You are given the following quotes:

QUESTION 1

1. You are given the following quotes:

U.S. dollar/Mexican Peso = 0.0597

U.S. dollar/Singapore Dollar = 0.7329

U.S dollar/Chinese Yuan = 0.1355

What is the Mexican Peso/Singapore Dollar cross rate?

Enter your answer rounded off to FOUR decimal points.

QUESTION 3

1. ABC Company currently has a cash cycle of 233 days. The firm is considering making some changes as follows: (i) increase the inventory period by 22 days, (ii) increase the accounts receivable period by 43 days, and (iii) increase the accounts payable period by 89 days. Calculate the number of days in the new cash cycle after the above changes become effective?That is, what is the new cash cycle?

QUESTION 4

1. Identify which of the following will decrease the cash cycle. Choose only one.

		increase in inventory period
		increase in accounts payable turnover ratio
		increase in accounts receivable turnover ratio
		decrease in accounts payable period
		increase in accounts receivable period

QUESTION 6

1. ABC Company sells 2,693 chairs a year at an average price per chair of $128. The carrying cost per unit is $33.28. The company orders 322 chairs at a time and has a fixed order cost of $33.8 per order. The chairs are sold out before they are restocked. What are the total carrying costs?

Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

QUESTION 7

1. Annual demand 149,605 units

Carrying costs $3.39 per unit

Fixed Costs per order $6.1

Number of orders 26

What are the total costs?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

QUESTION 8

1. At the start of the day, the ledger balance and the available balance for ABC Company was $8,039. During the day, the firm wrote two checks in the amounts of $675 and $1,381. The firm deposited two checks: one check for $1,801 and another check for $1,049. What is the amount of the collection float as of the end of the day?

QUESTION 9

1. ABC Company has annual sales of $504,518. The cost of goods sold are $408,322. The firm has an accounts receivable balance of $11,167 and an accounts payable balance of $11,285. How many days does it take the firm to pay its suppliers? Assume 365 days.

Enter your answer rounded off to two decimal points.

QUESTION 10

1. ABC’s credit terms are 1/6, net 34. Based on experience, 44 percent of all customers take the discount. ABC has annual credit sales of $152,775. What is the average investment in accounts receivable as shown on the balance sheet?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.

QUESTION 11

1. ABC Company has an average collection period of 47 days and factors all of its receivables immediately at a 3.7 percent discount. Assume all accounts are collected in full. What is the firm's effective cost of borrowing?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

QUESTION 12

1. ABC Corp. currently has an inventory turnover of 9, a payables turnover of 6.64, and a receivables turnover of 8.34. How many days are in the cash cycle?

Enter your answer rounded off to two decimal points.

QUESTION 13

1. ABC’s last dividend paid was $7.67, its required return is 21%, its growth rate is 7%. What is ABC's expected stock price in 11 years?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 14

1. The terms of the sale were 1/19, net 25. What is the effective annual rate of interest?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

QUESTION 15

1. The spot rate for the pound is £0.6954 = $1 and the spot rate for the Canadian dollar is C$1.2391 = $1. What is the £/C$ cross rate?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

QUESTION 16

1. The exchange rates in New York for $1 are C$1.1764 and £0.7467. A dealer is offering the following quote: C$1 will buy £0.8649. What is the profit you can earn on $24,829 using triangle arbitrage?

Enter your answer round off two two decimal points.

QUESTION 17

1. A company sells 153,933 units per year. Fixed costs per order are $105 and carrying cost is $28 per unit per year. What is the Economic Order Quantity?

Enter your answer rounded off to two decimal points.

QUESTION 18

1. ABC’s next dividend is expected to be $7.52, its required return is 17%, its growth rate is 5%. What is ABC's expected stock price in 18 years?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 19

1. ABC Inc. just paid its first annual dividend of $1.28 a share. The firm plans to increase the dividend by 3.6 percent per year indefinitely. What is the firm’s cost of equity if the current stock price is $74.55 a share?

Enter your answer in percentages rounded off to two decimal points.

QUESTION 20

1. ABC Company has the following projected sales:

Month	Sales $
April	25,957
May	45,241
June	23,180
July	41,532

ABC collects 58 percent of its sales in the month of sale, 20 percent in the month following the month of sale, and another 3 percent in the second month following the month of sale. The remainder is bad debts and is not collected. What is the amount of the July collections?

Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 21

1. ABC Company writes 394 checks a day for an average amount of $697 each. These checks generally clear the bank in 4 days. In addition, the firm generally receives an average of $151,031 a day in checks that are deposited immediately. Deposited funds are available in 1 days. What is the firm's net float?

Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 23

1. The common stock of ABC Industries is valued at $58.12 a share. The company increases their dividend by 7.8 percent annually and expects their next dividend to be $6.85. What is the required rate of return on this stock?

Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.

QUESTION 24

1. Suppose that today's stock price is $32.3. If the required rate on equity is 18.4% and the growth rate is 9.9%, compute the expected dividend (i.e. compute D1)

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 25

1. ABC Company's last dividend was $3.7. The dividend growth rate is expected to be constant at 9% for 3 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (r_s) is 10%. What is its current stock price (i.e. solve for Po)?

Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 26

1. ABC Company has annual sales of $152,643 and cost of goods sold of $56,692. The average accounts receivable balance is $37,842. How many days on average does it take the firm to collect its accounts receivable? That is, what is the AR Period?

Assume 365 days.

Enter your answer rounded off to two decimal points

QUESTION 27

1. ABC Company has the following projected sales:

Month	Sales $
Jan	45,011
Feb	20,875
Mar	32,541
Apr	23,617

2.
25% of the sales are on cash and the remainder are on credit. Out of the credit sales, 59% are collected in the first month after sale, 13% are collected in the second month after sale, and the remainder are collected in the third month after sale. What is the amount of the April collections?

3. Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.

QUESTION 28

1. A company sells 132,760 units per year. Fixed costs per order are $158 and carrying cost is $36 per unit per year. If management uses an EOQ model, how many orders will it place per year?

Enter your answer rounded off to two decimal points.