Draw a chart to show the relationship between bond yield and bond price.  

Provide a Capital Investment Appraisals (CIA) analysis of the the costs of using debt and equity financing (include definitions).

Also evaluate the criteria used when making financing decisions.

You have a $20,000 balance on your credit card, which has an interest rate of 21% compounded quarterly. How many years will it take you to pay off the balance by making monthly payments of $800?

show alll work of have to isolate t

The Scenario:
After recently graduating from KSU, you begin a career as an product investment analyst with Hormel Foods. As the newest Skippy P.B. analyst, your first assignment is to evaluate the following enterprise.

The Skippy P.B. Fruit Bites machine will initially cost $200,000. Hormel expects to use the machine for 10 years. After 10 years, the machine will be worth $20,000 in today’s prices. The machine will be depreciated using straight‐line depreciation over 8 years and the salvage value for depreciation is $5,000.

Hormel is in the 30% tax bracket and the company requires a 10% real after‐tax return on its investments. You expect inflation to be 3%. There is no investment tax credit associated with the machine. You expect maintenance of the machine to cost $4,000 a year and to increase at the general inflation rate.

1. (4 points) Evaluate the interest rate level used in this problem (i.e., is it high, low, acceptable). Justify your answer with an explanation.

2. (16 points) Using the scenario and interest rate information above, prepare a net present cost (NPC) budget for the machine. A NPC budget only includes the items associated with owning the equipment (purchase, terminal value, depreciation, maintenance in this problem). Calculate the after‐tax and pre‐tax capital recovery charges.

3. (26 points) Hormel Foods will use the machine to produce strawberry and grape Skippy P.B. Fruit

Bites. You project selling 160,000 packets of Skippy P.B. Fruit Bites per year at $3.49 (real dollars) per packet in years 1 and 2. You then expect to sell 190,000 packets for $3.49 (real dollars) per packet in years in years 3‐10. The real operating costs are expected to be as follows:

Variable costs (materials, etc) of $20,000/year for years 1‐10;
Ingredient costs of $50,000/year for years 1‐2 and $60,000/year for years 3‐10; Marketing costs of $50,000/year for years 1‐10;
Labor costs of $60,000/year for years 1‐10 expected to increase at 5% per year; Management cost of $80,000/year for years 1‐10 expected to increase at 7% per year.

Prepare a NPV budget for this investment. Use the information provided here in question #3. Also include the Net Present Cost (NPC) for the machine (that you found as your final answer in question #2) as an item (that is as a line item component) in this NPV budget (this cost should be entered as a negative value in this NPV budget).

1. Sjcam used a penetration pricing strategy to introduce its Legend action camera to compete with the latest GoPro offering. Which of the following conditions would argue for using a penetration pricing strategy when introducing this new camera?

a. A large potential market exists, even at a high price.

b. Technological problems still exist for competitors, prohibiting their entry into the market for at least six months.

c. Increasing volume substantially reduces production costs.

d. Consumers perceive a price-quality relationship.

e. The product is relatively price insensitive (price inelastic).

2. Apple offers its iPhone XS for $999, under the presumption that consumers see the smartphone as priced at “something over $900” rather than “about $1,000.” This is an application of what pricing strategy?

a. prestige pricing

b. below-market pricing

c. odd-even pricing

d. target pricing

e. customary pricing

3. Which of the following would be an example of a variable cost for a hotel like the Marriott Marquis Hotel, which caters to an upscale clientele?

a. the average daily rate paid by women in targeted demographics staying at the hotel

b. cleaning supplies and housekeeping wages

c. the salary of the hotel manager

d. the rent for a parking garage used by employees

e. the price charged for renting a ballroom in the hotel

4. Uber and Lyft customers often complain about the practice of “surge” or “prime-time” pricing used by these companies during periods of peak demand. This is an example of a __________ pricing policy.

a. promotional

b. competitive

c. discount

d. dynamic

e. customer

Do you believe McDonald's would be able to compete with Starbucks if they came up with more products to sell under their McCafe line?

A U.S. importer has agreed to purchase 500 bottles of cachaça (a type of rum) from Brazil at a price of 75 BRL (Brazilian reals) each. The cachaça will take five months to bottle, label, and ship, and payment is due before the wine is shipped.

1. 2 pts)What can the importer do to reduce the risk of a currency rate change between the time he signs the contract to buy the cachaça and when he is required to pay for it?
   1. Offer to pay in a universal currency like Euros.
   2. There is nothing the importer can do but hope for the best.
   3. Purchase a forward contract for the purchase amount at an acceptable exchange rate.
   4. Refuse to purchase the goods if the dollar strengthens.

2. (5 pts)Suppose the importer buys a forward contract for 37,500 BRL at a rate of 3.7 What is the importers profit and profit margin if the spot rate is 3.46 BRL to 1 USD on the payment date?

3. (5 pts)Suppose the importer buys a forward contract for 37,500 BRL at a rate of 72. What is the importers profit and profit margin if the spot rate is 3.86 BRL to 1 USD on the payment date?

Given:

Calculate the expected returns and expected standard deviations of a two-stock portfolio in which Stock 1 has a weight of 70 percent under the conditions given below. Do not round intermediate calculations. Round your answers for the expected returns of a two-stock portfolio to three decimal places and answers for expected standard deviations of a two-stock portfolio to four decimal places.

1. r_1,2 = 1.00

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

2. r_1,2 = 0.65

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

3. r_1,2 = 0.30

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

4. r_1,2 = 0.00

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

5. r_1,2 = -0.30

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

6. r_1,2 = -0.65

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

7. r_1,2 = -1.00

   Expected return of a two-stock portfolio:

   Expected standard deviation of a two-stock portfolio:

Compare a forensic audit with a financial audit. Give specific examples of the differences between the two audits.

A U.S. importer has agreed to purchase 500 bottles of cachaça (a type of rum) from Brazil at a price of 75 BRL (Brazilian reals) each. The cachaça will take five months to bottle, label, and ship, and payment is due before the wine is shipped.

1. (5 pts)Assume the spot rate is 3.756 BRL is equal to 1 USD. What is the total price in USD to the importer if the spot rate remains unchanged?

2. (5 pts)What is the cost to the US importer for the cachaça in question 5 if the spot rate changes to 3.458 BRL to 1 USD?

3. (2 pts)If the spot rate changes on the BRL as indicated in questions 3 and 4, did the USD strengthen or weaken relative to the BRL?

Calculate the stock price given the following :

Trading EBITDA Multiple= 10x

Book equity= $1.0 Billion

Shares Outstanding= 110 million

Short Term Bank debt= $100 Million

Long Term Bank debt= $1.15 billion

Corporate Bons- $250 Million

Total liabilities= $1.9 Billion

Total Assets= $2.9 Billion

Cash=$ 100 Million

EBIT= $300 Million

Depreciation & Amortization = $50 Million

Whats the stock price?

Calculate the EV with stock price at $25.

Describe and explain the basic steps in a money laundering cycle.

What is employee fraud and white-collar crime? Give definitions and specific examples of each.