25
What are the total costs?
11. Suppose that today’s stock price is $32.36. If the required rate on equity is 21.7% and the growth rate is 9.1%, compute the expected dividend (i.e. compute D1)
12. The exchange rates in New Yorkare:$.2538and$1=£0.612 A dealer is offering aquote_AUD1= £0.896. What is the profit you can earn on$23,757using triangle arbitrage?
4. The terms of the sale were 2/5, net 41. What is the effective annual rate of interest?
18. ABC Corp. currently has an inventory turnover of 10, a payables turnover of 7.18, and a receivables turnover of 14.6. How many days are in the operating cycle?
21. ABC Company writes30checks a day for an average amount of$793each.These checks generally clear the bank in6days.In addition, the firm generally receives an average of$8,225a day in checks that are deposited immediately. Deposited funds are available in2days.Whatis the firm’s netfloat?
