Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer all parts of the question Question 1: Green Sustainable Finance LLC is based in the U.S. with two subsidiaries, one locnted in the UK,

image text in transcribed
image text in transcribed
Answer all parts of the question Question 1: Green Sustainable Finance LLC is based in the U.S. with two subsidiaries, one locnted in the UK, and other in Norway. The U.S dollar has been depreciating against the Euro. The British pound has been appreciating against the U.S. dollar. The U.S. parent company exports their main merchandise, luxury trams, in USD. The British subsidiary exports both in USD and in Euro. The Norwegian subsidiary exports predominantly in Euro. Information about the British subsidiary operations are provided as follows: Working capital is expected to stay the same for the next 2 years (2022-2023). Tax rate 30% The forcign exchange rate changed from $1.75/ to $2/ in early 2022 and is expected to remain the same for the next two years. The weighted average cost of capital is 15%. (a) Why would Green Sustainable Finance LLC open a subsidiary overseas? Explain your answer with a brief example for each factor you find important. [2.5 marks] (b) Provide an analysis of the potential effect of the change in exchange rate for the U.S. parent company, and the British and Norwegian subsidiaries. You can assume the above rates [ 3 marks] (c) Assuming you need to provide a forceast for the next two years, evaluate the effect of the following scenarios on the potential net present value ($) of the British subsidiary: - No strategic change in the operations - An increase in the selling price by 10% for each of the next 2 years. - An increase in the volume by 15% with also a decrease in price by 5%. [5 marks] (d) Why would you recommend a risk share agreement if you are a Canadian multinational, and you are exporting to the UAE? Explain your answer. [2 marks] Qacstion 7 The main difference between PERT and CPM is that, 5elect one: a. CPM assumes activity durations can vary b. PERT is more accurate than CPM c. PERT employs threc time estimates for each activity d. PERT assumes that activity durations are known c. PERT ignores activity costs Question 8 Which of the following statements regarding Gant charts is TRUE? Select one: a. Gantt charts use the four standard spines of Methods, Materials, Manpower, and Machinery. b. Gantt charts give a timeline and precedence relationships for each activity of a project. c. Gantt charts are visual devices that show the duration of activities in a project. d. Gantt charts are expensive. c. All of these are truc. Question 9 Which of the following is NOT one of the phases of project management? Select one: 3. budgeting b. controlling c. planning d. scheduling e. All of these are project management phases Question 10 A forecasting method has produced the following over the past five months. What is the mean absolute deviation? Select one: a. 6.0 b. 1.2 c. 2.4 d. =0.2 c. 12.0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Market Regulations And Finance

Authors: Ratan Khasnabis, Indrani Chakraborty

2014th Edition

8132217942, 978-8132217947

More Books

Students also viewed these Finance questions

Question

2. (1 point) Given AABC, tan A b b

Answered: 1 week ago