Reference no: EM132465644
AvtoVAZ OAO, a leading auto manufacturer in Russia, was launching a new automobile model in 2001, and is in the midst of completing a complete pricing analysis of the car for sales in Russia and export. The new car, the Kalina, would be initially priced at Rubles 260,000 in Russia and sell in U.S. dollars at the current spot rate they intend to raise the price domestically with the rate of Russian inflation over time, but is worried about how that compares to the export price given U.S. dollar inflation and the future exchange rate. Use the following data table to answer the pricing analysis questions.
Calendar year 2001 2002 2003 2004 2005 2006
Kalina Price (rubles) 260,000
Russian inflation (forecast) 14.0% 12.0% 11.0% 8.0% 8.0%
U.S. inflation (forecast) 2.5% 3.0% 3.0% 3.0% 3.0%
Exchange rate (rubles = USD 1.00) 35.24
Given the current spot rate, what would be the price of the car in the US market? Answer with two decimal places.
|
We can sell the new truck for 1500 at the end
: We can sell the new truck for 1500 at the end of the third year. The tax rate is 40% and the WACC is 10%. Should we replace the truck?
|
|
Determining the profit in yen from the trade
: Takeshi Kamada, Credit Suisse (Tokyo), observes that the ¥/$ spot rate has been holding steady, and both dollar and yen interest rates have remained relatively
|
|
What is the implied forward rate
: Problem: The following information has been collected from the respective areas:
|
|
How would the financial position as of december
: How would the financial position as of December 31, 2009 (the end of the accounting period) be affected if the accountant did not record the adjusting entry?
|
|
Completing a complete pricing analysis of the car
: AvtoVAZ OAO, a leading auto manufacturer in Russia, was launching a new automobile model in 2001, and is in the midst of completing a complete pricing analysis
|
|
Calculate bond corporation of current ratio
: Calculate Bond corporation had a current ratio of 1.2, and the current assets and current liabilities were $150,000 and $125,000, respectively
|
|
What are the expected price levels and e
: Suppose that a basket of consumer goods has values P0D = 100 and P0F = 1 in currencies D and F, so that S0D/F = D100/F. Expected inflation
|
|
How much of the potential tax liability is ben liable for
: Trudy has unreported income on which she owes $50 of income tax. How much of the $430 potential tax liability is Ben liable for?
|
|
Calculate the npv of kopperud electronics
: Kopperud Electronics has an investment opportunity to produce a new HDTV. The required investment on January 1 of this year is $155 million.
|