Reference no: EM132173184

Assignment

All assignments should be written in your own words and provide examples and opinions beyond the textbook or any other source you get them from.

I will be looking for more of your opinions and examples beyond definitions. For calculations show ALL your steps including calculator/Excel keystrokes and/or formulas.

If you use excel make sure to upload the original worksheet. It is important to explain and briefly discuss your final answers and not just provide a number answer. Please label your uploaded assignment file with the course and your name. Remember to also briefly discuss your results.

Chapter 15

Problem 1Textbook Question 9 on page 496 and remember to discuss in your own thoughts not just textbook definitions.

Problem 2

K Inc., a U.S.-based MNC, has screened several targets. Based on economic and political considerations, only one eligible target remains in Malaysia. K would like you to value this target and has provided you with the following information:Do your best with this problem.

• K expects to keep the target for three years, at which time it expects to sell the firm for 500 million Malaysian ringgit (MYR) after deducting any taxes due.

• K expects a strong Malaysian economy. Consequently, the estimates for revenues for the next year are MYR300 million. Revenues are expected to increase by 9 percent over the following two years.

• Cost of goods sold is expected to be 60 percent of revenues.

• Selling and administrative expenses are expected to be MYR40 million in each of the next three years.

• The Malaysian tax rate on the target's earnings is expected to be 30 percent.

• Depreciation expenses are expected to be MYR15 million per year for each of the next three years.

• The target will need MYR9 million in cash each year to support existing operations.

• The target's current stock price is MYR35 per share. The target has 11 million shares outstanding.

• Any cash flows remaining after taxes will be remitted by the target to K, Inc. K uses the prevailing exchange rate of the Malaysian ringgit as the expected exchange rate for the next three years. This exchange rate is currently $.23.

• K required rate of return on similar projects is 13 percent.

a. Based on the information provided above, the net present value of the Malaysian target is how much? Show your work and discuss.

b. The Malaysian target's value based on its stock price is how much? Show your work and discuss.

c. The target's board has indicated that it finds a premium of 30 percent appropriate. You have been asked to negotiate for K with the Malaysian target. What is the maximum percentage premium you should be willing to offer? Why?

Chapter 16:

Problem 3: Textbook Question 19 on page 521 show all your work and briefly discuss your results.

Problem 4: Small Business Dilemma on page 525, questions 1 and 2. Please provide comprehensive responses to those two questions.
Chapter 17

Problem 5.Textbook problem 10 on page 545. Remember to provide a comprehensive response in your own words.

Problem 6. Textbook Problem 28 on page 547. Remember to show all your work and briefly discuss.

Problem 7.Textbook Problem 31 on page 548.Remember to show all your work and briefly discuss.

Problem8.

Online Articles on page 550. Remember to not only provide ANY FIVE articles but alsoto discuss them in your own words.

Chapter 18

Problem9.Textbook Problem 10 on page 566 remember to discuss in your own words and opinions.

Problem 10: Textbook Problem 17 on page 568 and include your reasoning

Problem11.

Internet Exercise on page 570. You can use any financial website remember to add your opinions to the responses.