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Please write a report for the financial managers of Yum!Brands and Wal-Mart by responding to following tasks:
The current exchange rate is 1 U.S. dollar = 6.46RMB. Has the RMB appreciated or depreciated against the dollar?
What is meant by 'unbiased predictor' in terms of how the forward rate performs in estimating future spot exchange rates?
Why doesn't the rational efficient markets paradigm provide a satisfactory explanation for many foreign exchange market anomalies?
Who are the principal users of the forward market? What are their motives?
Currency exchange rates are affected by many factors. Determine the effect of the following factors on the rate of currency exchange between 2 countries:
Question 1. Why are interest rate swaps based upon the principle of comparative advantage?
What hurdle rate would you apply to the proposed investment under each of the following situations?
Problem: Economic and financial factors can affect the value of a country's currency in both the short-term and the long-term
What is the project's weighted average cost of capital? How does it compare with the parent's WACC?
Spartan Inc. is considering the development of a subsidiary in Singapore that could manufacture and sell tennis rackets locally. Various departments of Spartan
Memo on the differences between buying a call option, selling a call option, buying a put option, and selling a put option.
A foreign currency transaction can be denominated in one currency, yet measured in another.
Determine the current exchange rate of U.S. dollars to Mexican pesos, and U.S. dollars to British pounds.
What factors precisely determine the cost of capital for such investments
What amount of taxable income does GreenCo report on its U.S. tax return?
What are the two major segments of the foreign exchange market, and what types of foreign exchange instruments are traded within these markets?
Briefly discuss the history and purpose of the big Mac Index. where is it most expensive to buy a big Mac?
Is the FI exposed to an appreciation or depreciation of the U.S. dollar relative to the Brazillian real?
Problem: Discuss the concept of foreign exchange and why companies hedge certain transactions?
a) Calculate one yr interest rates in US and U.K b) Calculate & report 1 year forward discount (%) or premium (%) for BP
Compare the dollar costs of purchasing 10,000 shares, or its equivalent, in New York, London, and Paris.
Why might the IMF be called the "lender of last resort"? What are three of the tools they use for establishing economic stability in a country?
Question: When assessing the effects of the budget surplus, list the assumptions you are making.
Define the foreign exchange rate between two currencies. Explain its effect on business transactions conducted in a foreign currency.