A336- A340
A336′
Explain the competitive and conversion effects of exchange rate changes on the firm’s operating cash flow
Exchange Rate
The competitive effect is primarily known to have an impact on the exchange rate in terms of operating cash flows since it alters the competitive position of the firm. Similarly, the conversion effect, on the other hand, impacts the possibility or differences experienced in other currency. Substantially this means that for a particular operating cash flows established in a given foreign currency can have or may be converted into either higher or lower home currency amounts based on the used exchange rate changes in the market for a company.
A337
Based on the stock price information, how does the market perceive this firms-explain in detail? Which one is expected to perform deliver better returns, explain in detail?
Stock Price Information
The stock price information is critical in determining the perception of firms in multiple ways. It assists in increasing the need for investors to take advantage of and provide essential capital to the firm. The information is also necessary because it is a measure of the liquidity of the company and the ability to meet short term obligations and the funds used for business operations. The growth or increase stock price is considered to be viable in delivering better returns when investors have a strong perception of the leadership of the company.
A338
How can I conduct a fixed-income portfolio attribution analysis (for example, actively-managed portfolio indexed to WGBI with currency hedge)?
Portfolio Attribution Analysis
The portfolio attribution analysis is considered to be a set of techniques that assist in performing analysis in explaining why a portfolio may have differed from the benchmark. The difference obtained between the portfolio return and its benchmark is known as the active return. Therefore, conducting portfolio attribution analysis requires the location of sector weights and returns of the portfolio. The next step is to multiply the sector weights from the obtained returns differences and get the aggregate estimate for pure sector allocation. It is also essential to estimate the aggregate for the sector selection to receive a value-added return.
A339
What s with all the tax incentives being offered by both local and national governments around the world, EG The New Zealand Large Budget Tax Credit, to name but one?
Tax Incentives
The tax incentives are considered to be essential aspects of a tax code of a country that is being designed to encourage a given economic activity to thrive in the country. Further, it is crucial to understand that they can have both the negative and positive impacts on an economy based on the targeted aim to be achieved. Among the positive benefits when they are implemented and adequately designed is to attract investment to a country using the initiative.
A340
Is the movement to have a balanced budget amendment driven by the desire to reduce social services?
Balanced Budget Amendment
A balanced budget amendment is considered to be a way in which the government can tackle the growing threat that is caused by the existing deficit in the spending. It is driven by the desire to reduce social services because it repairs the damage done over the years in the entire out of control spending. The main concern to this amendment is that it requires the state not to spend more than the income it can produce by balancing the projected receipts and expenditures of the government.