What is FDI? A multinational brand Adidas. Analysis Adidas FDI's model and consequences.

Q: Slow​ 'n Steady,​ Inc., has a stock price of $31​, will pay a dividend next year of $3.30​, and…

A: Required return = (Dividend next year / Stock price) + Growth rate where, Dividend next year = $3.30…

Q: The current stock price is $50. The stock price can go up by 10% or go down by 10% in each month for…

A: A put option gives the buyer a choice but not the obligation to purchase the underlying assets at…

Q: Bianca & John saved a deposit for $500,000 to buy their first investment property with a market…

A: The amount invested is $500,000 Market value of property one year ago is $1,500,000. property…

Q: For two projects with the same cash flow amounts and timing, the greater the MAAR, the greater the…

A: Net present worth is computed using the concept of time value of money. Here future cash flows are…

Q: A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is u…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the…

A: Compounding and discounting method of time value of money is used to calculate the equated monthly…

Q: What caused the increase in liquidity ratios??

A: Given, In this question we are going to talk about the Concept of Liquidity ratios.

Q: 16 v in the amount of $ 1600 and will need to loan out reserves The Senators Bank is over-reserved…

A: Given, Demand deposits = 380,000 Target reserve ratio (TRR) = 10% Target reserves = Demand deposits…

Q: Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a…

A: Face value of bond = $1000 Years to maturity  = 10 Years Number of coupon payments = 10 Coupon rate…

Q: he percentage rounded to two decimal places, of the total payments made the first two years that…

A: Amortization Schedule: It is a schedule consisting of the loan periodic payments, interest…

Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 8%…

A: Sinking fund can be defined as the saving fund, in which, the business organizations tend to…

Q: A loan of $27900 is repaid by payments of $675 at the end of every quarter. Interest is 4%…

A: Given: Particulars Amount Loan(PV) $27,900 Payment(PMT) $675 Quarters 4 Interest rate 4%

Q: wo payments of $16,000 and $6,800 are due in 1 year and 2 years, respec alculate the two equal…

A: Present value of money would give the required money today that is equivalent to future payment to…

Q: What is the value of an investment of Php 3,500 after 2 years if it earns 1.5% compounded quarterly?

A: Using the Compound Interest Formula A=P1+rnnt where:  A = Accrued amount (principal + interest)P =…

Q: Assume the spot Swiss franc is $0.7085 and the six-month forward rate is $0.7120. What is the Value…

A: given that: spot rate=$0.7085 forward rate=$0.7120 then the spot rate =$14144.28 forward…

Q: 4. GN Power is a generating company and LANECO is a retailer. These two companies are negotiating a…

A: GN Power is a power generation company, and LANECO is a retail company. According to the information…

Q: A couple who wants to purchase a home with a price of $340,000 has $100,000 for a down payment. If…

A: Loan Amount (P)=340000- 100000=$240000 Rate of Interest (r)=6%=0.06 n=25 Years=300

Q: Suppose, spot Rate is $1 = Tk. 79.20 - 80.40 Calculate swap points for 3 months, when interest…

A: Swap Points: It is difference in interest rates  in between transaction currencies.

Q: 13. ABC manufacturing wants to purchase a new machine that is expected to save $12,000 in annual…

A: Discounted payback period is the period in which the initial cost of the project is recovered by…

Q: how do you determine if a stock has high or low or average risk when compared to the S&P 500?

A: In the world of investing and finance no two stocks are similar. Some stocks are riskier than the…

Q: Huai takes out a $3200 student loan at 6.7% to help him with 2 years of community college. After…

A: The act of repaying a loan, as well as the associated interest, is referred to as loan payback. In…

Q: Gas was 3.04 a gallon on Monday. On Wednesday, gas prices increased 6.5%. On Friday, prices…

A: The price of gas on Friday would be calculated as net change in gas price plus the original price

Q: QUESTION 3 You invest $1.000 in a bank term deposit today 0 but are planning md your money ane the…

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: Calculate the value of the stock when the next year earnings, E1 = 8.7, earnings growth multiplier,…

A: We need to use constant growth model to calculate value of stock P0 =D1/(rs-g) where P0 =value of…

Q: 1) Sabrina waits to start saving for retirement until age 35. If she saves the same $8000 each year…

A: Annual saving (P) = $8000 Period from 35th year to 65th year (n) = 30 Interest rate (r) = 7.00%

Q: Your company is considering a $1,200,000 capital project that will generate a before tax cash flow…

A: Project cost (C) = $1200000 After tax cash flow (A) = $400000(1 - 0.3) = $280000 n = 6 years r = 14%…

Q: the interest rate om 56,000 loan is 8.4% compounded semiannually. quarterly payments will years…

A: Given, PV = 56,000Interest= 8.4% Semiannually Compund frequency CY=2 Payment frequecy = PY = 4…

Q: a. Determine the interest rate if the money was compounded continuously. b. Determine the effective…

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: Which of the following should you focus when assessing the NPV of a project for a MNC? I.…

A: Net Present Value (NPV) is the technique of capital budgeting which defines the profitability of the…

Q: Asset allocation is the proportion of your overall investment portfolio that you have invested in…

A: As Sondra is willing to take small amout of risk, she is Moderate Risk taking Investor with time…

Q: A manager in a MNC should understand that appreciation in a firm's local currency causes a ____ in…

A: Local currency has direct relationship with cash flows.

Q: Find the length of the loan in months, if $500 is borrowed with an annual simple interest rate of 3%…

A: The length of the loan (Time) can be calculated with the help of simple interest rate function

Q: eBook Problem Waltk-Through Edelman Engines has $20 billion in total assets – of which cash and…

A: Data given: Book value of common equity = $ 6 billion No. of common stock outstanding = 300 million…

Q: Jean and Dan both work. Each earns a salary of $51,000, but only Jean is a member of a registered…

A: Given That: Jean and Dan Salary=$51000  Jean's Contribution to pension= 2% Dean's unused…

Q: Jane has $6000 invested at 7% and 8%. How many dollars would she have to invest at 8% so that her…

A: Here we will have to determine how much money has been invested in each so that total interest is…

Q: Suppose you purchase a 10-year bond with 6% annual coupons. You hold the bond for four years, and…

A: A bond is a debt issued by the company whereby it has to pay regular coupons to the investor and…

Q: Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this…

A: Amount needed initially at 10th year = P 5,000,000 Interest Rate = 15% Time Period = 10 years Extra…

Q: ________are used to measure the speed in which various accounts are converted into sales or cash.

A: Activity ratios are the metric used to measure how efficiently a company can use its assets. They…

Q: t the net cash flows below, what is the value of x if the rate of return is 1067 (select the losest…

A: Year Cash flow 0 -13000 1 -29000 2 -25000 3 X 4 -8000   Rate of return = 10%

Q: A _____ MNC usually enjoys ____ cost of capital. A. larger; higher B. larger; lower C. smaller;…

A: A larger MNC would usually enjoy a lower cost of capital. This is due to the fact that a large MNC…

Q: ABC Bank has a AAA-rated, 15-year zero-coupon bond with a face value of $400 million. The yield to…

A: Modified Duration of Zero coupon Bond = (Macaulay duration of bond) /( 1+ Yield) Macaulay duration…

Q: a. Compute the net present value of each opportunity. Which should Mr. Kearns adopt based on the net…

A: Net Present Value: Net present value is the profitability of a project in dollar terms. It is…

Q: he annual interest rate on the loan is

A: Interest Rate: It is the rate used to compute the finance charge paid by the borrower for taking a…

Q: A family of four has an income of $15,000 today and will earn $24,000 tomorrow. a. If the family…

A: Income =$15,000 today Income =$24,000 tomorrow. Time = 2 period

Q: Monetary policy in Australia is implemented by the Reserve Bank, and currently is principally…

A: The role of Reserve Bank of Australia is  : i) Formulation of monetary policy, and  ii)…

Q: If the interest rate is zero, the future value interest factor equals?

A: If the interest rate is zero, the future value interest factor =-1.0

Q: A stock currently trades at price of $ 65 for 2-year European option with a strike price of $60. The…

A:

Q: onsider Firm A and Firm B that both produce the same product. Firm A would more likely have more…

A: A firm that has higher proportion of its sales coming from various different countries is said to…

Q: A bank reports that the total amount of its net loans and leases outstanding is $936 million, its…

A: Financial risk is referred as the possibility of losing out the funds on the business venture or an…

Q: Mary set up a fund that would pay her family $3,000 at the beginning of every month, in perpetuity.…

A: PV perpetuity will be the will be the size of investment in the fund. PV of perpetuity =Periodic…

Goals and Objectives

A goal motivates a person to achieve a desired outcome using the available resources within a specified time limit. Having goals helps a person focus on a specific desire and directs them to achieve it. An objective is a specific action and a measurable process to achieve the desired goal. A goal needs a specific action plan, i.e., an objective, to be accomplished.