FIN436_Excel Exercises_Chap01 Introduction.xlsx - Problem...

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Problem 1.1 Comparing Cheap Dates Around the WorldAfter completing the table below, answer the following questions.a. Which city in the table is truly the cheapest date?a single common currency. This is most meaningful when the comparison is for the identical or near-identical product or service across countries. Deutsche Bank has recently started publishing a comparison of cheap dates -- and evening on the town for two to eat at McDonald's, see a movie, and drink a beer. Once all costs are converted to a common currency, the U.S. dollar in this case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City.
b. Which city in the table is the most expensive-cheap date?
c. If the exchange rate in Moscow on the Russian ruble (RUB) was 0.04200, instead of 0.0283, what would be the USD price?
d. If the exchange rate in Shangahi was CNY 6.66 = 1 USD, what would be its cost in USD and relative to a cheap date in New York City?
Cheap Date in Exchange Exchange RateCheap Date in RelativeCountryCityLocal CurrencyRate Quote7 April 2014In USDto NYCAustraliaSydneyAUD 111.96 USD = 1 AUD 0.9290 $ 104.01 112%BrazilRio de JaneiroBRL 135.43 USD = 1 BRL 0.4363 $ 59.09 63%CanadaOttawaCAD 78.33 USD = 1 CAD 0.9106 $ 71.33 77%ChinaShanghaiCNY 373.87 USD = 1 CNY 0.1619 $ 60.53 65%FranceParisEUR 75.57 USD = 1 EUR 1.3702 $ 103.55 111%GermanyBerlinEUR 76.49 USD = 1 EUR 1.3702 $ 104.81 112%Hong KongHong KongHKD 467.03 USD = 1 HKD 0.1289 $ 60.20 65%IndiaMumbaiINR 1,379.64 USD = 1 INR 0.0167 $ 23.04 25%IndonesiaJakartaIDR 314,700 USD = 1 IDR 0.0001 $ 31.47 34%JapanTokyoJPY 10,269.07 USD = 1 JPY 0.0097 $ 99.61 107%MalaysiaKuala LumpurMYR 117.85 USD = 1 MYR 0.3048 $ 35.92 39%MexicoMexico CityMXN 423.93 USD = 1 MXN 0.0769 $ 32.60 35%New ZealandAucklandNZD 111.52 USD = 1 NZD 0.8595 $ 95.85 103%PhillipinesManilaPHP 1,182.88 USD = 1 PHP 0.0222 $ 26.26 28%RussiaMoscowRUB 2,451.24 USD = 1 RUB 0.0283 $ 69.37 74%SingaporeSingaporeSGD 77.89 USD = 1 SGD 0.7939 $ 61.84 66%South AfricaCape TownZAR 388.58 USD = 1 ZAR 0.0946 $ 36.76 39%United KingdomLondonGBP 73.29 USD = 1 GBP 1.6566 $ 121.41 130%United StatesNew York CityUSD 93.20 1 USD 1.0000 $ 93.20 100%United StatesSan FranciscoUSD 88.72 1 USD 1.0000 $ 88.72 95%Comparison of prices or costs across different country and currency environments requires the translation of the local currency into a single common currency. This is most meaningful when the comparison is for the identical or near-identical product or service across countries. Deutsche Bank has recently started publishing a comparison of cheap dates -- and evening on the town for two to eat at McDonald's, see a movie, and drink a beer. Once all costs are converted to a common currency, the U.S. dollar in this case, the cost of the date can be compared across cities relative to the base case of a cheap date in USD in New York City.Source: Data drawn from The Random Walk, Mapping the World's Prices 2014, Deutsche Bank Research, 09 May 2014, Figures 30 and 32, with author calculations. 'Relative to NYC' is calculated as = Cheap Date in USD/93.20.Note: The cheap datecombines the local currency cost of a cab ride for two, two McDonald's hamburgers, two soft drinks, two movie tickets, and two beers. In 2013 Deutsche Bank had included sending a bouquet of roses in the date, but did not include that in the 2014 index, making the two years not directly comparable.
Problem 1.2 Blundell BiotechJapaneseBritihEuropeanChineseRussianUnited StatesNet IncomeSubsidiarySubsidiarySubsidiarySubsidiarySubsidiarySubsidiary2013JPY 1,500 GBP 100.00 EUR 204.00 CNY 168.00 RUB 124.00 USD 360.00 2014JPY 1,460 GBP 106.40 EUR 208.00 CNY 194.00 RUB 116.00 USD 382.00 The average exchange rate for each year, by currency pairs, was the following. Use this data to answer the following questions.

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