1. The market value balance sheet for XP Corp. reflects cash of $42,000, fixed assets of $319,000,

and equity of $237,000. There are 8,000 shares of stock outstanding with a par value of $1 per

share. The company has declared a dividend of $1 per share. The stock goes ex dividend

tomorrow. Ignore any tax effects. What will be the price of the stock tomorrow morning?

2.Assume $1 is currently equal to A$1.3 in the spot market. Also assume the expected inflation

rate in Australia is 2.8 percent as compared to 2.4 percent in the U.S. What is the expected

exchange rate one year from now if relative purchasing power parity exists?

3.The Dilana Corporation is considering a change in its cash-only policy. The new terms would

be net one period. The required return is 1.5 percent per period. The firm has current sales of

4,500 units per month at a price of $70 per unit. The new policy is expected to increase sales

to 4,550 units at a price of $70 per unit. The cost per unit is constant at $38. What is the

incremental cash inflow of the new policy?

4.CT provides services exclusively for three customers. The monthly amounts paid by these

customers along with their respective collection delays are: $81,900 with 2 days, $47,300 with

2.5 days, and $68,400 with 3 days. Given this information, what is the weighted average delay