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Hello, can you please show me step by step calculations for (j) only - thank you De answer , yuu have to develop the answers

Hello, can you please show me step by step calculations for (j) only - thank youimage text in transcribed

De answer , yuu have to develop the answers rs. ered In estion-and-answer format. Now t- er format . Why might s tockholders be indifferent to whether or of its cash flows? b. What are six c. What is COSO? How does COSO define enterprise risk management? d. Describe the eight components of the COSO ERM framework. e. Describe some of the risks events within the following major categories of risk not a firm reduces the reasons risk management might increase the value of a corporation? (1) strategy and reputation, (2) control and compliance, (3) hazards, (4) human resources, (5) operations, (6) technology, and (7) financial management. What are some actions that companies can take to minimize or reduce risk exposures? f. hat are forward contracts? How can they be used to manage foreign exchange risk? h. Describe how commodity futures markets can be used to reduce input price risk. i. It is January, and Tennessee Sunshine is considering issuing $5 million in bonds in June to raise capital for an expansion. Currently, the firm can issue 20-year bonds and Stooksbury is concerned that long-term interest rates might rise by as much a 1% before June. You looked online and found that June T-bond futures are trading at 111'25. What are the risks of not hedging, and how might TS hedge this exposure In your analysis, consider what would happen if interest rates all increased by 1%. with a 7% coupon (with interest paid semiannually), but interest rates j. What is a swap? Suppose two firms have different credit ratings. Firm Hi can borrow fixed at 11% and floating at LIBOR + 1%. Firm Lo can borrow fixed at 11.4% and floating at LIBOR + 1.5%. Describe a floating versus fixed interest rate swap between firms Hi and Lo in which Lo also makes a "side payment" of 45 basis points to Firm

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