Find a news article that discusses ethics in finance. The article should be no more than 12 months old. Summarize the article and analyse the impact on the company

You work on a FX trading desk. A client calls and asks you the deposit rate you can guarantee them in the Malaysian Ringgit (MYR) currency for one year. You have the below information. What deposit rate can you offer the client as a guarantee you can secure them? Your main funding currency is USD. Answer in percentage points to the fourth decimal (e.g. 2.5000% is 2.5000).

USD/MYR Spot: 4.1090 USD/MYR

1-yr Forward FX: 4.1695 USD

1yr Interest Rate: 2.4400%

You have been given the following information for PattyCake’s Athletic Wear Corp. for the year 2018:

1. Net sales = $38,550,000.

2. Cost of goods sold = $22,150,000.

3. Other operating expenses = $5,700,000.

4. Addition to retained earnings = $1,203,500.

5. Dividends paid to preferred and common stockholders = $1,925,500.

6. Interest expense = $1,815,000.

7. The firm’s tax rate is 30 percent.

In 2019:

8. Net sales are expected to increase by $9.55 million.

9. Cost of goods sold is expected to be 60 percent of net sales.

10. Depreciation and other operating expenses are expected to be the same as in 2018.

11. Interest expense is expected to be $2,090,000.

12. The tax rate is expected to be 30 percent of EBT.

13. Dividends paid to preferred and common stockholders will not change.

Calculate the addition to retained earnings expected in 2019.

You are asked to evaluate the following two projects for the Norton corporation. Use a discount rate of 12 percent. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

  
a. Calculate the profitability index for project X. (Do not round intermediate calculations and round your answer to 2 decimal places.)

  
b. Calculate the profitability index for project Y. (Do not round intermediate calculations and round your answer to 2 decimal places.)

c. Which project would you select based on the profitability index?

• Project X

• Project Y

A7X Corp. just paid a dividend of $1.45 per share. The dividends are expected to grow at 25 percent for the next 6 years and then level off to a growth rate of 8 percent indefinitely.

If the required return is 15 percent, what is the price of the stock today?

13. Project Analysis You are considering a new product launch. The project will cost $760,000, have a four-year life, and have no salvage value; depreciation is straightline to zero. Sales are projected at 420 units per year; price per unit will be $17,200; variable cost per unit will be $14,300; and fixed costs will be $640,000 per year. The required return on the project is 15 percent, and the relevant tax rate is 35 percent. a. Based on your experience, you think the unit sales, variable cost, and fixed cost projections given here are probably accurate to within ±10 percent. What are the upper and lower bounds for these projections? What is the base-case NPV? What are the best case and worst-case scenarios? b. Evaluate the sensitivity of your base-case NPV to changes in fixed costs. c. What is the accounting break-even level of output for this project?

what is the current year's account payable balance?

what is the current year's return on assets (ROA)?

what is the current year's return on equity (ROE)?

what is the current year's entry for long-term debt on a common-sized balance sheet?

Choose two companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. What did your analysis tell you about these companies? What sorts of decisions would this analysis help you make; such as buying stocks, considering accepting an employment offer, etc.?

A company currently pays a dividend of $2.75 per share (D₀ = $2.75). It is estimated that the company's dividend will grow at a rate of 21% per year for the next 2 years, and then at a constant rate of 6% thereafter. The company's stock has a beta of 2, the risk-free rate is 7.5%, and the market risk premium is 6%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent.

Explain in a paragraph, If a country experiences an increase in inflation relative to other countries, then their current account will increase.

Outline the main contents of the International Accounting standard 33 (IAS33) EPS

FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year. Once in production, the bike is expected to make $300,000 (after expenses) per year for 10 years. The cash inflows begin at the end of year 7.

At FastTrack, there is a difference of opinion as to the "best" decision rule to use. The four rules under consideration are NPV, IRR, Payback Period and Profitability Index (PI).                         

Additional Info: The firm's president has set a maximum acceptable payback period of 8 years for projects and the cost of capital appropriate for this project is 10%.

Using the end of year cash flows as shown in the table (see below), answer each of the following:

1a        What is the NPV of the project if the firm's cost of capital is 10%?

1b        Should the project be accepted or rejected based on NPV and why?

Note that while at first you may think that IRR isn't appropriate, note that there is only one sign change, when the cash flows go from negative 200,000 to positive 300,000. This means there is only 1 sign change and 1 IRR.                                        

2a        What is the IRR of the project?

2b        Should the project be accepted or rejected based on IRR and why?

3a        What is the Payback period of the project?   

3b        Should the project be accepted or rejected based on Payback and why?   

4a        What is the profitability index or PI of the project?   

4b       Should the project be accepted or rejected based on PI and why?

5         If the firm's required rate of return increased, what would be the impact on each of the values?                                                    

5a Effect on NPV and why:                                                        

5b Effect on IRR and why:                                                          

5c Effect on Payback period and why:                                                    

5d Effect on PI and why: