Etemadi Amalgamated, the U.S. manufacturing company in Problem 7, is still considering a new project in Portugal.
Question:
Etemadi Amalgamated, the U.S. manufacturing company in Problem 7, is still considering a new project in Portugal. All information presented in Problem 7 is still accurate, except the spot rate is now S = $0.85/€, about 26% lower. What is the new present value of the project in dollars? Should Etemadi Amalgamated undertake the project?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (6 reviews)
Spot rate 085 Risk free rate on USD 400 Risk free rate o...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
The compound you identified in Problem 7 is a metabolic regulator. Predict its effect on (a) hexokinase and (b) PFK.
-
What happens to the present value of an annuity as the interest rate increases? What happens to the future value of an annuity as the interest rate increases?
-
What effect on the present value of an annuity does increasing the interest rate have? Does a decrease from 7% to 5% have the same dollar impact as a decrease from 5% to 3%?
-
Climate-change concerns are resulting in investment in fuels that dont produce greenhouse gases. Although solar and wind power garner a lot of attention, nuclear power from uranium is also a...
-
A stock has an expected return of 10.9 percent, its beta is .85, and the risk-free rate is 4.6 percent. What must the expected return on the market be?
-
If 50.0 g of molten iron(III) oxide reacts with 15.0 g of aluminum, what is the mass of iron produced? FeO3(1) + Al(1) Fe(l) + AlO3(s)
-
As a financial analyst, you want to convince a client of the merits of investing in firms that have just entered a stock exchange, as an initial public offering (IPO). Thus, you gather data on 116...
-
The following preliminary unadjusted trial balance of Ranger Co., a sports ticket agency, does not balance: When the ledger and other records are reviewed, you discover the following: (1) the debits...
-
Discussions and case questions: The case discusses the reasons for the failure of the Danone milk business in India. Was pricing the most dominant factor behind the exit of Danone from India?...
-
Regression analysis, Service Company. Bob Jones owns a catering company that prepares food and beverages for banquets and parties. For a standard party the cost on a per-person basis is: Jones is...
-
Etemadi Amalgamated, a U.S. manufacturing firm, is considering a new project in Portugal. You are in Etemadi's corporate finance department and are responsible for deciding whether to undertake the...
-
You work for a U.S. firm, and your boss has asked you to estimate the cost of capital for countries using the euro. You know that S = $1.20/ and F1= $1.157/. Suppose the dollar WACC for your company...
-
Magna Corporation has the following securities outstanding: 1,000,000 shares of common stock, 200,000 shares of $2.50 (annual dividend) preferred stock, and $10,000,000 of 15 percent bonds. Calculate...
-
What impact do apps, widgets and QR codes have on the marketing mix?
-
List the different types of viral marketing campaigns for which you have been a recipient. Which could be effective for your own organization?
-
How appropriate are the 5Is of identification, individualization, interaction, integration and integrity as a replacement for the marketing mix?
-
Describe how the B2B marketer can use the concept of e-procurement to enhance sales to existing and new customers.
-
Explain the principles and purpose of content marketing.
-
Nadja from Austria wants to make a single investment and have $100,000 after her graduation in 5 years. She did found a microfinance organization that offered her 15 percent per annum; however, Nadja...
-
4. Jobe dy -Y 2 et by
-
(a) Consider the hypothetical species HeH. What charge (magnitude and sign), if any, should be present on this combination of atoms to produce the most stable molecule or ion possible? (b) What is...
-
What is an asset-backed security?
-
What are the seven kinds of securities issued by the Canadian government?
-
You are negotiating with your underwriters in a firm commitment offering of 10 million primary shares. You have two options: set the IPO price at $20.00 per share with a spread of 7%, or set the...
-
Please discuss echo of this topic with hundred words at list pleas. Its UNIX and Linux operating systems Discuss on (Unix File System and Directory Navigation) Discuss on (Importance of the shell...
-
How do Windows and Unix systems save settings?
-
Two charges, QA=-6.10 C and QB-4.15 C are placed a distance d=1.50 cm from each other. What is the electric potential energy of this system of charges? Provide your answer in joules with 2 decimal...
Study smarter with the SolutionInn App