Final Take Home Exam
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Final Take Home Exam (To be done individually)
Please read the attached case and answer the single question at the end. You are limited to one half of one page of text for your answer plus any calculations (excel based would be preferred) that you may use to support your answer. You may attach any such calculations separately in your email.
The due date for the submission is mid-night on Wednesday May 12.
Case: Euro Hypermarkets
Based in Berlin, with sales of over EUR 53.9 billion from more than 5200 stores Euro Hypermarkets (EH) is one of the larger European retailers. It is currently looking to grow by adding several stores in the Euro area and has been advised by its investment banks to issue a debt in the form of a public bond to raise EUR 750 million.
EHs investment bankers have advised the company to issue 10-year bonds to be priced at PAR. The four currencies and the terms of the bond issue under consideration are as follows:
Coupon Rate (%)
Euro Hypermarkets (EH)
EH has been very successful in expanding its offshore operations. Exhibit 1 provides a history of EHs store portfolio from 1992 to 2001.
EH was profitable in all major operating regions. In 2001 EH generated operating profits of EUR 2.8 billion on sales of EUR 69.5 billion. Of that profit 7% originated in Asia and South America, 26% in Europe outside of Germany and the remainder was generated in Germany. The regional sales breakdown was 7% from Asia, 12 % from South America and 32% from Europe outside Germany. The companys long-term objective was to increase sales at an annual rate of 5% and recurring net income by 5-10%.
EH Financing Policy
In each country EH operated primarily within the local economy when buying and selling products. Foreign currency exposure on imported goods was generally hedged via forward contracts.
In 2001 total EH borrowing were EUR 13.5 billion of which EUR 6.4 billion were in publicly traded bonds. EHs debt was denominated in many currencies. Exhibit 3 details the recent composition of EHs borrowings by currency. Foreign currency borrowings were generally hedged so that total debt requirements were currently 97% in Euros.
Current Market Opportunities
As EH management considered the bond denomination decision, it also considered the current inflation, interest rate and exchange rate environment. Over the past 3 years long tern bond yields had declined in all 4 currencies. The Swiss Francs interest rate had however consistently been the lowest rate. The decision also hinged on future movement of exchange rates. Over the past 5 years the Euro had depreciated against most major currencies. Should this trend continue paying down foreign currency denominated debt with Euro denominated cashflow would become increasingly expensive.
The bonds would be issued in the euro bond market therefore were subject to similar issuance costs, liquidity and specifications regardless of the currency denomination. Eurobonds uniformly followed an annual coupon convention. Exhibits 4,5 and 6 provide information on trends in inflation, government benchmark bond yields and exchange rates in the various currencies. Exhibits 7 and 8 provide information on current spot exchange rates and the 10 year yield curve across the 4 countries.
Please answer the following question:
Which bond would you advise EHs management to issue and why? Please provide all analysis that supports your recommendation.
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!
Tired of getting an average grade in all your school assignments, projects, essays, and homework? Try us today for all your academic schoolwork needs. We are among the most trusted and recognized professional writing services in the market.
We provide unique, original and plagiarism-free high quality academic, homework, assignments and essay submissions for all our clients. At our company, we capitalize on producing A+ Grades for all our clients and also ensure that you have smooth academic progress in all your school term and semesters.
High-quality academic submissions, A 100% plagiarism-free submission, Meet even the most urgent deadlines, Provide our services to you at the most competitive rates in the market, Give you free revisions until you meet your desired grades and Provide you with 24/7 customer support service via calls or live chats.