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XTZ Company took a loan from the bank for 3 years, and compounded annually interest of 8.4 per cent is charged. What is the loan amount that is taken?
If you wanted to earn a 20 percent return compounded monthly, do you believe that this would be a good investment?
What would happen to the price weighted index for this market (up or down)? What would happen to the value weighted index (up or down)?
If you need to borrow $8500 to purchase your dream Harley-Davidson, what will be- your monthly payment?
What amount is necessary to pay back the loan with interest (in $)? What is the expected profit from the trade after paying off the loan and interest (in $)
Determine how much money should be kept in the checking account (investment decision, working capital management decision, capital budgeting decision).
What does it mean to be net long? What movement in the foreign exchange rate will result in a loss?
If the exchange rate at the end of the year is £1 = $1.25, will the US dollar have appreciated or depreciated against the pound?
If the current exchange rate is £0.874/$, what is the nature of the US insurance company's exchange rate risk (net long or net short)?
Why would a U.S.-based Financial Institution in Lausanne prefer to be net long or net short in its asset positions?
How much money will George need in the future to sustain the $10,000 monthly payments for 15 years? In how many years can he retire?
Assume the asking price for a small apartment property is $1,800,000. What is the rent (i.e., PGI) needed to support the $1.8 million price tag?
What is the internal rate of return (IRR) on an industrial building investment originally purchased for $3,500,000, seven years ago which has an annual net inco
A property is purchased for $10 million. Financing is obtained at a loan-to-value ratio of 60% with annual mortgage payments. What is the equity dividend rate?
Determine the outstanding balance at the end of seven years on a $100,000 loan, originated at 5.50 percent annual interest.
Maple Aircraft has issued a 4¾% convertible subordinated debenture. In the absence of the conversion feature, what is the current yield and yield to maturity?
Using the expected cash flows above, what is the internal rate of return, IRR, of the equity investment, if levered?
Why would equity investors sell in this environment? Describe the arguments on each side for selling now or holding based on the yield curve and bond market.
Imagine that you are in charge of finance at a corporation and you have $1 million of cash available today you need for an upcoming project. What do you do?
What are possible reasons to apply capital rationing in highly heterogeneous organizations and highly homogeneous organizations?
1 year later, if the 6 month LIBOR turns out to be 5% with semi-annual compounding, how much do you need to pay or receive at 1year point?
What are the current events that are affecting the stock price of Ford Motor Company? Do you believe their stock is overpriced, underpriced or priced correctly?
Suppose the yield curve rises for 5 years and then falls. Based on the expectations theory, what does this tell us about future short-term interest rates?
Yang Bai is investing $10,000 and wants a portfolio that is 80% stocks and 20% bonds. What should she do to meet her asset allocation goal?
What is her annualized HPR before-tax if she does not reinvest the interest income? What is her annualized HPR before-tax if she reinvests the interest income?