Business, 04.04.2020 03:55 jonestheproblem5029
Suppose that you buy, and one year later sell, a foreign (British) bond under the following circumstances: When you buy the bond the exchange rate is $2.00 = poundĀ£1. You pay poundĀ£45 ($90) for the British bond. You sell the bond for poundĀ£50. No interest payment was expected or received. When you sell the bond, the exchange rate is $1.50 = poundĀ£1. What is your gain or loss in dollars $
Answers: 1
Business, 22.06.2019 08:00
Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machineryās invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firmās net working capital would have to increase by an amount equal to 12% of sales revenues. the firmās tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define āincremental cash flow.ā (1) should you subtract interest expense or dividends when calculating project cash flow?
Answers: 1
Business, 22.06.2019 12:50
Jallouk corporation has two different bonds currently outstanding. bond m has a face value of $50,000 and matures in 20 years. the bond makes no payments for the first six years, then pays $2,100 every six months over the subsequent eight years, and finally pays $2,400 every six months over the last six years. bond n also has a face value of $50,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. the required return on both these bonds is 10 percent compounded semiannually. what is the current price of bond m and bond n?
Answers: 3
Business, 22.06.2019 16:00
If the familyās net monthly income is 7,800 what percent of the income is spent on food clothing and housing?
Answers: 3
Business, 22.06.2019 17:40
Because the demand for wheat tends to be inelastic. true or false
Answers: 1
Suppose that you buy, and one year later sell, a foreign (British) bond under the following circumst...
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