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Get college assignment help at uniessay writers The pede f P Cop n i a candidates A.R The primary orite inerpersonal sklis l e ny A the presidemt used AlP S w w eandidanes on tdhe vario orer C)ie the president i g leaderahip A 4 1/3 1/4 1/2 nterersenal sk A as 1/2 1 B 2 1/3 1/8 Administrative Aity 1/5 A 1/8 5 1/3 C 1 Next, the president of Pegasus considered the relative importance of d resulted in the following pairwise compariscn matri Griei Leadership Ability ntery enl Sle 1/0 1 Leadership Ability Interpersonal Skills Administrative Ability 4 a) Use AHP to compute scores for each candidate on each of the he etnd weights for each of the criteria b) Was the president consistent in making pairvise oompartsons C e) Compute the weighted average score for each candidate Wich antii according to your results? EEE
Question 1 Review Exhibit 1 below. Assume an initial outlay of S2,000, Also, assume that the terminal cash flow is zero. Calculate the FCFS for 2020 to 2022. Assuming no working capital in 2019, calculate the NPV for the project assuming a WACC of 8 percent and a tax ate of 21% . Should the company pursue the project? Why or why not? 110 poins Exhibit 1 2022 2020 2021 Revenue 20,222 21,435 22,721 Production Costs 13144 13,933 14.769 Depreciation 310 436 462 Total Production Costs Selling, General
Investment in capital equipment (in € thousand) n Useful life of the equipment (in years) 2.300 5 Residual value of the equipment at the end of year 5 (in thousand) Investment in raw, auxiliary and operating materials (in thousand) Estimated sales volume in year 1 (in € thousand) Estimated sales volume in years 2 to 5 (in thousand) Sales price per unit (E/unit) Variable costs per unit (E/unit) Fixed costs excluding depreciation (in € thousand) Depreciation, linear over useful life (in € thousand) Required rate of return (% p.a.) Tax rate (%) 300 300 500 600 8,00 5,00 800 400 12% 40%
Question 2 Refer to the same Exhibit 1 in the previous question I have pasted it below for ease of aocess. Your boss would like to see sensitivit analysis. He expenditures could also be 10% higher in 2020. Conduct sensitivity analysis for 2020 ONLLY, You only need to calculate the FCF (s) for 2020, You do not need to find the NPV. 15 points) afraid operating profit could be 10% lower in 2020. Capital. Exhibit I 2022 2021 2020 22,721 Revense 21,435 20.222 14,769 Production Costs 13,933 13144 462 Depreciation 436 310 15.231 14.369 Total Production Costs Selling, General
(Calculating rates of return) Blaxo Balloons manufactures and distributes birthday balloons. At the beginning of the year Blaxo’s common stock was selling for $18.5 $2.95 during the year, what rate of return would you have earned if you had purchased the stock exactly one year ago? What would your rate of returm have been if the firm had paid but by year end it was only $17.30. If the firm paid a total cash dividend of cash dividend? The rate of return you would have eamed is% . (Round to two decimal places.) The rate of return you would have eamed if the firm paid no cash dividend is%. (Round to two decimal places.)
(Related to Checkpoint 7.1) (Expected rate of return and risk) B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 4.0 percent. Calculate the investment’s expected retun and its standard viation. Should Gautney inver security? Probability Return 0.20 1% 0.50 3% 0 20 a. The investment’s expected return is%. (Round to two decimal places.) b. The investment’s standard deviation is %. (Round to two decimal places.) . Should Gautney invest this security? (Select the best choice below.) Gautney Enterprises should not invest in this investment because the return is lower than the Treasury bill and the level of risk higher than the Treasury bill. O A. No. B. O B. Yes. B. Gautney Enterprises should invest in this investment because the return is lower than the Treasury bill and the level of risk higher than the Treasury bill.
(Related Checkpoint 7.2) (Calculating the geometric and arithmetic average rate of return) Marsh Inc. had the followingg end-of-year stock prices over the last five years and paid no cash dividends: Marsh Time $11 2 12 20 .Calculate the annual rate of retun for each year from the above in ‘s stock over this period? c. What is the geometric average rate of return eamed by investing d. Considering the beginning and ending stock prices for the five-year period are the same, which type of average rate of return (the arithmetic or geometric) better describes the average annual rate of return eamed over the period? Marsh’s stock over this period? a. The annual rate of return at the end of year 2 is%. (Round to two decimal places.) The annual rate of return at the end of year 3 is%. (Round to two deecimal places.) The annual rate of return at the end of year 4 is%. (Round to two decimal places.) The annual rate of return at the end of year 5 is%. (Round to two decimal places.) b. The arithmetic average rate of return earned by investing in Marsh’s stock over this period is%. (Round to two decimal places.) Marsh’s stock over this period is%. (Round to two decimal places.) c. The geometric average rate of return earned by investing average rate d. Considering the beainning and ending stock prices for the five-vear period are the same, the f retun better describes the average annual rate of return earned over the period. (Select from the drop-down menu.) geometric arithmetic
Investment in capital equipment (in € thousand) n Useful life of the equipment (in years) 2.300 5 Residual value of the equipment at the end of year 5 (in thousand) Investment in raw, auxiliary and operating materials (in thousand) Estimated sales volume in year 1 (in € thousand) Estimated sales volume in years 2 to 5 (in thousand) Sales price per unit (E/unit) Variable costs per unit (E/unit) Fixed costs excluding depreciation (in € thousand) Depreciation, linear over useful life (in € thousand) Required rate of return (% p.a.) Tax rate (%) 300 300 500 600 8,00 5,00 800 400 12% 40%
Question 3 Calculate the profit/loss for the seller/writer of an uncovered/naked call option assuming an exercise price of $20 and a premium of $3 per share. Assume the following stock prices exist at the time the option is to be exercised, keeping in mind that the option may or may not be exercised. [10 points] Stock Price $15 $17 $18 $24 $26
(Solving a comprehensive problem) Use the end-of-year stock price data in the popup window, ,to answer the following questions for the Hamris and Pinwheel companies. Compute the annual rates of return each time period and for both firms. entire three-year period using your annual rates of retum from part a. (Note: you may assume that neither firm pays any dividends.) Compute a three-year rate of return spanning the entire period (i.e., using the ending price for period 1 and ending price for period 4). Since the rate of return calculated in part c is a three-year rate of return, convert it to an annual rate of return using the following equation: Three-Year Annual Rate Rate of Return f Return How is the annual rate of return calculated in part d related t investment that has been held for several years, what type of average rate of return (arithmetic or the geometric rate of retun? When you are evaluating the performance of geometric) should you use? Why? Enter the annual rate of return for each year for Haris in the table below. (Round to two decimal places.) Annual R Value c Annua ate Time of Return Harris Stock Pinwheel Stock Return $10 17 2 33 % 15 31 4 16 26 Enter the annual rate of return for each year for Pinwheel in the table below. (Round to two decimal places.) Value of Annual Rate Value of Annual Rate Time Harris Stock of Return Pinwheel Stock of Return 1 $10 $17 2 8 20.00% 33 50.00% 3 12 31 % 16 33.33% 26 %. (Round to two decimal places.) b. The arithmetic average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places.) The arithmetic average rate of return earned by investing in Pinwheel stock over this period is The geometric average rate of return earned by investing in Harris stock over this period is %. (Round to two decimal places.) The geometric average rate of return earned by investing in Pinwheel stock over this period is%. (Round to two decimal places.) c. The three-year rate of return spanning the entire period for Harris is %. (Round to two decimal places.) The three-year rate of return spanning the entire period for Pinwheel is% . (Round to two decimal places.) d. The annual rate of return converted from the three-year rate in part e for Harris is%. (Round to two decimal places.) % . (Round to two decimal places.) The annual rate of return converted from the three-year rate in part c for Pinwheel is retum? (Select the best choice below e. How is the annual rate f return calculated in part d related to the geometric rater O A. The annual rate of return calculated in part d is not related to the geometric average rate of return. O B. The annual rate of retun calculated in part d is nothing but the geometric average rate O C. The annual rate of retum calculated in part d f return calculated in a different way. the same as the geometric rate return in this problem but this is only a coincidence. O D. The annual rate of retun calculated in part d is nothing but the arithmetic average rate return calculated in a different way When you are evaluating the performance of an investment that has been held for several years, what type of average rate of return (arithmetic or geometric) should you use? Why? (Select the best choice below.) O A. Arithmetic average retum better describes the average annual rate of return over a period because it is a simple average, so it answers the question conceming the expected rate of return over a period. O B. The arithmetic rate of return should be used. It better describes the average annual rate of return over a period because it compounds at the same rate while the geometric rate of return O C. The geometric rate of return should best used ra single period ra single period. used. It better describes the average annual rate of return over a period because it compounds at the same rate while the arithmetic rate of return is best used O D. Geometric average return better describes the average annual rate of retun over a period because it is a simple average, it answers the question concerning the expected rate of return over a period. Time Harris Pinwheel 1 $10 $17 2 33 3 12 31 4 16 26
Get college assignment help at uniessay writers Question 5 A speculator purchases a put option for a premium of $4, with an exercise price of $30. The stock rises to $32 and the option is about to expire. What is the stock price at which the speculator would break even? [5 points]
INSTRUCTIONS: Complete the following questions. Partial credit will be awarded, so show your work for calculations. Some questions may ask for more than one value, so be sure to answer all parts of each question! You may submit your work in an Excel, Word, or PDF file format. Scanned hand-writing is acceptable as long as it is readable. 1. You are a market maker with the following limit order book near market close: Ask Shares Price Shares 1.100 1,400 Bid Price $10 $11 800 $12 $13 400 $9 700 $8 $7 1,000 900 600 $14 900 $15 1,300 $6 Suppose that the next 10 orders to arrive are: (i) A sell stop limit for 1.000 shares with a stop price of $8 and a limit price of $8 (ii) A buy limit order for 700 shares with a limit price of $10 (iii) A market sell order for 1.200 shares (iv) A limit sell order for 900 shares with a limit price of $8 (v) A buy stop for 3,000 shares with a stop price of $11 (vi) A market buy order for 500 shares (vii) A limit sell for 1.500 shares with a limit price of $10 (viii) A buy stop limit for 1,200 shares with a stop price of $12 and a limit price of $14 (ix) A limit buy for 1.800 shares with a limit price of $12 (x) A market sell for 600 shares Show the order book after all 10 of these trades are processed. The final order book is all that is required for full credit, but more detail helps earn more partial credit. 10 e IN x 8 IN (26.7 cm x 20.3 cm)
Nine children attending the same day care center developed red, inflamed eyes and eyelids within the same week. What is the most likely cause? Name this condition. Explain the means of transmission.
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Question 7 Orlando Corp, has future payables of 5,000,000 Hungarian forint in one year. It must decide whether to use a forward hedge or a money market hedge to hedge this position. e in cas Spot rate: 1 Hungarian forint = $0.54 l year forward rate: 1 Hungarian forint $0.57 Hungary 6% 8 U.S 9% One-year deposit rate One-year borrowing rate 11 Show the results of executing a money market hedge cash. You should also show the results of executing a forward hedge. Which should the firm choose and why? [10 points] the payable, assuming the firm has excess on
Question 8 Assume that Epping Co. expects to receive S$500,000 in one year. Epping created a probability distribution for the future spot rate in one year as follows: Future Spot Rate $.68 Probability 20% 62 50 30 61 Assume that one-year put options on Singapore dollars premium of $.04 per unit. One-year call options on Singapore dollars are available with an exercise price of S.60 and a premium of $.03 per unit. a are available, with an exercise price of $0.63 and Use the appropriate options hedge to determine whether the firm would exercise the option using each of the three different spot rates i.e. what would the firm do if each spot rate existed at the time it is considering exercising the option (assume the option is about to expire). Then, show the total amount of receivables (in US dollars) based on the appropriate strategy that would be implemented for each of the three spot rates. Indicate whether the amount would be a maximum or a minimum or neither. [10 points] 88G
Using the following cost and revenue information shown for Rolls, Inc., determine how the costs,revenue, and cash flow would affected be the following exchange rate scenario: 1Brazilian real = $.30 (Assume U.S. sales will be unaffected by the exchange rate.) Assume that all Brazilian real earnings will be remitted to the U.S. parent at the end of the period. Ignore possible tax effects. [5 points] Forecasted Net Cash Flows: Rolls Inc. (in millions of U.S. dollars and Brazilian reals) Brazilian U.S.Business $1000 500 300 Business Real 800 200 Sales Cost of Materials 0 Operating Expenses Interest Expense Cash Flow 100 $100 Real 600
B2. (10 marks) Interest Rate, T Time Figure 1 Figure 1 shows how interest rates respond over time to an increased rate of money supply growth starting at time T. Answer the following question about the figure. (a) n Figure 1, is liquidity effect larger than other three effects, namely income, price-level and expected-inflation effects? (2 marks) supply moves after (8 marks) (b) Explain your answer in (a) by using how money demand or each effect
B4. (10 marks) (a) NewBank started its first day of operations with $155 million in capital. A total of $92 million in checkable deposits is received. The bank makes a $28 million commercial loan and lends another $23 million in mortgage loans. If required reserves are 5.4%, what does the bank balance sheet look like? Specify a number that is appropriate for X, Y and Z. Assets Liabilities Checkable Deposits $ X million 92 million Required Reserves Bank Capital 155 million Excess Reserves $ Y million $Z million Loans (6 marks) (b) The bank you own has the following balance sheet: Assets Liabilities $ 20 million 50 million Rate-Sensitive Rate-Sensitive Assets Liabilities $80 million $50 million Fixed-Rate Fixed-Rate Assets Liabilities Suppose that interest rates rise by 5% from 10% to 15%. How much does the bank’s profit decline or increase? (4 marks)
B7. (8 marks) The bank you own has the following balance sheet: Liabilities Assets Reserves $75 million $500 million Deposits $435 million Bank capital $100 million Loans $90 million Securities Suppose that now the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10% What is the new level of reserves after the deposit outflow of $50 million? (a) (2 marks) What is the new level of required reserves after the deposit outflow of $50 million? (2 marks) (b) (c) What actions should you take in order to satisfy a new level of required reserves? Take one action and explain how you would meet the requirement. (4 marks)
7. AU.S.-based exporter, Levity Inc., has a receivable of 40,000 Swiss fr purchase are net 90 days, and the U.S. firm wants to cover this trade receivable with a money market hedge. Assume the following information: Spot rate: 1 Swiss Franc $0.54 90-day Forward rate: $0.50 Switzerland 5% 6 U.S. 3% One-year deposit rate One-year borrowing rate 4 The US dollar equivalent of this receivable in 90 days assuming the firm executes a money market hedge is: (choose the closest answer). a) $37,736 b) $20,377 c) $20,989 d) $20,571 e) $21,189 Treek away from 7. AU.S.-based exporter, Levity Inc., has a receivable of 40,000 Swiss francs. The terms of the purchase are net 90 days, and the U.S. firm wants to cover this trade receivable with a money market hedge. Assume the following information: Spot rate: 1 Swiss Franc $0.54 90-day Forward rate: $0.50 U.S 3% Switzerland 5% One-year deposit rate One-year borrowing rate 6 4 The US dollar equivalent of this receivable in 90 days assuming the firm executes a money market hedge is: (choose the closest answer). a) $37,736 b) $20,377 c) $20,989 d$20,571 e) $21,189 C
The post Question: The Pede F P Cop N I A Candidates A.R The Primary Orite Inerpersonal Sklis L E Ny A The Presidemt Used AlP S W W Eandidanes On Tdhe Vario Orer C)ie The President I G Leaderahip A 4 1/3 1/4 1/2 Nterersenal Sk A As 1/2 1 B 2 1/3 1/8 Administrative Aity 1/5 A 1/8 5 1/3 C 1 Next, The President Of Pegasus Considered The Relative Importance Of D Resulted … appeared first on uniessay writers.
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