INTERNATIONAL ACCOUNTING
5th Edition
ISBN: 9781260918281
Author: Doupnik
Publisher: MCG
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Question
Chapter 1, Problem 2C
To determine
Explain the reasons because of which an investor might want to invest in an international growth fund.
To determine
Explain the risks associated with investment in an international growth fund, risks that are common to domestic and international funds and risks associated with international funds.
To determine
Explain the manner in which companies having a different auditing, accounting and financial reporting standards than that of domestic companies, impose a larger risk.
To determine
Analyze the region diversification of fund assets.
To determine
Analyze the country diversification of fund assets.
To determine
Analyze the sector diversification of fund assets.
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The mutual funds Division has allocated $5.0M and is currently looking for investment opportunities to invest these funds, The financial analyst suggested that all new investments be made in the oil industry, steel industry or in government bonds. The analyst identified five investment opportunities:two from the oil industry, two from the steel and government bonds.
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ABC oil
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Government Bonds
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For the mutual Funds Division :a) Generate the objective function b) Generate the budget constraint c) The amount invested in oil should be at least three times the amount invested in the steel industry d) The investment in ABC oil cannot be more than 50 % of total oil industry e) The investment in TNT steel should be at most 40 % of the total investment in Government Bond f) The investment in XYZ oil should be at least 20 % of the total funds available but no more than 40%of total…
The mutual funds Division has allocated $5.0M and is currently looking for investment opportunities to invest these funds, The financial analyst suggested that all new investments be made in the oil industry, steel industry or in government bonds. The analyst identified five investment opportunities:two from the oil industry, two from the steel and government bonds.
Types of opportunities ReturnsABC oil 0.095XYZ oil 0.085Mona Steel 0.04TNT steel 0.05Government Bonds 0.015
OECS Bank has both a loans division and mutual funds division. It has allocated $40.0M to finance its loan portfolio. Its operations manager is asked to build an LP model to help guide company decisions as to how to disburse the revolving fund across different loan categories. The operations manager garnered the following data on available types of loans based on market research of the industry:
Types of Loan Interest Rate Bad Debt RatioPersonal…
Chapter 1 Solutions
INTERNATIONAL ACCOUNTING
Ch. 1 - Prob. 1QCh. 1 - 2. What accounting issues arise for a company as a...Ch. 1 - 3. Why might a company be interested in investing...Ch. 1 - 4. How important is foreign direct investment to...Ch. 1 - 5. What financial reporting issues arise as a...Ch. 1 - 6. What taxation issues arise as a result of...Ch. 1 - Prob. 7QCh. 1 - 8. Why might a company want its stock listed on a...Ch. 1 - 9. Where might one find information that could be...Ch. 1 - Prob. 10Q
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