Foreign Investment Decisions

I really need some help with this one. The problem starts out stating that Acme is considering the acquisition of a firm in the Czech Republic. It plans to operate the firm for 3 years and then reevaluate the holding. Free Cash flows were estimated as follows: Year 1 - 38.63M Czech Koruna (CZK), Year 2 - 44.33 M CZK, Year 3 - 50.48M CZK The third year terminal value is estimated at 375M CZK. The Czech Koruna's exchange rate is assumed to be .038 USD/CZK for each year. Acme uses a WACC of 13 % for its domestic projects. So, the PV of the FCF's for the firm is 363.78 M CZK or $13.82M. The Czech firm has 1,000,000 shares outstanding and a debt to equity ratio of 1:1. Current mark... click for more

Questions in International Trade

(See attached file for full problem description) 1. Why economists often prefer tariffs to quotas. 2. What happens to a country's production possibilities frontier if a law is passed prohibiting workers from ever working in an industry other than the one they are currently employed in. How does this affect the gains from trade? 3. Why international specialization may lead some people, groups, and industries to oppose free trade. 4. The reparations payments by Germany required under the Treaty of Versailles posed a problem: How were tax payments by German citizens to their government in German marks to be converted to dollar payments to United States lenders? Explain how these t... click for more

Develop a plan for your business that will be implemented as Venezuela becomes part of MERCOSUR

As a Venezuelan business owner, you are very interested in the fact that Venezuela has recently been accepted as an associate member of MERCOSUR (July, 2004). You need to prepare your operations in view of this new reality. Develop a plan for your business that will be implemented as Venezuela becomes part of MERCOSUR. Your business plan should include the following: 1. Benefits and drawbacks for the country of Venezuela as a result of their membership in MERCOSUR 2. Benefits and drawbacks for your business as a result of their membership in MERCOSUR 3. What adjustments will need to be made to your business as a result of this? Thank you very much!

McDonalds - Should McDonalds change it's menu in other countries?

Should Coca Cola only offer coke or include other items? Why? Should McDonalds change it's menu in other countries?

Balance Sheet Conversion

I need some assistance with this multi-part question. I have attached the question. --- The balance sheet below represents the end-of-year balance sheet for a new wholly owned subsidiary of a U.S. multinational corporation operating in Poland. All amounts are shown in millions of zloty, the local currency. The subsidiary was incorporated on January 1, 1994, when the exchange rate was 40.50/zloty. Since the subsidiary has been in operation for only one year, the Retained Earnings represent only the current year's profits. CLICK ENTERPRISES OF POLAND Balance Sheet December 31, 1994 Millions of zloty Assets Liabilities Cash 100 Accounts Payable 100 Accounts Receivable 100 Long-Te... click for more