Assume that a bank has assets located in Germany worth €210 million earning an average of 9 percent. It also holds €130 in liabilities and pays an average of 7 percent per year. The current spot rate is €1.50 for $1. If the exchange rate at the end of the year is €2.00 for $1:

a. What happened to the dollar? Did it appreciate or depreciate against the euro (€)?
b. What is the effect of the exchange rate change on the net interest margin (interest received minus interest paid) in dollars from its foreign assets and liabilities?
c. What is the effect of the exchange rate change on the value of the assets and liabilities in dollars?

As a business owner, financial decisions require careful planning and prioritizing, especially when large, capital-intensive purchases are involved. As you establish a process to achieve your company goals, you will need to demonstrate your math skills, consider different investment options, and describe how different investment vehicles can be used effectively to accomplish business goals.

You, as a small business owner, are interested in buying a lot for $38,000. You have a CD (certificate of deposit) worth $40,000 now, which earns 4% compounded annually and will mature in 3 years. You are thinking about cashing in the CD to purchase the lot, but cashing in the CD now means you will have to pay a withdrawal penalty of $500. You project the value of the lot will be $45,000 in 3 years and you intend to use it for immediate equipment storage purposes for your business.

For your main post, you will write an essay discussing what you, as a business owner, decide to do - buy or pass on purchasing the lot. In your essay you should address the following:

• Calculate how much your CD will be worth upon maturity.
• Explain the differences (pros and cons) between these two investment options.
• Prioritize and select the best option for your business and explain why that option is preferable.
• Discuss the potential impact this choice will have on the future of your business.

The Bruin Stock Fund sells Class A shares that have a front-end load of 4.90 percent, a 12b-1 fee of 0.40 percent, and other fees of 1.24 percent. There are also Class B shares with a 5 percent CDSC that declines 1 percent per year, a 12b-1 fee of 1.85 percent, and other fees of 1.24 percent. Assume the portfolio return is 9 percent per year.

a. What is the value of $1 invested in each share class if your investment horizon is 3 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

b. What if your investment horizon is 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

You are considering an investment in a mutual fund with a 5% front-end load and an expense ratio of 1.25%. You can invest instead in a bank CD paying 7% interest.

a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. If you plan to invest for six years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 1.50% per year. What annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

the direct quote for the dollar in frankfurt is 0.6896-912. the direct quote for euro in new york is?

The Bigbee Bottling Company is contemplating the replacement of one of its bottling machines with a newer and more efficient one. The old machine has a book value of $650,000 and a remaining useful life of 5 years. The firm does not expect to realize any return from scrapping the old machine in 5 years, but it can sell it now to another firm in the industry for $280,000. The old machine is being depreciated by $130,000 per year, using the straight-line method. The new machine has a purchase price of $1,175,000, an estimated useful life and MACRS class life of 5 years, and an estimated salvage value of $155,000. The applicable depreciation rates are 20%, 32%, 19%, 12%, 11%, and 6%. It is expected to economize on electric power usage, labor, and repair costs, as well as to reduce the number of defective bottles. In total, an annual savings of $240,000 will be realized if the new machine is installed. The company's marginal tax rate is 35%, and it has a 12% WACC.

a)What initial cash outlay is required for the new machine? Round your answer to the nearest dollar. Negative amount should be indicated by a minus sign.

b)Calculate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense if the replacement is made. Round your answers to the nearest dollar.

Year Old Depreciation Allowance, New Depreciation Allowance, Change in Depreciation

c) What are the incremental net cash flows in Years 1 through 5? Round your answers to the nearest dollar.

d) Should the firm purchase the new machine?

Banks sometimes quote interest rates in the form of “add-on interest.” In this case, if a 1-year loan is quoted with an interest rate of 14.5% and you borrow $1,000, then you pay back $1,116. But you make these payments in monthly installments of $93 each.

a. What is the true APR on this loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Use a financial calculator or Excel.)

b. What is the effective annual rate on the loan? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Short answers:

1. Assets you own, including such items as stocks, bonds, or real estate, are commonly termed ______________________________.
2. Health insurance that provides payments to the insured in the event that the insured's income is interrupted by illness, sickness, or accident is called _____________________ insurance.
3. Using the earnings multiple approach, how much life insurance would you need to generate a 20-year $62,400 annuity given a discount rate of 5 percent.

I NEED ALL OF THE QUESTIONS PLEASE!!!!!!!!

1) A 20-year bond pays a coupon of 8 percent per year (coupon paid semi-annually). The bond has a par value of $1000. What will the bond sell for if the nominal YTM is: a) 10 percent b) 6 percent c) 8 percent

An investor is given the five investment alternatives (1, 2, 3, 4 and 5) with the following characteristics: Asset Expected Return Standard Deviation of Returns 1 20.0 percent 40.0 percent 2 14.0 percent 30.0 percent 3 16.0 percent 30.0 percent 4 12.0 percent 25.0 percent 5 18.0 percent 35.0 percent Which of the following statements best describes the rational investor's investment decision? a. A rational investor would never prefer Asset 4 in isolation. b. A rational investor would never prefer Asset 3 in isolation. c. A rational investor would never prefer Asset 1 in isolation. d. A rational investor would never prefer Asset 5 in isolation. e. A rational investor would never prefer Asset 2 in isolation.

When creating your initial post, assume you are the CFO of Hankins Corporation.   Given the key financial data below, perform a detailed and thorough financial analysis (show and explain all calculations) that includes the following:

1. Describe the firm's market value capital structure:  
   1. What is the market value for each type of financing used by the firm: equity, preferred stock, and debt?
   2. What is the total market value for Hankins Corporation?  
   3. What are the respective market value weights for each component of the firm's financing (equity, preferred stock, and debt)?
2. If the firm is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows? Hint: the firm's WACC is the appropriate discount rate. Compute Hankins' WACC:  
   1. What is the cost of equity using CAPM?
   2. If the YTM of the bonds is 5.93%, and YTM represents the cost of debt, what is the after-tax cost of this debt?  
   3. What is the cost of the firm's preferred stock?
   4. Based on this information, what is the WACC for Hankins Corporation?

Key financial data for Hankins Corporation:

• Common stock outstanding = 5.4 million shares; market value = $64/share; beta = 1.13
• 5.6% Preferred stock outstanding = 290,000 shares at $103/share
• 6.7% semi-annual bonds outstanding = $125,000; par value = $1,000 each; market value is 109% of par; all bonds mature in 20 years.
• Market risk premium = 6.8%
• T-bills current yield = 4.3%
• Corporate tax rate = 34%

Consider a firm that has just paid a dividend of $2. An analyst expects dividends to grow at a rate of 8 percent per year for the next five years. After that dividends are expected to grow at a normal rate of 5 percent per year. Assume that the appropriate discount rate is 7 percent.

Refer to Exhibit 8.3. The price of the stock today (P₀) is

1. Describe the primary features of long-term debt securities
2. What are the three major rating agencies and what criteria do they use when assigning ratings?

You are considering making a movie. The movie is expected to cost $11.4 million up front and take a year to produce. After that, it is expected to make $5.1 million in the year it is released and $2.3 million for the following four years. What is the payback period of this investment? If you require a payback period of two years, will you make the movie? Does the movie have positive NPV if the cost of capital is 11.2% ?

Professor Wendy Smith has been offered the following opportunity: A law firm would like to retain her for an upfront payment of $50,000. In return, for the next year the firm would have access to eight hours of her time every month. As an alternative payment arrangement, the firm would pay Professor Smith's hourly rate for the eight hours each month. Smith's rate is $550 per hour and her opportunity cost of capital is 15% per year. What does the IRR rule advise regarding the payment arrangement? (Hint: Find the monthly rate that will yield an effective annual rate of 15% .) What about the NPV rule? The IRR is nothing %. (Round to two decimal places.)