Country and Company Analysis, writing homework help

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Description

  • For your chosen non-US public firm, determine its reporting currency, i.e., the currency (other than the U.S. dollar) in which its financial statements and other financial reports are expressed, and complete the following table for that currency in terms of the U.S. dollar either in American terms (number of U.S. dollars per one unit of the foreign currency) or in European terms (number of foreign currency units per one U.S. dollar). Please be consistent in how your express the exchange rates. Sources for this information include:

Currency

Today's Date

Spot Rate One Year ago

Spot Rate Today

$

  • Assume you are a U.S.-based investor with USD 1000 to invest and answer the questions below:
    • If you had converted the USD 1000 into the foreign currency one year ago at the above spot rate, then how much in foreign currency would you have received?
    • If you converted the foreign currency received one year ago back into US dollars at today's spot rate, how many U.S. dollars would you have now?
    • Has the foreign currency depreciated, appreciated, or not changed in value relative to the U.S. dollar over the past year?
    • What has been the percentage change?
    • Include your results as an attachment to the Business Brief below.
  • For the non-US public company you have chosen, consider whether you would invest in the a) equity (stock) or b) debt (bonds) of the company denominated in the foreign currency. Assume you have a one-year investment horizon and write a 1-page analysis according to the Business Brief Guidelines. Complete sentences must be used (bullets not acceptable). Your analysis must be written using a concise writing style. Your brief should answer all of the questions posed above.

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Explanation & Answer

Attached.

Running Head: CASE BRIEF: BMW COMPANY IN GERMANY
1

Case Brief: BMW Company in Germany

Name

Course
Institution
Date

CASE BRIEF: BMW COMPANY IN GERMANY
2
Case Brief: BMW Company in Germany
Currency Today's Date Spot Rate One Year ago Spot Rate Today
24th June 2017

$

0.8958

0.8959

Table 1.0, showing Euro spot rate for 2016 and 2017 (Currencies, n.d)
Analysis
In order to determine whether to invest in equity (stock) or debt (bonds) in BMW
Company in Germany, I would evaluate the scenario below. Assuming I am a US investor
with USD 100 to invest, I would conduct the analysis below. Th...


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