There are multiple questions bolded numbered 1-11 ALL QUESTIONS 1-11

1)Austin Grocers recently reported the following 2021 income statement (in millions of dollars):

	Sales	$700
	Operating costs including depreciation	500
	EBIT	$200
	Interest	40
	EBT	$160
	Taxes (25%)	40
	Net income	$120
	Dividends	$40
	Addition to retained earnings	$80

For the coming year, the company is forecasting a 15% increase in sales, and it expects that its year-end operating costs, including depreciation, will equal 70% of sales. Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant.

1. What is Austin's projected 2022 net income? Enter your answer in millions. For example, an answer of $13,000,000 should be entered as 13. Do not round intermediate calculations. Round your answer to two decimal places. $ million
2. What is the expected growth rate in Austin's dividends? Do not round intermediate calculations. Round your answer to two decimal places. %

2) Suppose 90-day investments in Britain have a 6.60% annualized return and a 1.65% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 4.00% annualized return and a 1.00% quarterly (90-day) return. In the 90-day forward market, 1 British pound equals $1.31. If interest rate parity holds, what is the spot exchange rate ($/)? Do not round the intermediate calculations and round the final answer to four decimal places.

3) Suppose 112 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 13.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?

4) A currency trader observes the following quotes in the spot market:

1 U.S. dollar =	20.00	Mexican pesos
1 British pound =	8.65	Danish krone
1 British pound =	1.38	U.S. dollars

Given this information, how many Mexican pesos (Mex$) can be purchased for 1 Danish krone?

5) Which of the following statements is NOT CORRECT?

a. Foreign bonds and Eurobonds are two important types of international bonds.

b. A Eurodollar is a U.S. dollar deposited in a bank outside the U.S.

c. Any bond sold outside the country of the borrower is called an international bond.

d. Foreign bonds are bonds sold by a foreign borrower but denominated in the currency of the country in which the issue is sold.

e. The term Eurobond applies only to foreign bonds denominated in U.S. currency.

6) A box of candy costs 29.10 Swiss francs (CHF) in Switzerland and $33.10 in the United States. Assuming that purchasing power parity (PPP) holds, how many Swiss francs are required to purchase one U.S. dollar? Do not round the intermediate calculations and round the final answer to four decimal places.

7) A box of candy costs 28.80 Swiss francs (CHF) in Switzerland and $32.30 in the United States. Assuming that purchasing power parity (PPP) holds, how many Swiss francs are required to purchase one U.S. dollar? Do not round the intermediate calculations and round the final answer to four decimal places.

8) Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,680.54, with a maturity value of $10,000.00. The exchange rate at that time was 0.918 Swiss francs (CHF) per dollar. Today, at maturity, the exchange rate is 0.942 Swiss francs per dollar. What is the annualized rate of return to the Swiss investor? Do not round the intermediate calculations and round the final answer to two decimal places.

9)Last year Wei Guan Inc. had $635 million of sales, and it had $210 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets? Do not round intermediate calculations.

10) Last year Emery Industries had $440 million of sales and $220 million of fixed assets, so its Fixed Assets/Sales ratio was 50%. However, its fixed assets were used at only 60% of capacity. If the company had been able to sell off enough of its fixed assets at book value so that it was operating at full capacity, with sales held constant at $440 million, how much cash (in millions) would it have generated?

11)Last year Godinho Corp. had $420.0 million of sales, and it had $75.0 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company had operated at full capacity?