A U.S. firm has total assets valued at £318,000 located inLondon. This valuation did not...

A U.S. firm has total assets valued at €708,000 located in Germany. This valuation did not...

A U.S. firm has total assets valued at €708,000 located in Germany. This valuation did not change from last year. Last year, the exchange rate was €.9422/$. Today, the exchange rate is €.8929/$. By what amount did these assets change in value on the firm's U.S. financial statements?

A U.S. firm has total assets valued at €806,000 located in Germany. This valuation did not...

A U.S. firm has total assets valued at €806,000 located in Germany. This valuation did not change from last year. Last year, the exchange rate was €.9464/$. Today, the exchange rate is €.8985/$. By what amount did these assets change in value on the firm's U.S. financial statements?

Your firm is located in the U.S and a major customer is located in Europe. DUe...

Your firm is located in the U.S and a major customer is located in Europe. DUe to historical negotiations, your customers pay your firm in euros. Your firm has just recorded a sale to the customer for 50,000,000 pounds. The cusotmer has 30 days to pay the invoice. The current spot rate is 1 pound = $1.38. The foreign exchange expert at your firm believes the foreign exchange rate in 30 days will either be 1 pound = $1.10 or...

Assume that a bank has assets located in London worth £100 million on which it earns...

Assume that a bank has assets located in London worth £100 million on which it earns an average of 8% per year. The bank has £150 million in liabilities on which it pays an average of 6% per year. The current spot rate is £1 = $1.25 a) If the exchange rate at the end of the year is £1 = $1.50, will the dollar have appreciated or depreciated against the pound? b) Is the bank net short or net...

Ishak. has built up total assets at the end of last year of RM520,000. It consisted...

Ishak. has built up total assets at the end of last year of RM520,000. It consisted of a home valued at RM350,000 and financial assets valued at RM170,000. During this year his home appreciated by a -4% because of the contracting housing market, but his financial assets achieved a return of 6.5%. i. What is Ishak's total assets worth? ii. What is his overall rate of return this year?

3.  3: Stocks and Their Valuation: Corporate Valuation Model The recognition that dividends are dependent on earnings,...

3.  3: Stocks and Their Valuation: Corporate Valuation Model The recognition that dividends are dependent on earnings, so a reliable dividend forecast is based on an underlying forecast of the firm's future sales, costs and capital requirements, has led to an alternative stock valuation approach, known as the corporate valuation model. The market value of a firm is equal to the present value of its expected future free cash flows plus the market value of its non-operating assets: Free cash flows...

Your firm is based in the U.S. and one of your primary suppliers is located in...

Your firm is based in the U.S. and one of your primary suppliers is located in the Czech Republic. One way for your firm to transfer foreign exchange risk (associated with your firm’s accounts payable) to your supplier is to a. sell the Czech supplier a futures contract b. increase the price of the merchandise c. have the invoice denominated in dollars d. both a and b 1.A foreign exchange rate may be defined as a. the amount of a...

Green Lumber has total sales of $387,200 on total assets of $429,600, current liabilities of $45,000,...

Green Lumber has total sales of $387,200 on total assets of $429,600, current liabilities of $45,000, and $24,000 of dividends paid on net income of $57,700. Assume that all costs, assets, and current liabilities change spontaneously with sales. The tax rate and dividend payout ratios remain constant. If the firm's managers project a firm growth rate of 12 percent for next year, what will be the amount of external financing needed (EFN) to support this level of growth? Assume the...

Suppose that a U.S. FI has the following assets and liabilities: Assets Liabilities $400 million U.S....

Suppose that a U.S. FI has the following assets and liabilities: Assets Liabilities $400 million U.S. loans  (one year) in dollars $500 million U.S. CDs  (one year) in dollars $100 million equivalent German  loans (one year) (loans made in euros) The promised one-year U.S. CD rate is 2 percent, to be paid in dollars at the end of the year; one-year, default risk–free loans in the United States are yielding 4 percent; and default risk–free one-year loans are yielding 5...

You are considering investing in a firm that is in financial distress. While the assets are...

You are considering investing in a firm that is in financial distress. While the assets are valued at $25 million, the face value of its debt is $38 million (i.e.: it owes more than the value of its assets). Regular valuation techniques would indicate that the value of equity for this firm is zero (as it can't be negative). However, you want to apply Real Option Valuation to see if it's worth investing. The standard deviation of the firm asset's...