Question: What is the difference between foreign exchange

> Fill in the missing information in the following table: Common Shares in Canada Dividend Required Dividend Current Expected Company Price Retum Growth Dividend in 1 Year A 15% $4.50 $5.00 B $600 3% 1% $70 5% $8.00 D $55 $10.00 $11.00 E 14% 6% $9.50 1

> The preferred shares of Chinook Electrical Co. have a par value of $100 and a dividend rate of 8 percent. The current price is $105. If the risk‐free rate is 2.5 percent, what is the risk premium associated with these preferred shares?

> Fill in the missing information in the following table: Preferred Shares in Canada Dividends Par Required Dividend Paid per Company Price Value Return Rate Share A $100 8% 5% $5.00 B $60 $50 3% $70 $75 $8.00 $50 $50 14% $150 $30 7% $100 4% $9.50 G 7%

> Describe how to estimate the present value of growth opportunities (PVGO) and what it represents.

> Describe the constant growth DDM valuation method.

> FinCorp Inc. is exploring the risk of different portfolio allocations between two stocks. Complete the following table. Case 1 Case 2 Weight in stock 1 35% 40% Weight in stock 2 Standard deviation of stock 1 3% Standard deviation of stock 2 25% 20% C

> Describe the characteristics of preferred shares.

> Larch Foods Inc.’ s current dividend is $5. Dividends are expected to decline by 4 percent per year for the next three years, and then remain constant thereafter. The required rate of return for this type of company is 12 percent. What is the current sto

> Barchuk Mining Inc.’s share is currently selling for $120. The current dividend is $5 and the required rate of return is 10 percent. What is the expected dividend growth rate?

> Global Systems Inc. has just paid $2.40 in dividends D0 $2.40 . The firm is expected to continue paying dividends in perpetuity. a. Suppose that the dividends are constant (Di = $2.40 for all i) . What will be the stock price of a share of Global System

> Apex Financial Ltd. has completed a fundamental analysis of Spark Energy Inc. Spark Energy is a young company and expects to invest heavily in facilities and research and development during the next five years. It expects to reap the benefits of its rese

> Selkirk Inc. has an expected profit margin of 10 percent, turnover ratio of 1.8, and a leverage ratio of 0.3. The leading EPS is $2.50 and the firm uses a dividend payout ratio of 35 percent. The required return on firms with Selkirk’s risk characteristi

> As part of your duties at Apex Financial Ltd. you have been asked to review the analysis carried out by a rival company—Prime Group—of the WX Media Company. WX has had a constant P/E ratio for the past five years. Prime’s analyst has made the following s

> Apex Financial Ltd. is interested in investing in Scion Systems Inc. Scion’s current dividend is $5.50 and its shares are selling for $40. The required rate of return for firms like Scion is 8 percent. Apex has conducted an extensive analysis of the comp

> Dillon Mechanical Ltd.’ s preferred shares have a par value of $50, a dividend rate of 7 percent, and trade at a price of $70. Sherwood Inc.’s preferred shares have a par value of $60, have a dividend rate of 4 percent, and trade at a price of $45. Which

> INV Design Ltd. just paid a dividend of $4 and its current earnings per share is $6. The current T‐bill rate is 3.5 percent and INV ’ s risk premium is 10 percent. The net profit margin, asset turnover, and debt‐to‐equity ( D/E) ratios are 15 percent, 1.

> In Practice Problem 40, the correlation coefficient ρ AB is 0.4 and the standard deviations of stock A and stock B are 28 percent and 15 percent, respectively. Calculate the standard deviation of the portfolio.

> TelTec Inc. has a patent that will expire in two years. The firm is expected to grow at 10 percent for the next two years and dividends will be paid at year end. It just paid a dividend of $1. After two years, the growth rate will decline to 4 percent im

> JINX Ltd. had earnings per share of $5 as of December 31, 2015, but paid no dividends. Earnings were expected to grow at 15 percent per year for the following five years. JINX Ltd. will start paying dividends for the first time on December 31, 2020, dist

> TelTec Inc. stock is expected to sell for $10 per share four years from now. TelTec has just paid a dividend of 50 cents per share. Dividends are expected to grow at a rate of 5 percent per year for the next four years. Assume that the required rate of r

> Dillon Mechanical Inc. ’ s first dividend of $2 per share is expected to be paid six years from today. From then on, dividends will grow by 10 percent per year for five years. After five years, the growth rate will slow to 5 percent per year in perpetuit

> Why can’t the expected growth rate exceed the investor’s required return in the constant growth model?

> Why does an increase in the expected dividend growth rate increase share prices?

> Why is share value based on the present value of expected future dividends?

> How can we estimate future growth rates?

> What is the “bigger fool theorem” of valuation?

> Apex Financial Ltd. is concerned about the impact of errors in its estimates of the future dividend payout ratio for Barnett Steel Corporation. Assume that the current dividend is $1, ROE is fixed at 10 percent, and the required rate of return is 15 perc

> An investor purchased 600 shares of stock A at $23 per share and 1,000 shares of stock B at $34 per share one year ago. Stock A and stock B paid quarterly dividends of $1 per share and $1.50 per share, respectively, during the year. One year later, the i

> What is the difference between the covariance and the correlation coefficient?

> 1. Why is it difficult to compare the financial statements of a U.S. company with those of a company in India or Germany? 2. How would McDonald’s benefit if IFRS were adopted for use in all countries worldwide?

> Do you think that supply-chain management and ERP Systems have helped both businesses and consumers? Why or why not?

> How can global operations management be used as a source of competitive advantage?

> 1. What are the advantages and disadvantages of using licensing and exporting? 2. Will Mary need to use the services of a freight forwarder? If so, what specific services? 3. Are there any other countries, besides those mentioned, that might be importan

> What are some of the major economic reform themes that are common to the three international organizations promoting globalization?

> What are some underlying factors that are causing decoupling to happen as societies move from a unipolar to a multipolar world? In your opinion, in which direction is the balance of global economic power shifting?

> Do you believe that there is a “digital divide” in the global economy? Is globalization narrowing that gap? If so, how?

> How would you make a convincing case that open trade in goods and services as well as free flow of foreign direct investment will enhance the well-being of (a) consumers, (b) producers, and (c) the government of countries? Give specific examples to prove

> When would a country such as France use socioeconomic rather than geopolitical reasons to support its trade policy? Can you provide some examples

> 1. What are some arguments in favor of continuing government support of Citigroup? Discuss who would be hurt by the bank’s failure. Is the failure of Citigroup different from that of other firms? Does the government have people to manage such a global fi

> Some believe there is a disconnect between trade theory and trade policy. What rationale could the United States use to support its trade policies? Give specific examples.

> How should companies deal with international customers who complain?

> What are the advantages of using freight forwarders?

> What are some of the disadvantages that can result when companies use channels of distribution to market their products overseas?

> What are the advantages of using trade shows to promote products in international markets?

> How can use of the product life cycle assist international marketers?

> What is the difference between standardization and adaptation?

> What are the three major markets that exist in all foreign markets?

> Why do companies need to research their international markets?

> What trade theories support the recent rise of China and India on the global stage? Explain your views in detail.

> A matrix structure may provide the advantages of the functional and divisional structures, but it may also provide the disadvantages of these two structures. Argue in favor of or against this assertion.

> Compare and contrast the following organizational structures: functional structure, product structure, market structure, and geographical region structure.

> What is the difference between export departments and international divisions?

> Organizational structures can help a company fail or succeed. Why do you think that is the case?

> 1. How will the expansion of sexual harassment laws globally affect company policies and procedures? 2. How will companies handle the increase in possible lawsuits stemming from sexual harassment legislation?

> Why are global businesses evolving toward stateless corporations?

> If you were president of the United States and trying to negotiate better labor standards for NAFTA, what new provisions might you try and negotiate (at least from the U.S. perspective)?

> Why is it often very difficult for supervisors, in any culture, to provide employees with a negative performance appraisal?

> What are the pros and cons of using the Internet for the “virtual staffing” of corporate operations?

> What are some of the potential problems global businesses face when they outsource or subcontract their manufacturing work to companies in other countries? (e.g., a U.S. sneaker company outsourcing the manufacturing of its sneakers to a separate company

> Before locating operations in a country, why should a MNC evaluate that country’s tax system?

> 1. What are some advantages and disadvantages of the Shell Matrix? 2. Why do you think Shell has undergone so many organizational restructurings? 3. How would you decide what would be Shell’s best organizational structure?

> 1. What are the advantages and disadvantages of biofuels in terms of addressing the challenge of sustainable development? 2. Should bioethanol production from corn be encouraged, given that corn is used as a basic cereal in many societies? Should bioetha

> 1. Is economic nationalism justified? 2. Is the Smoot-Hawley plan better or worse than “Buy American”? “Buy Spanish”? Or “British jobs for British workers”? Explain fully.

> Globalization temporarily creates “winners” and “losers.” What reform would you suggest to help those who are not benefiting from globalization? How might these reforms be implemented?

> Regional integration in Latin America offers tremendous potential. Yet economic achievements are relatively modest so far. Why?

> Although the European Union is the most advanced form of regional integration, it is currently facing a challenging time. What are some of the major challenges facing the EU?

> Will countries be better off under a multilateral economic liberalization regime or under a system of regional economic integration? Why?

> Quite often, host countries have a love-hate relationship with MNEs. Why?

> Which type of company often adopts hybrid structures?

> MNEs try to maximize profits. How could MNEs maximize profits and minimize profit volatility at the same time?

> How does financial ratio analysis enable an investor to compare two companies?

> What is a recent development in the evolution of multinational enterprises and how does that development affect globalization?

> In what ways did the organizational culture at Bernard Madoff Investment Services company help lead to Madoff’s success for so many years?

> Do you think six sigma quality control initiatives really work?

> In what positive and negative ways has the Internet changed the conduct and coordination of global business?

> Do you think global businesses should place more emphasis upon operational or tactical plans? Why?

> In what ways are corporate mission statements more than just “public relations”?

> It is anticipated that emerging-market multinationals will play a greater role in international business during this century. What mode of international business operations do you think they would choose? Why?

> 1. How does Mr. Buffett’s age affect Berkshire Hathaway’s recent strategic moves such as buying Burlington Northern Santa Fe Railroad instead of another large insurance company? 2. What does his purchase of Burlington Northern Santa Fe Railroad say about

> 1. Is ArcelorMittal a “stateless” corporation or a MNE? Where is its home country? 2. What is Mittal Steel’s core competency, and what was its strategic motive for global business?

> To partially overcome its current account deficit, the United States needs to attract FDI that could spur economic growth. What policy measures should the United States take to keep attracting FDI into the country?

> How does auditing contribute to better financial reporting?

> 1. Given the security concerns of both the EU and Russia, where should the EU’s eastern border end? Do you think the buffer states should become NATO members as well? Why or why not? 2. Should non-uniformity policies in the EU (i.e., cherry picking EU po

> It appears likely that a free trade area in much of Asia is likely by the end of 2020. What are the global implications for such a development?

> Assume that the one-year U.S. Treasury bond rate is 3% and the similar European government bond rate is 5%. Comparing these inflation rates, could it be expected that the dollar will appreciate or depreciate against the euro over the next year? If the sp

> How can the Big Mac Index be used to make PPP comparisons between countries? Using such comparisons, what can be learned about the future possible direction of exchange rates between countries?

> Briefly describe the international monetary systems implemented under the Bretton Woods, Smithsonian, and Jamaica Agreements.

> What is the difference between independent floating, managed floating, and fixed exchange rate systems? Provide an example of a direct quote of an exchange rate.

> In the BOP accounts, what are the four basic components of the current account? How can information about the financing of a country’s current account be obtained?

> NAFTA has improved Mexico-U.S. trade and investment, yet bilateral trade between the United States and China is greater than with Mexico. Why is this true?

> 1. How did Greece get into trouble with its government debt? Did joining the Eurozone help them pay rising government debts? Explain your answers. 2. Should Greece exit the euro? How would it benefit? What could go wrong? Explain your answers.

> Why are countries pushing to sign regional integration blocs?

> What are the benefits of every country using the same GAAP; that is, IFRS? Why haven’t all countries adopted IFRS?

> 1. What sources about Ecuador should you consult to obtain cultural information about this country that will need to be included in your cultural map? 2. What other aspects of Ecuadorian culture, other than its predominant religion and language, might af

> How useful is economic geography in explaining the success of regional economic integration blocs? Give examples.

> 1. Why is ethics important to doing business? 2. If all companies established a corporate ethics code, would that eliminate company financial scandals? Why or why not?

> What are some important secondary sources that companies can consult to learn about the cultures of other countries?

> What are the four characteristics of culture that global marketers must recognize?

> What types of managerial decisions in foreign countries are driven by cultural factors?

> What are some cultural factors that U.S. companies must recognize when doing business in Latin America?