Assume that initial LIBOR is set at 2.51% and is fixed for three months (through February 2009)‚ beginning the swap date (November 5‚ 2008). Be sure to take into account the 2% haircut on the repo. KTC is a fixed rate leg/payer and as that it pays fixed and receive floating rates. Moreover‚ KTC purchased a U.S. treasury bond of the same maturity and financed it with an overnight repo. Thus‚ the initial transactions should include the swap agreement which initially costs nothing and the purchased
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time. A secondary market is a subsequent trading of previously issued securities” (Mayo‚ 2012). Risk-return trade-off: risk is the analysis of the propensity for a “possible loss” or on the company’s investments verses the anticipation that the return will benefit the company (Mayo‚ 2012). Futhermore‚ the company will not take on additional risk unless the end result will be additional return. (chp4‚ Mayo‚ 2012) Agency (principal and agent problems): “Financial markets and intermediaries borrow
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PAGE 1: 1. (TCO D) Return on investment (ROI) is equal to the margin multiplied by (Points : 5) Ans: turnover (b) 2. (TCO D) Given the following data‚ what would ROI be? Ans: 20% (b) 3. (TCO D) Last year‚ the House of Orange had sales of $826‚650‚ net operating income of $81‚000‚ and operating assets of $84‚000 at the beginning of the year and $90‚000 at the end of the year. What was the company’s turnover‚ rounded to the nearest tenth? (Points : 5) Ans: 9.5 (a) Page 2: 1. (TCO D)
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ACG 6425 Case 22-4 Abstract Enager Industries‚ Inc. 1. McNeil’s new product proposal was rejected because the project was projected to make a return (using ROA - $130‚000 EBIT sales and total projected asset investment of $1‚000‚000) of 13%. While this exceeds Hubbard’s original goal for each division of earning a 12% return on assets‚ it does not meet the 15% goal set by Hubbard for all new investments. According to CNN Money‚ the industry average ROA for Household and Personal Products
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assumptions. First‚ assume that Ocean Carriers is a U.S. firm subject to a 35% statutory (and effective) marginal tax rate. Second‚ assume that Ocean Carriers is domiciled in Hong Kong for tax purposes‚ where ship owners are not required to pay any tax on profits made overseas and are also exempted from paying any tax on profit made on cargo uplifted from Hong Kong‚ i.e.‚ assume a zero tax rate. The investment is not viable from the finance perspective. According to the analysis‚ Linn should not
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COMPUTER ASSIGNMENT FINS2624 Session 1‚ 2012 Instructions Please read these instructions carefully before you start. Groups You may cooperate on this assignment in groups consisting of up to three students. If you prefer to work alone or with only one other student that is fine‚ too. Either way‚ make sure to enter the student IDs (including the letter) and names of all students in your group in the appropriate cells (B1:B6) on the Answers sheet. There will be draconian punishments for
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possible. 401(K) to the Max - How powerful is a 401(K)? According to an Investopedia article‚ a 401(k) can provide you with a more savings that you’d expect. For example‚ if you’re 40 years old and donate $17‚500 to a 401(k) yearly‚ with an 8% return (with no employer contribution) could reap over $1.3 million in savings by age 65. The same person at age 50 can garner nearly $300‚000 more with a catch-up amount of $5‚500. If you think you can’t spare fully funding your 401(K) every
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work toward the achievement of all KPI’s. These are example of Coca Cola Amatil Key Performance Indicators KPI’s for both the Refurbishment Centre and Field Service are as follows: KEY OBJECTIVES KPI REQUIREMENTS REFURBISHMENT CENTRE Refurbishment Rates - Vending - 2.5 per day (excluding steel door venders) - GDM-4.0perday - Fountain (Refurbishment time) 6.6 hours per unit 4.0 hours per countertop 3.2 hours per tower 2.0 hours per gun Quality Refurbishment - Less than 3% of equipment refurbished
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interest earned in previous periods. P3-2. Dixon Shuttleworth has a large sum of money that he wants to invest to finance his retirement. He has been presented with three options. The first investment offers a 5% return for first five years‚ a 10% return for the next five years‚ and a 20% return thereafter. The second investment offers 10% for the first
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money is positive. Question 2 (5 points) At an interest rate of 10% it is better to have $100 today than $120 in 2 years. Your Answer Score Explanation True Correct 5.00 Correct; it is compounding! False Total 5.00 / 5.00 Question Explanation All about compounding! Question 3 (5 points) Shawn wants to buy a new telescope. He estimates that it will take him one year to save the money and that the telescope will cost $200. At an interest rate of 6%‚ how much does Shawn need to set aside today to
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