An investment manager hedges a portfolio of Bunds (German government bonds) with a 6-month forward contract. The current spot rate is €0.75/$, and the 180- day forward rate is €0.72/$. At the end of the 6-month period, the Bunds have risen in value by 3.75% (in euro terms), and the spot rate is now €0.66/$.a. If the Bunds earn interest at the annual rate of 5%, paid semiannually, what is the investment man- ager’s total dollar return on the hedged Bunds?b. What would the return on the Bunds have been without hedging?c. What was the true cost of the forward contract?

Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Why does an organization prepare a balance sheet? a. to reveal what the organization owns and owes at a point in time b. to reveal how well the company utilizes its cash c. to calculate retained earnings for a given accounting period d. to calculate gross profit for a given accounting period