Please help me with this 2 questions I really need help. Thank you in advance.

Question 3 (a) Langkawi Corporation is selling for $3 a share- In looking at the stream of dividends over the past ten years: you nd out that the rst dividend was $l and the last dividend was $2.1m}. Calculate the required rate of return. (b) LEW- Changi Company has an 11.5% required rate of return. It does not expect to initiate dividends for EU years= at which time it will pay $335 per share in dividends. At that timeb the company expects its dividends to grow at 6% forever. Estimate the {20131me price in 20 years (Pg) if its dividend at the end of year 2!] is $3.75? Compute the price in today's dollars if you desire a rate of return of 12%? (c) Your company manufactures and sells automobile parts around the world You have just completed a large sale of parts to an auto manufacturer in France and received a promised payment of 113! per part. You have already sold IZDDD parts and are now awaiting payment which you expect 90 days 'oum today. The exchange rate today is $1.25E- Over the next ninety days, the direct exchange rate unmqiectediy moves rom $1.253? to SIEWE- Compute the gain in domestic revenue due to this unexpected move in the exchange rate? Question 4 (a) Assume that you are the manager of a US. company and you face an exchange rate of15 per $E- 1iii-Flaenever you receive an order, rather than ship from your production facilities, you call in the order to a Japanese company and have the bill shipped to you directly. If the bill shipped to you is T,5 and you can collect $55 per item sold to your customer, calculate your prot ifyou pay the Japanese commany Hj? (b) Examine the offbalancesheet activities banks engage in, the risks they face from undertaking these activities, and the controls they put in place to restrict bank employees om taking on too much risk (c) The Federal Reserve System (Fed) is the central banking system of the United States of America. It was created on December 23, 1913, Twith the enactment of the Federal Reserve Act, after a series of nancial panics led to the desire for central control of the monetary system to alleviate nancial crises. The Fed is the most independent of all US government agencies- Describe arguments for and against an independent Fed? |