You observe the exchange rates from the following 4 currencies(US, EU, UK, and Japan):

a.$1.19/€, $1.30/£, $0.0091/¥

b.€0.84/$, €1.09/£, €0.0076/¥

c.£0.77/$, £.91/€, £0.0055/¥

d.¥110.27/$, ¥130.77/¥, 183.26/£

Suppose that you incur 2% transaction costs. That is, if you attempt to convert one currency to another, you only get 98% of the quoted rate. So with €1, you can get .98*$1.19 = $1.17 There is an arbitrage opportunity in this market. Find it and describe each transaction you would take to exploit it. If a large amount of money went through this process, this would exert pressure on these exchange rates. For each transaction in your arbitrage strategy, explain how that transaction would impact currency values.

Please give us one example from your research, work, or personal life explaining

• The difference between risk and return in owning stocks.
• The concepts of the Capital Asset Pricing Model.
• How to determine a firm's future profit potential and relation to stock price.

Royal Minty of Britain has purchased 20,000 ounces of silver from Silver Products at US$8.30, payable in 180 days. The current spot rate is 1.8127 ($US/£) and the 180-day forward is 1.7863. The CEO at Royal Minty suggests that the spot rate in six months time will be 1.7915.

Interest rates in Britain are currently 4.70 percent for 180 days and 1.15 percent in the United States.

a-1. Calculate the receipts if Royal Minty takes a chance on the spot rate. (Round the final answer to the nearest whole pound.)

Receipts           £

a-2. Calculate the receipts if Royal Minty books a forward contract. (Round the final answer to the nearest whole pound.)

Receipts           £

a-3. Calculate the receipts if Royal Minty buys a money market hedge. (Round intermediate calculations and the final answer to the nearest whole pound.)

Receipts           £   

This assignment is based on Review Question #4 on p. 527 of the textbook.

Romance Novels, Inc. has increased the number of contingent workers (temporary, full-time) from 10 to 28 percent of the workforce. Most of the contingent workers are employed as packers, which is the entry level job in the organization. Why might the company do this? What problems can arise when hiring contingent workers who work along side regular employees?

Title of book: Compensation (12th Edition)

Suppose that the annual demand for a component is approximately 60,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule.

If the company’s carrying charge is 15 percent of the item’s price and the cost per order is $150, determine the order quantity that would minimize the total related inventory costs for this component.

Suppose that the annual demand for a component is approximately 63,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule.

Order Quantity Price Per Unit

0-999 $31

1,000-1,999 $29

2,000-3,499 $27

3,500 or more $25

If the​ company's carrying charge is 16% of the​ item's price and the cost per order is ​$170​, determine the order quantity that would minimize the total related inventory costs for this component.

Suppose that the annual demand for a component is approximately 60,000 units. The company orders the component from a supplier who has offered the following quantity discount schedule.

If the company’s carrying charge is 15 percent of the item’s price and the cost per order is $150, determine the order quantity that would minimize the total related inventory costs for this component.

Q 18

To complete a contract for fitting out a new shop in time for its opening, a refurbishment company has employed three temporary painters for 10 days at £45 per day and moved two carpenters who are paid £70 per day from another job for three days. The penalty for late completion of the shop is £300 but the delay to the carpenters’ current job will only cost £150. What are the relevant costs?

Pablo and Adriana, a married couple who file a joint return, purchased a $190,000 home making a $38,000 cash down payment and taking out a mortgage for the balance of the purchase price. They also paid the mortgage company $3,000 in points for originating the loan at closing. They paid $7,000 in interest on the mortgage this year. They also purchased a new car for $28,000 with a car loan from their credit union, paying $975 in interest for the year. What is their deduction for interest expense if they itemize their deductions?

Suppose that the annual demand for a componet is aproximately 60,000 units. The company ordes the component from a supplier who has offered the following quantity discount shedule.

order Quantity Price per unit

0-999 $30

1,000-1,999 $29

2,000-3,999                                             $28

4,000-or more                                           $27

If the company's carrying charges is 15 percent of the item's price and the cost per order is $150, determine yhe order quantity that would minimize the total related inventory cost for this component.