Ch 17 and 18

Ch 17 and 18 - Ch 17 #1, 2, 3, 9 1 US Mexico Japan 1 9...

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Ch 17 #1, 2, 3, 9 1 US 1 Mexico 9 Japan 111.23 = 111.23/9 12.36 yen per peso 2 t-bill 0.07 jap bonds 0.06 1 yen= 0.01 ft=$0.00907 pg 705 7%/2 0.0350 5.5%/2 0.0275 0.01 3 US 500 France 550 pg 706 spot rate 1.1 9 Canadian 5000000 beginning 0.75 current 0.7 .75*5000000= 3750000 .70*5000000= 3500000 - 250000 gain by 250,000
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Ch 18 #1, 2, 3, 4 1 a) 1) 400/800 50.00% 2) 600/1000 60.00% 3) 400/800 50.00% b) The debt ratio would increase by 10% if they purchased 2 tax 0.4 depreciation/yr 100 0 1 2 equiptment cost 200 loan amount 200 interest -20 -20 tax savings 8 8 principal repayment -200 tax savings depr 40 40 0 28 -172 0 1 2 lease payment -110 -110 tax savings 44 44 -66 -66 3 Current Assets 25000 Debt 50000 Fixed Assets 125000 Equity 100000 Total Assets 150000 Total Claims 150000 a) Borrows/Buys Current Assets 25000 Debt 100000 Fixed Assets 175000 Equity 100000 Total Assets 200000 Total Claims 200000 Leases Current Assets 25000 Debt 50000 Fixed Assets 125000 Equity 100000 Total Assets 150000 Total Claims 150000
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This note was uploaded on 07/02/2011 for the course FIN 5880 taught by Professor Unknown during the Spring '08 term at Webster.

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Ch 17 and 18 - Ch 17 #1, 2, 3, 9 1 US Mexico Japan 1 9...

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