Hedge Fund News

33 billion in hedge-fund property. Event driven hedge money in the Credit Suisse Tremont Index are up typically 12% in the 10 months through October. Fund managers such as Union Bancaire Privee have benefited from well-established hedge money reopening to new investments off their biggest clients as they see more opportunities. Hedge funds that take new capital are “not announcing to depend upon their re-opening, they like to take money from sources they trust and work well with,” Mr. Frog said.

90,000 on the line of credit for one calendar year? Learning Objective: 18-03 The essentials of short-term financial planning. 50,000 lines of credit with Uptown Bank or investment company. The credit line calls for an interest rate of 8 percent and a compensating balance of 4 percent. The compensating balance is based on the quantity borrowed and you will be held in an interest-free accounts. 35,000 for one year? Learning Objective: 18-03 The requirements of short-term financial planning. The Delta Fish Hatchery factors its accounts receivables at a 2 percent discount immediately. The average collection period is 34 days.

Assume that all accounts are collected in full. What is the effective annual interest rate on this agreement? Learning Objective: 18-03 The essentials of short-term financial planning. 250,000 credit line with an interest rate of 1 1.75 percent per quarter. The line of credit also requires that 1 percent of the unused part of the credit line be deposited in a non-interest bearing account as a compensating balance. Food Canning, Inc.’s short-term investments are paying 1.2 percent per one-fourth. What is the effective annual interest with this agreement, if the line of credit will go unused all yr? Assume any funds borrowed or invested use compound interest. Learning Objective: 18-03 The requirements of short-term financial planning.

  • Which is greater: 17% of 34 or 34% of 17
  • Level appealing rates
  • How many calls will be produced at different price levels
  • 2013 5 9.73% 10.31% 7.41% 2.90%
  • 2002 Economic and Population Data
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100,000 lines of credit with City Bank or investment company. The loan agreement requires that 2 percent of the unused portion of the line of credit to be transferred in a non-interest bearing account as a compensating balance. The interest on the borrowed money is 1.75 percent per quarter. The Sport Store’s short-term investments are paying 1.5 percent per one-fourth.

100,000 for just one year? Assume any funds borrowed or spent-use compound interest. Learning Objective: 18-03 The requirements of short-term financial planning. 40,000 credit lines with an intention rate of 1 1.75 percent per one-fourth. The loan contract also requires that 2 percent of the unused part of the line of credit to be transferred in a non-interest bearing accounts as a compensating balance. Your short-term investments are paying 0.20 percent per month. What is your effective annual interest rate with this arrangement if you don’t borrow any money on this line of credit during the year? Assume any funds lent or spent use compound interest. Learning Objective: 18-03 The essentials of short-term financial planning.

40,000 credit lines with an intention rate of just one 1.6 percent per quarter. The loan contract also requires that 3 percent of the unused portion of the line of credit to be transferred in a non-interest bearing account as a compensating balance. Short-term investments are currently paying 1.1 percent per quarter. 40,000 for just one year? Assume any funds borrowed or spent-use compound interest.

Learning Objective: 18-03 The requirements of short-term financial planning. 1,000 and is willing to borrow funds as needed to maintain that balance. Learning Objective: 18-03 The requirements of short-term financial planning. 900 are taken care of and requires that borrowing be utilized to maintain that balance. If funds have been borrowed, then she requires that those loans are repaid as extra funds are available soon. Learning Objective: 18-03 The requirements of short-term financial planning. Yr 274 that was used to cover your cash needs for the previous. 123, to any payment of principal or interest with this loan prior.

What is your expected loan balance at season end? Learning Objective: 18-03 The requirements of short-term financial planning. 2,000. The amount of money will the business have? Learning Objective: 18-03 The requirements of short-term financial planning. 200. Wake-Up has a 60-day collection period. What’s the amount of the accounts receivable balance by the end of Quarter 3? Learning Objective: 18-03 The requirements of short-term financial planning. How long is the cash routine? Learning Objective: 18-01 The operating and cash cycles and just why they are important. Your firm has an average collection period of 42 days. Current practice is to factor all receivables immediately at a 4-percent discount. Assume that default is improbable extremely. What’s the effective cost of borrowing?

One option is to arrange for the sale of the real property investment. The next option is for an exclusive real estate finance to leverage its real property investments. This option might not be particularly attractive or even available, based on the fund’s existing indebtedness and creditworthiness and if the fund’s real estate investments are already encumbered. Current market conditions also have made the availability of debt financing rather scarce in comparison to pre-financial problems market conditions. Additionally, each of the two options stated previously can adversely impact the performance and risk profile of the fund for each trader that will not withdraw.