Russian Ruble Roulette- Unit 2 Assignment 1
1. How would you classify the exchange rate regime used by Russia for the ruble over
the 1991-2014 period?
-During the 1991-1998 period, the exchange rate was fixed with restrictive capital.
Unit 3 Assignment 1: The Venezuelan Bolivar Black Market
1. Why does a country like Venezuela impose capital controls?
Capital control is any measure taken by a government, central bank, or other regulatory body to
limit the flow of foreign capital in and
Unit 1 Assignment 3: Deficit Financing
Question: How could the decision to finance deficit with mostly long term funds affect the
structure of the interest rates? If short-term and long-term markets are segmented, would
the treasurys decision have more or
Unit 10 Assignment 2
A. Does the article suggest that the insurance companys performance was better or
worse than the industry norm?
Yahoo finance suggests that MetLife is underperforming as of first quarter 2016. MetLife still
remains one of the stronges
Unit 1 Assignment 2: Interest Rate Changes
A. Describe how Federal Reserve Bank interest has changed in recent months
Reviewing the data found on the Economic Research cite, I found that interest rates reflect an
overall increase dated from 1953 to more r
Unit 5 Assignment 1: Toyotas European Operating Exposure
1. Do you think Toyota waited so long to move much of its manufacturing for
European sales to Europe?
Toyotas decision to move to Europe was more so of a reaction to exchange rate volatility.
Unit 6 Assignment 2: Rate Comparisons
1. What is the interest rate currently offered on Chases Money Market accounts?
Currently Chase is offering two types of money market accounts: Tempfund and Munifund
accounts. The rate on the temp-fund account is 0.31
Team Mini-Case Analysis
Bethesda Mining Company Case Analysis
The following is a brief case analysis for Bethesda Mining a midsized coal mining company with
20 mines located in Ohio, Pennsylvania, West Virginia, and Kentucky. The company opera
Bethesda Mining Case Study
Aftertax land value
Year 1 production
Year 2 production
Year 3 production
Year 4 production
Spot market $/ton
Year 1 depreciation
Year 2 deprec
Running head: THE U.S. CORPORATE INCOME TAX CONUNDRUM
1. Do you think the United States needs to cut its corporate income tax rates, change to a
territorial system, or both?
THE U.S. CORPORATE INCOME TAX CONUNDRUM
Running head: KELLERS FREEHOUSE CASE STUDY
Robert and Alex are opening Kellers Freehouse an entrepreneurship startup restaurant.
They are utilizing $200,000 of their personal funds and are considering financing options to
Running head: LETTING GO OF LEHMAN BROTHERS
1. Do you think that the U.S. government treated some financial institutions differently
during the crisis? Was that appropriate?
LETTING GO OF LEHMAN BROTHERS
During the fi
Running head: INFERIOR INVESTMENT ALTERNATIVES
INFERIOR INVESTMENT ALTERNATIVES
INFERIOR INVESTMENT ALTERNATIVES
2. By comparing the weighted average and the beta of each portfolio it is determined that
Running head: SUMMATION
The Farm Table is a tapas lounge that serves locally grown and raised food offerings.
Located in the historical section of Hampton Virginia the business will draw
Unit 4 Assignment 1: Bond Price Scenarios
1. Assume that breaking news causes bond portfolio managers to suddenly expect
much higher economic growth. How might this expectation affect bond prices?
Increased economic growth places upward pressure on intere
Unit 2 Assignment 1: Fed Policy Interpretations
A. The Feds future monetary policy will be dependent on the economic indicators to
be this week
I assume this to mean that the Feds role in the US Economy is to manage inflation, liquidity, and
Unit 6 Assignment 3: Regulation Analysis
A. Describe the key regulation affecting commercial banks
The most recent regulation that has been passed is the Dodd-Frank Act. It was passed in 2008 to
place major regulations on the financial industry (Koba, M.,
Problem 2.1 Emaline Returns
b. The company paid a dividend of $1 per share
c. The company paid the dividend. The total return to the shareholder is separated into the dividend yield and t
Share price, P1
Share price, P2
Dividend paid, D2
Problem 8.1 Trepak (The Russian Dance)
The Russian ruble (RUB) traded at RUB 29.00/USD on January 2, 2009. On December 11, 2010, its value had fall
Spot rate, January 2, 2009 (RUB/USD)
Spot rate, December 11, 2010 (RUB/USD)
Americo Industries - 2010
Problems 6 through 10 are based on Americo Industries. Americo is a U.S.-based multinational manufacturing fi
Business Performance (000s, loccal currency)
Earnings before taxes (EBT)
Corporate income tax rate
Average exchange rat
Unit 3 Assignment 2: Problems
Problem 2 Forward Premiums on the Japanese Yen
Use the following spot and forward bid-ask rates for the Japanese yen/U.S. dollar (/$) exchange rate from Septemb
Problem 1 Pulau Penang Island Resort
Theresa Nunn is planning a 30-day vacation on Pulau Penang, Malaysia, one year from now. The present charge
a. How many dollars might Theresa expect to need one year hence to pay for her 30-day vacation?
b. By what per
Unit 4 Assignment 1- Japanese Yen Intervention 2010
1. Could the Bank of Japan continually intervene to try to stop the appreciation of the
Yen? Is there any limit to its ability to intervene?
Based on exhibit A, it shows that most of the intervention was
Unit 1 Assignment 1: Bitcoin
1. What are the costs and benefits of using Bitcoin for transactions?
Bitcoin is a cryptocurrency system that allows online users to process transactions through
digital units of exchange. One advantage is that Bitcoin purchas
1. Why do you think Petrobrs cost of capital is so high? Are there better ways, or other ways,
of calculating its weighted average cost of capital?
Petrobras was an oil company for the B markets. It did not serve the global markets, therefore
the sales we
Problem 7.1 Amber McClain
Amber McClain, the currency speculator we met earlier in the chapter,sells eight June futures contracts for 500,
a. What is the value of her position at maturity if the ending spot rate is $0.12000/Ps?
b. What is the value of her
Unit 9 Assignment 1: Case Questions
1. Using the sales forecast for Tysabri presented in Exhibit A, and using the discounted
cash flow model in Exhibit B, what do you think Elan is worth?
Reviewing both exhibits A and B, I gathered that Elan is worth at l
Unit 8 Assignment 2: Internet Questions
1. Exactly what types of risks will OPIC insure against?
OPIC insures against risks such as: currency inconvertibility; expropriation and other forms of
unlawful government interference; political violence; and spec
Unit 6 Assignment 1: Bank Interpretations
A. Lower interest rates may reduce the size of banks:
Lower interest rates on deposit accounts and investment accounts could encourage clients to look
elsewhere for better returns on interest rates. The major port
Unit 7 Assignment 1
Pg. 201 Problem 8:
Why do you suppose that smaller firms tend to rely on bank financing, while larger
companies got to sell bonds in financial markets?
Smaller firms may choose to look to banks for financing because they typically face