...Answer 1 a. Brazilian reais/Guatemalan quetzal cross rate= 10.5799*0.4462 = 4.7208 b. Quetzals= 4,500*4.7208= 21,243.60 (GTQ) Answer 2 a). From a $10,000 US$ perspective i). Canadian$=1.293653*US$10,000=12,936.53 (Rate: 1.00 USD = 1.2936.53 CAD May 15 2016 02:46UTC) ii). Swiss Franc=0.9763.11*US$10,000=9,763.11 (Rate: 1.00 USD = 0.976311 CHF May 15, 2016 02:48 UTC) iii). Chinese Yuan Renminbi=6.531287*US$10,000=65,312.87 (Rate: 1.00 USD = 6.5531287 CNY May 15, 2016 02:49UTC) iv). Argentine Peso=14.199999*US$10,000=141,999.99 (Rate: 1.00 USD = 14.99999 ARS May 15, 2016 02:51 UTC) b). From the 100,000 Chinese Yean Renminbi perspective i). Canadian$=0.1980526*CNY100, 000=19,805.26 (Rate: 1.00 CNY = 0.1980526 CAD May 15, 2016 02:52 UTC) ii). Swiss Franc=0.1494618* CNY100,000=14,948.18 (Rate: 1.00 CNY = 0.1494618 CHF May 15, 2016 02:54 UTC) iii). Singapore$=0.2101989* CNY100,000=21,019.89 (Rate: 1.00 CNY = 0.2101989 SGD May 15, 2016 02:55 UTC) iv). Argentine Peso=2.175745* CNY100,000=217,574.50 (Rate: 1.00 CNY = 2.175745 ARS May 15 2016 02:56 UTC) Answer 3 a. Russian ruble/euro cross rate=1/(1.3214*30.96)=0.0244 b. Russian rubles=15,000 euros/0.0244=614,754.0984 Answer 4 a. Yen/Ruble cross rate=30.96/84.02=0.3685 b. Yen=450,000/0.3685=1,221,166.89 Answer 5 a. Percentage change in January=(1950-1400)/1400=39.29% decreased b. Forecast value for June 2003=1950*(1+40%)=2730 Answer 6 Mexican peso/euro cross...
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...China’s Renminbi Valuation Discussion The following memo provides a summary of the basic discussion of the valuation of China’s Renminbi, the tumultuous situation surrounding global discussion regarding its valuation, and what appreciation of the Renminbi might mean for the global economy. This analysis is based primarily upon the Fung & Wong article, “China’s Renminbi: ‘Our Currency, Your Problem’?”. Valuation Controls Placed Upon the Renminbi Over the past couple decades China has maintained a high level of economic growth rate of approximately 9% per year. Recently, many countries began questioning the valuation of China’s currency, the Renminbi, and China’s exchange rate policies. These other countries pointed to China’s emergence as the third largest exporter of goods and the accumulation of $1.2 trillion (US$) in foreign currency reserves. In its defense, China asserted that the Renminbi was not undervalued and that its exchange rate policies helped maintain a stable economic environment. It also stated that countries running large trade and budget deficits, specifically with China, like the US, were attempting to use China as a scapegoat rather than the weaknesses of their own economies. Is the Renminbi Undervalued? It appears to me that the Renminbi is likely undervalued. Pegging the currency primarily to the United States Dollar (USD), and eventually to a basket of currencies dominated by the USD, may have created stability in the Chinese and Asian economies...
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...revaluation of Chinese Yuan The Chinese national economy is probably the most powerful nowadays. At least, it is the main antagonist to the American economy. A lot of experts tend to call it as the main driver of renewal of the world’s economy after the global financial crisis. A reasonable question is what the preconditions of such powerful status are. In our opinion, these preconditions are the following. First of all, it is cheap labor force. Moreover, the country has a lot of labor force, more than any other country in the world. Because of the cheap labor force the country’s products are quite cheap on the international market. That is why it is not surprising that export plays a great role in the country’s economy. Cheap labor force is not the only reason for the competitiveness of the Chinese products. Cheap Yuan is another reason, but about it we are going to talk below. Some additional information about the national economy of China can be got from the following quote. “China's economy is huge and expanding rapidly. In the last 30 years, the rate of Chinese economic growth has been almost miraculous, averaging 8 percent growth in Gross Domestic Product (GDP) per annum. The economy has grown more than 10 times during that period, with Chinese GDP reaching 3.42 trillion US dollars in 2007. China already has the biggest economy after the United States and most analysts predict China will become the largest economy in the world this century” (The Chinese Economy). As it...
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...Chinese company go public on the US. EXECUTIVE SUMMARY In these years, many Chinese companies go public in the United States. There are more than 200 Chinese company go public in the United States, in which about 108 through backdoor listing and about 95 direct listing up to 2014. When Chinese company select the US, many difficulties and problems exposed out; like copyright, equity, conflict about different law, etc. They had to make some reforms for go public. These reforms for their businesses has a very significant impact. Alibaba and Thunder is famous Chinese company. Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. Thunder is download the software, while providing cloud on-demand service. The internet is very important in their business. They made much reforms to go public; Alibaba’s partner system and Thunder’s business model change. These reforms have profound implications for their company. They also provide a better demonstration for Chinese companies listed in the United States. 1.0 Introduction On 2014, many Chinese company choose go public in the United States. Actually, more than 200 Chinese company go public in the United States, in which about 108 through backdoor listing and about 95 direct listing. I will talk about two famous Chinese company which go public in the United States on 2014; Thunder and Alibaba. Alibaba Group...
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...its internal market, due to the stimulus plan launched by the Government to soften the effects of the crisis. As a result China is now fighting against a high rate of inflation (especially food prices) and a high cost of property. While the inflation issue has been partially solved in the first term of this year, the fear for the real-estate market trend is still alive. This essay aims to critically analyse the real estate market in China, which is also strictly linked with the health of this country’s economy, by examining this issue from two different perspectives: from the point of view of those scholars who believe that the Chinese bubble will burst and from the point of view of those who believe that the Chinese market is still safe. First of all the essay will give the historical and economic background of the price rises in the Chinese real estate market, from the birth of this important economic sector to the global financial crisis. Secondly, in the core part, this paper will explain the main theory regarding the possibility of the real estate bubble burst and the counter argument. To better understand the actual situation in China there will be also a short comparison with the burst of the American bubble in 2007. In the conclusive paragraph some predictions will be made according to what has been said in the main body. China’s rapid growth in the past years has been remarkable, despite the period of global financial crisis. Even if the subprime crunch has...
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...the graduates that pass out in an academic year, only 25% are suitable for getting inducted into the industry.” Jeffrey Fuller, Principal Advisor of Human Capital. There exists a huge gap between the skills that are required by the industry and what the Indian academic system produces. The objective of IIQF is to impart training to students in those skill-sets that are in demand in the industry and make them industry ready, or as we call them “The Street-Ready”. Certificate Program in Advanced Financial Modelling in Excel and VBA Certificate Program in Financial Modelling in Excel A course geared towards teaching the practical skills required for making a career in Investment Banking, Equity Research, M&A Specialist, Company Valuations, etc. This is a program where practicing Investment Bankers and Treasury Professionals teach the latest techniques and modeling skills that are used in the industry. This is a “hands-on” course, with extensive use of computers and...
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...the south, the Gobi desert to the north and inhospitable deserts and high plateaus to the west. The Yellow river in China is said to be the source of the first Chinese culture and civilization. There are many different cultures located in China such as the Yangshao culture, Hongshan culture, and Yunnan culture. Ancient Chinese agrarian religion revolved around the worship of natural forces and spirits who controlled the elements and presided over rivers, fields and mountains. Shaman known as wu acted as intermediaries between the human and spiritual worlds and performed rites to insure good weather and harvests and keep evil spirits at bay. Even though China is regarded officially as an atheist state today, it has had an officially recognized religion since 2356 B.C., when science, religion, mythology and government were all linked together. Taoism and Confucianism began to take shape around the 5th and 6th centuries B.C. but evolved from religions that had been around in China for at least a thousand years before that. China has always been known for having intelligent minds and creating and producing some of the best products. They introduced the world to woven silk, fireworks, playing cards, pasta, fishing reels, whiskey, poison gas, wood block printing, lacquer, compass, and the wheelbarrow. The Chinese mathematicians...
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...“FINANCE” Course “PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN” case analysis Brief summary of the case with the emphasis on managerial problems that Prada faces. Prada currently requires a significant amount of capital both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets. Since financial markets are aware of Prada’s pressing need to raise capital, it is important for the board of directors to develop a credible strategy for raising the necessary capital of at least €1 billion. Although the press has been suggesting that Prada will do an initial public offering, the company has tried this several times in the past with no success, mainly because of bad timing (9/11, the SARS outbreak, and the ongoing global financial crisis and European sovereign debt crisis). The board has approached Guido Santini of the investment bank Grupo Capo Milano to come up with a number of credible alternatives and a strategy for raising the needed capital. 1. What is the current and future outlook for the luxury goods segment over the next couple of years? How should Prada position itself to prosper in this market? Luxury goods segment proved to be resilient to the economic crises and had consistently grown from 1994 till 2010.The luxury industry grew approximately by 2% per year until 2007, and by 1% per year from 2007 to 2010. Beginning from...
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...The Classical Chinese Art Fund The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 2 The Classical Chinese Art Fund Content Page 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? 1.2. Investment Profile of the Fund 1.3. Rationale: The China Factor 1.4. Investment Approach and Strategies 1.4.1. Growth Strategies 1.4.2. Risk Management Strategies 2. Market Analysis 2.1. Art Segmentation 2.1.1. Chinese Calligraphy 2.1.2. Chinese Paintings 2.2. Major Players 2.3. Demand and Supply Analysis 3. Role of Public Institutions and Regulatory Policies 4. The External Competitive Environment 4.1. Correlation between Chosen Sector and other forms of Investment 4.1.1. General Outlook of the Art Fund 4.1.2. Comparative Analysis of the Fund and Other Art Investment Funds 5. Prospective Investment Portfolio of Art Works 6. Conclusion • Appendix The Classical Chinese Art Fund FR3208 Arts and Antiques Market: Coursework 3 The Classical Chinese Art Fund 1. The Classical Chinese Art Fund 1.1. What is the Classical Chinese Art Fund? The Classical Chinese Art Fund is an investment fund approach that capitalizes on the valuable asset class of Classical Chinese Art, specifically Chinese paintings and calligraphy art pieces. Chinese paintings and calligraphy art works are considered ...
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...Question 1 1. Evolution of RMB against USD, EUR and JPY. Figure 1 Figure 1 represents movement between the nominal and real exchange rates of Chinese renminbi (RMB) against US dollar (USD) between from January 2005 to December 2013. It shows that the nominal exchange rate of RMB/USD is higher than the real exchange rate throughout the period of observation indicating that the RMB is undervalued. This clarifies that the USD is buying more RMB in nominal terms than it should be in real terms. The increase in nominal exchange rate of RMB/USD is termed as a nominal depreciation of the currency after de-pegging whereas the real exchange rate of RMB/USD continues depreciating in the years of observation as shown in Appendix 2. It also shows that the RMB was depreciating against USD in every quarter after de-pegging. Table 1 compiles the average quarterly percentage of over-or-undervaluation of the RMB against USD, euro (EUR) and the Japanese yen (JPY) from January 2005 till December 2013. Before the de-pegging, the RMB was found to be overvalued by of 1.19% against the USD in January 2005 then it was discovered to be undervalued since March 2005 by 0.58%. The RMB continues being undervalued against the USD and reached its highest percentage at 28.49% in March 2013. By December 2013, the RMB was still undervalued by 28.35% against USD. Overall, the RMB was overvalued against the USD by 16.94% in the period of observation. Figure 2 Figure 2 demonstrates movement of the nominal...
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...have in other firms, and the lack of transparency in these holdings, makes it difficult to value these holdings. Aswath Damodaran 2 Valuing Sony: August 2000 n n n n Sony had net income of 31 billion JPY in 1999, down from 76 billion JPY in 1997 and 38 billion in 1998. The return on equity at Sony dropped from 5.25% in 1997 to 2.13% in 1999. The firm paid out dividends of 21 billion JPY in 1999. Capital expenditures in 1999 amounted to 103 billion JPY, whereas depreciation is 76 billion JPY. Non-cash working capital at Sony in 1999 was 220 billion JPY on revenues of 2593 billion yet, yielding a non-cash working capital to revenue ratio of 8.48%. The long term government bond rate in Japan was 2% at the time of this valuation. Aswath Damodaran 3 Sony: Rationale for Model n n n n n We will normalize earnings to reflect the fact that current earnings are depressed. To normalize earnings, we will use the return on equity of 5.25%, which is the return on equity that Sony had last year and is close to return on equity it used to earn in the early 1990s. We will assume that the firm’s dominant market share will keep it from posting high growth. Over the last 5 years, the growth rate in revenues has been 3.5%. We...
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...Bingtian,Zhang; Tianshu,Lu; Hui,Niu; Yuguo,Hou; Lin,Zhu Table of Contents Introduction............................................................................................................................... .3 Taobao Information Systems Strategic Alignment .................................................................. 4 Business Strategies of Taobao’s E-commerce ........................................................................... 5 SWOT Analysis of Taobao......................................................................................................... 6 Payment security........................................................................................................................ 8 Credit Valuation ......................................................................................................................... 9 Credit Rating............................................................................................................................ 13 Decision Support Function of Taobao ..................................................................................... 16 Information Asymmetry in e-commerce.................................................................................. 19 Conclusion ............................................................................................................................... 21 Appendix..................................................................................
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...上海对外经贸大学 2014 — 2015 学年第 1 学期 《财务管理案例分析》课程期末考试A卷 选课序号： 612.043.201 任课教师： 唐旭君 姓 名： 学 号： 考试形式： □闭卷 ■开卷 双语教学： □是 ■否 修读方式： ■必修 □选修 □辅修 试卷页数 共 18 页 考试时间： 年级专业： 需计算器： 机考座位： 90 分钟 ■是 □否 号机 Case material: PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN It was January 25, 2011 and Guido Santini of the investment bank Grupo Capo Milano had just been asked to prepare a recommendation on how Prada should raise the money for its planned expansion in Asia and to pay the significant portion of its long-term debt that was maturing within one year. Although he had known this request would be coming at some point, he had expected a bit more time. His recommendation had to be presented to the Prada Board of Directors at their annual general meeting scheduled in two days, on January 27. THE MISSION The board requested that Santini prepare a report recommending and ranking alternatives for raising over 1 billion euros within the next six to 12 months. With more than €1 billion of debt maturing within 12 months (almost half in the next six months), Prada needed to have a credible plan in place to meet these obligations. In addition to the capital to refinance its existing debt, Prada had identified Asia as an area for future growth, and this growth also required capital. Asia was currently experiencing significantly higher growth than other parts of the world, and Prada wanted to be able to take part in and benefit from this. Consequently, Santini’s job was to recommend to the board how...
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...DSME 5011 - Economics Clara Tak-Wai LAW EXECUTIVE SUMMARY 1 2 INTROUDCTION BACKGROUND OF EXPORT TRADING 2.1 China 2.2 Hong Kong 3 TYPES OF EXPORT GOODS AND SERVICES 3.1 China 3.2 Hong Kong 4 ECONOMIC DEVELOPMENT 4.1 China 4.1.1 4.1.2 4.1.3 4.1.4 4.2.1 4.2.2 4.2.3 5 5.1 Participation of Global Trade Association Foreign Direct Investment Currency Valuation Structural Changes Free Trade Policy Close Economic Partnership Arrangement with Mainland China Availability of Venture Capital 4.2 Hong Kong MARKET CHALLENGES AND TRENDS China’s Challenges 5.1.1 Inflation 5.1.2 Government Interference 5.1.3 Social Unrest 5.1.4 Unbalanced Regional Development 5.1.5 Low Domestic Consumption 5.1.6 Poor Technology & Substandard Products 5.2 Hong Kong’s Challenges 5.2.1 Global Markets 5.2.2 Emerging Markets in Asia 5.2.3 Increasing Competition 5.2.4 Change of Export Business 6 HONG KONG SUSTINAED COMPETITION POSITION 6.1 6.2 6.3 6.4 6.5 Better Trading Cooperation Doing-Business Climate Better Transportation Means Advanced Info-Communication Network Skillful and Technical Manpower 7 CONCLUSION REFERENCES & APPENDIX Macroeconomics Individual Paper 2 DSME 5011 - Economics Clara Tak-Wai LAW EXECUTIVE SUMMARY China becomes the 1st exporter in the world after 25% rise in 2009 and export is the major contribution of its economic development in the past decades. Accelerated growth of the world export share was to 40% from 8% in 5-years time. The combined factors driving...
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...CHINA’S NEWEST SHOPPING CRAZE Last month, Fiona Li did what millions of Chinese shoppers do to find a bargain: she went online. A few clicks later, she had a lead on where to buy the consumer goodies her brother wanted for his new apartment. Instead of reaching for her credit card, though, she jotted down a time and a place: 8 p.m. at a downtown electronics store. That evening, Ms. Li and her brother joined 15 strangers at the store to demand a group discount on a new television, refrigerator, and washing machine. Salespeople grumbled at the tactic, but the group refused to buckle. After two hours of haggling, and several walkouts by group members, the store manager agreed to a 10 percent markdown on the three items. Li, a marketing assistant, went home with a smile on her face. "We wanted to save money, and finally we did it," she says. "It's in our nature, whether we're rich or poor, and if we can save money this way, why not?" Welcome to China's newest shopping craze, tuangou, or team buying. By combining the power of the Internet to compare prices with the stealth tactics of the flash mob, team buyers are driving hard bargains in the world's hottest economy. Dozens of team-buying websites have sprung up to catch the trend, which first began in online forums and chat rooms. Typically, shoppers looking for the same items find each other online, then band together offline to negotiate special deals on electronics, home furnishings, and automobiles. Some team buyers approach...
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