Business, 30.10.2019 01:31 mem8163

Microsoft, whose global sales are generally dollar denominated, finds it has excess cash of $750,000,000, which it can invest for up to three years. it has determined that its best options are either a three-year euro-dollar ($) deposit paying 4.5% or a three-year euro denominated deposit paying 5.5% since it expects the euro to depreciate 1% per annum against the dollar over the next three years. using a cash flow analysis, determine in which currency microsoft should invest. be sure to show your complete calculations of the annual return and conversion of euro back to dollars at the end of the three-year term. assume that the annual interest amount is reinvested, i. e. compounds, at the same annual interest rates. would your answer change if microsoft revised its outlook for the euro to depreciate 1.25% per year?

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 06:00

Suppose that a monopolistically competitive restaurant is currently serving 260 meals per day (the output where mr

Answers: 2

Answer

Business, 22.06.2019 13:30

On january 2, well co. purchased 10% of rea, inc.’s outstanding common shares for $400,000, which equaled the carrying amount and the fair value of the interest purchased in rea’s net assets. well did not elect the fair value option. because well is the largest single shareholder in rea, and well’s officers are a majority on rea’s board of directors, well exercises significant influence over rea. rea reported net income of $500,000 for the year and paid dividends of $150,000. in its december 31 balance sheet, what amount should well report as investment in rea?

Answers: 3

Answer

Business, 22.06.2019 19:00

Question 55 ted, a supervisor for jack's pool supplies, was accused of stealing pool supplies and selling them to friends and relatives at reduced prices. given ted's earlier track record, he was not fired immediately. the authorities decided to give him an administrative leave, without pay, until the investigation was complete. in view of the given information, it would be most appropriate to say that ted was: demoted. discharged. suspended. dismissed.

Answers: 2

Answer

Business, 22.06.2019 19:00

1. what must one do to perform the essential managerial task of controlling in achieving organizational goals? a. motivate, coordinate, and energize individuals and groups to work together to achieve organizational goals b. choose appropriate organizational goals and courses of action to best achieve those goals c. establish task and authority relationships that allow people to work together to achieve organizational goals d. establish accurate measuring and monitoring systems to evaluate how well the organization has achieved its goals

Answers: 1

Answer

You know the right answer?

Microsoft, whose global sales are generally dollar denominated, finds it has excess cash of $750,000...

Questions