increase in net working capital of $2,410,000 that will be returned at the end of the project. The tax rate is 23 percent and the cost of capital is 15 percent. What is the senstivity of the NPV to changes in the price and quantity sold of the new clubs? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)