Question
For your chosen non-US public firm (consumer electronics industry - Samsung), determine its reporting currency, i.e., the currency (other than the U.S. dollar) in which
- For your chosen non-US public firm (consumer electronics industry - Samsung), determine its reporting currency, i.e., the currency (other than the U.S. dollar) in which its financial statements and other financial reports are expressed, and complete the following table for that currency in terms of the U.S. dollar either in American terms (number of U.S. dollars per one unit of the foreign currency) or in European terms (number of foreign currency units per one U.S. dollar). Please be consistent in how your express the exchange rates. Sources for this information include:
http://www.usforex.com/forex-tools/historical-rate-tools/historical-exchange-rates
2. Assume you are a U.S.-based investor with USD 1000 to invest and answer the questions below:
- If you had converted the USD 1000 into the foreign currency one year ago at the above spot rate, then how much in foreign currency would you have received?
- If you converted the foreign currency received one year ago back into US dollars at today's spot rate, how many U.S. dollars would you have now?
- Has the foreign currency depreciated, appreciated, or not changed in value relative to the U.S. dollar over the past year?
- What has been the percentage change?
- Include your results as an attachment to the Business Brief below.
3. For the non-US public company you have chosen (consumer electronics industry - Samsung), consider whether you would invest in the a) equity (stock) or b) debt (bonds) of the company denominated in the foreign currency.Assume you have a one-year investment horizon and write a 1-page analysis according to the Business Brief Guidelines. Complete sentences must be used (bullets not acceptable). Your analysis must be written using a concise writing style. Your brief should answer all of the questions posed above.
Assignment: Business Brief - Country and Company Analysis Purpose To assess your ability to: Determine the reporting currency of a non-US public firm. Explain the concept of the time value of money and the principle of compound growth. Analyze and conclude investment in the a) equity (stock) or b) debt (bonds) of the company denominated in the foreign currency. Action Items 1. Refer back to Week 2 when you chose the country and industry for your use in the course: Company & Industry Selection 2. For your chosen non-US public firm (consumer electronics industry - Samsung), determine its reporting currency, i.e., the currency (other than the U.S. dollar) in which its financial statements and other financial reports are expressed, and complete the following table for that currency in terms of the U.S. dollar either in American terms (number of U.S. dollars per one unit of the foreign currency) or in European terms (number of foreign currency units per one U.S. dollar). Please be consistent in how your express the exchange rates. Sources for this information include: http://www.bloomberg.com/markets/currencies http://www.oanda.com/currency/historical-rates/ http://www.usforex.com/forex-tools/historical-rate-tools/historical-exchangerates 3. Assume you are a U.S.-based investor with USD 1000 to invest and answer the questions below: a. If you had converted the USD 1000 into the foreign currency one year ago at the above spot rate, then how much in foreign currency would you have received? b. If you converted the foreign currency received one year ago back into US dollars at today's spot rate, how many U.S. dollars would you have now? c. Has the foreign currency depreciated, appreciated, or not changed in value relative to the U.S. dollar over the past year? d. What has been the percentage change? e. Include your results as an attachment to the Business Brief below. 4. For the non-US public company you have chosen (consumer electronics industry Samsung), consider whether you would invest in the a) equity (stock) or b) debt (bonds) of the company denominated in the foreign currency. Assume you have a one-year investment horizon and write a 1-page analysis according to the Business Brief Guidelines. Complete sentences must be used (bullets not acceptable). Your analysis must be written using a concise writing style. Your brief should answer all of the questions posed above. BusinessBrief - Country and Company Analysis Rubric Total 90 points Criteria Determinesthereporting currency of the selected non-US public firm. Answersthe questions for Action Item 5. Analyzes and concludesinvestment in the a) equity (stock) or b) debt (bonds) of the company denominated in the foreign currency. Integrates established business environmentprinciples into the discussion. Synthesizes relevant information and materials to provide evidence of critical thought. Develops ideas with clarity and logic. Unacceptable Acceptable Proficient Vaguely determines the reporting currency of the selected non-US public firm or is completely off topic. Determines the reporting currency of the selected nonUS public firmand, for the most part, fulfills assignment requirements. (0-15 points) Rarely answers for the questions, or is completely off topic. (16-17 points) For the most part, the required questions are answered and the answers are correct and of high quality. (16-17 points) Analyzes and concludes investment in the a) equity (stock) or b) debt (bonds) of the companyand, for the most part, fulfills assignment requirements. Determines the reporting currency of the selected nonUS public firm and demonstrates solid ability to accomplish the assignment. (18-20 points) All of the required questions are answered and the answers are correct and of high quality. (0-15 points) Vaguelyanalyzes and concludes investment in the a) equity (stock) or b) debt (bonds) of the companyor is completely off topic. (0-15 points) Rarely integrates established business environment principles into the discussion. (0-7 points) Synthesizes information at a minimal level. (16-17 points) For the most part, does a good job of integrating established business environment principles into the discussion. (8 points) For the most part, effectively synthesizes information, which supports main ideas. (0-3 points) Demonstrates little clarity and logic. Readers have difficulty following the line of reasoning. (4 points) Develops ideas with clarity and logic. Readers can generally follow the line of reasoning. (0-3 points) (4 points) (18-20 points) Analyzes and concludes investment in the a) equity (stock) or b) debt (bonds) of the companyand demonstrates solid ability to accomplish the assignment. (18-20 points) Consistently does a good job of integrating established business environment principles into the discussion. (9-10 points) Consistently and effectively synthesizes information, which provides strong support to main ideas. (5 points) Develops ideas with clarity and logic. Ideas flow smoothly from one to another and are clearly linked to each other. (5 points) Student Score and Comments Uses supporting documentation that has been properly referenced and cited. Considered holistically, demonstrates the ability to write at the graduate level. Inadequate or minimal use of supporting documentation or not properly referenced or cited. For the most part, uses supporting documentation that is properly referenced and cited. Consistently uses supporting documentation that is properly referenced and cited. (0-3 points) Considered holistically, the student demonstrates an inadequate ability to write at the graduate level. (4 points) Considered holistically, the student demonstrates an acceptable ability to write at the graduate level. (5 points) Considered holistically, the student demonstrates a proficient ability to write at the graduate level. (0-3 points) (4 points) (5 points) SubStep by Step Solution
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