1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Masteriza [31]
3 years ago
7

1. Assume that Walmart can borrow at yield of 5% in USD (5-year, zero coupon debt, issued in the US), before issuance costs. Alt

ernatively, they could issue the same debt denominated in EUR in the eurobond market at a yield of 5.25%. Unfortunately, issuance costs are 3% for EUR debt but only 2% for USD debt. Assume also that annualized risk-free, zero coupon rates for 5 years are 4% USD, 4.5% EUR. Assume covered interest parity holds. a. What are the all-in costs of the two debt issues, assuming Walmart hedges their exchange rate exposure in the forward market? (Note that the AIC of the EUR debt does not depend directly on the spot or forward exchange rates, but only on the ratio.) b. Ignoring issuance costs, at what EUR yield would the cost of EUR debt equal that of USD debt (i.e., 5%), again assuming Walmart hedges the exchange rate risk? c. What are the multiplicative credit spreads in the USD and EUR markets at these yields?
Business
1 answer:
Agata [3.3K]3 years ago
6 0

Answer:

it wold be cheap because walmart is cheap and by the way does walmart have toilet paper yet i havent gone so i dont know

Explanation:

You might be interested in
The marketing manager for Mountain Mist soda needs to decide how many TV spots and magazine ads to run during the next quarter.
spayn [35]

Answer: The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

Explanation:

Let us assume;

A be the no. of T.V spots

B be the no. of magazine spots

Given:

(a.) Mountain Mist earns a profit margin of $1.80 on each case of soda that it sells.

(b.) Each TV spot costs $7000 and is expected to increase sales by 420,000 cases.

(c.) Each magazine ad costs $2500 and is expected to increase sales by 500,000 cases.

∴ The objective function of this model will be given as :

max: 1.180( 420000 A + 500000 B )

(d.) A total of $100,000 may be spent on TV and magazine ads combined.

(e.) Mountain mist wants to spend no more than $70,000 on TV spots and no more than $50,000 on magazine ads.

∴ The subjective function will be :

(a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

∴ The LP model is given as :

max: 1.180( 420000 A + 500000 B )

subject to : (a.) 7000 A + 2500 B ≤ 100000

(b.) 7000 A ≤ 70000

(c.) 2500 B ≤ 50000

4 0
3 years ago
What is opportunity cost?
Sliva [168]
The answer would be B
8 0
3 years ago
Read the description of following adjustments that are required at the end of the accounting period for Paulo Consulting Service
exis [7]

Answer:

A. Equipment was purchased on January 1, 2019, for $49,770 and has an estimated useful life of 5 years with a salvage value of 4,270.

Depreciation is computed using the straight-line method.

depreciation expense per year = ($49,770 - $4,270) / 5 years = $9,100

depreciation expense per month = $9,100 / 12 = $758.33

January 31, 2019, depreciation expense

Dr Depreciation expense 758.33

    Cr Accumulated depreciation - equipment 758.33

B. Signed a 5-month contract for $5,490 of prepaid advertising on January 1, 2019.

advertising expense per month = $5,490 / 5 = $1,098

January 31, 2019, advertising expense

Dr Advertising expense 1,098

    Cr Prepaid advertising 1,098

C. Prepaid rent for the year on January 1, 2019, in the amount of 22,560.

rent expense per year = $22,560 / 12 = $1,880

January 31, 2019, rent expense

Dr Rent expense 1,880

    Cr Prepaid rent 1,880

D. Purchased supplies for $4,200 on January 1, 2019. Inventory of supplies was $2,850 on January 31, 2019.

supplies expense = $4,200 - $2,850 = $1,350

January 31, 2019, supplies expense

Dr Supplies expense 1,350

    Cr Supplies 1,350

8 0
3 years ago
Student tuition at ABC University is $250 per semester credit hour. The state supplements school revenue by matching student tui
Alex787 [66]

Answer:

2.46

Explanation:

Given:

Student tuition at ABC University per semester credit hour = $250

Average class size = 30

Labor costs per class = $3,000

materials costs per student per class = $10

overhead costs per class = $15,000

a) Now,

The multifactor productivity ratio = \frac{\textup{Output}}{\textup{Input}}

also,

Input = Labor costs + Total materials costs + Total overhead costs

or

Input = $3,000 + ( $10 × 30 ) + $15,000 = $18,300

And,

Output

= Average class size × credit hour × ( Student tuition + state supplements )

= 30 × 3 × ( $250 + $250)

= $45,000

Therefore,

The multifactor productivity ratio = \frac{\textup{45,000}}{\textup{18,300}}

= 2.46

8 0
3 years ago
U.S. Exports are​ _____ produced in​ _____ and sold in​ _____.
WARRIOR [948]

Answer:

D. goods but not​ services; any other​ country; the United States

Let me know if I was wrong

Click the Thanks button if I was right.

<Jayla>

7 0
3 years ago
Other questions:
  • Exists when the entire supply of a good is controlled by a single seller
    7·1 answer
  • Sunland Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable
    11·1 answer
  • To find all mentions of your competitor's branded hashtag within a given radius of a store you've opened up in a new city, you s
    14·1 answer
  • Georgina is the owner of a company called piquant (which means having a pleasantly sharp taste or appetizing flavor). she was lo
    11·1 answer
  • The following information is from the materials requisitions and time tickets for Job 9-1005 completed by Great Bay Boats. The r
    13·1 answer
  • 6. Commercial banks create money by
    13·2 answers
  • Why do lenders often require a down payment when credit is used to purchase a good?
    14·1 answer
  • Swifty Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $26 per year. During Nov
    12·1 answer
  • Need help please????!!!!!!
    13·1 answer
  • Allan borrowed $4200 from his father to buy a car. He repaid him after 4 months with interest of 7% per year. Find the total amo
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!