Organizing Gail Williams is the Assistant Athletic Director for Sports Information. The athletic department has just been given permission to add three new positions to work with social media. The new positions will be added to Gail’s staff, which currently includes five staff members with specific sport responsibilities (e.g., one person is responsible for softball, field hockey, and men’s tennis, while another works with women’s […]

Question 5 You are given the following information by Apple PLC Spot Exchange Rate ($ / ¥) $1.00 / ¥100.00 USA Interest Rate 7.5% Japan Interest Rate 2% USA Inflation Rate 4% Japan Inflation Rate 1% a) Using the interest rate parity theory, determine: i. Whether the $ will appreciate or depreciate ii. The new $ / ¥ exchange rate after depreciation or appreciation b) […]

Which of the following statements is​ false? A. The actual cash flow that the investor will get to keep will be reduced by the amount of any tax payments. B. The right discount rate for a cash flow is the rate of return available in the market on other investments of comparable risk and term. C. The equivalent after – tax interest rate is r​(1-tau). […]

A T-bill with face value $10,000 and 82 days to maturity is selling at a bank discount ask yield of 2.9%. Face Value $10,000.00  days to maturity 82 days Asked yield 2.90% a. What is the price of the bill? (Use 360 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) b. What is its bond equivalent yield?  (Use 365 days […]

Quelch, John and Katherine Jocz (2010). “Google in China (A),” HBS 9-510-071. The maximum length for the case analysis assignments is 600 -700 words of text, so don’t waste words on summarizing. Please submit your assignment as a word document. In addition, you can include a ma The maximum length for the case analysis assignments is 600 -700 words of text, so don’t waste words […]

Which type of financing does it need? – Trade credit – Accounts receivable – Inventory – Bank loan ——— What is an advantage of short-term financing? – Restrictive loan requirements – Increased liquidity – Multiyear repayment terms – Lower interest rates ——— A company plans to expand into new sales territories and decides to obtain a long-term loan. What is an advantage of long-term financing? […]

Travis and sons has a capital sturcture which is based on 40 percent debt, 5 percent preferrerd stock, and 55 percent common stock. The pre-tax cost of debt is 7.5 percent, hte cost of preferred is 9 percent, and the cost of common stock is 13 percent. The company’s tax rate is 39 percent. The company is considering a project that is equally as risky […]

The most recently issued 4 week T-Bill is quoted at a discount of 1.91. a. What is the price of this T-Bill?  b. What is the bond-equivalent yield?  Assume 4 weeks is 30 days, and the par value is $10,000. Express your answers rounded to two decimal places.Question 3 2 pts The most recently issued 4 week T-Bill is quoted at a discount of 1.91. […]

YIELD TO MATURITY AND FUTURE PRICE A bond has a $1,000 par value, 8 years to maturity, and a 6% annual coupon and sells for $930. What is its yield to maturity (YTM)? Round your answer to two decimal places. ?% Assume that the yield to maturity remains constant for the next 4 years. What will the price be 4 years from today? Do not […]

Nine years ago the Templeton Company issued 21-year bonds with an 12% annual coupon rate at their $1,000 par value. The bonds had an 8% call premium, with 5 years of call protection. Today Templeton called the bonds. Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called. Round your answer […]