Degree of operating leverage   Grey Products has fixed operating costs of $390,000​, variable operating costs of $16.06

per​ unit, and a selling price of $63.54 per unit.

a. Calculate the operating breakeven point in units.

b. Calculate the​ firm's EBIT at 11,000​, 13,000​, and 15,000 ​units, respectively.

c. With 13,000 units as a​ base, what are the percentage changes in units sold and EBIT as sales move from the base to the other sales levels used in part ​(b​)?

d. Use the percentages computed in part (c​) to determine the degree of operating leverage​ (DOL).

e. Use the formula for degree of operating leverage to determine the DOL at 13,000 units.

Companies face many challenges as the compete in a global market. What do you think is Volkswagen's primary challenge in competing in the United States? Why?

As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby affecting the valuation model. For companies in such situations, you would refer to the variable, or nonconstant, growth model for the valuation of the company’s stock.

Consider the case of Portman Industries:

Portman Industries just paid a dividend of $1.92 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 16.00% over the next year. After the next year, though, Portman’s dividend is expected to grow at a constant rate of 3.20% per year. (Note: Do not round your intermediate calculations.)

Horizon Value (two decimals)

Intrinsic value (two decimals)

The risk-free rate (rRFrRF) is 4.00%, the market risk premium (RPMRPM) is 4.80%, and Portman’s beta is 2.00.

Assuming that the market is in equilibrium, use the information just given to complete the table.

What is the expected dividend yield for Portman’s stock today?

10.08%

11.45%

10.40%

8.32%

Now let’s apply the results of your calculations to the following situation:

Portman has 1,000,000 shares outstanding, and Judy Davis, an investor, holds 15,000 shares at the current price (computed above). Suppose Portman is considering issuing 125,000 new shares at a price of $18.20 per share. If the new shares are sold to outside investors, by how much will Judy’s investment in Portman Industries be diluted on a per-share basis?

$0.44 per share

$0.36 per share

$0.31 per share

$0.76 per share

Thus, Judy’s investment will be diluted, and Judy will experience a total   of   .

Mullet Technologies is considering whether or not to refund a $150 million, 12% coupon, 30-year bond issue that was sold 5 years ago. It is amortizing $9 million of flotation costs on the 12% bonds over the issue's 30-year life. Mullet's investment banks have indicated that the company could sell a new 25-year issue at an interest rate of 10% in today's market. Neither they nor Mullet's management anticipate that interest rates will fall below 10% any time soon, but there is a chance that rates will increase. A call premium of 8% would be required to retire the old bonds, and flotation costs on the new issue would amount to $6 million. Mullet's marginal federal-plus-state tax rate is 40%. The new bonds would be issued 1 month before the old bonds are called, with the proceeds being invested in short-term government securities returning 5% annually during the interim period. Conduct a complete bond refunding analysis.

a)What is the bond refunding's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.

b) What factors would influence Mullet's decision to refund now rather than later?

(1) if five year interest rates on USD and CDN are 6% and 5% respectively, and the current spot rate for CDN is $0.90/USD. what is the imlied five year CDN spot rate?

(2) Suppose that the Brazilian real devalues by 40% against the USD. By how much will the dollar appreciate against the real?

(3) What is the 90 day forward rate if US interest is 9%, Japanese interest is 7%, and the Spot rate is $0.003700/ Yen? ( assume there are no arbitrage and 360 day and interest rate parity)

(4) what is the annualized premium on the 90 day forward rate if the spot rate is $0.003800/Yen and the forward rate is $0.003828/ Yen ?

(5) Suppose annual inflation rate in the US and Mexico are expected to be 6% and 80% respectively, over the next several years. If the current spot rate for Mexico peso is $0.005. what is the best estimate of the peso's spot value in 3 years?

(9) if the expected inflation rate is 5% and the real required return is 6% , then the fisher effect says that the nominal interest rate should be.....

(10) During the 1992 currency crisis, the bank of england borrowed DM 33 billion from the Bundesbank when a pound was worth DM 2.78 or $1.912. It sold these DM in the foreign exchange market for pounds and repaid these DM at the post- crisis rate of DM 2.50:pound 1. By then, the dollar: pound exchange rate was $1.782: pound 1. During that time, by what percentage had the pound sterling appreciated/ depreciated against the dollar?

What is the payback period for the following set of cash flows?

Year      Cash Flow

0           -$6,400

1             1,600

2             1,900

3             2,300

4             1,400

A. 3.38 years

B. 3.45 years

C. 3.60 years

D. 3.43 years

E. 3.73 years

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is

4.6%​,

what are the

NPVs

of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

1. You just purchased a bond that matures in 15 years. The bond has a face value of $1,000 and has an 8% annual coupon. The bond has a current yield of 8.37%. What is the bond's yield to maturity? Round your answer to two decimal places.

2. Boehm Incorporated is expected to pay a $2.60 per share dividend at the end of this year (i.e., D1 = $2.60). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 17%. What is the estimated value per share of Boehm's stock? Round your answer to the nearest cent.

A project has an initial cost of $8,500 and produces cash inflows of $2,700, $5,000, and $1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?

A) 2.30 years

B) 2.15 years

C) 2.91 years

D) never

E) 2.50 years

• At the end of each month, you would enter your actual spending in each category to identify budget variances. What is your experience with creating and using a personal budget?
• Have you tracked expenses to identify variances? If so, what method did you use?
• What new strategies are there? How can your tax withholding affect your budget or financial goals?

1. If you deposit $8,177 in a bank account that pays 7% interest compounded monthly, how much will be in your account after 8 years? Please round your answer to the second decimal without dollar sign (e.g. 0.00)

2. If you deposit your money in a bank account that pays 8.66% interest compounded weakly, what is the effective annual rate (EAR)? Please round your answer to the fourth decimal (e.g. 0.0000)

3. If you plan to apply for a PhD program, which will cost you $131,712 for tuition and living expenses, in 2 years, how much do you need to deposit today? Assume the bank will pay you 7% compounded monthly. Please round your answer to the second decimal without dollar sign. (e.g. 0.00)

4. You want to save to buy a laptop that costs $1,353. Therefore, you deposit $532 into a bank that pays 4% interest compounded semiannually. How many year will it take for you to buy the laptop in your shopping list? Please round your answer to the second decimal, e.g. 1.5 (year).

5. If you deposit $7,847 in a bank account that pays monthly interests and expect to receive $14,810 in 8 years, what is the annual interest rate that bank pays? Please round your answer to the fourth decimal. For example, if your answer is 1.11%, you should input the answer as 0.0111.

Can someone show me how to input the data into the BA II plus professional calculator? The steps so I can understand for additional questions.

Thank you!