PLEASE SHOW ALL WORKING AND FORMULAS ON EXCEL SO THAT I CAN STUDY THE FORMULAS

17-5.Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc appreciates 10%

against the dollar, how many francs would a dollar buy tomorrow?

17-6.Suppose the exchange rate between U.S. dollars and the Swiss franc is SFr1.6 = $1 and the

exchange rate between the dollar and the British pound is 1 = $1.50. What then is the

cross rate between francs and pounds?

17-7.Assume that interest rate parity holds. In both the spot market and the 90-day forward

market, 1 Japanese yen equals 0.0086 dollar. In Japan, 90-day risk-free securities yield

4.6%. What is the yield on 90-day risk-free securities in the United States?

17-8.In the spot market, 7.8 pesos can be exchanged for 1 U.S. dollar. A pair of headphones

costs $15 in the United States. If purchasing power parity holds, what should be the price

of the same headphones in Mexico?

17-11.Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million

francs at today's spot rate. The firm's financial manager, James Desreumaux, has noted

the following current spot and forward rates:

U.S. Dollar/Swiss Franc Swiss Franc/U.S. Dollar

Spot 1.6590 0.6028

30-day forward 1.6540 0.6046

90-day forward 1.6460 0.6075

180-day forward 1.6400 0.6098

28-1. The Gentry Garden Center sells 90,000 bags of lawn fertilizer annually. The optimal safety stock (which is on hand initially) is 1,000 bags. Each bag costs the firm $1.50, inventory carrying costs are 20%, and the cost of placing an order with its supplier is $15. a. What is the Economic Ordering Quantity? b. What is the maximum inventory of fertilizer? c. What will be the firm's average inventory? d. How often must the company order?

28-2.Barenbaum Industries projects that cash outlays of $4.5 million will occur uniformly throughout the year. Barenbaum plans to meet its cash requirements by periodically selling marketable securities from its portfolio. The firm's marketable securities are invested to earn 12%, and the cost per transaction of converting securities to cash is $27. a. Use the Baumol model to determine the optimal transaction size for transfers from marketable securities to cash. b. What will be Barenbaum's average cash balance? c. How many transfers per year will be required? d. What will be Barenbaum's total annual cost of maintaining cash balances? What would the total cost be if the company maintained an average cash balance of $50,000 or of $0 (it deposits funds daily to meet cash requirements)?

18-1. Define each of the following terms:

a. Going public; new issue market; initial public offering (IPO)

b. Public offering; private placement

c. Venture capitalists; roadshow; spread

d. Securities and Exchange Commission (SEC); registration statement; shelf

registration; margin requirement; insiders

e. Prospectus; "red herring" prospectus

f. National Association of Securities Dealers (NASD)

g. Best efforts arrangement; underwritten arrangement

h. Refunding; project financing; securitization; maturity matching