Calculate the initial investment in sar

Reference no: EM133284615

Assignment - International Finance Questions

Question 1 - Assume a Saudi Multinational Corporation decided to do a project in Germany one year ago (October 1st, 2021) which would be completed on September 30th, 2022. If the project cost 100 million Euro and expected to generate income of 150 million Euro on September 30th, 2022. The exchange rate at the beginning of the project is 0.23 Euro/SAR and it is 0.27 Euro/SAR at the end of the project.There is no derivative bearing SAR currency, but there is a way a Saudi firm engage into the forward / option market.

a- Calculate the initial investment in SAR.

b- Show the choices for financing this project by the Saudi firm?Just show without calculation.

c- Calculate profit from this investment in Euro and SAR, also show whether the Saudi firm hurt or benefit from changes in the exchange rate movement.

d- How would the Saudi firm hedge against the exchange rate risk?

Question 2 - The US is considered a country that borrow at lower cost of capital than the rest of the world; briefly explain the reason behind this fact.

Question 3 - According to Vision 2030, Saudi Arabia planned to diversify its production and one of the divisions of production is Small & Medium Enterprises (SME). The goal by 2030 to make 35 percent of GDP from SME. Briefly explain whether Saudi Arabia will be able to achieve this goal within this time frame and how would the Saudi private equity market attract foreign SME. You might do a little research about this.

Reference no: EM133284615

Questions Cloud

Discuss how important is it to an organizational success : Is it (Leadership) a skill anyone can develop? Discuss how important is it to an organizational success

Write about a time yourself received a bad news message : Write about a time yourself received a bad news message and What was the situation

How does one attempt to create a fully persuasive case : COMM 1016 Georgian College How does one attempt to create a fully persuasive case rather than one that has only minor elements of persuasion

Lack of Communication in organization : Lack of Communication in the organization. Who are the stakeholders you will seek to act as sponsors to support you in the implementation of a problem solution?

Calculate the initial investment in sar : Calculate the initial investment in SAR. Show the choices for financing this project by the Saudi firm?Just show without calculation

How does one attempt to create a fully persuasive : COMM 1016 Georgian College How does one attempt to create a fully persuasive case rather than one that has only minor elements of persuasion

Would less nationalistic coverage be as popular : Is there anything that NBC and other media can and should do to better fulfill Pierre de Coubertin's peaceful vision for the Games

Cryptography and algorithms like hashing and merkel trees : Bitcoin Design meaning cryptography and algorithms like hashing and Merkel trees. Explain.

How do you think it would impact the secondary dimensions : How do you think it would impact the secondary dimensions? Which dimensions do you feel represent who you are as a person

User Account

All Pages