Global Financial Investment

Topic: Global Financial Investment

Global Financial Investment

Reading (Required)

Gallagher, Timothy J. (2009). Financial Management: Principles and Practice (5th ed.). Chapters 13 & 21.
Link: http: //www.textbookmedia.com/TMReader.aspx?id=3464
e-mail: muyiwaoged@yahoo.com
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The purpose this week: to learn about the risks and returns of global investment.

Week 8 Case Assignment

This week we are studying a joint venture in Brazil, dealing with the coffee industry. As you probably know, Brazil is a leading coffee producer.

Answer the questions at the end of the Global Investment Case.

In order to help guide you through this assignment, see the Wilson Company example in the attached file. Answers should show all calculations and be thoroughly discussed. Submit the analysis and discussion for Global Investment in one single Excel file.

Week 8 Problem Set Assignment

Answer Problems 13-5, 21-11 & 21-12 in Gallagher & Andrew, and post your answers in the same Excel file as above.

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Partnership option

If you wish you can submit this assignment as:

€¢ An individual assignment
€¢ With one classmate as a partner
€¢ With two classmates as partners

Partners will all get the same grade.

If you choose option 2 or 3, just one partner needs to submit the assignment, but make certain that all partner names are on it.

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All answers should be placed in a single Excel file, which should be attached to the Week 8 Individual Assignment link in the Assignment folder.

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Please bear in mind that:

€¢ Analyses and conclusion are only as good as the data and assumptions that they are based on
€¢ If your analysis contains data and/or assumptions unsupported by reasoning and explanations plus sources of the related data, a reader has no basis to accept your presentation as valid
€¢ Without proper support the reader is likely to disregard your analysis and/or conclusions, and may even begin to have some doubts about you
€¢ So ALWAYS support all of your numbers or calculations with reasoning, explanations and sources for all of your data.

Why I’m Not Hiring (Interested in your thoughts€¦)

Why I’m Not Hiring
When you aID it all up, it costs $74,000 to put $44,000 in Sally’s pocket and to give her $12,000 in benefits.
Mr. Fleischer, president of Bogen Communications Inc. in Ramsey, N.J., explains Why I’m Not Hiring
With unemployment just under 10% and companies sitting on their cash, you would think that sooner or later job growth would take off. I think it’s going to be later€”much later. Here’s why.

Meet Sally (not her real name). Sally is a terrific employee, and she happens to be the median person in terms of base pay among the 83 people at my little company in New Jersey, where we provide audio systems for use in educational, commercial and industrial settings. She’s been with us for over 15 years. She’s a high school graduate with some specialized training. She makes $59,000 a year€”on paper. In reality, she makes only $44,000 a year because $15,000 is taken from her thanks to various deductions and taxes, all of which form the steep, sad slope between gross and net pay.

Employing Sally costs plenty too. My company has to write checks for $74,000 so Sally can receive her nominal $59,000 in base pay. Health insurance is a big, aIDed cost: While Sally pays nearly $2,400 for coverage, my company pays the rest€”$9,561 for employee/spouse medical and dental. We also provide company-paid life and other insurance premiums amounting to $153. Altogether, company-paid benefits aID $9,714 to the cost of employing Sally.

Then the federal and state governments want a little something extra. They take $56 for federal unemployment coverage, $149 for disability insurance, $300 for workers’ comp and $505 for state unemployment insurance. Finally, the feds make me pay $856 for Sally’s Medicare and $3,661 for her Social Security.

When you aID it all up, it costs $74,000 to put $44,000 in Sally’s pocket and to give her $12,000 in benefits.

Every year, we negotiate a renewal to our health coverage. This year, our provider demanded a 28% increase in premiums€”for a lesser plan. To offset tax increases and steepening rises in health-insurance premiums, my company needs sustainably higher profits and sales€”something unlikely in this summer of recovery.

A life in business is filled with uncertainties, but I can be quite sure that every time I hire someone my obligations to the government go up. From where I sit, the government’s message is unmistakable: Creating a new job carries a punishing price.

Source:

Let me know what you think€¦ about this link ( 2011 International Property Rights Index.pdf (6.68MB))

Please all your other reference should be from the The Professor’s Library