Problem 18.01 – Changes in the Cash Account
Fundamentals of Corporate Finance
Ross, Westerfield, and Jordan
13th Edition
Determine the impact of corporate actions using I (increase), D (decrease), or N (no change).
Determine the impact of corporate actions using I (increase), D (decrease), or N (no change).
How many Polish zloty can you get? Compare the euro and the dollar, which is worth more? Convert millions of euros to dollars given the exchange rates in the table. Compare the New Zealand dollar to Singapore dollar. Compare the Mexican peso to the Chilean peso. What do you call the rate?
Your numbers will vary.
Given equity value, long-term debt, net working capital, fixed assets, and current liabilities… find the amount of cash the company has along with the current assets.
Your numbers will vary.
Using a grid of exchange rates between the British pound, you are asked to compare the two, which would you rather have, and compute the cross rate twice.
Your numbers will vary.
Determine the effect the scenario will have on the operating cycle using I (increase), D (decrease), and N (no change).
Determine which is more valuable, the U.S. dollar or the Canadian dollar, then if PPP holds, determine the price of beer in Canada. Finally, determine the forward premium or discount relative to the Canadian dollar and determine which country would have higher interest rates.
Your numbers will vary.
Determine the effect the scenario will have on the cash and operating cycles using I (increase), D (decrease), and N (no change).
Compute the cross-rate in terms of yen per pound and then determine the arbitrage profits possible.
Your numbers will vary.
Given the financial statement for the corporation… figure out the operating and cash cycles.
Your numbers will vary.
Determine the risk-free rate in Australia, Japan, and Great Britain assuming interest rate parity holds.
Your numbers will vary.