Problem 17.11 – Mexican Pesos
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition and 10th Edition
What should be the price of the compact disc in Mexico?
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What should be the price of the compact disc in Mexico?
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Given sales, fixed assets, and operating capacity… determine the level of sales at full capacity, the target fixed assets/sales ratio, and determine how large of an increase in fixed assets is needed to meet the target fixed assets/sales ratio.
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Calculate the the 90-day forward rate and determine if it’s trading at a premium or discount.
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Determine the price of the wine in U.S. dollars, the 90-day forward rate, and the amount that Vintnor will have to pay for the wine in U.S. dollars.
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Forecast notes payable and long-term debt, the growth rate whereby additional financing requirements would equal exactly zero.
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Given the financial statements… determine the percentage increase in sales that would not need an increase in fixed assets, and then determine the balances of notes payable, bonds, common stock, and retained earnings.
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Has your company made a gain or a loss as a result, and by how much?
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What is the present value in dollars of its equity ownership of the subsidiary?
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Determine the net present value and rate of return generated by this project, the expected forward exchange rate in one year’s time.
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