Blades, Inc. Case Decisions to Use International Financial Markets As a financial analyst for Blades, Inc., you are reasonably satisfied with Blades’ current setup of exporting “Speedos” (roller blades) to Thailand. Due to the unique arrangement with Blades’ primary customer in Thailand, forecasting the revenue to be generated there is a relatively easy task. Specifically, your customer has agreed to purchase 180,000 pairs of Speedos annually, for a period of 3 years, at a price of THB4,594 per pair. The current direct quotation of the dollar-baht exchange rate is $.024. The cost of goods sold incurred in Thailand (due to imports of the rubber and plastic components from Thailand) runs at approximately THB2,871 per pair of Speedos, but Blades currently only imports materials sufficient to manufacture about 72,000 pairs of Speedos. Blades’ primary reasons for using a Thai supplier are the high quality of the components and the low cost, which has been facilitated by a continuing depreciation of the Thai baht against the U.S. dollar. If the dollar cost of buying components becomes more expensive in Thailand than in the United States, Blades is contemplating providing its U.S. supplier with the additional business. Your plan is quite simple; Blades is currently using its Thai-denominated revenues to cover the cost of goods sold incurred there. During the last year, excess revenue was converted to U.S. dollars at the prevailing exchange rate. Although your cost of goods sold is not fixed contractually as the Thai revenues are, you expect them to remain relatively constant in the near future. Consequently, the baht-denominated cash inflows are fairly predictable each year because the Thai customer has committed to the purchase of 180,000 pairs of Speedos at a fixed price. The excess dollar revenue resulting from the conversion of baht is used either to support the U.S. production of Speedos if needed or to invest in the United States. Specifically, the revenues are used to cover cost of goods sold in the U.S. manufacturing plant, located in Omaha, Nebraska. Ben Holt, Blades’ CFO, notices that Thailand’s interest rates are approximately 15 percent (versus 8 percent in the United States). You interpret the high interest rates in Thailand as an indication of the uncertainty resulting from Thailand’s unstable economy. Holt asks you to assess the feasibility of investing Blades’ excess funds from Thailand operations in Thailand at an interest rate of 15 percent. After you express your opposition to his plan, Holt asks you to detail the reasons in a detailed report.

1.)Construct a spreadsheet to compare the cash flows resulting from two plans. Under the first plan, net baht-denominated cash flows (received today) will be invested in Thailand at 15 percent for a 1-year period, after which the baht will be converted to dollars. The expected spot rate for the baht in 1 year is about $.022 (Ben Holt’s plan). Under the second plan, net baht-denominated cash flows are converted to dollars immediately and invested in the United States for 1 year at 8 percent. For this question, assume that all baht-denominated cash flows are due today. Does Holt’s plan seem superior in terms of dollar cash flows available after 1 year? Compare the choice of investing the funds versus using the funds to provide needed financing to the firm.

17. At issue, coupon bonds typically sell ________.

A) above par value

B) below par

C) at or near par value

D) at a value unrelated to par

E) none of the above

18. Accrued interest

A) is quoted in the bond price in the financial press.

B) must be paid by the buyer of the bond and remitted to the seller of the bond.

C) must be paid to the broker for the inconvenience of selling bonds between maturity dates.

D) A and B. E) A and C.

19. The invoice price of a bond that a buyer would pay is equal to

A) the asked price plus accrued interest.

B) the asked price less accrued interest.

C) the bid price plus accrued interest.

D) the bid price less accrued interest.

E) the bid price.

20. An 8% coupon U. S. Treasury note pays interest on May 30 and November 30 and is traded for settlement on August 15. The accrued interest on the $100,000 face value of this note is _________.

A) $491.80

B) $800.00

C) $983.61

D) $1,661.20

Sam is 25 years old, in good health and was just married to his college sweetheart. he recently began a job with a salary of $60,000. he signed up for term life insurance with his employer for 2 times his salary. Lilly is also employed and makes $40,000 per year. They have no debt or assets but want to buy a house in the near future. Lilly has an $80,000 term life insurance policy that is paid by her employer. what life insurance policy would you recommend for Sam?

A. whole life insurance policy with face value of $120,000. the annual premium for the policy is $1,200.

B. He doesn’t need any additional life insurance since he has a term policy with his work, and they don't have any assets.

C. Purchase a $1,000,000 30-year level term insurance policy. the annual premium for this policy is $1,200.

D. Purchase a $2,000,000 whole life insurance policy. the monthly premium for this policy is $1,800.

QUESTION 3 [10]

With this problem, we want to explore the idea that, if it were not for drag, raindrops would attain fantastic speeds near Earth’s surface. Piet observes that the raindrops that are hitting him, have a radius of 2.00 mm and fall from a cloud located 1000 m above the ground he is laying on. Take the drag coefficient of the raindrops to be 0.50 and the ambient temperature to be 20.0 °C.

HINT: The area in the terminal velocity formula is a cross-sectional area of the object under consideration.

(a) Determine the terminal speed of the raindrops. You may assume spherical raindrops made out of water only. (4)

(b) Piet notices that the expression for the terminal speed used above does not contain explicit reference to the height of the cloud from whence the raindrops originate. Would the terminal speed for the raindrop in (a) be equal to that for a raindrop released 1.00 m above ground? Is there a discrepancy? Give reasons? (3)

(c) Determine the final velocity of the raindrop (in km/h) in when we ignore air resistance (3)

1. Imagine that it is year 2022 and our economy has been enduring a severe recession due to the current crisis. But then the U3 unemployment rate begins to decline. From this information alone, what should we conclude about the near-term outlook for the economy? Why? (To answer this question you will want to explain about the U3 unemployment rate and what could lead to this decline.)

2. Product X is made in a perfectly competitive industry that is initially in long-run equilibrium with a market price of $10 per unit. Suddenly (as has been the case with face masks and hand sanitizer) the demand for product X rises permanently.

Trace out the immediate short-run and ultimate long-run consequences for these items: price of product X market output of product X output of a typical company producing product X the profitability of companies in the market Explain why these items change in the way they do. (We are not given enough information to figure out exact amounts, just the direction of change.)

Design a single stage BJT amplifier with the following constraints:

This involves the following:

-DC and AC analysis and the frequency response of the amplifier.

-Use a 2N2222 transistor

-Power supply (VCC): 6 V

-An input impedance near to 3 kΩ

-Overall midband voltage gain of -30 V/V

-A load resistance of 2 kΩ

-The input signal has an RSignal of 500 Ω

-Choose a good Qpoint and select the coupling and bypass capacitors to obtain an fL-3dB of 100 Hz.

-The capacitors and resistors should have commercial values

-Part of the design requirement is that the amplifier will exhibit maximum symetrica1 swing in the voltage collector.

The Total Harmonic Distortion of the output voltage should be less than 5% when a sine wave with an amplitude of 5 mV is applied by the signal.

Determine the analytical fH-3dB of the final design of the amplifier. When the final design is completed, obtain the frequency response of the amplifier to verify the midband voltage gain, fL-3dB and fH-3dB.

QUESTION 8

If large numbers of individuals choose to behave as free riders, ________.

10 points   

QUESTION 9

A number of different government policies can increase the incentive to innovate, including:

10 points   

QUESTION 10

Which of the following would be classified as a situation where a third party benefits from a market transaction by others?

Europe’s response to the economic turmoil brought about by the global coronavirus shutdown is rekindling debate about the European Union’s financial unity. The euro has dropped 3.5% this year to $1.08, near its lowest level against the U.S. dollar since May 2017. The currency could lose another 5% by year-end, according to forecasts from Bank of America. That marks a sharp turnaround for a currency that posted its calmest year on record in 2019, when it slid 1.8%. The eurozone is headed for the deepest recession in its history, with the economy expected to contract 7.7% this year, the European Commission forecast on Wednesday. Any recovery is expected to be slow, halting and uneven, and is likely to lag that of the U.S. economy. Capital Economics, for instance, has forecast that the eurozone might not get back to pre-crisis levels until after 2022. Wall Street journal – May 14, 2020).

What are some of the major reasons for Euro to fall against dollar? Who appears be the winner of currency war United States or Europe?

A transparent cylindrical tube with radius r = 1.50 cm has a flat circular bottom and a top that is convex as seen from above, with radius of curvature of magnitude 2.60 cm. The cylinder is filled with quinoline, a colorless highly refractive liquid with index of refraction n = 1.627. Near the bottom of the tube, immersed in the liquid, is a luminescent LED display mounted on a platform whose height may be varied. The display is the letter A inside a circle that has a diameter of 1.05 cm. A real image of this display is formed at a height s′ above the top of the tube,

Part B

The luminescent object is moved up and down periodically so that the real image moves up and down in the air above the tube. A mist in the air renders this display visible and dramatic. If we want the image to move from 60.0 cm above the top of the cylinder to 1.00 m above the top of the cylinder during this motion, what is the corresponding range of motion for the object distance s? Find the minimum value of s. Express your answer with the appropriate units.