Please answer the following questions and all its parts(max 4 parts according to chegg). Failure to do so will result in negative rating. I will give good rating if complete. Thanks!
I Finance 2017/3 Question cal x needs USD 50 million for one year to finance its working capital. The company has 2 borrowing alternatives: ci) borrow the full amount in Eurodollars in London at 3.20000 per annum. cii) borrow HK $340 million in ong kong at 1.01 1o per annum and exchange these Hks at the then present exchange rate of HR $ 7.8000 per USD. Calculate the ending exchange rate where a would be indifferent between borrowing in USD and HK$. Cb) * y, an American based start-up company is devoted to the manufacture of greener engines.Comenercializing new technologiesis not easy in rich countries since manufacturers are reluctant to take a risk in unproven newengines. In March 2014, y entered into a jointventure with a division of ching Faw group, achinese carmarier, The Chinese partner intends to spend more than $200m in a factory in the northern rovince of Shanxi, that will produce 100000 of the green engines a year. China's leaders have vowed waron pollution Central and local governments give generous subsidy and tan breaks on the purchase of green energy vehicles in April 2016, the company signed a $200 million licensing agreement tolet Z, a company in China, manufacture a version of its green engines inching - ci) with the above information, discuss the likely beasons why y has used joint venture and licensing agreement as modes of entry in China cii) Discuss the risks faced by Y in the licensing agreement dead and suggest means to mitigate these risks. I Finance 2017/3 Question cal x needs USD 50 million for one year to finance its working capital. The company has 2 borrowing alternatives: ci) borrow the full amount in Eurodollars in London at 3.20000 per annum. cii) borrow HK $340 million in ong kong at 1.01 1o per annum and exchange these Hks at the then present exchange rate of HR $ 7.8000 per USD. Calculate the ending exchange rate where a would be indifferent between borrowing in USD and HK$. Cb) * y, an American based start-up company is devoted to the manufacture of greener engines.Comenercializing new technologiesis not easy in rich countries since manufacturers are reluctant to take a risk in unproven newengines. In March 2014, y entered into a jointventure with a division of ching Faw group, achinese carmarier, The Chinese partner intends to spend more than $200m in a factory in the northern rovince of Shanxi, that will produce 100000 of the green engines a year. China's leaders have vowed waron pollution Central and local governments give generous subsidy and tan breaks on the purchase of green energy vehicles in April 2016, the company signed a $200 million licensing agreement tolet Z, a company in China, manufacture a version of its green engines inching - ci) with the above information, discuss the likely beasons why y has used joint venture and licensing agreement as modes of entry in China cii) Discuss the risks faced by Y in the licensing agreement dead and suggest means to mitigate these risks
