Prof Script – Working Capital Management, International Finance, and Mergers and Acquisitions

  
Ch. 18: Questions 3 & 11 (Questions and Problems section)
1(3) Changes in the Operating Cycle [LO1] Indicate the effect that the following will have on the operating cycle. Use the letter I to indicate an increase, the letter D for a decrease, and the letter N for no change:
a. Average receivables goes up.
b. Credit repayment times for customers are increased.
c. Inventory turnover goes from 3 times to 6 times.
d. Payables turnover goes from 6 times to 11 times.
e. Receivables turnover goes from 7 times to 9 times.
f. Payments to suppliers are accelerated.
2(11) Calculating the Cash Budget [LO3] Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015:

Ch. 20: Questions 8 & 14 (Questions and Problems section)
3(8) Interpreting Miller–Orr Based on the Miller–Orr model, describe what will happen to the lower limit, the upper limit, and the spread (the distance between the two) if the variation in net cash flow grows. Give an intuitive explanation for why this happens. What happens if the variance drops to zero?
4(14) Credit Policy Evaluation [LO2] The Snedecker Corporation is considering a change in its cash-only policy. The new terms would be net one period. Based on the following information, determine if the company should proceed or not. Therequired return is 2.5 percent per period.

Don't use plagiarized sources. Get Your Custom Essay on
Prof Script – Working Capital Management, International Finance, and Mergers and Acquisitions
Just from $13/Page
Order Essay

Ch. 21: Questions 4 & 7 (Questions and Problems section)
5(4) Using Spot and Forward Exchange Rates [LO1] Suppose the spot exchange rate for the Canadian dollar is Can$1.09 and the six-month forward rate is Can$1.11.
a. Which is worth more, a U.S. dollar or a Canadian dollar?
b. Assuming absolute PPP holds, what is the cost in the  United States 
of an Elk head beer if the price in  Canada is Can$2.50? Why might the beer actually 
sell at a different price in the United States?
c. Is the U.S. dollar selling at a premium or a discount relative to the Canadian dollar?
d. Which currency is expected to appreciate in value?
e. Which country do you think has higher interest rates—the United States or Canada? Explain.
6(7) Interest Rates and Arbitrage [LO2] The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in the United States is .31 percent per month. The interest rate in Great Britain is .34 percent per month. The spot exchange rate is £.573, and the three-month forward rate is £.575. Ignoring transaction costs, in which country would the treasurer want to invest the company’s funds? Why?
Ch. 26: Questions 1 & 2 (Questions and Problems section): Microsoft® Excel® template provided for Problem 2
7(1) Calculating Synergy [LO3] Pearl, Inc., has offered $357 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $319 million as an independent operation. If the merger makes economicPage 888 sense for Pearl, what is the minimum estimated value of the synergistic benefits from the merger?
8(2) Balance Sheets for Mergers [LO2] Consider the following premerger information about Firm X and Firm Y: Assume that Firm X acquires Firm Y by paying cash for all the shares outstanding at a merger premium of $6 per share. Assuming that neither firm has any debt before or after the merger, construct the postmerger balance sheet for Firm X assuming the use of purchase accounting.

Answer each question in a 100+ word answer. 
9 (1)- Depending on the need that the purchase will be used for the company can determine whether to use long or short term loans. Its not only important so other creditors will know if you are credit worthy, but you wouldn’t want to misuse a type of lending. Imagine if you got a long term loan to pay for current needs, but had to pay it off over several years. It might make your payments lower, but would tie up long term loans. What are some of the other issues if you use the “wrong” type of loan?
10 (2)- A company might handle risks differently than any other company, which is fine since every company’s management and operations is different. It doesn’t make one manager right or wrong versus another. As a manager taking a job with a new company, how would you make sure to understand how the new company handles their risk management?
11(3)- How does a firm’s credit policy affect its sales, bad debts and accounts receivable?
12(4) – CAPM describes the relationship between the expected rates of return on risky assets in terms of their systematic risk. Its value depends on what things? And why are these things so important?
13(5) -CAPM states that the expected return equals the rate on a risk free security plus some type of risk premium. Is there some sort of threshold that must be met for a required return to determine if the investment is a good one or not? Is it a hard threshold and what is it?
14(6) – Describe interest rate parity and its effect on country currency rates?
   

My Essay Gram
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.

Live Chat+1(405) 367-3611Email