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    Foreign Exchange Rates

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    Business Valuation Czech republic

    The firm you work for, ABC Co., is considering the acquisition of a firm in the Czech Republic and would like your opinion on this. It plans to operate the firm for 3 years and then reevaluate the holding. Free Cash flows are estimated as follows: Year 1 - 38.63M Czech Koruna (CZK), Year 2 - 44.33 M CZK, Year 3 - 50.48M

    Purchasing power parity and exchange rate

    5. From the base price level of 100 in 1974, German and U.S. price levels in 2001 stood at 200 and 370, respectively. If the 1974 $/DM exchange rate was $0.23/DM, what should the exchange rate be in 2001? Suggestion: Using the purchasing power parity, adjust the exchange rate to compensate for inflation. That is, determine t

    Cross rate exchanges

    3. Suppose an Austrian schilling is selling for $0.0613 and an Irish punt is selling for $1.0541. What is the exchange rate (cross rate) of the Austrian schilling to the Irish punt? That is, how many Austrian schillings are equal to an Irish punt?

    Managerial Finance: Foreign Exchange rate

    3. Suppose an Austrian schilling is selling for $0.0613 and an Irish punt is selling for $1.0541. What is the exchange rate (cross rate) of the Austrian schilling to the Irish punt? That is, how many Austrian schillings are equal to an Irish punt?

    Swap-driven financing

    Explain why corporations engage in swap-driven financing, and discuss the defining features of an interest rate and a currency swap. Why might a corporation prefer one type of swap contract over another?

    Managing multinational operations

    Many major multinational banks provide a variety of working capital and multinational cash management service. Using the Websites of a variety of these cross border banks ( starting these listed below), BANK of AMERICA- http://www.bankof america.com/index.cfm?page=corp BANK of MONTREAL-( Select cash management under corpo

    Money exchange rate

    Before the Asian currency crisis, the Malaysian ringgit (RM) traded at about RM2.5000/$. In the initial crissis, the ringgit depreiciated about to above RM4.000/$. On Sept. 1, 1998, 14 months after the crisis began, the Malaysian government introduced exchange controls intended to reduce the internationalization of the ringgit.

    The spot exchange rate for the euro is $1.6750/euro on Jan 1, 2003.

    The spot exchange rate for the euro is $1.6750/euro on Jan 1, 2003. A U.S. investor bought euro1,000,000 on Jan 1 and sold it six months later (june 1). A German investor bought $1,000,000 on Jan 1 and sold it six months later (june1). What should the $/euro rate have been on June 1 for the UK investor to make the same prof

    International Cross-exchange rates

    A dealer in Australia quotes A$1.7430-40/$, A dealer in Paris quotes $0.8610-20/euro. A dealer in Germany quotes euro 0.6667-76/A$. What should the German dealer quote to prevent any arbitrage?

    International finance: hedging using forward market and money market hedges

    You are negotiating the purchase of textile machinery either from a German supplier or a Japanese supplier. The German supplier is prepared to sell you fully automated looms at a price of 20,000 Euros per loom. Payment will be made in Euros at the time of delivery, which is promised for one month hence. The Japanese supplier wou

    Interest rates fall sharply in the U.S. but unchanged the UK

    1. Suppose interest rates fall sharply in the U.S. but are unchanged in Great Britain. Other things equal, under a system of freely floating exchange rates we can expect the demand for pounds in the U.S. to: A. decrease,the supply pounds to increase, and the dollar to appreciated relative to the pound. B. increase, the sup