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You're the CFO of the Kraknee Roller Skate Company, which sells roller skates worldwide and also builds and operates roller rinks. Some time ago Archie Speedo, the head of international marketing, proposed selling skates in Russia.
Everyone thought he was crazy, but the idea turned out to be very successful. Archie lined up a talented Russian importer, who managed to sell more skates than anyone imagined possible. Now Archie has proposed a new Russian venture. He wants to open and operate a roller rink in Moscow. He says that since the breakup of the Soviet Union, Russians are interested in Western pastimes, and a roller rink in the capital city would make a fortune. Based on his earlier success in Russia, the rest of the executive team is in favor of the idea. You, however, have some concerns. Write a memo explaining how the roller rink proposal differs from exporting skates to Russia, and what problem is likely even if the venture is as commercially successful as the skates. What other risk is involved?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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