4910/6990 Further Questions Problem 7.19 (a) Company A has been offered the rates shown in Table 7.3. It can borrow for three years at 6.45%. What floating rate can it swap this fixed rate into? (b) Company B has been offered the rates shown in Table 7.3. It can borrow for 5 years at LIBOR plus 75 basis points. What fixed rate can it swap this floating rate into? (a) Company A can pay LIBOR and receive 6.21% for three years. It can therefore exchange a loan at 6.45% into a loan at LIBOR plus 0.24%
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8. Year 0 Year 1 Year 2 Taxable income $9‚100 $10‚250 $15‚300 Marginal tax rate .30 .30 .30 Tax $2‚730 $3‚075 $4‚590 Revenue $13‚000 $16‚250 $23‚400 Expenses (4‚250) (8‚000) (8‚100) Tax cost (2‚730) (3‚075) (4‚590) Net cash flow $6‚020 $5‚175 $10‚710 Discount factor (6%) .943 .890 Present value $6‚020 $4‚880 $9‚532 NPV $20‚432 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500‚000) $52‚500 $47‚500 $35‚500 $530‚500 Tax cost (7‚875)
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What Marketing Skills Will Lawyers Need in 20 Years? It’s a fact that lawyers must market their services to survive. Whether you are practicing law privately or part of a well reputed legal firm‚ you are in a competitive business and live on the revenue generated by your clients. If you can’t or won’t learn to market your services‚ then perhaps you should consider finding a job where marketing isn’t required. On the way up the ladder‚ lawyers are expected to bring in more clients and at the partner
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Advanced Auditing Case Assignment 2.3 1. (a) When confirming year-end accounts receivable‚ auditors hope to accomplish the objective of obtaining evidence from third parties to evaluate the client’s assertions of year-end accounts receivable amounts. The client’s assertions that accounts receivable confirmation can effectively address are existence‚ rights‚ and valuation. (b) When performing year-end sales cutoff tests‚ auditors hope to accomplish the objective of obtaining evidence from third
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ATOM Atoms are the basic building blocks of ordinary matter. Atoms can join together to form molecules‚ which in turn form most of the objects around you. Atoms are composed of particles called protons‚ electrons and neutrons. Protons carry a positive electrical charge‚ electrons carry a negative electrical charge and neutrons carry no electrical charge at all. The protons and neutrons cluster together in the central part of the atom‚ called the nucleus‚ and the electrons ’orbit’ the nucleus. A
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Practical task No.8: Interest Rates. Mortgage Loan Calculations: until November 23 Individual work. Assignment for those students‚ who did not attend the lectures and did not perform the task in a class. Assignment definitions consist of 16 tasks given below. Use lectures material and provided list of literature. 1) An individual makes a bank deposit of 10‚000 euro that is compounded at an annual interest rate of 6 percent‚ what will be the value of the deposit at the end of one year? Please provide
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WEEK 12 Wednesday‚ 17th December 2014 Assignment INDIVIDUAL POWERPOINT PRESENTATION (20% OF FINAL GRADE) • Size‚ sector and type • Stated values and social responsibility activities • External business environment (PESTLE Analysis) Assignment The assignment has two parts: 1. Research notes & Table of References [60% of the assignment grade] – Research notes (max 1200 words) outlining research undertaken using a variety of independent sources of information to prepare the presentation. – The notes
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Who Am I in Ten Years May 23‚ 2013 I will be a graduate at Corona del sol high school. I see myself as athletic‚ honest and a very caring person. Sophomore and junior year I was involved with Corona‚ I was a cheerleader and part of the dance company. I’ve met a ton of friends throughout my high school career. When people look back and hear my name they will think of me as the very outgoing‚ preppy and respectful young lady. It’s very important to me to achieve my dreams and my ambitions I need to
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Hindsight is 20/20 Shannon Griffin PSY 202 Julie Engeland January 17‚ 2011 Outline What was your family like? A. My Oh My Mom B. Grandma and Grandpa C. 100 Acres…. One Family II. What was your educational and athletic experience? A. Newaygo High School B. Western Michigan University IV. Do you have your own family? A. Paris‚ Kendall and Jade B. Husband‚ ex-husband C. Friends without borders III. What jobs have you endured? A. Cheese and butter
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The internal rate of return (IRR) and the net present value (NPV) techniques are 2 investment decision tools that satisfy the 2 major criteria for the correct evaluation of capital projects. This criterion is that the techniques should incorporate the use of cash flows and the use of the time value of money. This makes them viable techniques for evaluating investment proposals. The Net Present Value is one of the techniques that are used by firms when evaluating which investment proposals to take
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