1) CBA arranges financing for Super Duper Pty Ltd with a 90 day bank bill with a face value of $500000. City Investments buy the bill when it is first issued at a yield of 3.25% p.a. and sell it 30 days later to Prudential Investments at a yield of 3.65% pa . What price does City Investments pay for the bill? (a. $496,025.01 b.$484,261.50 c.$495,540.14 d.$498,667.94 e. $500,000.00 )

2) A government bond with a face value of $500,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays semi-annual coupon payments of $22,500, the coupon rate is 9% p.a. paid twice yearly and rates in the marketplace are 9.6% pa compounded semi-annually. What is the value of the bond today?

3)According to the prospectus of New Start Ltd, the company anticipates paying its first dividend of $0.85 in 5 years time, and thereafter expects the dividend to increase by 4% each year indefinitely. If the required return is 15%, what is the current value of a New Start share today?

4) Vanderlay Industries (VI) requires equity financing to fund a special project. They have decided to conduct a renounceable rights issues to raise $5.86 million funding. VI will set the subscription price to the rights issues at $2.20 per share. The current share price is $2.80per share and there are currently 8million shares on issue. How many shares does a VI shareholder need to own to receive one right? (a. 2.8 b. 4 c.8,000,000 d.3 e.5 )

Assume the following (1) selling price per unit = $34, (2) total fixed expenses = $9,074, (3) the contribution margin ratio = 33%, and (4) net operating income = $10,000. Given these four assumptions, unit sales must be:
Multiple Choice

1,139 units.

561 units.

2,278 units.

1,700 units.

Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) the total fixed expenses = $15,400, and (4) net operating income = $17,900. Given these four assumptions, unit sales must be:

Multiple Choice

1,873 units.

2,775 units.

1,200 units.

3,330 units.

Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit sales = 2,250, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be:

Multiple Choice

$2,000.

$4,250.

$31,250.

$27,250.

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects cash sales of $38,000 and $42,000, respectively. It also expects credit sales of $58,000 and $68,000, respectively. The company expects to collect 60% of its credit sales in the month of the sale, 35% in the following month, and 5% is deemed uncollectible. What amount of cash collections would appear in the company’s cash budget for the second month?

Multiple Choice

$100,200

$103,100

$91,800

$40,800

*Excel formulas needed* A U.S.-based firm is considering a six- year project in Colombia. The following information is available about the project: Initial investment. The initial investment of USD 750,000 is used to purchase capital equipment. This equipment will be depreciated straight line to zero. At the end of six years, the remaining equipment will be sold for Colombian Peso (COP) 25,000,000. Working capital. The investment in working capital is COP 100,000,000. There are no changes in working capital until the end of the project when the full amount is recovered. Units, price, and costs. The firm will produce 2000 units of a product annually. The selling price is expected to be COP 599000 in the first year. This price is expected to increase at a rate of 4 percent annually. The direct expense per unit is expected to be COP 200000 in the first year. This is expected to increase at a rate of 5 percent annually. Indirect expenses are expected to be COP 50,000,000 annually. Taxes and miscellaneous. Colombian taxes on income and capital gains are 34 percent. There are no additional withholding taxes. All cash flows are repatriated when generated, and there are no additional U.S. taxes. The parity conditions are assumed to hold between Colombia and the United States. The relevant inflation indexes indicate a rate of 3 percent for the United States and 6 percent for Colombia. Spot USDCOP equals 3300. Brady’s USD denominated WACC is 12 percent.

c. Use parity conditions to generate future spot rates. Calculate the project NPV in USD.

EXCEL FORMULAS only please. It will be incorrect if not run through Excel.

Thanks in advanced!

*Excel formulas needed* A U.S.-based firm is considering a six- year project in Colombia. The following information is available about the project: Initial investment. The initial investment of USD 750,000 is used to purchase capital equipment. This equipment will be depreciated straight line to zero. At the end of six years, the remaining equipment will be sold for Colombian Peso (COP) 25,000,000. Working capital. The investment in working capital is COP 100,000,000. There are no changes in working capital until the end of the project when the full amount is recovered. Units, price, and costs. The firm will produce 2000 units of a product annually. The selling price is expected to be COP 599000 in the first year. This price is expected to increase at a rate of 4 percent annually. The direct expense per unit is expected to be COP 200000 in the first year. This is expected to increase at a rate of 5 percent annually. Indirect expenses are expected to be COP 50,000,000 annually. Taxes and miscellaneous. Colombian taxes on income and capital gains are 34 percent. There are no additional withholding taxes. All cash flows are repatriated when generated, and there are no additional U.S. taxes. The parity conditions are assumed to hold between Colombia and the United States. The relevant inflation indexes indicate a rate of 3 percent for the United States and 6 percent for Colombia. Spot USDCOP equals 3300. Brady’s USD denominated WACC is 12 percent.

b. What is the appropriate COP discount rate? Calculate the project NPV.

EXCEL FORMULAS only please. It will be incorrect if not run through Excel.

Thanks in advanced!

C++

For the assignment, we will use the previous assignment’s program that determines whether a college class room is in violation of fire law regulations regarding the maximum room capacity and add more logic to that program. We will need to make the following enhancements…

• For each new class entry that is taken, you will write out the information to a file. The file can be any .txt file name of your choosing. The file should be appended to each time the program runs (see app mode). The format of the file should be as follows:

  • Begin each new line or record with the name of the class room

  • Next, add the attendance for the first entry

  • Follow that with the total possible attendance for the first entry

  • Continue adding each attendance and possible attendance for the subsequent entries until you reach the last one

That’s it. Be sure to format this file so you can also read it later.

Remember, the program continues doing everything that it did before, plus these enhancements. Match your program with the sample output as shown below.

Your choice:

(assume user enters 4…)

Whitby Hall room 111 has capacity for 75.

(assume computer randomly generates 3…)

Enter the number of attendees: 72

It is legal to hold class and there is minimal 4% capacity remaining

Enter the number of attendees: 92

The class cannot be held as planned

Enter the number of attendees: 75

It is legal to hold class and there is minimal 0% capacity remaining

… the file for the example above might look like this …

Whitby Hall room 111 72 75 92 75 75 75

Make sure that your programs follow good documentation standards and follow the requirements for assignments. Reference the rubric standards on Brightspace. Do not use namespace std.

the previous assignment is posted below.

#include <iostream>
#include <string.h>

//to check which class user wants to have
/*
* Arrays Are never passes by value. These are already passed by reference
* capacity (formal argument) is not altered within the function. Hence it is not reflected in the actual argument
* changing return type to cater to the requirement of returning total back to main.
*/
int checkClass(char message[], int& capacity)
{
cout<< "Enter the number of attendes: ";
int atten;
cin >> atten;
if (atten > capacity)
{
cout << "The class cannot be held as planned\n";
}
else
{
float perc = 100 - ((atten * 100) / (float)capacity);
cout << "It is legal to hold class and there is minimal " << perc << " capacity remaining\n";
}
return atten;
}

int main()
{
int classes, attendees, room;
int choice; //input for user choice;

//LOCAL VARIABLES DECLARED IN MAIN//
int defvalues[] = { 312, 41, 133, 111, 30 };
int capacities[5] = { 0 };

while (true)
{
//display the menu
cout << " Please choose a room from the menu\n";
cout << "1.Leigh Hall room 312\n";
cout << "2.College of Arts and Sciences room 41\n";
cout << "3.Kolbe Hall room 133\n";
cout << "4.Whitby Hall room 111\n";
cout << "5.Ayer Hall room 30\n";
cout << "6.Quit\n";

while (true)
{
cout << "Enter the room for your class 1 (1-6): ";
cin >> choice;
if (choice <= 0 || choice > 6)
cout << "Invalid choice\n";
else
break;
}

switch (choice)
{
case 1: capacities[choice - 1] = checkClass((char*)"Leigh Hall room 312", defvalues[choice-1]);
break;
case 2: capacities[choice - 1] = checkClass((char*)"College of Arts and Sciences room", defvalues[choice - 1]);
break;
case 3: capacities[choice - 1] = checkClass((char*)"Kolbe Hall room", defvalues[choice - 1]);
break;
case 4: capacities[choice - 1] = checkClass((char*)"Whitby Hall room", defvalues[choice - 1]);
break;
case 5: capacities[choice - 1] = checkClass((char*)"Ayer Hall room", defvalues[choice - 1]);
break;
case 6:
cout << "\nFor Leigh Hall room 312:\nYour total is " << capacities[0] << " out of" << defvalues[0]
<< " and there is minimal " << 100 - ((capacities[0] * 100) / (float)defvalues[0]) << " capacity remaining";

cout << "\nFor College of Arts and Sciences room:\nYour total is " << capacities[1] << " out of " << defvalues[1]
<< " and there is minimal " << 100 - ((capacities[1] * 100) / (float)defvalues[1]) << " capacity remaining";

cout << "\nKolbe Hall room:\nYour total is " << capacities[2] << " out of" << defvalues[2]
<< " and there is minimal " << 100 - ((capacities[2] * 100) / (float)defvalues[2]) << " capacity remaining";

cout << "\nWhitby Hall room:\nYour total is " << capacities[3] << " out of" << defvalues[3]
<< " and there is minimal " << 100 - ((capacities[3] * 100) / (float)defvalues[3]) << " capacity remaining";

cout << "\nAyer Hall room:\nYour total is " << capacities[4] << " out of" << defvalues[4]
<< " and there is minimal " << 100 - ((capacities[4] * 100) / (float)defvalues[4]) << " capacity remaining";
cout << "\nBye";
return 0;
}
}
return 0;
}

Fred Perkins has found that adding goats to the product line of his traditional family farm has turned out to be profitable – the demand for goats in ethnic markets has increased dramatically in the past few years. Fred now wants to ensure that he is providing the best possible diet to his animals at the lowest possible cost. Goats are fed a mix of three types of feed – corn, silage and alfalfa, all of which Fred grows himself. He knows that the most profitable use for his crops is to feed them to his goats, but he grows much more of each than he could possibly use for his own herd and is able to sell the balance to other farmers for additional profit.

The nutritional makeup of the feeds, the selling price (foregone revenue) for each type of feed and the minimum daily requirements of the nutritional ingredients (per goat) are shown in the table below.

Fred’s herd consists of 100 goats.

Formulate Fred’s problem as a linear programming problem. Clearly define your decision variables as a first step.

Enter the problem in Excel and use Solver to get the optimal solution. How much of each feed type will Fred divert from sales each day to feed his herd? How much revenue does he give up each day?

Question 6

Refer to the previous question and the answer and sensitivity reports generated by Solver. Whenever possible, answer the following questions by referring to the reports (rather than adjusting and re-solving the problem).

Fred has been offered a carbohydrate supplement by a national drug company representative. The supplement comes in liquid form and costs $0.23 per litre. Each litre added to the feed will reduce the daily requirement for carbohydrates by 60 grams per goat. Should Fred purchase the supplement? If yes, by how much will his daily profit increase?

A recent decision by the federal government to mandate a minimum requirement for ethanol in gasoline has resulted in an increase in demand and a consequent price increase for corn. (Ethanol is made principally from corn.) It looks as if the price increase will take corn to $1.02 per kilogram. Will this change Fred’s allocation of feed to his animals? How will it affect the daily profit that he sees from his herd?

How would you interpret the shadow price for vitamins in your solution?

Glob and Dream Company provides the budgeting information for the first two quarters of the coming year 2020;

The company expects to sell their units in the first quarter by RM 20 per unit and the price will increase by 25% in the second quarter. Based on the past experiences, the sales department in the company expects to sell about 35% of the total products for cash and only 80% of the sales on account will be collected in full in the first quarter and the remainder in the second quarter.

The company comes to an agreement with the suppliers that one-fourth of the total purchase in each quarter will be paid in the same quarter and the balance will be paid in the following quarter. Amongst the quarterly selling and administration expenses RM6,400 presents property taxes and depreciation. The property tax will be paid by the end of the third quarter however, RM40,000 part of income taxes will be paid on the second quarter. Of the remainder of the selling and administrative expenses; 50% will be paid in the quarter in which they are incurred and the other 50% will be paid in the following quarter. The company has a plan to expand its business and buy a new machine which will cost RM250,000 and it will be paid in the first

The beginning balances in the first quarter are Cash RM45000, Accounts receivable RM51000 and Account payable RM121,500 (RM102,000 for materials purchases and RM19,500 for selling and administrative expenses). Based on the company policy, it is important to maintain a minimum cash balance of RM 25,000 at the end of each quarter.

Required:

Prepare the cash budget of this company for the first and second quarter of the year 2020

Required information EDIT: Variable Cost per unit is $48

[The following information applies to the questions displayed below.]

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 95,000 units and sold 74,000 units. During its second year of operations, it produced 77,000 units and sold 93,000 units. In its third year, O’Brien produced 81,000 units and sold 76,000 units. The selling price of the company’s product is $76 per unit.

4. Assume the company uses absorption costing and a LIFO inventory flow assumption (LIFO means last-in first-out. In other words, it assumes that the newest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Also:

3. Assume the company uses absorption costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

4.2 Question 4.2.1 to 4.2.3 is based on the excerpt below:

SA Household Finances are in Dire Straits The South African Reserve Bank (Sarb) yesterday painted a bleak picture of household finances, saying household expenditure had tanked for the first time in three years. In its quarterly bulletin for June, published yesterday, the central bank said consumption expenditure by households had fallen by 0.8% in the first quarter of 2019 following a 3.2% increase in the fourth quarter of 2018 as the economy wanes. The economy is on a downward spiral with gross domestic product contracting by 3.2% in the first quarter of 2019 – the largest contraction since the first quarter of 2009 when it contracted by 6.1%, at the height of the global financial crisis. The Sarb said the deterioration in the household consumption was in line with the decline in consumer confidence in the first quarter of 2019, as measured by the First National Bank/Bureau for Economic Research Consumer Confidence Index.The Sarb said consumers’ finances had been under pressure due to the prolonged period of weak economic activity, rising unemployment, an increased tax burden and successive fuel price increases. Growth in the real disposable income of households was weighed down by lacklustre employment growth and slower wage growth.

4.2.1 The article states that “the economy is on a downward spiral……first quarter of 2019.” Explain which phase of the business cycle this represents. (5)

4.2.2 The article further states that “growth in the real disposable income……and slower wage growth.” In terms of this statement, discuss the type of fiscal policy that government can implement to remedy this situation, paying specific attention in your answer to the tool that needs to be targeted. (5)

4.2.3 Discuss a demand side policy that can be implemented by government to reduce unemployment mentioned in the article.