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Questions about banking markets ATTACHMENT PREVIEW Download attachment Screenshot 2019-08-24

Question Questions about banking markets ATTACHMENT PREVIEW Download attachment Screenshot 2019-08-24 21.31.33.png 2. How would you classify and record each of the following transactions in the Australian balance- of-payments accounts? (Hint: consider the components of the balance of payments accounts) (a) A Japanese insurance company purchases Australian commonwealth bonds and pays out of its bank account maintained in Sydney. (b) An Australian citizen consumes a meal at a restaurant in Paris and pays with her ANZ issued credit card. (c) Indian parents pay for their daughter to study at an Australian university. (d) An Australian university gives a tuition scholarship to a foreign student from Singapore. (e) A Vietnamese immigrant living in Melbourne sends a check drawn on his Commonwealth Bank account in Australia as a gift to his parents living in Hanoi. (15 marks) 3. The following data are taken from the financial market pages of an Australian newspaper. Wholesale Market SPOT RATES Open Close FORWARD MARGINS SA/SUS ………… 0.6943 0.6922 SAV/EUTO………

What is net float?a. Net float is not the difference

Question What is net float?a. Net float is not the difference between the cash amount on the business’s books and the amount on the bank’s books.b. Net float estimates the amount of assets.c. Net float is the difference between the cash amount on the business’s books and the amount on the bank’s books.d. Net float values a business involved in capital budgeting

What is the cost of debt on an investor-owned business?a.

Question What is the cost of debt on an investor-owned business?a. On a corporation, the cost of liabity must be added to consider the tax effects.b. On an investor-owned business, the cost of liabity must be added to consider the tax effects.c. On a corporation, the cost of debt must be adjusted to consider the tax effects.d. On an investor-owned business, the cost of debt must be adjusted to consider the tax effects.

What is the Cash Flow Coverage Ratio?a. The cash-flow-coverage ratio

Question What is the Cash Flow Coverage Ratio?a. The cash-flow-coverage ratio (CFC) shows the liabities which cash flow covers fixed assets requirements.b. The cash-flow-coverage ratio (CFC) shows the amount which cash flow covers fixed liabities requirements.c. The cash-flow-coverage ratio (CFC) shows the amount which cash flow covers fixed financial requirements.d. The cash-flow-coverage ratio (CFC) shows the amount which cash flow covers fixed expenses requirements.

In a statutory merger,a.The total consideration received by the target’s

Question In a statutory merger,a.The total consideration received by the target’s shareholders is automatically taxable.b.All known and unknown assets and liabilities are automatically transferred to the buyer except for those the seller agrees to retain.c.Only known assets and liabilities are automatically transferred to the buyer.d.The total consideration received by the target’s shareholders is automatically not taxable, that is, tax-deferred.e.Only known and unknown assets are transferred to the buyer.

  1. What are utilization of assets in terms of efficiency ratios

Question

  1. What are utilization of assets in terms of efficiency ratios ?
  2. What are measurements associated with returns and activity ratios?
  3. How do you review the electronic equipment industry using financial ratios?

20.21 Suppose a firm earns $2.5 million before‑tax in Spain.

Question 20.21  Suppose a firm earns $2.5 million before‑tax in Spain. It pays Spanish tax of $1.3 million and remits the remaining $1.2 million as a dividend to its U.S. parent. The Spanish dividend withholding tax is 5%. Under current U.S. tax law, the parent will owe U.S. tax on this dividend equal to a) $1.15 millionb) $552,000c) nothing. It will also receive a foreign tax credit equal to $1.3 million.d) nothing. It will also receive a foreign tax credit equal to $510,000.

has a unfunded pension liability of $900 million that must

Question has a unfunded pension liability of $900 million that must be paid in 15 years. To assess the value of the State’s future (required payout), financial analysis want to discount this liability back to the present. The relevant discount rate is 6.5 percent. What is the present value of this liability assuming quarterly compounding?a. $349,943,872b. $298,545,678c. $342,144,051d.$357,546,995

If the market risk premium increases but the risk-free rate

Question If the market risk premium increases but the risk-free rate and expected inflation do not change what usually follows?

a.The total consideration received by the target’s shareholders is automatically

Question a.The total consideration received by the target’s shareholders is automatically taxable.b.The bidder assumes only those liabilities that are expressly stipulated in the purchase-and-sale agreement.c.The target’s tax attributes may or may not transfer to the bidder, depending on how much of the target’s shares the bidder purchases.d.The total consideration received by the target’s shareholders is automatically non-taxable, that is, tax-deferred.e.The bidder cannot pay target shareholders using its own stock.

Which of the following is not true about asset-based lending?a.Asset-based

Question Which of the following is not true about asset-based lending?a.Asset-based loans usually include a security agreement that     specifies which borrower asset is pledged as collateral for the loan.b.The borrower generally pledges tangible assets as collateral.c.Short-term asset-based loans are secured frequently by receivables and inventory.d.Lenders look to the target firm’s assets as their primary protection.e.Long-term asset-based loans are typically secured by property and equipment.

This question was created from 1663455_1_41-qns-financial-engineering-and-risk-management (1).doc https://www.coursehero.com/file/33065398/1663455-1-41-qns-financial-engineering-and-risk-management-1doc/ can you

Question This question was created from 1663455_1_41-qns-financial-engineering-and-risk-management (1).doc https://www..com/file/33065398/1663455-1-41-qns-financial-engineering-and-risk-management-1doc/ can you please provide me with the answer to this question ATTACHMENT PREVIEW Download attachment 33065398-337325.jpeg Compute the initial price of a swaption that matures at time t=5 and has a strike of 0. The underlying swap is the same swap as described in the previous question with a notional of 1 million. To be clear, you should assume that if the swaption is exercised at t=5 then the owner of the swaption will receive all cash-flows from the underlying swap from times t=6to t=11 inclusive. (The swaption strike of 0 should also not be confused with the fixed rate of 4.5% on the underlying swap.) Submission Guideline: Give your answer rounded to the nearest integer. For example, if you compute the answer to be -220,432.23, submit -220432.

just wondering, how do we get to the answer for

Question just wondering, how do we get to the answer for question 15 which is (B)? Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment finm qns 2.PNG ATTACHMENT PREVIEW Download attachment finm3008 qns.PNG

17.20 Suppose a firm projects cash flows of $2.5 million,

Question 17.20  Suppose a firm projects cash flows of $2.5 million, $3 million, and $4 million for years 1, 2, and 3, respectively, on an initial investment in Ecuador of $22 million. The firm projects a perpetuity of $5 million in years 4 and beyond. If the required return on this investment is 17%, how large does the probability of expropriation in year 5 have to be before the investment has a negative NPV? Expected compensation in the event of expropriation is $3 million.a) 31%b) 42%c) 22%d) 49%

17.24 A new project is projected to yield $2.5 million

Question 17.24  A new project is projected to yield $2.5 million annually in after-tax profit, based on a local corporate profit tax rate of 40%. However, this profit figure depends on the use of a transfer price of $30 per unit on a component bought from the parent. If the project requires 100,000 units of this component annually, the impact on project profitability and on parent profitability of a boost in the transfer price to $35 will be _______ and ________, respectively. The parent’s marginal tax rate is 34% and the incremental tax on subsidiary remittances to the parent is -3%.a) -$500,000, $500,000b) -$300,000, $330,000c) -$300,000, $321,000d)  $500,000, -$500,000

17.25 General Tin (GT) is worried that its mine in

Question 17.25  General Tin (GT) is worried that its mine in Peru will be expropriated during the next 12 months. The Peruvian government has promised, however, to pay compensation of $15 million at the year’s end if it expropriates the mine. GT believes that this promise would be kept. If expropriation does not occur this year, it will not occur anytime in the foreseeable future. The mine is expected to be worth $50 million at the end of the year. A wealthy Peruvian has just offered GT $19 million for the mine today. If GT’s risk‑adjusted discount rate is 22%, what is the probability of expropriation at which GT is just indifferent between selling now or holding on to its mine?a) 71.2%b) 76.6%c) 23.5%d) 18.9%

1. Compare and contrast country risk analysis with exchange rate

Question 1. Compare and contrast country risk analysis with exchange rate volatility.(25 marks)

4. MNCs promote globalization. Is this a force for good

Question 4. MNCs promote globalization. Is this a force for good or bad? Discuss.

need help with question 14 and 15. ththanks anks Attachment

Question need help with question 14 and 15. ththanks anks Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-24 at 9.20.32 pm.png Question 14 Assume you invest $1 in the underlying asset or portfolio at the beginning of period 1. What is the value of wealth at the end of period 5 (to nearest cent)? (a) $1.32 (b) $1.35 (c) $1.36 (d) $1.43 (e) None of the above Question 15 Given the standard deviation of 15.7% and assuming independent returns, what is the standard deviation of wealth over 3 periods (to the nearest decimal place)? (a) 22.2% (b) 27.2% (c) 47.1% (d) 54.9% (e) 68.6% Question 16 Assume that the arithmetic mean of the series is adjusted towards an expected per-period return of 5%. After this adjustment, what is the probability of loss under non-parametric (i.e. data-based) methods? (a) 20% (b) 32% (c) 38% (d) 40% (e) 60% ATTACHMENT PREVIEW Download attachment Screen Shot 2019-08-24 at 9.20.41 pm.png Questions 12 to 16 refer to the following 5-period sequence of gross returns plus the supplementary information provided below: Period Return 16% -1% 30% 4 -10% 5 2% Supplementary information: Standard deviation of series 15.7% Risk-free rate 3.0%

use excel to solve. ATTACHMENT PREVIEW Download attachment Screenshot 2019-08-24

Question use excel to solve. ATTACHMENT PREVIEW Download attachment Screenshot 2019-08-24 20.45.03.png 1) Consider the following two sets of project cash flows: Discount Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Rate -903 175.6 169.8 201.4 251.5 299.2 305.2 0.1037 513 190.5 195.5 90.5 80.5 85.5 110.5 0.1037 A) Assume that projects X and Y are mutually exclusive. The correct investment decision and the best rational for that decision is to: i) invest in Project Y since IRRy

Questions about international currencies ATTACHMENT PREVIEW Download attachment Screenshot 2019-08-24

Question Questions about international currencies ATTACHMENT PREVIEW Download attachment Screenshot 2019-08-24 21.29.26.png (20 marks) 4. (a) You observe the following quotes for the USDI’AUD in the spot market from two banks: Bank of Sydney Bank of New York Bid Ask Bid Ask 0.6926 0.6928 0.7030 0.7075 Do these quotes imply the possibility of earning a profit by using locational arbitrage? If so, calculate the potential profit if you are able to use AUD 25,000. If not, explain why arbitrage is not possible? (5 marks) (b) You observe the following quotes for the GBP KAUD in the spot market from two banks: Bank of Melbourne Bank or London Bid Ask Bid Ask 0.5453 0.5458 0.5407 0.5411 Do these quotes imply the possibility of earning a profit by using locational arbitrage? If so, calculate the potential profit if you are able to use GBP 50.000. If not, explain why arbitrage is not possible? (10 marks) c) You observe the following quotes for the CHF JAUD in the spot market from two banks: Bank of Australia Bank of Switzerland Bid Ask Bid Ask 0.7002 0.7095 0.7054 0.7116 Do these quotes imply the possibility of earning a profit by using locational arbitrage? If so, calculate the potential profit if you are able to use CHF 250,000. If not, explain why arbitrage is not possible? (10 marks) (25 marks) 5. Royal Bank of Canada quotes C$l = US$ 0.7265. Citibank quotes AS 1 = US$0.6980. ANZ bank quotes A$ l = C$0.9350. a. If these quotes are simultaneously observed spot rates. can you make an arbitrage profit? If so, calculate what profit would you make if you started with AS 1 million. Assume that there are no transaction costs. (10 marks) b. What would be your arbitrage profit if you were to incur the following transaction costs? (10 marks) Conversion from Transaction cost (based on value) Australian dollar to Canadian dollar 1.5% Canadian dollar to US dollar 2.0% US dollar to Australian dollar 1.0% Australian dollar to US dollar 1.0% Canadian dollar to Australian dollar 1.5% US dollar to Canadian dollar 1.5% (20 marks)

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