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A $100,000 3% Ontario hydro bond matures November 30, 2016. The current date is November 20, 2013. The price you would pay is 98.9 to buy it. Are market interest rates are higher or lower than 3%?
An Indian multinational corporation has a subsidiary in the United Kingdom. To meet its investment needs that subsidiary firm wants to raise GBP 10 million by issuing five-year bonds in the British market at a coupon rate of 10percent per annum, payable annually. The current spot rate is GBP/INR 82. The INR is expected to depreciate at 1 percent each year for the next five years what is the effective cost of debt to the Indian MNC? Determine the Net Cash Flows for five years is as follows. 8marks
Year 1 2 3 4 5
57.98 62.75 63.38 64.02 926.93
The company produces alkaline batteries for two groups of consumers (poor and rich) whose inverse demand functions are below. MC=40. How many times should the number of poor consumers be greater than the number of rich consumers to justify the focus on the entire consumer surplus of the poor group?
P1 = 160 - 20Q;
P2 = 200 - 16Q
International agreements require that states sometimes sacrifices their domestic needs to honor their international responsibilities, discuss these using appropriate examples
You own a farm and grow seasonal products such as pumpkins, squash, and pears. Most of your business revenues are earned during the months of October to December. The rest of your year supports the growing process, where revenues are minimal, and expenses are high. In order to cover the expenses from January to September, you consider borrowing a short-term note from a bank for $300,000. Based on this scenario, please complete the following:
- Research the lending practices of a local bank.
- Determine the interest rate charged for a $300,000 loan.
- Determine the collateral the bank requires to secure the loan?
- Determine your overall payback amount if you were to repay the loan in less than one year.
- Choose either a payback with periodic payments or all at the end of the loan term, and compare the
- outcomes.
- After conducting your research, would you consider borrowing the money?
- What positive and negative outcomes accompany borrowing the money?
Liam is struggling to determine which deprecation method he should use for his new silk-screening machine. He expects sales to increase over the next five years. He also expects (hopes) that in two years he will need to buy a second silk-screening machine to keep up with the demand for products of his growing company. Discuss which depreciation method makes more sense for Liam:
- Higher expenses in the first few years, or keeping expenses consistent over time?
- Or would it be better for him to not think in terms of time, but rather in the usage of the machine?
- Please explain your choice.
Why are savings important in an economy
explain competitive firm short - run shutdown decision rule
use a diagram discuss and explain why marginal cost above is minimum average variable cost is called supply curve
explain why Lempi prefers blue to yellow, yellow and red and red to blue is impossible
