Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem 1 - One area in which you are assisting is in the setup of business development in Central and South America for Navigation Systems, Inc. (NSI). The firm has negotiated the framework of supplying $40 million per year (in U.S. dollars) in navigations systems for Auxiliary Aircraft in Brazil for 10 years. If the products are manufactured in the United States and delivered to Brazil, then there will be a 5% import tariff on $40 million in product. As an alternative, the Brazilian government has offered to pay for all costs associated with building and locating a manufacturing plant in Brazil to build the product. Auxiliary Aircraft would pay an additional 15%, making annual sales $46 million (in U.S. dollars), and no tariff would be levied.Answer the following questions about this situation:Does any currency exchange rate risk exist? Why?What is a tariff? How is it implemented and collected?Also respond to the vice president of business development's request for the following:the total amount of money NSI would receive from each scenario? a report on what effect the Free Trade Agreement of the Americas (FTAA) or the possible regional integration, like Mercosur, would have on each scenario? your thoughts about any other factors that would affect either scenario? Problem 2- Navigation Systems Inc. now has total worldwide revenues of over $500 million forecast for this coming year. You have operations in the United States of $300 million with a 10% ROS (return on sales, which is the same as net income on an income statement); operations in Germany of €100 million with an ROS of 12%; and operations in Shanghai, China of 650 million Yuan with an ROS of 8%. You expect to repatriate all the ROS to the United States when available in 12 months.At your supervisor's request, do the following:Determine the spot and 12-month forward exchange rates, and determine any change in the ROS repatriated in 12 months based on exchange rates versus the current forecast.Describe the repatriation using each of the following:a spot transactionan outright forwarda foreign-exchange swapWould there be any use or benefit in using a currency option or currency swaption? Describe each.Be sure to consider any U.S. corporate taxes that may be due and also whether there are any tax holidays in effect that may alter the taxes due on repatriation of the profits.How would you advise the company to handle the repatriation?
Sarah Warren currently holds 400 shares of Nutri-Foods. The firm has 40,000 shares outstanding. the firm most recently had earnings available for common stockholders of $80,000 and its stock has been selling for $22 per share. What proportion of the ..
A firm is considering a project that will generate perpetual after-tax cash flows of $18,000 per year beginning next year. The project has the same risk as the firm’s overall operations and must be financed externally. What is the most the firm can p..
Compute the penalty that the agent can impose if he concludes that the improper deduction was due to Ms. Hsui's negligence in preparing her tax return. Compute the penalty that the agent can impose if he concludes that the improper deduction represen..
Peter would like to make a single investment and have $1.7 million at the time of her retirement in 34 years. He has found a mutual fund that will earn 5 percent annually. How much will Peter have to invest today? If Peter earned an annual 17 percent..
Using the free cash flow valuation model to price an IPO. Assume that you have an opportunity to buy the stock of CoolTech, Inc., an IPO being offered for $12.50 per share. Although you are very much interested in owning the company, you are concerne..
Which one of the following actions is not used to protect against risk?
Tyler is putting away $1,250 per month in an account earning 9.25% annually. the plane he would like to buy currently costs $430,000 and is expected to increase in price at an annual inflation rate of 3.25% how long will it take Tyler to save up the ..
The CFO of your company has determined that the firm’s capital investment budget will be limited to $3,000,000 for the upcoming year. Unfortunately, this amount is not sufficient to cover all of the proposed projects under consideration at the firm. ..
A stock had returns of 14 percent, 26 percent, and 8 percent for the past 3 years. Based on these returns, what is the probability that this stock will earn at least 43.51 percent in any one given year?
Consider the following questions regarding health care reimbursement policies and their influence on managerial decisions: What are the different types of revenue streams? How do these revenue streams differ for a for-profit compared to a non-profit ..
At January1,2013 Myco Corporation had outstanding the following securities: $1,000,000, 5% cumulative convertible preferred shares,$50 par; each share is convertible into 2 shares of common stock. 7% convertible bonds, $2,000,000 face value issued at..
You want to buy a new sports car from Muscle Motors for $68,000. The contract is in the form of a 72-month annuity due at an APR of 6.75 percent. What will your monthly payment be?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd