QUESTION 2 What is the incremental cash flow for 2016 from the standpoint of Ugly Shirt's subsidiary in Hampton Court, Surrey, England? a. Less than 300,000 b. 300,000-400,000 C. 400,000-500,000 d. 500,000-600,000 e. More than 600,000 QUESTION 1 Should Ugly Shirt replace its machinery? a. No, because the decision has a negative NPV from the point of view of the U.K. subsidiary. Ob. No, because the decision has a negative NPV from the point of view of the U.S. parent. OC. Yes, because the decision has a positive NPV from the point of view of the U.K. subsidiary. d. Yes, because the decision has a positive NPV from the point of view of the U.S. parent. U UI, U ILGU M courses.purdue tips you ourd Location for Midterm ton. httpswimycourses purdue M samycorespun BONDS - HIGH YIELD & EMERGING MARKET Bid yield Day's Mth's Spre chge chge yield yield L 4.62 -0.06 0.79 3.9 12.54 0.04 5.05 12.6 Red Ratings Bid Dec 31 date Coupon S* M* F* price High Yield US$ Bertin 10/16 10.25 BB Ba3 0 ,109.34 High Yield Euro Kazkommerts Int 02/17 6.88 B Caal B 90.00 Emerging US$ Bulgaria 01/15 8.25 BB+ Baa2 BBB- 100.10 Peru 02/15 9.88 BBB+ A3 BBB+ 100.74 Brazil 03/15 7.88 BBB- Baa2 BBB 101.33 Mexico 09/16 11.38 BBB+ A3 BBB+ 117.63 Philippines 01/199.88 BBB Baa2 BBB- 130.56 Brazil 01/20 12.75 BBB- Baa2 BBB 144.00 Colombia 02/20 11.75 BBB Baa2 BBB 140.24 4.32 0.93 0.04 0.86 1.94 3.20 3.19 0.13 2.15 -0.04 1.54 -1.08 -0.52 -0.12 -0.04 -0.02 -0.14 -0.02 0.21 -0.01 0.26 4.35 0.89 -0.01 0.19 0.28 1.55 1.52 ID Tole Test: 2 by 11.50p h pmycorespunde courses 01720 02/20 03/30 08/31 02/37 12.75 BBB- Baa2 BBB 144.00 11.75 BBB Baa2 BBB 140.24 7.50 BBB- Baa2 BBB 103.25 8.30 BBB+ A3 BBB+ 149.33 6.63 BB+ Baa3 BBB- 116.91 3.20 3.19 6.72 4.16 5.32 -0.02 0.21 1.55 -0.01 0.26 1.52 0.26 1.405.07 -0.05 -0.03 1.99 0.01 0.14 2.57 Brazil Colombia Russia Mexico Indonesia Emerging Euro Brazil Poland Turkey Mexico 02/15 02/16 03/16 02/20 7.38 BBB- Baa2 BBB 100.31 3.63 A- A2 A- 103.50 5.00 NR Baa3 BBB- 104.90 5.50 BBB+ A3 BBB+ 119.77 3.62 0.14 2.36 0.35 -0.22 -0.10 0.71 -0.25 -0.28 1.46 -0.06 0.06 3.82 0.43 0.78 1.45 US $ denominated bonds NY close; all other London close. *S - Standard & Poor's, M- Moody's. F - Fitch. Source: Thomson Reuters QUESTION 2 What is the incremental cash flow for 2016 from the standpoint of Ugly Shirt's subsidiary in Hampton Court, Surrey, England? a. Less than 300,000 b. 300,000-400,000 C. 400,000-500,000 d. 500,000-600,000 e. More than 600,000 QUESTION 1 Should Ugly Shirt replace its machinery? a. No, because the decision has a negative NPV from the point of view of the U.K. subsidiary. Ob. No, because the decision has a negative NPV from the point of view of the U.S. parent. OC. Yes, because the decision has a positive NPV from the point of view of the U.K. subsidiary. d. Yes, because the decision has a positive NPV from the point of view of the U.S. parent. U UI, U ILGU M courses.purdue tips you ourd Location for Midterm ton. httpswimycourses purdue M samycorespun BONDS - HIGH YIELD & EMERGING MARKET Bid yield Day's Mth's Spre chge chge yield yield L 4.62 -0.06 0.79 3.9 12.54 0.04 5.05 12.6 Red Ratings Bid Dec 31 date Coupon S* M* F* price High Yield US$ Bertin 10/16 10.25 BB Ba3 0 ,109.34 High Yield Euro Kazkommerts Int 02/17 6.88 B Caal B 90.00 Emerging US$ Bulgaria 01/15 8.25 BB+ Baa2 BBB- 100.10 Peru 02/15 9.88 BBB+ A3 BBB+ 100.74 Brazil 03/15 7.88 BBB- Baa2 BBB 101.33 Mexico 09/16 11.38 BBB+ A3 BBB+ 117.63 Philippines 01/199.88 BBB Baa2 BBB- 130.56 Brazil 01/20 12.75 BBB- Baa2 BBB 144.00 Colombia 02/20 11.75 BBB Baa2 BBB 140.24 4.32 0.93 0.04 0.86 1.94 3.20 3.19 0.13 2.15 -0.04 1.54 -1.08 -0.52 -0.12 -0.04 -0.02 -0.14 -0.02 0.21 -0.01 0.26 4.35 0.89 -0.01 0.19 0.28 1.55 1.52 ID Tole Test: 2 by 11.50p h pmycorespunde courses 01720 02/20 03/30 08/31 02/37 12.75 BBB- Baa2 BBB 144.00 11.75 BBB Baa2 BBB 140.24 7.50 BBB- Baa2 BBB 103.25 8.30 BBB+ A3 BBB+ 149.33 6.63 BB+ Baa3 BBB- 116.91 3.20 3.19 6.72 4.16 5.32 -0.02 0.21 1.55 -0.01 0.26 1.52 0.26 1.405.07 -0.05 -0.03 1.99 0.01 0.14 2.57 Brazil Colombia Russia Mexico Indonesia Emerging Euro Brazil Poland Turkey Mexico 02/15 02/16 03/16 02/20 7.38 BBB- Baa2 BBB 100.31 3.63 A- A2 A- 103.50 5.00 NR Baa3 BBB- 104.90 5.50 BBB+ A3 BBB+ 119.77 3.62 0.14 2.36 0.35 -0.22 -0.10 0.71 -0.25 -0.28 1.46 -0.06 0.06 3.82 0.43 0.78 1.45 US $ denominated bonds NY close; all other London close. *S - Standard & Poor's, M- Moody's. F - Fitch. Source: Thomson Reuters