Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) An MNC is considering the investment opportunity in Egypt. Cost of project is EGP 51,646,125. Project has no cash flows in year 1, and then promises annual cash flows of EGP 21,000,000 for years 2, 3 and 4. Inflation rate is =7%, the inflation rate in Egypt is =10.44%, and business risk of investment would lead the unlevered firm to demand the return of Kud =iI=18% these rates are expected to succeed in future. Present exchange rate is S(EGP/INR)=0.1132. Determine the NPV in INR? Use the predicted exchange rate methodology.

2) Last year, you bought the stock at the price of $51.5 a share. Over course of the year, you got $2 in dividends and inflation averaged 2.7%. Today, you sold your shares for $54.2 a share. What is your estimated real rate of return on this investment (usually you would utilize "Fisher Effect Formula", but in this case please use "approximation formula"?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914419

Have any Question? 


Related Questions in Basic Finance

Your company needs electric energy for a warehouse consult

Your company needs electric energy for a warehouse. Consult the web pages of at least three potential providers and evaluate them in terms of their average price during the morning shift, payment conditions and reputatio ...

1 why might the decision to own rather than lease real

1. Why might the decision to own rather than lease real estate have an unfavorable effect on the corporation's financial statements? 2. Why might the cost of a mortgage loan be greater than the cost of using unsecured co ...

Make a list of some of the factors in your life that change

Make a list of some of the factors in your life that change from one day to the next. Possible examples include your mood, health, environment, schedule, obligations, successes and failures, and the quality of your socia ...

Find data to decide whether to open a store-you have been

Find data to decide whether to open a store:- You have been asked to determine the feasibility of opening a frozen yogurt store in Greenville, North Carolina. Answer the following questions, using the latest figures avai ...

What are the components of an option premium why is the

What are the components of an option premium? Why is the price of an option always greater than its intrinsic value? What is an in-the-money option? When is a call versus a put in the money?

Future value of annuity twins jessica and joshua both 25

Future Value of Annuity. Twins Jessica and Joshua, both 25, graduated from college and began working in the family restaurant business. The first year, Jessica began putting $2,000 per year in an individual retirement ac ...

Why did the sovereign debt problem of greece- a country

Why did the sovereign debt problem of Greece- a country that accounts for less than 2 percent of euro-area GDP - threaten the banking system throughout the euro area?

1a how does a company become exposed to interest rate riskb

1.(a) How does a company become exposed to interest rate risk? (b) How does a bank become exposed to interest rate risk? 2 .How might a company attempt to reduce interest rate risk? 3. How might a bank attempt to reduce ...

An article in the wall street journal makes the following

An article in the Wall Street Journal makes the following observations: The outlook for companies: robust earnings and revenue growth. Firms in the S&P 500 are expected to report year-over-year earnings growth of about 3 ...

Stock pricing stock valuation bond pricesbullgo to

STOCK PRICING / STOCK VALUATION / BOND PRICES • Go to www.cnbc.com and explore the video tab by using several different key terms such as stock pricing, stock valuation, and bond prices. • Watch at least two videos you f ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen