Venture capitalists provide funds to small businesses, especially young ones, with a good amount of growth potential. They tend to get a decent share of ownership in the company in exchange of the investment that they made, and can serve as a very important support for the small business.
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
Answer:
Non equity Strategic Alliance
Explanation:
It would have been an equity strategic alliance if one company had bought shares in the other company, but that is not the case in the scenario
A Non Strategic Alliance is one where both companies agree contractually to combine their capabilities and/or resources together for the purpose of achieving a common goal, which describes the situation in the scenario.
Answer:
$22.00
Explanation:
Book value per share = Total shareholder equity/ number of share outstanding
Total equity as of 31 Dec 2010 = total common equity at 31 Dec 2009 + net income of 2010 – paid out dividends in 2010 = $2,050,000 + $250,000 - $100,000 = $2,200,000
The book value per share at 12/31/10 = Total equity as of 31 Dec 2010/ number of share outstanding = $2,200,000/ 100,000 = $2200