Foreign currency depreciates against domestic currency

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1. Nina borrowed money on the 31 August and greed to pay back the loan on 2 November of the same year. If the discount rate is 18% per year and she received R5000 on 31 August, what is the value of the loan that Nina has to pay the bank on 2 November? Please show calculations

2. IF you are a speculator, expect the foreign currency depreciates against domestic currency. What FX strategy do you recommed?

3. Simple Question Inc. has a cost of equity of 14 percent, and its pretax cost of debt is 8 percent. Its tax rate is 25 percent. Simple Question’s debt-to-equity ratio is 1. Compute its weighted average cost of capital.

Reference no: EM132017755

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