12. Comparative data at the end of this past year for three firms following aggressive, moderate, and conservative approaches to working capital policy follow (in thousands of dollars):

Aggressive Moderate Conservative

Temporary Current Assets $75 $75 $75

Permanent Current Assets $100 $100 $100

Fixed Assets $500 $500 $500

Total Assets $675 $675 $675

Current Liabilities $160 $75 $50

Long Term Debt $90 $150 $150

Stockholders Equity $425 $450 $475

Net Income $70 $70 $70

Calculate, compare, and comment on the current ratios, total debt to asset ratios, and returns on equity of the three firms.

Calculating Exchange Rates

4. The following is a list of currency exchange rates for selected countries:

Country			U.S. $ Equivalent
Britain (pound)			1.5356
Mexico (peso)			0.0654
Canada (dollar)	.8026
Japan (yen)	0.0081
Euro	1.0906

a. How many dollars would it take to buy one euro?

b. Calculate the amount of each of the following currencies you could have bought with $100,000 U.S. dollars.

1. Japan (yen)

2. Britain (pound)

3. Canada (dollar)

4. Mexico (peso)

Cross Rates

21-5. Using the data from problem 21-4, find the cross rates for each of the following:

a. Yen per peso

b. Pesos per pound

c. Euros per Canadian dollars

d. Yen per Canadian dollar

15. A year ago an Indian investor bought 1,000 shares of General Motors at $37 per share when the exchange rate was 42 rupees per one U.S. dollar. A year later, the U.S. dollar had appreciated against the rupee and the present exchange rate is 44 rupees per one U.S. dollar. Calculate the annual rate of return on investment for the Indian investor assuming the stock price remained the same.