2.1 Suppose you long one Australian dollar call and one Australian dollar put with an exercise exchange rate of 0.75 (USD/AUD). The price of call and the price of put is USD0.06. Using the 15-period (spot) exchange rates given below, answer parts (a)-(c). Time Spot Exchange Rate (USD/AUD) 0 0.35 1 0.40 2 0.45 3 0.50 4 0.55 5 0.60 6 0.65 7 0.70 8 0.75 9 0.80 10 0.85 11 0.90 12 0.95 13 1.00 14 1.05 15 1.10 (a) Compute the net call payo, net put payo and net combined payo. (b) Plot separately the Net Long call payo, the net long put payo and the net combined payo. (c) Name and provide denition of the shape of the combined payo obtained from part (b)?
Provide a detailed discussion of the possible welfare effects, if the South African Government decides to subsidize Ceres farmers exports to the United Kingdom.
SA Traders operates as a hardware store and is a registered VAT vendor. The applicable tax rate is 15%. SA Traders makes use of the periodic inventory system, as well as control accounts. The transaction amounts are VAT inclusive where applicable.
On 4 August 2020, Rod Traders purchased stationery for use in the office and paid R1 120 in cash. The amount in the VAT input column in the relevant journal for this transaction will be:
A. R146,09
B. R137,54
C. R0 as the amount should be recorded as VAT output.
D. R168,00
2.2 Suppose you long one Australian dollar call and one Australian dollar put with an exercise exchange rate of 0.75 (USD/AUD) and 0.65 (USD/AUD) respectively. The price of call and the price of put is USD0.04 and USD0.08, respectively.Using the 15-period (spot) exchange rates given below, answer parts (a)-(c). Time Spot Exchange Rate (USD/AUD) 0 0.35 1 0.40 2 0.45 3 0.50 4 0.55 5 0.60 6 0.65 7 0.70 8 0.75 9 0.80 10 0.85 11 0.90 12 0.95 13 1.00 14 1.05 15 1.10 (a) Compute the net call payo, net put payo and net combined payo. (b) Plot separately the Net Long call payo, the net long put payo and the net combined payo. (c) Name and provide denition of the shape of the combined payo obtained from part (b)?
Download the annual report of any commercial bank for year 2018 and 2019 and
perform liquidity and profitability analysis and interpret the result
Direction:Given is the selected information of Alpha Corporation. Answer the questions that
follow. Show your computation.
December 31, 2019
December 31, 2020
Cash
10
,
000
80
,
000
Marketable Securities
30
,
000
10
,
000
Accounts Receivable (Net)
50
,
000
150
,
000
Inventories
90
,
000
150
,
000
Land and Building (Net)
340
,
000
360
,
000
Notes Payable, Trade
70
,
000
110
,
000
Accounts Payable, Trade
20
,
000
40
,
000
Mortgage Payable
270
,
000
280
,
000
Cash Sales
1,800,000
1,600,000
Credit Sales
500,000
800,000
Cost of Sales
1,000,000
1,400,000
1. Alpha’s Acid test ratio as of December 31, 2020.
2. Alpha’s current ratio as of December 31, 2020.
1. Alpha’s receivable turnover as of December 31, 2020.
1. Alpha’s inventory turnover as of December 31, 2020.
Discuss the personal income tax base and explain how it differs from the comprehensive income tax base.
Until recently, the state of Louisiana required would-be florists to pass a difficult and subjective flower-arranging exam judged by a panel of licensed Louisiana florists. Is there an economic justification for such a regulation? Why do we observe stringent licensing laws in many sectors, including financial services?
1. Compute the (i) net present value and (ii) internal rate of return of the following capital budgeting
projects. The firm’s required rate of return is 12 percent.
Projects
Year Zeta(RM) Omega (RM)
0 (50,000) (45,000)
1 20,000 42,000
2 15,000 9,000
3 30,000 1,850
2. White Light Sdn Bhd is planning to expand. The company wants to introduce a herbal drink in
addition to its fruit juice drink. For this purpose, the company needs to purchase a special machine.
The cost of the machine is RM400,000 plus an additional RM80,000 for shipping and installation.
The machine is expected to have a useful life of five years with zero salvage value. In order to
start production, inventories amounting to RM50,000 are required and accounts receivable is
expected to increase by RM10,000. To study consumer’s preference, the company did a market
survey last year. An amount of RM30,000 was spent for this purpose. Calculate the initial outlay
for the propose project.
You are the Chief Financial Officer (CFO) of Walmart. This afternoon you played golf with a member of the company’s board of directors. One of the board members enthusiastically described a recent article she had read in a leading management journal. This article noted several companies that had improved their stock price performance through effective working capital management, and the board member was intrigued. Even though Walmart was known for working capital management, she wondered if it could do even better. How was Walmart managing its working capital, and how does it compare to Costco, another company well known for working capital management?