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Hello, I need immediate help to have corporate finance problems answered (1-10) accurately. Please no requests for price increases and I need someone who is
Hello, I need immediate help to have corporate finance problems answered (1-10) accurately. Please no requests for price increases and I need someone who is confident that they know corporate finance well to take this. This is due in 1 hour (7 PM) Central Standard time (USA). Thanks in advance.
Corporate Finance Homework Ch 17 \"Modern Corporate Finance\" Problems 1-19 Due 12/4/16 by 7PM Central Time (USA) 1) AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $6800 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $190. If the interest rate is 2.60%, what is the optimal order amount according to the EOQ? * Place your answer to the nearest dollar without including a dollar sign or commas 2) AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $5100 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $170. The interest rate is 2.70%. What are the annual order costs associated with the EOQ? * Place your answer to the nearest dollar without including a dollar sign or commas 3) AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $5800 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $230. The interest rate is 2.50%. What are the annual storage costs associated with the EOQ? * Place your answer to the nearest dollar without including a dollar sign or commas 4) AIA Inc. is looking to manage its cash position using the EOQ model. The company is consuming cash at the rate of $5900 per day, and is open for business 365 days in the year. Each time the firm sells securities to obtain the cash, it costs them $250. The interest rate is 2.40%. What are the total costs (annual storage costs + annual order costs) associated with the EOQ? * Place your answer to the nearest dollar without including a dollar sign or commas 5) Triumph Corporation extends credit to many of its customers, and sets the term of these credits at: 1.75/10; net/29 Jones is a customer of Triumph and has received the above credit on a recent purchase of $100,000. Jones is trying decide whether to take Triumph up on its offer to pay early or instead to wait until the last possible day to pay the amount in full. Help Jones out by computing the annual interest rate implied by these credit terms. Corporate Finance Homework Ch 17 \"Modern Corporate Finance\" Problems 1-19 Due 12/4/16 by 7PM Central Time (USA) % Place your answer as a percentage without any percent sign. That is, if you think the answer is twenty five point five percent, then place your answer as 25.5 6) Crisps has received an order for 13000 bags of potato chips from BigBag. Crisps views BigBag to be a one-time customer. Crisps sells its large bags of potato chips for $2.35 each, and calculates its internal cost for the product at $1.35 each. Market research estimates that there is a 35% chance that BigBag will pay in full what it owes. Based on this information, what is the NPV to Crisps of offering credit to BigBag? $ Place your answer to the nearest dollar. Do not include a dollar sign or comma. 7) Crisps has received an order for 13000 bags of potato chips from BigBag. Crisps views BigBag to be a long-term customer and believes they will continue to place the same order year after year forever. Crisps sells its large bags of potato chips for $2.05 each, and calculates its internal cost for the product at $0.75 each. Market research estimates that there is a 32% chance that BigBag will pay in full what it owes. Crisps uses a discount rate of 6.95% for all NPV analysis. Based on this information, calculate the NPV of this credit decision? $ Place your answer to the nearest dollar. Do not use a Dollar sign or commas within your answer. 8) Ye Yuan is in retirement and is considering investing in one of the following two money market securities: A Bank CD offering a quoted yield of 7.05% A Massachusetts Municipal bond offering a quoted yield of 4.71% Ye pays federal tax at the rate of 26% and tax to the state of Massachusetts (his state residency) of 6%. Ye estimates that the Massachusetts municipal bond has a 1% chance of default, and that the bank CD has a 2% chance of default. Corporate Finance Homework Ch 17 \"Modern Corporate Finance\" Problems 1-19 Due 12/4/16 by 7PM Central Time (USA) Because the quoted yield is before tax and credit risk adjustments, Ye is interested in determining which of these two bonds is best. How much more (or less) in yield does the Bank CD offer after adjusting for tax and credit risk? If the believe that the CD is best, then enter the differential as a positive number. If you believe the municipal is best, then enter the differential as a negative number. Difference in yield = % Place your answer as a percent without the percentage sign. For example, if your answer is zero point six three percent, then enter your answer as 0.63 9) Ye Yuan is in retirement and is considering investing in one of the following two money market securities: A US Treasury Bill offering 6.83% A Massachusetts Municipal bond offering 4.65% Ye pays Federal tax at the rate of 32% and tax to the state of Massachusetts (his state residency) of 4%. Ye estimates that the US Treasury Bill has zero risk of default, and that the Massachusetts municipal bond has a 1% chance of default. Because the quoted yield is before tax and credit risk adjustments, Ye is interested in determining which of these two bonds is best. How much more (or less) in yield does the Treasury Bill offer after adjusting for tax and credit risk? If the believe that the Treasury Bill is best, then enter the differential as a positive number. If you believe the municipal is best, then enter the differential as a negative number. Difference in yield = % Place your answer as a percent without the percentage sign. For example, if your answer is zero point six three percent, then enter your answer as 0.63 10) Triumph Corporation extends credit to many of its customers, and sets the term of these credits at: 2/10; net/60 Corporate Finance Homework Ch 17 \"Modern Corporate Finance\" Problems 1-19 Due 12/4/16 by 7PM Central Time (USA) Triumph has noted that many of its credit customers choose not to take the discount, a concern of the company. Which of the following 6 choices would, by itself, result in more customers taking the discount? There may be more than one correct answer. To receive credit you must check all choices that apply - that is - check all choices that, by itself, would result in more customers taking the discount. 3/10 instead of 2/10 2/5 instead of 2/10 net/70 instead of net/60 net/50 instead of net/60 2/15 instead of 2/10 1/10 instead of 2/10Step by Step Solution
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