Changes in value of nio relative to the dop

Assignment Help Finance Basics
Reference no: EM132674649

Wallings Co. makes baseballs in Nicaragua. They have one main competitor, which is Rilson Inc., which operates in the Dominican Republic. Both companies use a labor-intensive process and both companies' primary customers are in the United States. Over the last year, both the exchange rate of Nicaraguan Cordoba (NIO) to the USD and the Dominican Peso (DOP) to the USD have both remained stable. Over the last year, the Dominican Republic has experienced 7.5% inflation, Nicaragua has experienced 0% inflation, and the US has experienced 0% inflation. Assume that operating costs for each company changed commiserate with their respective inflation rates.

a. Please describe, and calculate, any real changes in the value of the NIO relative to the DOP.

b. Given your answer for (a), has Wallings or Rilson gained a competitive advantage relative to each other in making baseballs for the U.S. market?

Reference no: EM132674649

Questions Cloud

Procedure for annualizing stock returns : Why do we need to use the procedure for annualizing stock returns rather than just looking at the change in the stock price from one year to another?
In which country is the bay of pigs : In which country is the Bay of Pigs? Which medieval queen was married to both Louis VII of France and Henry II of England?
What impact of the built environment on the global climate : Describe the roles, responsibilities, and obligations you believe engineers have in reducing the impact of the built environment on the global climate.
What is Tim AGI : In addition, he has $2,000 in short-term capital gains, long-term capital losses of $10,000, and long-term capital gains of $4,000. What is Tim's AGI for 2019
Changes in value of nio relative to the dop : Please describe, and calculate, any real changes in the value of the NIO relative to the DOP.
What is Harold tax : For 2019, single taxpayers pay 0 percent on long-term gains up to $39,375. Assuming a tax of $3,409 on the $30,000 of ordinary income, what is Harold's tax
Appropriate cost of capital-super bikes inc : Super Bikes (SB) Inc. is a company which manufactures bicycles and distributes to retailers across Canada. Its line of business is generally considered quite
Aimed at decreasing voter fraud : Some states are, or are in the process of, enforcing strict voter ID laws. These are aimed at decreasing voter fraud;
What are the requirements of the social security act : 1. What are the requirements of the Social Security Act with regards to telemarketing calls?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is strategy

What is Strategy" for this assignment we are going to break that down and look at vision, mission, values and competitive advantages. Here is what I would like

  Calculate the present value per share

The total assets of Rs 80,000 of a company are financed by equity funds only. The internal rate of return on assets is 10 per cent.

  What is the monthly payment

Payments are made monthly. What is the monthly payment? How much total interest will you pay for the entired period of the loan?

  What is the amount of the collection float

As of this morning, your firm had a ledger balance of $3,216 with no outstanding deposits or checks. Today, your firm deposited 2 checks in the amount.

  Calculate the imputed interest on a 10 year zero-coupon

Calculate the imputed interest on a 10 year zero-coupon $1,000 bond in its second year given a yield-to-maturity of 6%.

  What will the monthly payments be

An "interest-only" mortgage is made for $100,000 at 10 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant.

  What are three methods for estimating the cost of common

question 1 you are a consultant to pillbriar company. pillbriars target capital structure is 36 debt 14 preferred and

  Discuss the shortcomings of the percent of sales method

Hotel Gudauri is operating in Georgia, South Caucasus, and is located in the Ski and Skate resort area. It became quite popular in recent years.

  What price must german motors charge for the same model

What price must German Motors charge for the same model on January 29, 2013 to realize the same amount of euro ( ) as it did in 2008. ($0.9150/Euro on 1/20/08 and $0.9950/Euros on 1/29/2013)

  What is the expected price of the stock three

What is the expected price of the stock three years from now? (Round answer to 2 decimal places, e.g. 15.20.)

  What do we mean by asymmetric information

a. What do we mean by asymmetric information? Why do all firms prefer internal financing first?

  Write the new equation for the security market line

Suppose the expected rate of inflation declines by 2.0% per year. Write the new equation for the Security Market Line.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd