Larger amounts of money invested in things like CDs (certificates of deposit) get a better rate of return. Suppose the rates of return depend on the amount invested as follows: Invested amount Rate of return 0-1,000,000 4% 1,000,000–3,000,000 5% >3,000,000 5.5% Three companies are going to form an investment partnership to pool their money. Suppose Company 1 will invest $1,800,000, company 2, $900,000, and company 3, $300,000. How should the net amount earned on the total investment be split among the three companies? Define an appropriate characteristic function. Find the core.

Consider a bank with the following balance sheet (M means million): (Image attached as Q3) If the interest rates go up by 1%, using the duration and convexity rule, determine the net worth of the bank and the equity to asset ratio. ALSO In above scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise? Attempted to create formula for first part - is it correct?

Hello I need help with a queshtion in cooperate fiance and i need a calucaltion to this step by step please and an explination    An all-equity firm expects its EBIT to be $330,000 every year, in perpetuity. Its cost of unleavened equity is 11.9%, its cost of debt is 5.4% and it faces a corporate tax rate of 22%. The firm plans to adjust its capital structure by issuing $500,000 in perpetual debt and using the proceeds to repurchase shares. Assume the EBIT is not affected by this recapitalization. What is the firm’s cost of levered equity after the recapitalization?

Use the same CMO as in the previous question and suppose that in month 10, the beginning balance on tranche A is $2,733,990.91 and the beginning balance on tranche B is X$3,000,000. How much cash flow do investors in tranche A receive in month 10? 4 Selected Answer: 191,554 BE O ENG 40 11:36 PM 11/15/2023

Consider a bank with the following balance sheet (M means million): (Image attached as Q3) If the interest rates go up by 1%, using the duration and convexity rule, determine the net worth of the bank and the equity to asset ratio. ALSO In above scenario, to maintain the equity to asset ratio at 40% which is required by the regulation, the bank decides to raise cash (zero duration and zero convexity) from the equity holders. How much cash does the bank need to raise?

Which of the following is a section of a cash flow statement? Select one: a.Fixed costs outflows b.Cash basis accounting systems c.Wage taxes d.EIN   Question 22 Question text If you invest $1,525,000 in a business and earn a return of $775,000, what is your ROI? Select one: a.42% b.45% c.51% d.1.96%   Question 23 Question text If Jacques invests $20,000 at 10% interest for 3 years, what will the future value of the money be? Select one: a.$26,620.00 b.$6620.00 c.$20,606.02 d.$26,000.00   Question 24 Question text Two common risks to cash flow stability are ________ and ________. Select one: a.credit squeeze; burn rate b.surplus inventory; pilferage c.burn rate; pilferage d.surplus inventory; credit squeeze   Question 25 Question text A suggested allowance for contingencies and emergencies at start-up is _____ of estimated start-up costs. Select one: a.5 percent b.10 percent c.25 percent d.40 percent

Baumol Model and Miller-Orr Model 3. Buccaneer, Inc., has determined that it needs $10 million in cash per week.                                     If Buccaneer needs additional cash, it can sell marketable securities, incurring a fee of $100 for each transaction.                                     If Buccaneer leaves funds in its marketable securities, it expects to earn approximately 0.2% per week on their investment.

REQUIRED Study the information given below and answer the following questions: 1. Calculate the Payback Period (expressed in years, months and days).    2. Calculate the Accounting Rate of Return on average investment (expressed to two decimal places).  3. Identify TWO (2) reasons why Umdloti Limited should not use the accounting rate of return to evaluate capital investments. 4. Calculate the Net Present Value.  5. Calculate the Internal Rate of Return (expressed to two decimal places) if the net cash flows are R320 000 per year for five years. Your answer must include two net present value calculations (using consecutive rates/percentages) and interpolation.

The management of Unter Corporation, an architectural design firm, is considering an investment with thefollowing cash flows:Year Investment Cash Inflow1 ......................... $15,000 $1,0002 ......................... $8,000 $2,0003 ......................... $2,5004 ......................... $4,0005 ......................... $5,0006 ......................... $6,0007 ......................... $5,0008 ......................... $4,0009 ......................... $3,00010 ......................... $2,000Required:1. Determine the payback period of the investment.2. Would the payback period be affected if the cash inflow in the last year were several timesas large?

You are an investor who wants to maximize your profits, and to avoid risks of loss, you have diversified your money by investing it in 5 different banks Banco Azteca, Banamex, Inbursa, Banorte and Santander. Each of the banks has created its investment funds also diversified in simple interest instruments (fixed term), compound interest (investment accounts), annuities (short-term payroll loans), bonds (cetes) and paper money (dollars). You decided to invest in: Banco Azteca $5000, Banamex $10000, Inbursa $7000, Banorte $8500 and Santander $20000. Leaving you with $3,700, of the sum of the remaining uninvested cash flow, for daily unforeseen events. Banks offer you the following investments that combine several investment instruments. Investment portfolios: You must create a combination of 3 of the 5 investment portfolios, which maximizes your investment in 2 years. What should those three portfolios be and how much should you invest in each of them?