International Finance

If the company did go public, its share price should be $384.37 for per share with the rapid growth scenario.

The stock market has increased from 1.896 in ’86 to 4.789 in ’95 thus creating an incentive for DLJ to offer an IPO. Strategy involved being the IPO allowed employees to exchange their compensation plans for shares and options in DLJ thus giving them an incentive to stay with the company. There were also many advantages and disadvantages related to DLJ going public. Advantages included DLJ increasing liquidity and allowing founders to harvest their wealth, permitting founders to diversify, facilitated raising new corporate cash, established value for the firm, and increasing the potential markets. Disadvantages included the cost of reporting, new disclosure requirements, self-dealings, a possibility of inactive markets reducing price, the firm losing some of its control, and a higher degree of investor relations had to be maintained.

In 1853, first association of professional accountants, it also can be regarded as the beginning of the modern accounting profession. The UK accounting system is conducive to a principles-based approach rather than a rules-based approach to standard setting. Furthermore, the UK 's politic system is common law, which shows that accounting system in the UK has relatively fewer statutes, more interpretation and tends to be more flexible, adaptive and innovative, etc. Also, taxation does not have influence on accounting system, but Germany and Japan are in opposite Therefore, these all can have a significant influence on accounting system in the UK.

a) How many shares will the firm have to issue, assuming they issue the new shares at the current price per share?

· What happens when there is a surplus of imports brought into the U.S.? Cite a specific example of a product with an import surplus, and the impact that has on the U.S. businesses and consumers involved. When there is a surplus of imports brought into the U.S. it means that the price of the product(s) will drop. U.S. companies that are competing with the Chinese made products will suffer from price drops of the goods. With consumers it will benefits the consumer with the lower price on goods. Large screen LCD/HDTV is a good example. Since the recession there has been a surplus of large screen HDTV. Not many people can afford or buy them since the prices were high. Now large screen LCD/HDTV is much cheaper than what it was 4 years ago.

Next, the United State firms find it harder to compete in foreign market. When the US dollar strengthens, foreign trade partners will have to pay more euros and pounds in order to make up for the appreciated dollar when they import from the Unites State. The increase in dollar will eventually decline the demand as American made goods become less attractive to buy at the consumer level in foreign country. This is because the United State has to compete with lower price foreign goods. This slump in demand will ultimately translate into thinner profit margins of manufacturers and producers in the United State, reducing expansion potential in the country. The result in the longer term will be slower growth even as the United State consumers up their near term standard of living. Besides, foreign tourists find it more expensive to visit the United State. For example, I’m a Malaysian. If I wanted to exchange money to have a vacation at either the United State of America or Australia, I have to compare the exchange rate. In the past, exchange rate between Australia Dollars(AU) and Malaysia Ringgits(RM) was RM 2.8 per AU while exchange rate between the United State

C. Security returns are about as equally correlated across countries as they are within a county

A weak dollar, on the surface sounds negative. When the U.S. dollar is weak, it depreciates in value and less foreign currency can be purchased (Wolla, 2015). As the dollar loses value compared to other foreign currency, exports become more attractive to foreign countries. The foreign countries are able to buy additional U.S products and exports increase. Alternatively, imports to the United States are reduced as the weak dollar makes foreign prices for goods increase. Although this is a positive impact for U.S. companies who compete on imported items (Wolla, 2015). When the dollar is weak, U.S. exporters and competitors for foreign imports benefit (Wolla,

Moreover, the company has 8.5 million shares outstanding and the current market price is $24.84 per share. So;

- For the foreign producers, when their currency weakens, production becomes cheaper (especially if they have currency reserves in dollars), and their sales go up, since the weaker currency is more attractive to foreign buyers.

We note that the company’s previous stock repurchases and its plans to continue with the said program effectively signals to the market that the management feels that its stock is underpriced and that it has a positive outlook on the stock’s future performance. Adding to this the company’s relatively low leverage position and a strong A+ rating, which is the highest in the

In September of 2014, there was America’s first diagnosis of Ebola in Texas, spiking alarm throughout the country. Many people were afraid they would get Ebola, and some people even decided to take extreme precaution. That’s where Lakeland Industries comes into the picture. Because of the large amounts of hazmat suits being bought from Lakeland, the stock price began to increase. The price of the stock started at $3.62, but boosted up to $15.32, about a thirty percent gain that shows just how much of an affect the Ebola scare had on the stock price. Before, the price of Lakeland Industries had been consistently low, ranging from $5 to $7, but as people became more aware of the threat of Ebola going into October the stock price got all the way up to $29. This spike in price increase isn’t caused by just the company itself, but the fear of Ebola in investors. This is shown by the price of Lakeland Industries hitting “a high of $29 earlier in the month before quickly crashing below the $15 level” after people realized that Ebola would not affect them and the need for hazmat suits quickly diminished. Because of the Ebola scare, the stock price of Lakeland Industries surged, but it would not last because of the people understanding that the likeliness of an Ebola outbreak is slim. This event is the foremost reason for the price of Lakeland Industries’ (LAKE) quick rise to the top.

With the recent election of Donald J. Trump as president of the United States has also come with it changes in the stock market. One stock in particular that has benefited from this result is Caterpillar. Many of the plains outlined in Trumps campaign included improvements to infrastructure, less regulations on mining and energy production, and the wall that is said to be constructed along the U.S Mexico border. This has caused an increased interest in this company as its products or products similar to these products will be required in the construction of these projects. In anticipation for these projects investors have responded by purchasing Caterpillar stock. It appears as though investors believe that it is indeed a good time to own stock

The outlook for the company is strong; it holds a majority of the market share for the entire country as well as the economies of scale to keep it. There is room

FOREIGN BRANCHES – These are operating banks and are subject to local banking rules and the rules at home. These branches most of the time offer quality services and safety that are provided by a large bank to the customers in small countries.