Finance 426 Assignment Example | Topics and Well Written Essays - 500 words

Finance 426 - Assignment Example However, the value of the dollar in the future could increase if expanded MCI output substitutes for telecom imports. 3. Korean Airline buys five Boeing 747s. As part of the deal, Boeing arranges a loan to KAL for the purchase amount from the U.S. Export-Import Bank. The loan is to be paid back over the next seven years with a two-year grace period. 4. In accordance with the following circumstances, say whether the value of the dollar will appreciate, depreciate or remain the same relative to the Yen by explaining each answer. Suppose the exchange rates are free to vary and that other factors are held constant. Answer: considering the above scenario the rate of wages is comparatively high in U.S from Japan whereas the level of productivity is also low compared with Japan which makes it less attractive for investment purposes. It is considered that a country with a weak economy will have a low value currency so dollar will

Research and Statistics Module assignment Essay

Research and Statistics Module assignment - Essay Example ve shareholders as to their decision to continue maintaining money in the stocks which they have already invested or for future investors, to invest in stocks of companies. The earnings per share will give the investor one of the major factors in stocks investment. Between two or more companies, the investor is advised to invest in the company with the higher, or even highest, earnings per share. For if we apply probability here, if the company has a very high earnings per share and the earnings per share thru the many years of operation is increasing or remains the same, income producing, for the many years of historical experience, then this company is a very wise investment alternative. Gearing.( www.bized.ac.uk/compfact/ratios/gearing1.htm) is generated by dividing long term liabilities (Stickney, C & Weil, R, Financial Accounting 8th ed. Page 10 Dryden Press, Florida 1997) by equity shareholders’ funds. We should also study Gearing because the definition of gearing mean the relationship between long term liabilities has and the capital investment employed. The gearing ratio gives us a tip on which investment to invest our money in. The ideal situation is that the capital investment balance should be more than the liabilities or loan balance. Liabilities refers to both short term (loans payable within one year after the end of the balance sheet[Spiceland, D & Sepe, J, Intermediate Accounting, Page 212, McGrawhill, 1998, USA] date) or long term liabilities ( loans payable for more than one year after the end of the balance sheet date.) The accounting equation ( this formula is the one presented in the balance sheet) is Total assets ( includes cash, receivables from customers, inventory, buildings, office equipment, factory equipment, land, other items that is owned by the corporation either bought thru cash or loan agreements) is equal to the sum of all liabilities ( already explaine d above) and total capital. Capital includes the investments