Business, 27.03.2020 02:28 akiib

The firm will have a maximum of $2,500,000 available for investment during the coming year. In order to create a diverse portfolio, the credit union has established the following investment restrictions: • Risk free securities may not exceed 30% of the total funds invested but must comprise at least 5% of the total funds invested. • Signature loans may not exceed 12% of the funds invested in all loans (vehicle, consumer, other secured loans, and signature loans). • Consumer loans plus other secured loans may not exceed the vehicle loans. • Other secured loans plus signature loans may not exceed the funds invested in risk free securities. Formulate a linear programming model that will help the credit union decide on how best to allocate funds among each alternative to maximize annual returns. Keep in mind that the company does not have to invest the entire $2,500,000.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 09:40

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?

Answers: 1

Answer

Business, 22.06.2019 10:00

Your father offers you a choice of $120,000 in 11 years or $48,500 today. use appendix b as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. if money is discounted at 11 percent, what is the present value of the $120,000?

Answers: 3

Answer

Business, 22.06.2019 13:30

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Answers: 3

Answer

Business, 22.06.2019 14:30

Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.

Answers: 3

Answer

You know the right answer?

The firm will have a maximum of $2,500,000 available for investment during the coming year. In order...

Questions