Login
Register
All Activity
Questions
Unanswered
Tags
Categories
FREE
Homework Help
Ask your homework question and get help from others
Help friends with their homework problems
Random Question:
What is the rotation of the earth and explain its effects?
All categories
General
(85)
Math
(119)
Biology
(670)
Chemistry
(84)
English
(36)
Geography
(475)
History
(162)
Physics
(702)
Computer Science
(29)
Statistics
(45)
Probability
(28)
Economics
(592)
Engineering
(97)
Geology
(605)
Social Studies
(62)
Most popular tags
#english
advair-diskus
and
binomial
books
british
cialis-soft
com
decreased
english
escorts
expand
geology
history
in
increased
januvia
kamagra-soft
levitra-super-force
literature
london
lyon
massage
math
movers
packers
strategies
tadalis-sx
theorem
viagra-super-fluox_force
Ask YOUR question:
25. A US company borrows Mexican pesos for one year at 30 percent. During the year, the peso depreciates 15 percent against the dollar. The US tax rate is 35 percent. What is the after-tax cost of this debt in US dollar terms?
0
votes
asked
12 years
ago
in
Economics
by
anonymous
Need the solution FAST? Than SHARE this question:
Tweet
0 Answers
Related questions
0
votes
0
answers
36. A US company borrows Swiss francs for one year at 8 percent. The Swiss franc is expected to depreciate by 6 percent against the dollar for one year. What is the effective interest rate of the loan in US dollar terms?
asked
12 years
ago
in
Economics
by
anonymous
0
votes
0
answers
13. A multinational company is considering the establishment of a two-year project in Germany with a $8 million initial investment. The company's cost of capital is 12 percent. The required rate of return on this project is 18 percent. The project with no salvage value after two years is expected to generate net cash flows of 12 million euros in year 1 and 30 million euros in year 2. Assume no taxes and a stable exchange rate of $0.60 per euro. What is the net present value of the project in dollar terms?
asked
12 years
ago
in
Economics
by
anonymous
0
votes
0
answers
37. A US company borrows British pounds for one year at 6 percent. The US one-year interest rate is 8 percent. The one-year forward rate of the pound is $1.93. The spot rate of the pound at the beginning is $1.95. The pound's spot rate is $2.05 by the end of the year. Based on the information, compute the percentage change in pound and the effective interest rate of the loan in US dollar terms.
asked
12 years
ago
in
Economics
by
anonymous
0
votes
0
answers
27. Assume that the debt ratio is 60 percent, the cost of debt is 6 percent, the cost of equity is 10 percent, the tax rate is 50 percent, and annual earnings after taxes are $10,000 for a multinational company. What are the company's weighted average cost of capital and its market value?
asked
12 years
ago
in
Economics
by
anonymous
0
votes
0
answers
25. A US firm is considering the acquisition of a Mexican company for $2 million. The cost of capital for the US firm is 10 percent. The Mexican company has expected cash flows of $90,000 per year. The synergistic benefits of the merger will add $30,000 per year to net cash flow. What is the present value of net cash flows from this merger?
asked
12 years
ago
in
Economics
by
anonymous