After all foreign and U.S. taxes, a U.S. corporation expects to receive 3 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be $1.33 per pound, and the pound is expected to depreciate 3% against the dollar each year for an indefinite period. The dividend (in pounds) is expected to grow at 8% a year indefinitely. The parent U.S. corporation owns 9 million shares of the subsidiary. What is the present value in dollars of its equity ownership of the subsidiary? Assume a cost of equity capital of 12% for the subsidiary. Do not round intermediate calculations. Round your answer to the nearest dollar.

During the global financial crisis, the U.S. enacted expansionary U.S. monetary policies that led to lower interest rates in that country. Use the IS/LM/BP model to show the impact of the lower interest rates on foreign economies, and the choices that different exchange rate regimes (fixed vs. floating) presented them.

During the U.S. financial crisis of 2007 the U.S. government pursued an expansionary macro economic policy. The role of government expanded and huge sums of money was pumped into the economy. On top of that the Federal Reserve lowered interest rates to historical lows in order to create liquidity in the credit markets. The Fed's action of pumping $600 billion gradually into the economy was met with much skepticism from Asian and European nations.

At the time, Germany stated the United States is forcefully lowering the value of the dollar by pumping more money into the economy and the Fed's action is no different than China manipulating the yuan. The EU feared the U.S.'s monetary easing will put increased pressure on weak European economies (the PIIGS - Portugal, Ireland, Italy, Greece, & Spain) and cause their currencies to appreciate in relation to the dollar.

Emerging market nations (India, China, Vietnam, Thailand, and South Korea) believed the lowering of the value of the dollar would cause huge captial inflows that risked creating inflation in their economies.

Was Germany and Europe's concerns valid? Should the rest of the world fear the possibility of the dollar being valued less than their home currencies?

After all foreign and U.S. taxes, a U.S. corporation expects to receive 5 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be $1.29 per pound, and the pound is expected to depreciate 7% against the dollar each year for an indefinite period. The dividend (in pounds) is expected to grow at 12% a year indefinitely. The parent U.S. corporation owns 9 million shares of the subsidiary. What is the present value in dollars of its equity ownership of the subsidiary? Assume a cost of equity capital of 12% for the subsidiary. Do not round intermediate calculations. Round your answer to the nearest dollar.

U.S. public firms currently report their financial results quarterly. If the SEC wants the U.S. capital markets to be as efficient as possible, do you think it would be worthwhile to require more frequent reporting (perhaps monthly)? Or would be better to require less frequently reporting (twice a year or once a year)? Be sure to explain your reasoning.

Suppose the following conditions exist between the U.S. and Canada. U.S. interest rate = 3.22%. Canadian interest rate = 3.1%. Spot rate: 1 CAD = .9601 USD. 6 month forward rate: 1 CAD = .9622 USD. Are the conditions of interest rate parity violated? If so, what would be our profit if we engaged in covered interest arbitrage with $10M?

U.S. wars in Iraq and Afghanistan, political unrest in South America, growing U.S. antipathy  in Iran, and civil wars in Africa have driven crude oil prices up several times in the last several years.  Although oil prices fell significantly in 2011, they are expected to rise again as the world economy recovers. Adding to the uncertainty, it is predicted that natural gas prices, which fell in concert with significant new gas field discoveries, will rise as more and more utilities switch from using coal or oil to natural gas.

Suppose you are the manager of a public utility that supplies electricity to a significant portion of your geographic region. You preside over electrical generation facilities that can produce electricity using either natural gas or oil, or some combination of both.

In the past several years, you have been faced with skyrocketing, then plummeting, natural gas prices, and now think you face the possibility of more of the same, coupled with the probability of similar volatility in oil prices.

Having been trained in Managerial Economics, you are familiar with production functions, isoquant and isocost analysis, and other tools of microeconomics. How can you use these tools to decide the best path for your company to pursue? What are the pros and cons of using these tools?

1. Suppose that the U.S. International Trade Commission (USITC) is considering using trade policies to protect U.S. wheat farmers/producers. The USITC plans to use the following trade policies: (i) an export subsidy (ii) a production subsidy; (iii) an export tariff; and (iv) an export quota. Assume that the U.S is a small Home country in the world market for wheat.

a. As an international trade lobbyist for U.S consumers and taxpayers, which two of the four forms of trade policies would you strongly support and why? [20%] [ Approximately 200- 400 words]

b. From the remaining two forms of trade restrictions, which one would you oppose strongly and why? [10%] [ Approximately 100- 200 words]

Draw the graphs to explain the changes in consumer surplus, changes in producer surplus, changes in government revenue and the net welfare loss due to each of the trade policies that you have selected. Be sure to discuss other important differences among the trade policies for the organization that hired you as a lobbyist.

Which would increase U.S. GDP?

Group of answer choices

An increase in charitable contributions by U.S. citizens

A garage sale with all used items

An increase in prices in the foreign market

None of the above

The average annual income for a female in Wisconsin is $38,000, while for a male it is $45,000. If prices rise by 2% next year and salaries of both females and males rise by 2% we can expect

Group of answer choices

No change in nominal income while real income rose

No change in nominal income and no change in real income

Nominal income rose and no change in real income

Nominal income rose while real income fell

The amount of unemployment that is normal or unavoidable is due to

Group of answer choices

The mismatching of candidates to a job and the time lags involved in labor market adjustments

The voluntary idleness of those who choose not to seek employment

The ups and downs in the level of economic activity in the economy and the time lags involved in labor market adjustments

The impact of foreign competition on our domestic job conditions and the lack of demand for domestic goods and services

Week 3 Term Project - Conch Republic Electronics I think you will find an Excel spreadsheet to be the most effective way of completing this assignment. Use the attached Conch Republic Spreadsheet to help you. Conch Republic Electronics Conch Republic Electronics is a mid sized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company's finance department. One of the major revenue-producing items manufactured by Conch Republic is a personal digital assistant (PDA). Conch Republic currently has one PDA model on the market, and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models. Conch Republic developed a prototype for a new PDA that has all the features of the existing PDA but adds new features such as cell phone capability. The company has performed a marketing study to determine the expected sales figures for the new PDA. Conch Republic can manufacture the new PDA for $200 each in variable costs. Fixed costs for the operation are estimated to run $4.5 million per year. The estimated sales volume is 70,000, 80,000, 100,000, 85,000, and 75,000 per each year for the next five years, respectively. The unit price of the new PDA will be $340. The necessary equipment can be purchased for $16.5 million and will be depreciated on a 5 year straight-line schedule. Net working capital investment for the PDAs will be $6,000,000 the first year of operations. Of course NWC will be recovered at the projects end. Conch Republic has a 35 percent corporate tax rate and a 12 percent required return. Shelly has asked Jay to prepare a report that answers the following questions: What is the IRR of the project? What is the NPV of the project, based on the required rate of return of 12%?