Exercise 1 Use the money market and foreign exchange (FX) diagrams to answer the following questions. This question considers the relationship between the euro and the U.S. dollar ($). The exchange rate is in U.S. dollars per euro, E$/e. Suppose that with financial innovation in theUnited States, real money demand in the United States decreases. On all graphs, label the initial equilibrium point A.

(a) Assume this change in U.S. real money demand is temporary. Using the FX and money market diagrams, illustrate and explain how this change affects the money and FX markets. Label your short-run equilibrium point B and your long-run equilibrium point C. (Due to the temporary nature of the shock, assume that the reversal of real money demand occurs before the price level adjusts in the long run.)

(b) Assume this change in U.S. real money demand is permanent. Using a new diagram, illustrate and explain how this change affects the money and FX markets. Label your short-run equilibrium point B and your long-run equilibrium point C.

(c) Illustrate and explain how each of the following variables changes over time in response to a permanent reduction in real money demand: nominal money supply M_US, price level P_US, real money supply M_US/P_US, U.S. interest rate i_$, and the exchange rate E$/e.

Carl applies for fire insurance for his house. Before the application is processed, Carl’s house burns down. Carl will have coverage if the insurance company Doesn’t find out about the fire until after the policy issues Chooses to accept the application Issued a binder Makes coverage retroactive

Honey is made from a mixture of fructose, glucose, and sucrose. How can you use Benedict's reagent to determine the number of moles of sucrose in a 1.0 g sample of honey? (Hint: If excess Cu²⁺ is present the difference in [Cu²⁺] before and after reaction is twice the concentration of reducing sugar present.)

Consider a S corporation. The corporation earns $2 per share before taxes. The corporate tax rate is 35%, the tax rate on dividend income is 20%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid?

Write a program to ask the user to en ter the total amount spent at best buy before taxes. Assuming the sales tax applied is 5.7%, display the total amount after taxes and the amount added by the sales tax. Be sure to document your program (add comments) . C++ program

Consider a 5% callable bond with 20 years maturity and 8% yield which pays the face value plus 10% if it is redeemed before maturity. If after 10 years the bond is redeemed, find an upper bound for the yield at that time. Assume that coupon payments are made once per year.

Add the operation Insert to the linkedListClass. An Insert operation inserts a new item after a given key in the linked list. The method headline can be void Insert(int item, int key), where the first parameter is the new item, and the second parameter is the key of the item before the new item.

A project has an initial cost of $160,000 and an estimated salvage value after 15 years of $75,000. Estimated average annual receipts are $30,000. Estimated average annual disbursements are $16,000. Assuming that annual receipts and distributions will be uniform for the 15 years, compute the prospective rate of return before taxes.

Part A) For investment perspective you are analyzing the company which is working under the Fertilizer Sector Engro Fertilizer (EFERT). A long time ago, it was considered as one of the best company by investors due to high dividend payouts though investors are always willing to invest in this company. Two years ago, position of this company’s cashflows become worst which impact the overall profitability on the company and the financial health amid ongoing situation of worst financial board of directors taken decision to cut down the dividends payments to the shareholder and share price also gradually declining in the market. After recent financial results, board of directors showed their positive expectations for revival of the company where new strategies implement to boost the sales and re-gain its market share. You are again want to investment in this company after analyzing the historical dividends payout patterns. Which are mentioned below:

Further, you gathered the information pertaining to sales growth expectations and net margins which are analysis consensus for next 5 years.

Currently company’s sales for the year ended FY 2020 stood at 89.54mn. You will apply the dividend discount model to value the company after calculation of the dividends properly. For calculation of cost of equity you can use the CAPM model (hint: use risk free rate as a 5-years PIB yield and Risk premium upto 7% while beta can be calculated through statistical variance methodology as explained in the class). This calculated cost of equity you can input in your formula to find out the intrinsic value and use sustainable growth rate 5.5% for dividends growth). (at least 250 words write up required)

Part B) This party is linked with part A, use the data from the part A and sensitize the intrinsic value by changes in cost of equity and growth projections so how it will impact on the company’s intrinsic value.

Instructions:

You are required to calculate the intrinsic value of each part and then compared the calculated prices along with logical reason.