A beginning amount of $75,000 is invested in a money market account. At the beginning of each year a withdrawal of $7,073.07 is to be made to pay insurance premiums. The money market account pays an interest rate of 8%. How many withdrawals will this account support?

Consider a two-year currency swap, with semi-annual settlements. It is fixed dollar rate for fixed yen rate swap. The initial exchange rate is 99 Yen to the dollar. Notional principal is $100 million. The fixed dollar rate is 6%. The fixed yen rate is 2%. What happens on the last settlement date?

Which statement(s) is/are correct?
I). A value-maximizing firm will raise new capital in a manner consistent with their target capital structure.
II). WACC is based on market values of debt and equity if the target capital structure is unknown.
III). The WACC is the correct cost of capital to use in capital budgeting.

Which of the following statements related to the LIFO method of inventory valuation is false?

Company Z, a U.S.-based firm, enters into a currency swap. Under the terms of the swap, Company Z makes dollar-denominated payments and receives British pound-denominated payments. Company Z expects the pound-to-dollar exchange rate to increase (pound strengthens, dollar weakens). This will make the pounds received "more valuable" in terms of the dollars they will buy. This situation represents which of the following swap motivations?