Compare Brazil, Ghana, India, New Zealand, the United States, and Turkey in terms of how easily contracts are enforced, how property can be registered, and how investors can be protected. Identify in which area you see the greatest variation from one country to the next.
Refer to the website, https://archive.doingbusiness.org/en/doingbusinessLinks to an external site.
Choose the countries listed above from the drop-down menu on the website and complete your task on a word document.
Category: Finance
Financial meltdown in our 2007-2008 financial markets
Would you describe the financial meltdown in our 2007-2008 financial markets as a failure of “people” or of our “capital market processes”? Why? Support your thoughts with ethical theory and examples. Use our library for added research if needed.
Financial meltdown in our 2007-2008 financial markets
Would you describe the financial meltdown in our 2007-2008 financial markets as a failure of “people” or of our “capital market processes”? Why? Support your thoughts with ethical theory and examples. Use our library for added research if needed.
The values of each of the bonds
Atlantic Marine Transport Corporation is considering the purchase of a new bulk carrier for $9 million. The forecasted revenues are $5.5 million a year and operating costs are $4 million. A major refit costing $2 million will be required after both the fifth and tenth years. After 15 years, the ship is expected to be sold for scrap at $1 million.
a. What is the NPV if the opportunity cost of capital is 10%? (10 points)
b. Should the company accept the purchase of the carrier? (5 points)
c. What is the IRR of this project? (10 points)
d. What is the payback period? (10 points)
Here are data on $1,000 par value bonds issued by Walmart and Pfizer. Assume you are thinking about buying these bonds.
Walmart
Pfizer
Coupon
5%
4%
Years to Maturity
20
10
Required Return
4%
6%
Answer the following questions:
a) Assuming interest is paid annually, calculate the values of each of the bonds (10 points)
b) How would these values change if the coupon was paid semiannually (10 points)
c) How would change the price of each bond if the required rate of return (current 4% for Walmart and 6% for the Pfizer and with annual coupon) increased by 2% (10 points). What will you deduce about the relationship between market interest rate and bond prices? (10 points).
The “current natives.”
In 2013 Bill Gates had a private wealth of about $28 billion after he reduced his stake in Microsoft from 21% to around 14% by moving billions into his charitable foundation. Let’s see what Bill Gates can do with his money in the following problems.
a. I’ll take Manhattan? Manhattan’s native tribe sold Manhattan Island to Peter Minuit for $24 in 1626. Now, 387 years later in 2013, Bill Gates wants to buy the island from the “current natives.” How much would Bill have to pay for Manhattan if the “current natives” want a 6% annual return on the original $24 purchase price? Could he afford it? (5 points)
b. How much would Bill have to pay for Manhattan if the “current natives” want a 6% return compounded monthly on the original $24 purchase price? (5 points)
c. Microsoft Seattle? Bill Gates decides to pass on Manhattan and instead plans to buy the city of Seattle, Washington, for $60 billion in 10 years. How much would Mr. Gates have to invest today at 10 percent compounded annually in order to purchase Seattle in 10 years? (5 points)
d. If Bill Gates decides to support his foundation with further funding of $1 billion that he will contribute to the saving account at the end of each year during the next 20 years and the bank offers him a return of 8%, how much will be generated on this saving account after 20 years? (10 points)
The Foreign Exchange Market
You are the CFO of a U.S. firm whose wholly-owned subsidiary in Mexico manufactures component parts for your U.S. assembly operations. The subsidiary has been financed by bank borrowings in the United States. One of your analysts told you that the Mexican peso is expected to depreciate by 30 percent against the dollar on the foreign exchange markets over the next year. What actions, if any, should you take?
Business Roundtable moved away from shareholder value
In 2019 the Business Roundtable moved away from shareholder value as the primary purpose of a firm, to include a broader view of stakeholders. The updated statement can be found in the press release at the link below.
In your initial post indicate: 1) If you agree with this change. If yes, why? If not, why not? 2) Regardless of your view stated in item 1, how and why would you choose to order the five bullet points delineating corporate purpose. 3) Integrate at least one specific bible passages into your first post, and one additional outside press article. Include the reference to the outside article at the end of the initial post.
https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans
Finance and the stakeholders in the health care industry.
Regardless of where your health care career takes you, finance is an important part of the health care system. Finance might not be your professional calling, though it is important you have a working knowledge of the terminology of finance and the stakeholders in the health care industry.
Pro Sports Facility Finance
Choose two pro sports facilities that have been constructed within the past 10 years and, using a bullet point as a header for each item below, respond to the following questions in two parts; one part for each facility:
How much did the facility cost?
How was it funded?
Did the team relocate from another city? Or, did the city renovate an existing facility or build a new facility for the team?
Did the public vote for the project? If so, what was the outcome?
In your opinion, was the building of this facility a good move the for city? Why or why not?
Conclude your assignment with a concise summary
If there are no synergy gains
You are told that company MM has total earnings for the year 2020 of €6 Millions, a price per share of €30 and 0,5 Million shares outstanding.
Company MM would like to acquire company MC, that has total earnings for year 2020 of €1 Millions, a price per share of €50 and 0.3 Million
shares outstanding. The proposal for acquisition is done via an exchange of stock at a price of €60 per share for the stocks of company MC.
None of the companies has outstanding debt.
a) What are the EPS of company MM after the merger?
b) What will be the new price per share for company MM if the price–earnings ratio does not change?
If there are no synergy gains, what will the share price of MM be after the merger? What will the price–earnings ratio be?