Monetary exchange for the currency of another country ratio, is a kind of currency says another currency prices. 2. The factors which affect the exchange rate between American and Canada History data In the history from January 1990 to December 2007, the CAD/UAD seldom exceeds 0.95. So the spot exchange rates of 1.07 is extremely high, and according to the RBC’s predict, the tip point of the exchange rate is 1.08, leaving little room for increasing. Thus, it’s very reasonable to worry about the probable appreciation of USD.
A CASE STUDY Activity-based Costing and Pricing Submitted by: Maryland Tano August 24, 2011 Requirements: 1. Using direct labor-hours as the base for assigning manufacturing overhead cost to products, do the following: a. Determine the predetermined overhead rate that will be used during the year. Data given: * Estimated manufacturing overhead cost $ 2,200,000 * Direct labor hours 50,000 hours Answer: Predetermined overhead rate = $ 2,200,000 = $ 44 per DLHs 50,000 hrs b. Determine the unit product cost of one pound of the Kenya Dark coffee and one pound of the Viet Select coffee.
What is the expected dividend yield and expected capital gains yield? Explain the difference in the required return estimates from the ValueLine (see question 1a) to the WSJ price data. The company’s return on common stock using the constant growth model is 7.72%. The expected dividend yield is [pic]. The expected capital gains yield is the difference of the total yield, 7.72%, and the dividend yield of 2.22%, which give us 5.5% for the
In deciding how to account for an unusual or unique transaction for financial reporting purposes, should one consider the tax treatment applied to the transaction? 3. Did Peat Marwick have a right to change its position on the proper accounting treatment for the stock redemptions? What factor or factors may have been responsible for Peat Marwick’s decision to change its position regarding these transactions? Facts In 1983, GEICO announced plans to purchase several million shares of its outstanding common stock for $60 per share.
October 2006. Micro-Economic Analysis Division, June 8, 2008 <http://www.statcan.ca/english/research/11-624-MIE/11-624-MIE2006015.pdf.> 2. National Energy Program .The Canadian Encyclopedia . June 8, 2008. <http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=J1ARTJ0005618> Magazine 1.
According to relative PPP, what should happen over the year to the Swiss franc's exchange rate against the Russian ruble? According to Relative PPP rule, prices will adjust according to the inflation differential between Switzerland and Russia. The following equation then holds true %∆S=%∆P - %∆P* Where %∆S = Percentage change in exchange rate %∆P = Domestic Inflation rate (Russia) %∆P*= Foreign Inflation rate (Switzerland) Therefore, Percentage change in exchange rate of the Swiss franc to Russian ruble will be 198%, this shows that the Russian ruble will depreciate by 198% against the Swiss francs. Q5) The same burger is cheaper in China (14.5 yuan * $0.15 = $2.175 USD vs. $3.71USD). PPP indicates that the same product should have the same price (law of one price).
2. If Venerus implements the suggested methodology, what would be the range of discount rates that AES would use around the world? Use the information given for the 15 sample projects to answer this question. Based on the facts of 15 sample projects in different countries in the world, in order to calculate the range of discount rates around the world, we should find the highest and lowest WACC in 15 samples, which should be the WACC of USA and WACC of Argentina, because USA has the highest credit rating and Argentina has the lowest credit rating in 15 sample projects. First of all, We must find out the leveraged betas for Red Oak in USA and for Caracoles in Argentina using the equation in page 7: Leveraged beta=unleveraged beta/(E/V).
Margin of Safety (DOLLARS) Budgeted – break even = 100,000-62500= 37500 (Percentage) 37.500/100.000= 37.5% (Units) 37500/250= 150 3.Compute the company’s margin of safety in units assuming the proposal is accepted. Margin of Safety (Dollars) 137500-58929= 78571 (Units) 78571/275= 286 4. Compute the increase or decrease in profit assuming the proposal is accepted, show the contribution Income Statement for current and proposed. Present Proposed Sales 100,000 137500 Variable expense 64000 80000 CM 36000 57500 Fixed cost 22500 244750 Net income 13500 32750 difference: 19250 4a. What is the operating leverage for the current and proposed?
(TCO 7) The Federal Reserve could reduce the money supply by 34. (TCO 8) Which country is the United States' largest trading partner in terms of volume of trade? 35. (TCO 8) The principal concept behind comparative advantage is that a nation should 36. (TCO 8) A tariff is a 37.
FM421 – Applied Corporate Finance Case Study: Tottenham Hotspur plc 25th January 2013 201128545 201125438 201121479 201119785 201130179 201129057 1) Valuation based on Discounted Cash Flow In order to perform a DCF approach we first calculated the WACC and then the FCF. WACC WACC= rd(1-t)*[D/(D+E)] + re*[E/(D+E)] t = 35% (from the case, exhibit 1) rd= rf= 4.57% (exhibit 1, assuming β of debt = 0) Net Debt/EV=0.11 (EV = Market Value of Equity + Net Debt) re= rf+βe*(rm-rf)= 4.57%+ 1.29*5%=11.02 (under CAPM assumptions) [E/(D+E)]= 1-0.12=0.88 WACC= (0.0457)*(1-0.35)*0.11 + (0.1102)*0.89= 10.12% Free Cash Flow FCF= EBIT(1-t) – CAPEX – ΔNWC + Depreciation As EBIT and tax rate are given we have to calculate the ΔNWC. ΔNWC=Inventory + A/R – A/P As accounts receivable and payable are sensitive to sales changes, we assume that A/P and A/R change but their ratio to sales remains constant over time. We assume the same for the ratio of inventory/merchandise sales. (A/P)/Sales= 19.99/74.1 = 0.26977058 (A/R)/Sales= 64.4/74.1 = 0.869095816 Inventory/Merchandise sales= 1.17/5.2=0.225 We then multiplied the ratios for the equivalent factors (sales and merchandise sales) on the pro-forma balance sheet for the years between 2008 and 2020 and found the ΔNWC for every year.