You are offered a T-note that pays $1‚000 in 9 months (or 270 days) for $910. You have $910 in a bank that pays a 5% nominal rate‚ with 365 daily compounding. You plan to leave the money in the bank if you don’t buy the risk-free T-note. Which investment should you choose? Use the following all three solution methods to verify your answer. Greatest future wealth: FV Figure out FV of $910 left in a bank with 9 months‚ and then compare with T-note’s FV=$1‚000 Inputs: N = 270‚ I/Y =5%/365=0.0137%
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go for it. (B) Based on the perpetuity formula we can compute the PV in this case : Computation of the PV : PV= Cash flow per year/ cost of capital) =4‚500 / 0.12 = $37‚500 Computation of the NPV : NPV= -Initial investment + PV = -35‚000 + 37‚500 NPV=$2‚500 Rainbow products could buy this machine with the service contract if they intent to use it in the long-run. (C) Computation of the PV : PV= C/ k-g In this case C (end of year perpetuity payout) = 5‚000-1‚000= $4‚000 k= 12%‚ discount rate g=
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A Rose for Emily A Rose for Emily is a story that deals with a women’s sentimental illness caused by isolation. Emily Grierson looses her moral compass‚ and her trace of reality‚ her inability to be loved‚ her desire to be considered as someone important‚ was never accomplished. The author shows plans of development; using characterization‚ symbolism‚ and setting. This is a very symbolic and animatic story. William Faulkner points out his views of empathy towards Emily in the story when he illustrates
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TOPIC: Assessment of suitability of Transatlantic Trade and Investment Partnership COUNTRY: Sweden COMMITTEE: World Trade Organization (WTO) The Transatlantic Trade and Investment Partnership (TTIP) is a proposed trade agreement between the European Union (EU) and the United States (US) with the aim of promoting trans-border trade and multilateral well planned global economic growth. However it has an increasing percentage of opposition in case of both the sides of the Atlantic Politicians‚ civic organizations
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INVESTMENT DECISION Tianfu Electronics Ltd is a midsized electronics manufacturer located in Chengdu‚ China. The company president is Dr. Wang Datong‚ a graduate from Tsinghua University‚ who founded the company 20 years ago. The company originally repaired radios and other household appliances. Over the years‚ the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Meng Xiaolan‚ a recent MBA graduate from Fudan University‚ has been hired
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Data 1. Record your data for each of the trials in Table 2. 2. Record your reaction observations (Step 8) below: A white powdery substance formed when the two reactants were mixed Table 2: Reaction product data Mass (g) Example Trial 1 Trial 2 Mass of CaCl2 1.00 2.00 3.00 Mass of K2CO3 2.5 g 2.50 2.50 Mass of filter paper 0.8 g 0.80 0.80 Mass of watch glass 38.5 g 38.5 38.5 Combined mass of product‚ filter paper‚ and watch glass 40.2 g 42.3 43.3 Mass of dry product 0.9 g 2.00 3.00 Calculations
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Quiz 2 Corporate Finance NAME ______________________ Apring 2013 2012 70 pts Show all work MC=5pts each 1. Find the EPS (y-axis) // EBIT (x-axis) crossover point of the following two capital structure plans. Complete the table and Draw the graph and show all the points including crossover‚ where line crosses y-axis‚ and the three EBITs below 30pts Assets = $3‚000‚000 Stock Price = $20 Interest Expense = 12% PLAN I D/E = 1.1 Recession Expected
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Assignment: Discussion of IAS 17 Leases Huixuan HUANG Student ID: 500284151 Module Organizer: Colin Bradley Words Count: 1964 words Date of Submission: 17th April‚ 2012 Discussion of IAS 17 Leases Introduction Accounting for leasing is always being a hot topic. The standard setters of IAS 17 encountered much controversy when they tried to stop charging all lease payments to the income statement. In this essay‚ firstly‚ I will point out the key features of the current IAS 17 with its effect on General
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offer and for the original offer to create a floor. Go-shop process is meant to help ensure that the board of directors fulfills its fiduciary duty to make sure shareholders get the best deal possible from the transaction. 4. Why were so many investment bankers involved in this transaction‚ and what were their respective roles? Many banks had supporting roles in the acquisition. Independent advisory banks put the deal together and did most the work. Bank of America Merrill Lynch was Heinz’s
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Rough Draft Business Case for Investment CMGT 445 Rough Draft Business Case for Investment McBride Financial Services plans to expand its mortgage loan business operations to eight locations. The home office is in Boise Idaho. Newly leased office space is now available in the Sioux Falls S.D. location. The CEO‚ Hugh McBride‚ requests the design‚ development and implementation of a secure‚ reliable and effective Local Area Network (LAN) for the Boise and Sioux Falls locations. This project will require
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