Mark Anderson, a 36 year old married male, will be sent to India to work in the sales office of your medium sized manufacturing facility that produces professional and causal clothing for women. My staffing approach is geocentic – Mark’s position is head of international sales in the sales office. Mark will take is wife Susan who is an elementary school teacher and their son, David who is in the 7th grade. Mark’s assignment is for 3 years. He and his family will then move back to the company’s headquarters to work.

You will need to develop a plan for: Pre-departure training for Mark and his family.

In-country training for Mark and his family.

Repatriation program for Mark.

Position and compensation for Mark upon ending his assignment.

The one year interest rates in Australia and US are 3% and 1%, respectively. The current spot rate is $0.75/AUD. (Show calculation and steps)

a. What should the one year forward rate be (if IRP holds).

b. If the forward rate is $0.70/AUD is there an arbitrage? If so, how can an arbitrageur incorporate a cashless (i.e. not use any of her current cash) arbitrage? Hint: She will need to borrow in the US or Australia at the current rates. Assume that she will use an amount of 1,000,000 USD or AUD (you must choose the right one…)

The following is the receipts and payments account for the year ended 31 December 2018:

(2) On 31 December 2017 the club held investments which cost $10000. During the year ended 31 December 2018, these were sold for $15000.
(3) Equipment was valued at $6000 on 31 December 2017. On 30 June 2018, the club purchased additional equipment at a cost of $ 10400. Depreciation is to be provided for at the rate of 10% per annum.

(a) Prepare the trading section of the income statement for the year ended 31 December 2018.
(b) Prepare the income and expenditure account for the year ended 31 December 2018.

European call and put options with a strike price of $50 will expire in one year. The underlying stock is selling for $51 currently and pays no cash dividend during the 1life of the options. The risk-free rate is 5% (continuous compounding). The price of the call option is $5.00. Please answer the following questions:

1. Please calculate the price of the put option under the put-call parity

2. If the actual price of the put is $2.50, is there an arbitrage opportunity? Please explain.

3. If your answer in 2 is yes, please write down the four transactions needed to realize the arbitrage profit.

an investor paid $100,000 at time zero for a project to generate $40,000 per year for next 5 years with zero salvage value at the end of year 5 , calculate ROR and draw cumulative cash flow diagram

1. A property will generate NOI of $12,000 per year for each of the next 8 years. You purchase this property at a 5% cap rate. If you expect to sell this property in 6 years at a terminal cap rate of 6%, what is you IRR?

Suppose that you have just borrowed $250,000 in the form of a 30 year mortgage. The loan has an annual interest rate of 9% with monthly payments and monthly compounding.

*** I NEED TO KNOW HOW TO SOLVE THIS ON A CALCULATOR. i AM USING A HP-10B2+

a. What will your monthly payment be for this loan?

b. What will the balance on this loan be at the end of the 12th year?

c. How much interest will you pay in the 7th year of this loan?

d. How much of the 248th payment will consist of principal?

Suppose there is a 3-year bond with a $1000 face value, 12% coupon payments and a 6% yield to maturity.

a) Without any calculation, briefly explain whether this bond will be selling a premium or a discount

b) Calculate the price of this bond.

c) Calculate the duration of this bond. d) If someone buys this bond and holds it for three years, what is their rate of return? e) Suppose after one year, interest rates in the economy fall by 2%. If the person that bought this bond sells it at that time, what would be their rate of return? (Hint: First think about what the fall in interest rates will do to the bond’s price and then think about the rate of return.)

Assume a nation has an output level of 150 units per year, and that consumption is also 150. Suppose there is a sudden temporary drop in GDP by 16%. What does the long-run consumption path look like if this country has access to global financial markets with an interest rate of 5%?

The Distance Plus partnership has the following capital balances at the beginning of the current year:

Each of the following questions should be viewed independently.

1. If Sergio invests $60,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.

2. If Sergio invests $40,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the bonus method is used.

3. If Sergio invests $50,000 in cash in the business for a 20 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

Note: there is one JE for A to record the admission of new partner under bonus method, one JE for B, to record the admission of new partner under bonus method, and 2 JE's for C, the first to record the entry for goodwill allocation, during the admission of a new partner and the second to record the investment made by the new partner in the business.