Multinational Corporate Finance Harvard Case Solution & Analysis

1)    Turkish lira is over-valued, respectively.

2)    The loss to the speculator will amount to almost ($5915833)

3)    The stock exchange listing will result in the increase of the firm’s visibility to its customers and employees.

4)    The Canadian subsidiary will record a 10% foreign gain on the US dollar accounts receivable.

5)    The amount of gain with forward hedge is almost $52,500.

6)    The cost of loan to Mexico in percentage is approximately 20% relatively.

7)    The depreciation of ABC Land Lira is almost 56%

8)    The forward quote that is going to be used is 764.4

9)    The net USD receipts are $135000000.

10)  The cost ofthe rail cars is almost equal to $2160527.

11)  The cost of borrowing in USD is almost 4.50%

12)  The degree of pass by Sony of Japan includes the option, none of the above.

13)  The exposure that is present in this situation is the transaction exposure.

14)  It includes selling the dollars of foreign currencies and selling some of its existing treasury security holdings for dollars.

15)  The principleamount of interest and loan is equal to $937500.

16)  The net change in reserves is equal to $20 billion.

17)  The answer to this is foreign bond.

18)  The amount of gain with forward hedge is $2187500

19)  The amount of net gain or loss is almost $3452366.

20)  The net USD receipts will be $83676000.

21)  21The net USD cash flows amount to $25263158.

22)  The amount of gain with forward hedge is $32,500.

23)  The purchasing power parity is equal to P13.69.

24)  The percentage of 1 year treasury yield is almost 5.83%.

25)  The cost of the rails is equal to $2160527.

26)  The decision is to get$1.148.

27)  The amount of loss that has to bear is almost ($95,000).

28)  The firms J and K have the same level of exposure.

29)  The PPP implied USD/TRY 1.7878.

The value of proceeds is equal to $1250, 000............................

Multinational Corporate Finance Case Solution

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