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Compare The Size Of GS’ Investment Portfolios Between 2007 And 2017? 1. What Are

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Compare the size of GS’ investment portfolios between 2007 and 2017? 1. What are Max VaR for 2007 and 2017? 2. What are the reasons for such change? 3. How would these changes affect GS’ profitability and its ability to make markets and provide liquidity? 4. In which way would the changes in the size of inventories of securities carried by investment banks affect bid-ask spreads in the market; and the financial markets’ resilience (defined by asset price volatility and ability to offload positions) to financial shocks (that make the markets go “risk off”)?

A trader owns 55,000 units of a particular asset and

Question A trader owns 55,000 units of a particular asset and wants to hedge the value of his position with futures contracts on another related asset. Each futures contract is on 5,000 units. The spot price of the owned asset is $28 and the standard deviation of its price change is $0.45. The futures price of the related asset is $27 and the standard deviation of price change is estimated to be $0.40. The correlation between the spot price of the owned asset and the futures price of the related asset is 0.94. a) What is the optimal hedge ratio? b) Should the trader long or short the futures? How many futures contracts? c) If the spot price of the owned asset drops to $25 at the end of the hedge, is it possible for the trader to lose more than $165,000? Explain your answer.

Problem 2. Your hospital has been approached by a major

Question Problem 2. Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile: ATTACHMENT PREVIEW Download attachment HSM WEEK 3 HOMEWORK 2.png Average Charge $15,000 Average LOS 5 Days Routine Charge 53,600 Cost/Charge Variable Cost 0.80 60 Operating Room 2.657 0.80 80 Anesthesiology 293 0.80 80 Lab 1,035 0.70 30 Radiology 345 0.75 50 Medical Supplies 4,524 0.50 90 Pharmacy 1,230 0.50 90 Other Ancillary 1,316 0.80 60 Total Ancillary $11,400 0.75 50 In the above data set, assume that the hospital’s cost to charge ratio is 0.80 for routine services and 0.75 for all other ancillary services. Using this information, what would the average cost of MS-DRG 470 be? Problem 3. A free-standing ambulatory care center averages $70 in charges per patient. Variable costs are approximately $12 per patient, and fixed costs are about $1.5 million per year. Using these data, how many patients must be seen each day, assuming a 365-day operation, to reach the break-even point?Read more

help with problems a-e ATTACHMENT PREVIEW Download attachment Screen Shot

Question help with problems a-e ATTACHMENT PREVIEW Download attachment Screen Shot 2019-09-16 at 4.52.52 PM.png You are trying to decide how much to save for retirement. Assume you plan to save $7,000 per year with the first investment made one year from now. You think you can earn 11.5% per year on your investments and you plan to retire in 37 years, immediately after making your last $7,000 investment. a. How much will you have in your retirement account on the day you retire? b. If, instead of investing $7,000 per year, you wanted to make one lump-sum investment today for your retirement that will result in the same retirement saving, how much would that lump sum need to be? c. If you hope to live for 19 years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the 19th withdrawal (assume your savings will continue to earn 11.5% in retirement)? d. If, instead, you decide to withdraw $671,000 per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (Use trial-and-error, a financial calculator: solve for

Question: Explain why the put-call parity of European options should

Question Question: Explain why the put-call parity of European options should hold by drawing the relevant payoff-diagrams and making use of the no arbitrage principle. I don’t understand this question, would really apriciate some clarification on what put call parity is for european options and how to draw a payoff diagramthanks in advance

A $125 million interest rate swap has a remaining life

Question A $125 million interest rate swap has a remaining life of 10 months. Under the terms of the swap, six-month LIBOR is exchanged for 4.25% per annum (compounded semiannually). Six-month LIBOR forward rates for all maturities are 3.75% (with semiannual compounding). The six-month LIBOR rate was 3.4% per annum two months ago. OIS rates for all maturities are 3.25% with continuous compounding. What is the current value of the swap to the party paying floating? What is its value to the party paying fixed?

The First Transaction Is For The Import Of Good Quality Wines From France, Since

The first transaction is for the import of good quality wines from France, since a retail liquor trading chain customer in the United States, for who you have been doing imports over the past five years has a very large order this time. The producer in France informed you that the current cost of the wine that you want to import is €2,500,000. The wine in France can be shipped to the United States immediately but you have three months to conduct payment. The second transaction is for the export of 3d printers manufactured in the U.S.A. The country where it will be exported to is Britain. The payment of £2,500,000 for the export to Britain will be received twelve months from now. You consider different transaction hedges, namely forwards, options and money market hedges. You are provided with the following quotes from your bank, which is an international bank with branches in all the countries: Forward rates: Currencies Spot 3 month (90 days) 6 month (180 days) 9 month (270 days) 12 month (360 days) $/£ 1.30009 1.30611 1.31217 1.31825 1.32436 $/€ 1.14134 1.14743 1.15354 1.15969 1.16587 Bank applies 360 day-count convention to all currencies (for this assignment apply 360 days in all calculations). Annual borrowing and investment rates for your company: Country 3 month rates 6 months rates 9 month rates 12 month rates Borrow Invest Borrow Invest Borrow Invest Borrow Invest United States 2.687% 2.554% 2.713% 2.580% 2.740% 2.607% 2.766% 2.633% Britain 0.786% 0.747% 0.794% 0.755% 0.801% 0.762% 0.809% 0.770% Europe 0.505% 0.480% 0.510% 0.485% 0.515% 0.490% 0.520% 0.495% Bank applies 360 day-count convention to all currencies. Explanation – e.g. 3 month borrowing rate on $ = 2.687%. This is the annual borrowing rate for 3 months. If you only borrow for 3 months the interest rate is actually 2.687%/4 = 0.67175% (always round to 5 decimals when you do calculations). Furthermore, note that these are the rates at which your company borrows and invests. The rates are not borrowing and investment rates from a bank perspective. Option prices: Currencies 3 month options 6 month options Call option Put option Call option Put option Strike Premium in $ Strike Premium in $ Strike Premium in $ Strike Premium in $ $/£ $1.29962 $0.00383 $1.31268 $0.00383 $1.30564 $0.00381 $1.31876 $0.00381 $/€ $1.14400 $0.00174 $1.15088 $0.00174 $1.15009 $0.00173 $1.15702 $0.00152 Bank applies 360 day-count convention to all currencies. (Students also have to apply 360 days in all calculations). Option premium calculations should include time value calculations based on US $ annual borrowing interest rates for applicable time periods e.g. 3 month $ option premium is subject to 2.687%/4 interest rate.) b. Determine the option types that you will consider based on the exchange rate quotes provided by your bank. Remember we will long or short the base currencies (in this case study the currencies that are not $) and the FV of premium cost is based on the borrowing cost of $ for the time period of the option. For example if it is a 3 month option, then the interest rate that should be applied is United States 3 month borrowing rate of 2.687%/4 = 0.67175%). Calculate the total cost of using options as hedging instrument for the imports from France (Complete Table 4 on the separate answer sheet). c. Compare the forward quotes, money market hedges and options with each other to determine the best exchange rate hedges for France (Complete Table 5 on the separate answer sheet). Table 4: France import cost with option hedge: (8 marks) Type of option (Call or put?) Total premium cost for import Total cost of option in $ (Strike plus premium) Option hedge breakeven exchange rate Show answers in this row: Show your workings in the columns below the answers $ premium x total Euro value of import x (1 i/n) (Strike price x total Euro value of import) total premium Total cost of option in $/ Total Euro value of transaction Table 5: France: Exchange rate hedges compared: (3 marks) Forward rate Money market hedge locked in exchange rate Option hedge breakeven exchange rate $/€ Which hedging technique should be applied? (3 marks) ________________________________

You Are A Consultant Who Was Hired To Evaluate A New Product Line For

You are a consultant who was hired to evaluate a new product line for Markum Enterprises. The upfront investment required to launch the product line is $150 million (time 0). The product will generate free cash flow of $8 million the first year, and this free cash flow is expected to grow at a rate of 3.5% per year. Markum has an equity cost of capital of 12%, a debt cost of capital of 5%, and a marginal tax rate of 40%. Markum plans to finance the project with a constant D:V ratio of 0.5. a) Calculate Markum’s WACC b) Calculate the NPV of the new product line using the WACC method. c) How much debt will Markum initially take on as a result of launching this product line? d) How will Markum’s total debt change during the project’s life? e) Calculate the NPV of the new product line using the APV method. f) How much of the project’s value is attributable to the present value of the interest tax shields? Instead of a constant D:V ratio, Markum now plans to finance the project with perpetual debt of $100 million that has an interest rate of 5%. i.e. it plans to keep the debt constant at the initial amount. g) Calculate the NPV of the project using the APV method. h) Explain briefly the reason for the difference in the project value between the two cases.

7. An Investment Will Pay $100 At The End Of Each Of The Next

7. An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 6% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $_______ Future value: $ _______ 16. Jan sold her house on December 31 and took a $40,000 mortgage as part of the payment. The 10-year mortgage has a 10% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. a. What is the dollar amount of each payment Jan receives? Round your answer to the nearest cent. $   $3,209.7 b. How much interest was included in the first payment? Round your answer to the nearest cent. $   2000 How much repayment of principal was included? Do not round intermediate calculations. Round your answer to the nearest cent. $   1209.7 How do these values change for the second payment? The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principal increases. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal decreases. The portion of the payment that is applied to interest and the portion of the payment that is applied to principal remains the same throughout the life of the loan. The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principal also declines. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal also increases. Answer I c. How much interest must Jan report on Schedule B for the first year? Do not round intermediate calculations. Round your answer to the nearest cent. Answer?

The First Transaction Is For The Import Of Good Quality Wines From France, Since

The first transaction is for the import of good quality wines from France, since a retail liquor trading chain customer in the United States, for who you have been doing imports over the past five years has a very large order this time. The producer in France informed you that the current cost of the wine that you want to import is €2,500,000. The wine in France can be shipped to the United States immediately but you have three months to conduct payment. The second transaction is for the export of 3d printers manufactured in the U.S.A. The country where it will be exported to is Britain. The payment of £2,500,000 for the export to Britain will be received twelve months from now. You consider different transaction hedges, namely forwards, options and money market hedges. You are provided with the following quotes from your bank, which is an international bank with branches in all the countries: Forward rates: Currencies Spot 3 month (90 days) 6 month (180 days) 9 month (270 days) 12 month (360 days) $/£ 1.30009 1.30611 1.31217 1.31825 1.32436 $/€ 1.14134 1.14743 1.15354 1.15969 1.16587 Bank applies 360 day-count convention to all currencies (for this assignment apply 360 days in all calculations). Annual borrowing and investment rates for your company: Country 3 month rates 6 months rates 9 month rates 12 month rates Borrow Invest Borrow Invest Borrow Invest Borrow Invest United States 2.687% 2.554% 2.713% 2.580% 2.740% 2.607% 2.766% 2.633% Britain 0.786% 0.747% 0.794% 0.755% 0.801% 0.762% 0.809% 0.770% Europe 0.505% 0.480% 0.510% 0.485% 0.515% 0.490% 0.520% 0.495% Bank applies 360 day-count convention to all currencies. Explanation – e.g. 3 month borrowing rate on $ = 2.687%. This is the annual borrowing rate for 3 months. If you only borrow for 3 months the interest rate is actually 2.687%/4 = 0.67175% (always round to 5 decimals when you do calculations). Furthermore, note that these are the rates at which your company borrows and invests. The rates are not borrowing and investment rates from a bank perspective. Option prices: Currencies 3 month options 6 month options Call option Put option Call option Put option Strike Premium in $ Strike Premium in $ Strike Premium in $ Strike Premium in $ $/£ $1.29962 $0.00383 $1.31268 $0.00383 $1.30564 $0.00381 $1.31876 $0.00381 $/€ $1.14400 $0.00174 $1.15088 $0.00174 $1.15009 $0.00173 $1.15702 $0.00152 Bank applies 360 day-count convention to all currencies. (Students also have to apply 360 days in all calculations). Option premium calculations should include time value calculations based on US $ annual borrowing interest rates for applicable time periods e.g. 3 month $ option premium is subject to 2.687%/4 interest rate.) d. Calculate the exchange rates that will apply if the money market hedges are used for the exports to Britain (Complete Table 6 on the separate answer sheet) e. Compare the forward quotes and money market hedges with each other to determine the best exchange rate hedges for Britain (Complete Table 7 on the separate answer sheet). Table 6: Britain export with money market hedge: (8 marks) PV of foreign currency to be borrowed Converted at spot to $ for investment $ amount with interest invested Exchange rate locked in with transaction Show answers in this row: Show your workings in the columns below the answers Table 7: Britain exchange rate hedges compared: (2 marks) Forward rate Money market hedge locked in exchange rate $/£ Which hedging technique should be applied? (3 marks) __________________________________

Healthy Dairy Is One Of The Few Remaining Dairy Farms In Singapore That Still

Healthy Dairy is one of the few remaining dairy farms in Singapore that still supplies fresh milk for sale to customers through direct farm purchase, home delivery or selected store outlets in Singapore. Milk is obtained from the cattle under sanitary conditions and stored into the dairy’s bulk tank. The milk is then subjected to the pasteurizing process and once completed, the pasteurized milk is bottled into standard 500ml bottles and transferred to the finished goods store for deliveries to customers. Milk is issued at the beginning of the pasteurizing process. The other pasteurizing costs are incurred evenly throughout that process. Similarly, bottles are added at the beginning of the bottling process while other costs are incurred evenly. Overhead is applied into the pasteurizing and the bottling, at a rate of 80% and 50% of direct labour cost respectively. It is considered normal for some of the milk to be “lost” due to evaporation during pasteurizing and some bottles of milk to be rejected during bottling. Quality control inspection is applied at the end of the bottling process to determine whether completed products are safe for consumption. Bottles of milk which are deemed unsafe are rejected and considered as spoilt. It is accepted that spoilage is normal if rejected bottles of milk are no more than 3% of the completed good bottles produced. The loss due to evaporation is assumed to take place at the end of the pasteurizing process. The cost of lost milk is written off as a loss of the period in which it occurs. This cost is measured at the cost of the milk plus the costs of the pasteurizing process, but no bottling cost is charged. Healthy Dairy uses FIFO system of costing. The following data summarize the firm’s activities during September: Opening WIP Milk $100,000 Direct labour cost (pasteurizing) to 31 Aug $20,000 Milk (40% pasteurized) 125,000 litres Costs incurred during September Milk $224,000 Bottles $48,000 Direct labour cost (pasteurizing) $110,000 Direct labour cost (bottling) $96,000 Production data for September Milk received into pasteurizing 280,000 litres Good bottles completed from bottling 450,000 bottles Spoiled units 30,000 bottles Lost units 5,000 litres None of the opening and closing work in process had at that stage entered the bottling process. The units in the closing work in process were on average 50% complete as to pasteurizing Using the four step approach: (i) Calculate the closing work in process for the pasteurizing process in litres and for the bottling process in bottles. (ii) Calculate the number of equivalent units processed in September, distinguishing between pasteurizing process and bottling process.

Suppose That A Town Is Considering Investing Money Into Making A Public Show In

Suppose that a town is considering investing money into making a public show in a park that can be enjoyed by families during a weekend. This show requires an investment of $950. Assume that there are 150 families, each of which is willing to pay up to $6 for the show. Furthermore, there are 50 families each of which is willing to pay $5. If the money is invested, there is a large capacity so that the enjoyment of the show is unchanged regardless of how many actually attend. (i) Should the money be invested according to the utilitarian criterion? Assume now that the city is considering installing gates to charge tickets at a price of P per person for access to the park in order to repay the investment. (ii) Can the city finance the investment by charging appropriate entrance fees? (iii) What are all the prices P that are sufficient to repay the investment? Which one maximizes revenue? (iv) Which if any of the prices you found in (iii) lead to the (utilitarian) efficient outcome? Assume now that there are 10,000 additional families who are only willing to pay $1 for the show. (v) How does this change your answers to parts (i), (ii), (iii), and (iv)?

Hi, I Need Help With Solving This Problem! How Can I Solve This Problem

Hi, I need help with solving this problem! How can I solve this problem with using a FINANCIAL calculator? Thank you in advance!

With Reference To The S

With reference to the S

DCF Mechanics • It Is January 1, 2015. Your Hot Dog Stand Is Expected

Can someone please explain how to get the cash flows for each year?

In The Evaluation Of Previous Investment Projects, Mr Tommy Tan Notes That The IRR

In the evaluation of previous investment projects, Mr Tommy Tan notes that the IRR method can sometimes give multiple rates of return. (d) Propose a common method that can be used to get round the problem of multiple rates of return. Explain the principles behind the proposed approach.

Noting That There Has Been An Increasing Interest In Organic Foodstuffs With Increasing Affluence,

Noting that there has been an increasing interest in organic foodstuffs with increasing affluence, Mr Tommy Tan is considering starting an organic food retail business in Singapore. He targets to have 8 retail outlets island-wide by end 2021. To maintain its target capital structure, the firm estimates that it will need to borrow $10 million to finance this growth. As the firm is tight on cash, it prefers to repay the loan in full only at the end of 10 years and only wants to service the interest on an annual basis. The firm has approached several banks in the Singapore and 2 banks have signalled interest to be its main financier. JuneBank proposes an annual interest rate of 6.9% and the underwriting spread is 2%. BHR Bank offers the loan at an annual interest rate of 6.5% and the underwriting spread is 2.9%. (a) What is the effective cost of borrowing from JuneBank?

A Large Portland Manufacturer Wants To Forecast Demand For A Piece Of Pollution-control Equipment.

A large Portland manufacturer wants to forecast demand for a piece of pollution-control equipment. A review of past sales (Upper A Subscript tAt ), as shown below, indicates that an increasing trend is present. Smoothing constants are assigned the values of alpha α= 0.2 and beta β=0.4 The firm assumes the initial forecast for month 1 (Upper F 1F1 )was13.00 units and the trend over that period Upper T 1T1 was 2.00 units. Using trend-adjusted exponential smoothing, Forecasts (Upper F Subscript tFt ), Trend (Upper T Subscript tTt ), and Forecasts Including Trend (FIT Subscript tFITt ) for months 1 through 4 have already been developed and are provided below. Continue with the process and determine Upper F Subscript tFt , Upper T Subscript tTt , and FIT Subscript tFITt for months 5 and 6 (round your responses to two decimal places):    Month (t ) Actual Demand (Upper A Subscript tAt ) Forecast (Upper F Subscript tFt ) Trend (Upper T Subscript tTt ) Forecast Including Trend (FIT Subscript tFITt ) 1 14.0 13.00 2.00 15.00 2 16.0 14.80 1.92 16.72 3 20.0 16.58 1.86 18.44 4 20.0 18.75 1.98 20.73 5 25.0 ? ? ? 6 21.0 ? ? ? 7 32.0 − − − 8 26.0 − − − 9 38.0 − − − 10 – − − −

For The Population Of Chief Executive Officers, Let Salary Be Annual Salary In Thousands

For the population of chief executive officers, let salary be annual salary in thousands of dollars. Suppose salary and return on equity (roe, defined in terms of net income as a percentage of common equity) are related by the conditional expectation E(salary l roe)= 963.191 18.501 *roe. Suppose E(roe)=17. Find E(salary).

Product Levels Sabre Is A Performance Automobile Manufacturer Headquartered In Ulster, Ireland. It

Product Levels Sabre is a performance automobile manufacturer headquartered in Ulster, Ireland. It has been in business for eighteen years and has brought twenty performance-oriented automobiles to market during this time. Sabre designs and manufactures each automobile in-house; it makes every part of the car, from the tires to the brakes to the transmission to the metallic paint. Sabre employees make each car by hand. Previous Sabre models have won high praise from the automotive industry, and all 500 units of past vehicles have sold within weeks of announcement. In the past, Sabre has marketed its products to the financially independent individual with a desire to own the finest vehicle on the road. Sabre provides each potential customer with a list of customizable features that can be added during the manufacturing process. Select one of the four product levels to explain how the Sabre owner was compelled to purchase his or her vehicle: Tangible product 2. Setting the Price Synthesis Technologies is a maker of hybrid stereo equipment. For the last few quarters, it has experienced a decline in profits and market share, but it is hoping to end that cycle with a new line of speakers. Within the next year, Synthesis hopes to increase its net profit by 10 percent, gain an additional 25 percent of the market share, and increase the number of repeat customers by encouraging current Synthesis speaker owners to invest in the company’s new offerings. After carefully developing the other elements of the marketing mix, Synthesis is faced with the decision of how to price these speakers—especially since its main rival, Bormuiser, is developing a comparable product slated for release three months later. What pricing strategy would be the most logical for Synthesis to use? What are the company’s objectives in terms of customers, competition, and profit? My mistake. here it is 1.Product Levels Sabre is a performance automobile manufacturer headquartered in Ulster, Ireland. It has been in business for eighteen years and has brought twenty performance-oriented automobiles to market during this time. Sabre designs and manufactures each automobile in-house; it makes every part of the car, from the tires to the brakes to the transmission to the metallic paint. Sabre employees make each car by hand. Previous Sabre models have won high praise from the automotive industry, and all 500 units of past vehicles have sold within weeks of announcement. In the past, Sabre has marketed its products to the financially independent individual with a desire to own the finest vehicle on the road. Sabre provides each potential customer with a list of customizable features that can be added during the manufacturing process. Select one of the four product levels to explain how the Sabre owner was compelled to purchase his or her vehicle: Core product Tangible product Augmented product Promised product 2. Setting the Price Synthesis Technologies is a maker of hybrid stereo equipment. For the last few quarters, it has experienced a decline in profits and market share, but it is hoping to end that cycle with a new line of speakers. Within the next year, Synthesis hopes to increase its net profit by 10 percent, gain an additional 25 percent of the market share, and increase the number of repeat customers by encouraging current Synthesis speaker owners to invest in the company’s new offerings. After carefully developing the other elements of the marketing mix, Synthesis is faced with the decision of how to price these speakers—especially since its main rival, Bormuiser, is developing a comparable product slated for release three months later. What pricing strategy would be the most logical for Synthesis to use? In addition to answering the above question, answer one of the following: What are the company’s objectives in terms of customers, competition, and profit? What impact does the competition have on pricing? Would pricing the product above the competition or below the competition be a better idea?

As Organisations Grow, So Too Does The Number Of Stakeholders The Business Must Deal

As organisations grow, so too does the number of stakeholders the business must deal with. It is often the case that different stakeholders have different expectations from the organisation. you are required to select a formal small medium enterprise of your choice and prepare a report containing the following: atleast 10 stakeholders relevant to the selected business and their specific concern explain the 4 types of conflict and critically discuss the sources of conflict in relations to the stakeholders identified. discuss how organisational codes of ethics can be made impactful for smooth business operations

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