CPA REVIEWS NOTES- INTERNATIONAL FINANCE© kadenchimbi@yahoo.com ‚ 0754 327487 1 TOPIC 1: INTRODUCTION TO INTERNATIONAL FINANCE Learning objectivesAfter reading this topic you should be able to: • Understand the background of international finance • Define international finance • Explain the reason for studying international finance • Explain the roles of international financial manager • Understand the background of multinational corporations • Distinguish
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consol 4. The interest rate that is quoted by a lender is referred to as which one of the following? A. stated interest rate B. compound rate C. effective annual rate D. simple rate E. common rate 5. A monthly interest rate expressed as an annual rate would be an example of which one of the following rates? A. stated rate B. discounted annual rate C. effective annual rate D. periodic monthly rate E. consolidated monthly rate 6. What is the interest rate charged per period multiplied
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Case 1 – New Heritage Doll Company 1. Set forth and compare the business cases for each of the two projections under consideration by Emily Harris. Which do you regard as more compelling? Productions was New Heritage´s largest division as measured by total assets‚ and easily its most asset-Intensive. Approximately 75 % of the division´s sales were made to the company´s retailing division‚ with the remaining 25% comprising private label goods manufactured for other firms. The division revenue figures
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whether or not capital expenditure on a particular project will be profitable. This report is able to present the weakness and strength of the techniques according to the wind turbine system project of McCain Foods Company. Payback Period‚ Average Rate of Return (ARR)‚ Net Present Value (NPV) and Internal Rare of Return (IRR) are used to figure out positive or negative about this project. The McCain Foods decides to invest to wind turbine system through using these investment appraisal techniques
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THE SAGA OF THE VENEZUELAN BOLIVAR FUERTE 1) Why must a country’s currency be devalued? What is failing in the economy? Devaluation is the action of a government or central bank authority to drop the spot foreign exchange value of a currency that is pegged to another currency or to gold. Countries occasionally devalue their own currencies as a result of persistent and sizable trade deficits. They intentionally devalue their currencies in an effort to make their exports more price-competitive
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Part 1: Fianacial Ratios After having the financial information about Deep water experts company‚ we have generated the financial ratios for the company for the years 2010‚ 2011 respectively as below and has the following comments: Liquidity: There is more than one ratio that measures the liquidity for a company which is included in the following table: Ratio Type | 2011 | 2010 | Liquidity | Current Ratio | 3.29 | 2.67 | Quick Ratio | 2.2 | 1.798 | Cash Ratio | 1.56 | 1.08 |
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Importance of FDI in Agriculture in the past 4 years 7 • Capital: 7 • Technology: 8 • Market Access: 8 4. Factors Impairing FDI’s in Tanzania 8 • Poor Infrastructure 8 • Capacity 8 • Bureaucracy 8 • Corruption 9 • Seasonality 9 • Access to finance 9 • Regulatory framework 9 5. Recommendation to attract more FDI’s 10 6. Conclusion 10 References. 12 1. Introduction: Tanzania’s Economy Tanzania is one of the world’s poorest economies in terms of per capita income
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sales? A. current ratio B. equity multiplier C. retention ratio D. capital intensity ratio E. payout ratio 7. The internal growth rate of a firm is best described as the: A. minimum growth rate achievable assuming a 100 percent retention ratio. B. minimum growth rate achievable if the firm maintains a constant equity multiplier. C. maximum growth rate achievable excluding external
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Required rate year 1: year 2 year 3 year 4 year 5 Initial Cost Project B Project C 7.7% $400 $1‚250 $900.00 $3‚000.00 $1‚000 $5‚045 3% $100.00 $200 $150.00 $100 $50 $490.67 6% $5‚200 $4‚000 $1‚000 $200 $100 $9‚687.23 1 Capital Budgeting Techniques A collection of methods allowing the manager to choose among a variety of investment projects. Methods: • • • • • • • Average Accounting Return Payback Discounted payback Internal Rate of Return
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have the chance to participate in a project that produces the following cash flows:The internal rate of return is 13%. If the opportunity cost of capital is 10%‚ would you accept the offer? Since the internal rate of return is greater than the opportunity cost of capital‚ there is NO point of accepting this project. #5 Consider a project with the following cash flows: a. How many internal rates of return does this project have? b. Which of the following numbers is the project IRR: (i)
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