Amflex Company Case Study

Q1: List the stakeholders involved and their influence. Identify any fundamentals of business or capitalism involved.

The Molex Corporation is an electronic connector manufacturing firm, which is based in Illinois. This company is facing a financial reporting problem in which the financial statements were overstated. Joe King ,the CEO of the company, was appointed in July of 2001, and was responsible for managing and inventory control, among other very important duties. Diane Bullock was hired in 2003, to replace the previous CFO. Both Bullock and King were being accused of what? by the external auditors, Deloitte & Touche, for not disclosing an 8 million pre-tax inventory valuation error.

Rate = Canadian rate Mexican pesos? Japanese Yen ? French Francs ?

26. A financial manager has detrermined that the appropriate rate discount for a foreign project is 17 percent. However, that discount rate applies in the United States using dollars. What discount rate should be used in the foreign country using the foreign currency? The inflation rate in the United States and in the foreign country is expected to be 3 percent and 8 percent, respectively.

10. Find the value of one U.S. dollar in a foreign currency. You might choose the Euro, the Japanese Yen, the Canadian dollar, or another currency. List the type of currency and the current value of the U.S. dollar in that country. (1.0 points) TIP: http://www.google.com/finance/converter is a good resource for foreign currency information.

So if you were using a yen/dollar quote for the exchange rate, you would have yen rate minus dollar rate divided by one plus dollar rate.

2. A principal-agent relationships involves the owners (principals) delegating decision-making authority to managers (agents). A conflict occurs when the agents pursue acceptable levels of shareholder wealth and profit rather than a maximization of profit. They are pursuing their own self-interests. One way that the agents act in their own self-interests would be by focusing on long-term job security. This could cause the agents to limit the amount of risk taken by the firm. The firm may have an opportunity that is considered a riskier venture that could produce high profits if successful. If the venture proves to be unsuccessful, then the agent is at risk of dismissal. Therefore,

The spending during the cold war for the united states fluctuated from 1946-1966 its highest year of spending was 1946 at $962.7 billion dollars. The United states was the undisputed leader of the system of trade and investment that amassed much of the globe in the 1950’s and 1960’s. While Washington provided aid to fellow economies in distress the united states dollar was holding invaluable monetary stability. The United States allies followed the United States.

An increase in the number of vacation days or limiting the hours worked in a week by the government may increase the quality of life by providing more leisure time. However, the overall quality of life would struggle because in this day and age one has to have money to have a good time. Recently after much debate, the French eliminated their 35-hour workweek limit with strong justifiable arguments by both parties. The law was first put in place in 2000 due impart to the unemployment rate that was around 10% at the time. Ideally with shorter workweeks companies would have to hire more employees to maintain current outputs. Although, in recent years it has become apparent that instead of lowering the unemployment rate, it has remained near

4. She must be determining to expand the channels and able to supply to all distributor who are willing to pay for the commodity depends on the quality requirements paid for. And no single entity

2. At the current spot rate (ask) of 236.90 this converts to $ $102,401,117.83 This is the present value of the yen cash flows at 7.1%. RJR’s dollar payments are then set at 10.92% of this value. These numbers are shown below:

3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.

• Borrow CAD 96 Million @ 2.70% p.a.• Buy USD @ CAD 1.5995 / USD• CAD 96 Million → USD 60,018,756• Deposit USD 60,018,756 @ 1.65% p.a.• Arranging six-month Forward Contracts @ USD 0.6271 / CAD

4.17 The direct spot quote for the Canadian dollar is $.76 and the 180-day forward rate is $.74. The difference between the two rates is likely to mean that

International Financial Management Trial Exam Closed Book Examination INCLUDEPICTURE uvafileserverjligter1DataOnderwijsInternational Financeif2008sbriederLocal SettingsTempRarDI04.890ABS-logo.gif MERGEFORMAT Closed Book Examination Answer as brief and concise as possible redundant or superfluous remarks may lead to a lower score. The maximum score per problem is given between parentheses. The maximum score of the whole exam is 100 points. QUESTION 1 - 20 points SHAPE MERGEFORMAT This graph depicts the REAL value of the broad index which is a weighted average of the foreign exchange values of the U.S. dollar against the currencies of a large group of major U.S. trading partners. a) Consider the following table of price levels,