Working Capital Simulation Aljenette Brown FIN 571 December 14‚ 2014 Susanne Elliott This paper will analyze the Sunflower Nutraceuticals (SNC) and the decisions their company can make to increase working capital and maximize the organization’s growth potential. Moreover‚ this paper will examine some of the decisions made in each phase of SNC’s simulation‚ describe how SNC’s decisions affected their working capital‚ and evaluate the general effects associated with limited access to financing.
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QUESTIONS 1. Assume that you are given a set of cash flows on a time line and asked to find their present value. How would you choose the discount rate to apply to these cash flows? abcdefg 2. Consider a one-year‚ $18‚000 CD. a. What is its value at maturity if it pays 8.4 percent (annual) interest? b. Compute the future value if the CD pays 3.2 percent; if it pays 16.8 percent. Overall‚ what do these results indicate about the relation between level of interest and future value?
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Suppose that the current Bid-Offer on the Euro is $1.21/E and $1.23/E‚ and the three-month forward is $1.185/E. 1. If you wish to hedge 100‚000 Euro Revenue due in three months‚ what position would you take? Explain why. a. Buy Euro forward at $1.23/E b. Buy dollars forward at $1.23/E c. Sell Euro forward at $1.185/E d. Sell dollars forward at $1.21/E e. Buy Euro forward at $1.185/E 2. If the Bid-Offer at maturity is $1.17/E and $1.19/E (assume the bank is following the same quote convention)
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FINC 404 Fall 2011 Assignment 1 Solution 1. I need your group names! Groups of 4 people please. 2. You can deposit $10‚000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today? Solution Deposit now: Deposit in 10 years: FV40 = PV (1+k)40 FV30 = PV10 x (1+k)30 FV40 = $10‚000 x (1.09)40 FV30 = PV10 x (1.09)30 FV40 =
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FINANCE 6301 AMME Individual Assignment #2 FORMAT: You can use a Word document‚ an Excel spreadsheet or both. If you use Excel‚ submit the Excel file rather than embedding Excel into a Word document. Please use single-space‚ 11 pt. or 12 pt. font. Multiple Choice: Select the best response (3 points each). You may add comments to explain your reasons. 1. If the correlation coefficient is 0‚ A) You can completely eliminate risk by short selling the riskier asset and investing
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Final Exam Fin 370 When complete‚ please submit your answers to your individual forum. DO NOT discuss this with any other person -- this is an individual final exam!! For the true false answers only submit the question number and answer -- do not include the question in your answer sheet. For other questions/problems‚ please show all of your work for full credit. One Excel attachment is preferred -- do not send in more than one attached file. TRUE/FALSE. Write ’T’ if the statement is true and
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Guillermo Furniture Store Concepts FIN/571 October 31‚ 2011 Guillermo Furniture Store Concepts This assignment sets out to explain the pertinent financial concepts and principles found in chapters two and three of the text Corporate Financial Management by (Emery‚ Finnerty‚ & Stowe‚ 2007) and how they relate to the context of the Guillermo’s Furniture Store scenario. Guillermo’s was a leading furniture
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This document of FIN 571 Study Guide 571 Final includes answers to the next questions: 1) Which of the following statements is true? A. A security is a claim issued by a firm that pays owners interest‚ not dividends B. A call option analyzes conflicts of interest and behavior in a principal-agent relationship C. An agent-manager can never make bad decisions D. The difference between the value of one action and the value of the best alternative is called an opportunity cost
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FIN 534 Midterm Exam 1 1. Of the following investments‚ which would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero. 2. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? 3. Which of the following statements regarding a 20-year monthly payment amortized mortgage with
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This work of FIN 403 Week 2 Learning Team Assignment Investment Decision Selection Paper comprises: FIN 403 Week 3 Blades Case Study Analysis Business - Finance Select one of the following scenarios‚ used in future Learning Team assignments: A manufacturing organization considering expansion to India or Brazil A service organization considering expansion to Thailand or Ghana A nonprofit organization considering expansion to China or Hungary Obtain faculty approval
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