3. A U.S. MNC needs to raise capital of $100 million by issuing bonds. The firm can either raise US$ at 5% interest rate or issue foreign bond in Germany denominated in Euro at 6%. The Euro is expected to depreciate by 2% in the following year. What is the best alternative and how much is the effective dollar cost

Answers

Answer 1

1. The best alternative for raising $100 million in bonds is B. Borrow Euro.

2. The effective dollar cost of the U.S. MNC is B. approximately 5%.

What is the effect of borrowing the Euro?

If the U.S. multinational company (MNC) borrows the $100 million by issuing Euro bonds, it will cost it $5 million annually but it will gain from the depreciation of the Euro by 2%.

The depreciation of the Euro reduces the effective interest rate of 6% for borrowing in the Euro to 4% (6% - 2%).

Answer Options:

A. Borrow dollars and the effective dollar cost is approximately 4%.

B. Borrow Euro and the effective dollar cost is approximately 5%.

C. Borrow Euro and the effective dollar cost is approximately 7%.

D. Borrow dollars and the effective dollar cost is approximately 5%.

Thus, the best alternative and the effective dollar cost of the U.S. MNC raising capital of $100 million through the issuance of bonds is B. Borrow Euro and the effective dollar cost is approximately 5%.

Learn more about foreign bonds at https://brainly.com/question/26271508


Related Questions

What's the taxable equivalent yield on a municipal bond with a yield to maturity of 3.9 percent for an investor in the 35 percent marginal tax bracket

Answers

When a person has a marginal tax bracket of 35%, their taxable equivalent yield to a municipal bond is 6%.

What is the taxable equivalent yield?

It can be found by the formula:

= Municipal bond / ( 1 + tax rate)

Solving gives:

= 3.9% / ( 1 - 35%)

= 3.9% / 0.65

= 6%

In conclusion, a 6% return would be an appropriate taxable equivalent yield.

Find out more on municipal bonds at https://brainly.com/question/25656290.

Gathering testimonials when preparing for a sales presentation can be helpful in overcoming customer

Answers

Answer:

objections

Explanation:

salespeople should

know the product's benefits

making a presentation around what the customer wants

gathering customer reviews

quizletcom250953849mgmtchapter16learnsmartflashcards

what are excise duties?​

Answers

Answer:

Excise, often known as excise tax or excise duty, is a sort of tax levied on items produced within the country.


Explanation:

Given above clearly..

Answer:

The taxes which are imposed at the time of production of goods are defined as excise taxes. These taxes are not liable to pay at the time of disposing of the goods.

Explanation:

What is meant by excise tax?

An excise duty is a kind of indirect tax obligation levied on the production, disposal, and use of manufactured products. The products can be related to petroleum, liquor, tobacco, and imported items. It is a tax reimbursed to the government by the manufacturer.

Learn more about excise taxes here:

https://brainly.com/question/11920640

a friend is keen to get a start in real estate and offers to work weekends for you, free of charge, as your assistant to learn the industry. Explain what you would do and why.

Answers

Hiring someone from family or friends as a real estate agent can entail some negative situations like contractual conflicts and biased outlook.

What is the role of the real estate agent?

It is the professional or company responsible for connecting buyers and sellers for the sale and rental of properties and representing them in legal negotiations.

Therefore, as it is a career of great responsibility, it is essential that the professional is qualified to carry out the best opportunities without being biased by any factor.

Find out more about real estate agent here:

https://brainly.com/question/1155381

E9-14 (Algo) Computing and Reporting the Acquisition and Amortization of Three Different Intangible Assets [LO 9-6] Bluestone Company had three intangible assets at the end of the current year: A patent purchased this year from Miller Company on January 1 for a cash cost of $3,200. When purchased, the patent had an estimated life of 8 years. A trademark was registered with the federal government for $6,000. Management estimated that the trademark could be worth as much as $160,000 because it has an indefinite life. Computer licensing rights were purchased this year on January 1 for $66,000. The rights are expected to have a six-year useful life to the company. Required: Compute the acquisition cost of each intangible asset. Compute the amortization of each intangible for the current year ended December 31. Show how these assets and any related expenses should be reported on the balance sheet and income statement for the current year

Answers

a) The computation of the acquisition cost of each intangible asset for  Bluestone Company is as follows:

Acquisition Costs:Patent = $3,200Trademark cost = $6,000Computer licensing rights purchased = $66,000

b) The computation of the amortization of each intangible asset for  Bluestone Company is as follows:

Amortization Expense for the current year

Patent = $400 ($3,200/8)Trademark cost = $0Computer licensing rights purchased = $11,000 ($66,000/6)

c) The way that these intangible assets and their related expenses should be reported on the balance sheet and income statement for the current year ended December 31, for Bluestone Company, is as follows:

Bluestone Company

Balance Sheet

As of the Current Year ended on December 31

Intangible Assets:

Patent                                       $3,200

Less Amortization Expense       $400       $2,800

Trademark cost                                          $6,000

Computer licensing rights  $66,000

Less Amortization Expense $11,000     $55,000

Bluestone Company

Income Statement

For the Current Year ended on December 31

Amortization Expenses:

Patent           $400

Computer licensing rights $11,000

Data and Calculations:

January 1 Purchase of Patent = $3,200

Estimated useful life = 8 years

Trademark cost = $6,000

Trademark value = $160,000

Estimated useful life = Indefinite

No amortization expense but an annual reassessment of its value

Computer licensing rights purchased = $66,000

Estimated useful life = 6 years

Learn more about intangible assets at https://brainly.com/question/7274714

A popular, local coffeeshop in one of the suburbs of New York City (NYC) estimates they use 3,500 pounds of coffee annually. They have to determine how many pounds to order each time in order to minimize their total annual cost. a. Determine the optimal size of the order assuming an EOQ model with a holding cost of $10 per pound annually and an ordering cost of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. The owner has recently opened another store of the same size in New York City; however, the demand for coffee is increased to 4,000 pounds annually, and the holding cost is $60 per pound. Those numbers are much higher as is the cost of real estate in NYC. The owner places orders of the same size as the first store because they are the same size stores. How much will the total cost be in the new coffeeshop

Answers

a) The determination of the optimal size of the order assuming an EOQ model for the local coffee shop is 265 pounds.

b) The total cost in the new coffee shop where the demand for coffee increased to 4,000 pounds at an order size of 265 pounds per order (assuming a unit cost of $3 per pound) is $253,500.

What is the EOQ Model?

The economic order quantity (EOQ) model calculates the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.

It is determined using the following model:

EOQ = square root of: 2 (ordering costs)(demand rate) / holding costs.

Thus, the EOQ model can be worked out as follows:

Determine the demand units.Determine the ordering cost.Determine the holding cost.Multiply the demand by 2.Then multiply the result by the order cost.Divide the result by the holding cost.

Data and Calculations:

a) The annual demand for coffee = 3,500 pounds

Holding cost per pound = $10

Ordering cost = $100

EOQ = square root of: 2 ($100 x 3,500) / $10

= 265 pounds

The annual demand for coffee = 4,000 pounds

Holding cost per pound = $60

Ordering cost = $100

EOQ (Order size) = 265 pounds

Assumed unit cost per pound = $3

The total cost in the new coffee shop = $

Annual holding cost = $240,000 ($60 x 4,000)

Annual ordering cost = $1,500 ($100 x 4,000/265)

Annual purchase cost = $12,000 (4,000 x $3)

Total costs = $253,500

Learn more about the economic order quantity at https://brainly.com/question/14625177

An asset has an average return of 10.94 percent and a standard deviation of 20.98 percent. What range of returns should you expect to see with a 95 percent probability

Answers

If the standard deviation is 20.98%. The range you should expect to see with a 95 percent probability is: -31.02 percent to +52.9 percent.

Expected range of return

Expected range of return = 10.94 percent ± 2(20.98 percent)

Expected range of return =[10.94 percent- 2(20.98 percent)]; [10.94 percent + 2(20.98 percent)]

Expected range of return =(10.94 percent- 41.96 percent); (10.94 percent + 41.96 percent

Expected range of return = -31.02 percent to +52.9 percent

Inconclusion the range of returns is: -31.02 percent to +52.9 percent.

Learn more about expected range of return here:https://brainly.com/question/25821437

For the past year, Hawkeye, Inc., had a cost of goods sold of $60,382. At the end of the year, the accounts payable balance was $13,489. How long on average did it take the company to pay off its suppliers during the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

It will take the company (Hawkeye, Inc.) to pay off its suppliers during the year 81.47 days

What is payable turnover?

The accounts payable turnover is what measure how fast a business makes payments to creditors and suppliers in which it grant credit.

Payables turnover

= Cost of goods sold / Accounts payable

= $60,382 / $13,489

= 4.48 times

Now we can use the payables turnover to find the days' sales in payables as:

Days' sales in payables

= 365 days / Payables turnover

= 365 days / 4.48

= 81.47 days

Hence, it will take the company to pay off its suppliers during the year  81.47 days

Learn more about payable turnover here : https://brainly.com/question/4661989

What is brainly and who started the company ?

Answers

Answer:

good luck to your modules

In sequential order, the four phases of the business cycle are

Answers

The four phases that characterize the Business Cycle are:

Expansion. Peak. Contraction. Trough.

What are the stages of the Business Cycle?

The first stage is that of expansion where the economy grows and employment shrinks. At the peak, the economy is producing at full capacity.

The economy now starts slowing down at the contraction stage which is also known as a recession. If things don't change, this leads to a trough which is where the economy will be at its worst.

Find out more on the business cycle at https://brainly.com/question/15072650.

Answer:expansion, peak, contraction, and trough.

Explanation:

Discuss ways a regional bank could effectively use the Internet to recruit Dank
tellers.

Answers

Recruitment using job portals and career websites is a frequent approach for businesses to find new employees. The bank's HR department can use these websites to publish its job openings and qualifying requirements. Nowadays, social media is also commonly utilized for job postings. Blogs and e-videos may also be used to recruit new staff for a company.

The purchase of which of the following gives the buyer part ownership of a company?

A
stock

B
bond

C
futures contract

D
treasury bill

Answers

Answer:

A -- Stock

Explanation:

Say an investor buys stock they are buying a percentage of ownership in that company.

Hope this helps! Please let me know if you need more help or think my answer is incorrect. Brainliest would be MUCH appreciated. Have a wonderful day!

[tex]\qquad\qquad\huge\underline{{\sf Answer}}♨[/tex]

The Correct choice is A. Stock

In business, many companies divides its net worth into stocks, and people who owns the stocks get part ownership of that company

Were you able to retrieve the data ______ the hard drive of the damaged computer? Group of answer choices. from. from off of. off of. off

Answers

Answer:

Of

Explanation:

Since there is a data form the hard drive

Were you able to retrieve the data off the hard drive of the damaged computer? Thus, option D is correct.

What is a computer?

A computer can be defined as the electronic device which processes various things. In this a binary system is being used which has only two variables zero and one.

All the coding and decoding is done on the basis of these two binary numbers. One can use various algorithm on a computer. If there is a hard drive that is being processed then the material or the information can be easily retrieved from the same.

A professional backup and recovery service might retrieve documents from a failing hard drive. Restoration software cannot recover data from malfunctioning hard drives because it needs permission to the hard disk from the operating system in order to do so.

Therefore, option D is the correct option.

Learn more about computer, here:

https://brainly.com/question/2175764

#SPJ2

1
Which tax is levied only by state and local governments?
O A. payroll tax
O B.
excise tax
O C. property tax
OD.
income tax

Answers

Answer:  C. Property Tax

Explanation:

Basically state and local govement coolect tax from income, property tax, and sales.

Q: In about 200 words, write an essay analyzing the STEEPLE Module .
Students are required to define each key concept (STEEPLE) and to illustrate all concepts with examples. (40%)

Answers

The STEEPLE model is a very complete model that can be used to analyze the factors that affect a specific situation.

What is the STEEPLE model?

This is an analysis model in which each letter represents a factor to be analyzed:

SocialTechnologyEconomicEnvironmentalPoliticalLegalEthical

What is an example of this model?

Let's analyze a war between two countries:

Social: The families are negatively affected by the war.Technology: Weapons and other technologies are used as part of the war.Economic: The economy of the countries involved and other nearby countries can be negatively or positively affected.Environmental: There is pollution due to waste derived from weapons.Political: Most wars are the result of political conflicts.Legal: There are specific international rules that regulate wars.Ethical: The use of weapons against a population rises ethical concerns and dilemmas.

Learn more about analysis in: https://brainly.com/question/5040600

A manufacturing division has an average assets of $1,800,000 and income of $720,000. The division's return on investment is

Answers

Answer:

40%

Explanation: 720,000/1,800,000 = .4 x 100 = 40%


Which of the following statements identifies a key difference between a job description and a job specification?


A. A job description is concerned with the short-run objectives of a job, but a job specification is concerned with the job's long-run objectives


B. A job description is based on a human resource inventory, while a job specification is the result of a performance appraisal.


C. A job description is a statement about the job, while a job specification is a statement about the person who does the job.


D. A job description is a brief summary of what a job involves, while a job specification is a detailed and technically complete statement of what a job
involves

Answers

A key difference between a job description and a job specification is as follows:

C. A job description is a statement about the job, while a job specification is a statement about the person who does the job.

How is a job description different from a job specification?

A job description is concerned with the following issues about the job:

Job titleJob locationJob summaryWorking environmentDuties, etc.

A job specification is concerned with the following matters about the job holder:

QualificationsExperienceTrainingSkillsEmotional attributesMental capabilities.

Thus, a key difference between a job description and a job specification is Option C.

Learn more about job descriptions and job specifications at https://brainly.com/question/26372895 and https://brainly.com/question/4677114

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $0.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 49% per year - during Years 4 and 5, but after Year 5, growth should be a constant 10% per year. If the required return on Computech is 18%, what is the value of the stock today? Do not round intermediate calculations. Round your answer to the nearest cent.

Answers

If the required return on Computech is 18% the value of the stock in today's calculation is $11.77

What is the growth rate of a stock?

This is the percentage change of the stock based on the annualized growth rate over a period of time.

D3 = $0.75

D4 = 0.75 x 1.49 = $1.1175

D5 = 1.1175 x 1.49 = $1.665075

D6 = $1.665075 x 1.10 = $1.8315825

At a growth rate of 10 percent

[tex]\frac{D6}{R-G}[/tex]

1.8315825/0.18-0.10

= $[tex]\frac{0.75}{1.18^3} +\frac{1.1175}{1.18^4} +\frac{1.665075}{1.18^5} +\frac{22.89478125}{1.18^5} \\[/tex]

= 0.456473 + 0.576394 + 0.7278196 + 10.0075198

= $11.77

The value of this stock today is  $11.77

Read more on stocks here: https://brainly.com/question/25818989

If Henry and Kate's Company has $300,000 of sales revenue, pays $50,000 in dividends, and has net income of $100,000, how much were the expenses for the year?

Answers

Answer:

$205,000

--

Stockholders' equity = ($300,000 - $180,000) + ($375,000 - $240,000) - $50,000.

Explanation:

SE = (Total Assets - Total Liabilities) + (Revenues - Expenses) - Dividends

Hi I need help please!!

Answers

A the answer bro or girl ok

Answer:

is the top or bottom question should answer?

activities your consultancy would create to help promote the Veldskoen by DHL.

Answers

You work for a Public Relations Consultancy that has been approached by the German company DHL to assist with their Public Relations activities in Southern Africa.

Explain five reasons that may cause a company to redeem its own shares ​

Answers

- Companies buyback shares for a variety of reasons, including firm consolidation, increased equity value, and to appear more financially appealing.


-The disadvantage of buybacks is that they are frequently financed with debt, putting a burden on cash flow.


-Stock repurchases can have a modestly favorable impact on the economy as a whole.

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily may recover damages for

Answers

Lily is a victim of fraudulent misrepresentation and may recover damages for her down payment.

What is Fraud?

This refers to the use of false pretexts to get something from someone or close a deal and is considered a criminal offense.

Hence, based on the fact that Ken, the real estate agent was not truthful in his assertion about the traffic rate in the property he was about to sell, then Lily is a victim of fraud and may recover damages for her down payment

Read more about fraud here:

https://brainly.com/question/23294592

Which of the following examples demonstrate qualifications that are most helpful for Science and Math careers? Check all that apply.

1.Rick is good at creating technical drawings.
2.Jeanine knows a lot about the construction of buildings.
3.Carmelo has strong research skills for gathering information.
4.Daphne is curious about how a disease can be treated and prevented.
5.Sondra has an advanced knowledge of math and physics.
6.Beau is persuasive at convincing people to buy products.

Answers

Answer:

Number 2

Explanation:

To qualify for construction and building you have to be able to know how to do math the apply what you are making to science.

Answer:

C D E

Explanation:

thats right


As a member of the
organization, you'll have two goals: build
your real-world business skills and develop your problem-solving abilities.
w
National Honor Society
Kiwanis Key Club
DECA
Business Professionals of America

Answers

As a member of the Business Professionals, you'll have to build your real-world business skills and develop your problem-solving abilities.

What is a Social Club?

This refers to the gathering of like minds who are together to achieve a set target or goal which is in line with their value system.

Hence, we can see that Business Professionals of America is an example of a social club who trains its members to build real-world business skills and develop their problem-solving abilities.

Read more about social club here"

https://brainly.com/question/24816175

The charge by one department to another for goods and services delivered to the department is called what?​

Answers

Answer:

Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided.

When the price level in the United States rises relative to the price level of other countries, __________will rise, ________ will fall, and ________ will fall.

Answers

When the price level in the United States rises relative to the price level of other countries, imports will rise, exports will fall, and net exports will fall.

Effect of Relative Price Level on Exports and Imports

Imports would increase if the US price level falls relative to other countries' pricing because imported items became cheaper.

Exports in the United States would decrease if the price of goods in the United States increases relative to other countries.

Because import would surpass export, net export which is export minus import would fall.

Learn more about the Effect of Relative Price Level on Exports and Imports here: https://brainly.com/question/14099857.

A bachelor's degree in which areas concentrates on different writing and editing styles?

A: Psychology
B: Philosophy
C: communications

Answers

I think it may be communications (C).

What is average of numbers on b4:b12

Answers

The average of numbers on b4:b12 is the sum of (b4:b12)/9.

What is an average?

An average is a central value of some numbers.  An average value can be referred to as the mean, median, or mode because an average typically represents a group of numbers (or data set).

Thus, when the numbers contained in the data set, b4:b12, are summed and divided by 9, the arithmetic average (mean) is found.  The mode can also be discovered in the data set by looking for the number that appears most among the nine numbers.

Another average value that we can compute is the median, which refers to the middle number 8 (b8) between b4 and b12, especially after they are sorted in ascending or descending order.

Thus, the average of numbers on the b4:b12 range can simply mean the sum of (b4:b12)/9.

Learn more about averages at https://brainly.com/question/6070671



Question 4 (2 points)
Burnell organized his gift shop, Ebony Artifacts, as a corporation. He created 500
shares of stock, each worth $100. Burnell held 360 of the shares for himself. He sold
the rest in equal amounts to seven investors. How many shares does each investor
own?

Answers

Answer:

Each investor has 20 shares (worth $2,000.)

Explanation:

Other Questions
Fill in the blank with a form of jouer a or jouer de as appropriate "Too much is too bad ". Enplain. Parallelogram RSTU is shown. The perimeter of parallelogram RSTU is 50centimeters. What is the value of x? *R.(2x + 15) cmS(3x + 20) cmUT-5-2.3O 12 Which sentence uses commascorrectly? The man pedaled as, fast as he could, but he still could not get there in time. I wanted, to eat breakfast as soon as I woke up, but my father insisted that we wait. The young girl was proud that her experiment, the first of its kind, had won first place. The students, all scored very well, on the science exam A survey on healthy choices was given to gym members at Work It Out. The results showed that 90% of its members drank protein shakes. Of the members who drank protein shakes, 30% took weight-loss medication whereas only 10% of members who did not drink protein shakes took weight-loss medication. What is the probability that a gym member does not take weight-loss medication? On Friday, Hayley has purchased more flour and eggs, but only has 22 cups of sugar and 4 sticks of butter. Which combination of loaves of zucchini bread and banana bread can Hayley make? How many day in the year are there? Why do artist use Different types of Brashs in there art HELPPPPP I NEED THE ANSWER NOW FOR MY EXAM AND I DON'T WANT TO FAIL ITS WORTH 15 PTSWhat kinds of things belong in the body of your research report?A. an introduction of your main claimB. none of theseC. reasons and evidenceD. a summary of your main points 1. Name and give an example of each of the two classes of per-sonal property. WILL GIVE BRAINLIEST. Pic included... English!! please help asap... only answer if you know please Refer to your Who Is Sonia Sotomayor? book for a complete version of this text.Part AIn Chapter 9, why does Sonia feel it is important to stay true to herself?She wants to stay connected to the world in which she grew up.She prefers to do things her way, rather than to be told what to do.She wants to stand out from the other justices appointed to the bench.She feels that she has always belonged in a place different from where she came from.Question 2Part BWhich evidence from the text best supports the answer to Part A?Even though she was about to become a Supreme Court justice, she didnt want to start acting differently.Sonia liked bright red nails. The White House told her to use a plain color instead.Sonia wore it for a while, but then stopped. She isnt really the lacy type.She felt humble and proudand in awe of the world she was about to enter. a 56-kg student runs at 6.2m/s, grabs a hanging 10.0m long rope, and swings out over a lake. He releases the rope when his velocity is zero. a) what is the tension in the rope just before he releases it?b) what is the maximum tension in the rope during the swing? A rabbit runs 35 feet in 7 seconds, a cat runs 18 feet in 2 seconds. Who is faster? I'm getting rid of this account so I might as well give some points.Solve this riddle:I am something people love or hate. I change peoples appearances and thoughts. If a person takes care of themself, I will go up even higher. Some people might want to try and hide me, but I will show. No matter how hard people try, I will never go down. What am I? What is the central idea of Passages A and B?A Identity theft is less today than ten years ago.B Identity theft is the biggest crime in the world today.C Identity theft is a growing problem and can affect anyone.DYou need legal help if you've been a victim of identity theft. describe one financial challenge that young entrepreneurs may initially encounter that indicate how they could deal with this challenge eter and Area5Annita is sewing a lace edge around a rectangular quilt. She will need 160 inches of lace to do the entire quilt. If the quilt is 46inches wide, how long is the quilt?A. 32 inchesB. 34 inchesC. 80 inchesD.68 inchesResetSubmit 2. Fill in the table below by writing the complementary strand of DNA that would be formed by each template strand. (4 points) Hint: C pairs with G, and T pairs with A. The points (-1, r) and (4, 6) lie on a line with slope 3. Find the missing coordinate r.