Question
After being in negotiations for two years, Indian firm REL Ltd, announced on July 15, 2021, that it had reached an agreement to pay $100
After being in negotiations for two years, Indian firm REL Ltd, announced on July 15, 2021, that it had reached an agreement to pay $100 million for a 100% interest in Ned Tech Inc, based at USA. You are provided with the following details Inflation rate, USA 1.2% Inflation rate, India 4.0 % Exchange rate at time 0 (Rupees per dollar) 75.00 Real required rate of return applicable for Ned Tech 8.0% You are required to calculate nominal Indian required rate of return, nominal US required rate of returns, projected USDINR (relative PPP) after 2 years
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