In: Operations Management
Given Principal $18,000, Interest Rate 9%, Time 240 days (use ordinary interest) Partial payments: On 100th day, $7,600 On 180th day, $4,300
a. Use the U.S. Rule to solve for total interest cost. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)
Total interest cost
$
b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Roundyour answer to the nearest cent.)
On 100th day | On 180th day | |
Balance after the payment | $ | $ |
c. Use the U.S. Rule to solve for final payment.
(Use 360 days a year. Do not round intermediate
calculations. Roundyour answer to the nearest
cent.)
Final payment
$
In: Finance
A speculator is considering the purchase of one three-month put option on USD with a strike price of 97 yen per U.S. dollar. The premium is 0.24 yen per U.S. dollar. The current spot price is 107.81 yen per U.S. dollar and the 90-day forward rate is 71.46 yen/USD. The speculator believes the USD will depreciate to $1.00 versus 93 yen over the next three months. As the speculator’s assistant, you have been asked to prepare the followings: 1. Graph the profit/loss diagram of the put option in an Excel spreadsheet. 2. Determine the speculator’s profit if the USD depreciates to 93 yen/USD. 3. Determine the speculator’s profit/loss if the USD depreciates to the forward rate. 4. Determine the future spot price at which the speculator will only break even.
In: Finance
Suppose the nomianal interest rate for 1-year borrowing and lending in the U.S (i$) is currently 5%,while the nominal interest rate on 1 -year borrowing and leading in the U.K (1£) is 3%. Suppose,too, that nominal British pound/U.s. dollar exchange rate is to be £1.60/$ next year (i.e-1(£/$)e= £1.60/$).
A.According to the theory of Interest Rate Parity, what is the current equilibrium nominal exchange rate between the pound and the dollar (E0(£/$))?
B. All else equal, if the U.S. interest rate increased to 8%, what would be the new equilibrium
exchange rate?
C.All else equal (i.e. with both i$and E eat their initial levels), if the U.K. interest rate increased to 8%, what would the new equilibrium exchange rate be?
In: Economics
1) A slowdown in the U.S economic growth will
A) boost $ value because inflation fears will be calmed. B) boost $ value because the federal reserve will expand money supply. C) lower $ value because the U.S will be a less attractive place to invest in. D) lower $ value because intrest rate will rise
2) In 1995 ¥ went from $0.0125 to $0.0095238. By how much did $ appreciate against ¥?
3) Suppose that the Brazilian real devalues by 40% against the dollar. By how much will the dollar appreciate against the real?
4) Suppose the spot direct quotes for the pound sterling in New York is $1.3981. What is the direct quote for the dollar in London?
5) If the Euro devalued by 17% against the U.S dollar, this is equivalent to revaluation of the dollar against Euro by?
In: Finance
Given | Principal $13,500, Interest Rate 9%, Time 240 days (use ordinary interest) | |
Partial payments: | On 100th day, $3,800 | |
On 180th day, $2,500 |
a. Use the U.S. Rule to solve for total interest
cost. (Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest
cent.)
Total interest cost
$
b. Use the U.S. Rule to solve for balances. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)
On 100th day | On 180th day | |
Balance after the payment | $ | $ |
c. Use the U.S. Rule to solve for final payment.
(Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest
cent.)
Final payment
$
In: Finance
This needs to be a python3 code
Write a program that prompts the user like this: “Currency to
convert to U.S. dollars: e = Euros, c= Chinese Yuan, r = Indian
Rupees, b = Bitcoin: ”. Then depending on which letter the user
enters, the program displays “Amount of Euros/Yuan/Rupees/Bitcoin
to convert: ”. (Note: the second prompt should only name the one
currency the user asked to convert, not all four currencies.) After
the user enters the amount, the program displays “In U.S. dollars,
that is $N”, (N is the amount converted to U.S. dollars).
Conversion rates (from Google, Aug 25, 2019):
• 1 Euro = 1.11 US dollar • 1 Chinese yuan = 0.14 US dollar • 1
Indian rupee = 0.014 US dollar • 1 Bitcoin = 10283.00 US dollar
In: Computer Science
An analyst is trying to value Jason’s Specialties (JS) stock. The analyst has collected data from the company and other sources to prepare the below financials, both actual and projected. Based upon these sources, the analyst expects the company’s free cash flows to grow at 4% on average. The analyst has estimated the company’s cost of capital (WACC) to be 16% and its cost of equity to be 21%. The risk-free rate is 2.3%..
Income statement for the fiscal year ending January 1 (Millions of dollars)
2019 (Actual) |
2020 (Projected) |
||
Net Sales |
$400.0 |
$430.0 |
|
Costs |
260.0 |
283.5 |
|
Depreciation |
37.5 |
42.5 |
|
Earnings before interest and taxes |
102.5 |
104.0 |
|
Interest expense |
14.1 |
16.0 |
|
Earnings before taxes |
88.4 |
89.9 |
|
Taxes (40%) |
35.36 |
35.2 |
|
Net income before preferred dividends |
53.04 |
52.8 |
|
Preferred dividends |
6.0 |
6.5 |
|
Net income |
47.04 |
46.3 |
|
Common dividends |
37.632 |
38.2 |
|
Addition to retained earnings |
9.0408 |
8.1 |
|
Balance sheets for the fiscal year ending January 1 (Millions of dollars)
2019 (Actual) |
2020 (Projected) |
||
Cash |
$6.3 |
$3.6 |
|
Marketable Securities |
40.9 |
39.128 |
|
Accounts Receivable |
62.0 |
67.0 |
|
Inventories |
107.0 |
105.5 |
|
Net plant & equipment |
391.0 |
415.36 |
|
Total Assets |
607.2 |
630.58 |
|
Accounts payable |
9.6 |
12.1 |
|
Accruals |
25.5 |
29.1 |
|
Long-term bonds |
210.7 |
217.78 |
|
Preferred Stock |
55 |
57.1 |
|
Common Stock (Par plus PIC) |
160.0 |
160.0 |
|
Retained earnings |
146.4 |
154.5 |
|
Total Liabilities & Equity |
607.2 |
630.58 |
In: Finance
The U.S. MNC has translated the balance sheet and income statement of a French subsidiary, which keeps its books in euro, then is translated into U.S. dollars using the current/noncurrent method—the reporting currency of the U.S. MNC. The subsidiary is at the end of its first year of operation. The historical exchange rate is $1.60/€1.00 and the most recent exchange rate is $1.50/€. The foreign currency gain or loss for this U.S. MNC is
Local Currency |
Current/Non current |
|
Balance Sheet |
||
Cash |
€2,100 |
$3,150 |
Inventory (current Value = €1,800) |
€1,500 |
$2,250 |
Net fixed assets |
€3,000 |
$4,800 |
Total Assets |
€6,600 |
$10,200 |
Current liabilities |
€1,200 |
$1,800 |
Long-term |
€1,800 |
$2,880 |
Common stock |
€2,700 |
$4,320 |
Retained earnings |
€900 |
|
CTA |
||
Total L&E |
€6,600 |
$10,200 |
Income Statement |
||
Sales Revenue |
€10,000 |
$15,484 |
COGS |
€7,500 |
$11,613 |
Depreciation |
€1,000 |
$1,600 |
NOI |
€1,500 |
$2,271 |
Tax(40%) |
€600 |
$908 |
Profit after tax |
€900 |
$1,363 |
Foreign Exchange gain (loss) |
||
Net income |
€900 |
|
Dividends |
0 |
0 |
Addition to Retained Earnings |
€900 |
In: Finance
Germany experiences an increase in foreign direct investment (capital outflow) when a German hotel chain opens a new hotel in France.
Select one:
True
False
Net capital outflow refers to the purchase of foreign assets by domestic residents minus the purchase of domestic assets by foreign residents, and, as a result, the U.S. experiences an increase in foreign portfolio investment (capital outflow) when a U.S. resident buys stock in companies located in Japan.
Select one:
True
False
The increase in international trade in the United States is partly due to increased trade of goods with a high value per pound.
Select one:
True
False
A country has $200 million of net exports and $750 million of saving. Therefore, net capital outflow is $200 million and domestic investment is $950 million
Select one:
True
False
Suppose that a pound of copper costs $3 in the United States and costs 40 pesos in Mexico. If 10 Mexican pesos trade for one U.S dollar. then the real exchange rate is 3/4 pounds of Mexican copper per pound of U.S. copper.
Select one:
True
False
In: Economics