FIN 486 CART Become Exceptional--fin486cart.com FIN 486 Entire Course - Page 24

Analyze the use of capital budgeting techniques in strategic financial management. Format your report consistent with APA guidelines. ============================================== FIN 486 Week 4 KFC and the Colonel Case Study FOR MORE CLASSES VISIT www.fin486cart.com FIN 486 Week 4 Apply: KFC and the Colonel Case Study Purpose This assignment allows students to provide practical business strategies. Assignment Instructions Review the Week 4 Case Study. Summarize the following in 2 to 3 pages:  Discuss issues raised concerning Sanders’ approach in connection with the sale to Brown and Massey.  Include some of the other options that Sanders may have considered other than the $2,000,000 cash price.  Explain the reasons for regulatory control over financial markets. Let’s assume Colonel Sanders obtained a six-month loan of $150,000 Canadian dollars from an American bank to finance the acquisition of a building for another Canadian franchise in Quebec province. The loan will be repaid in Canadian dollars. At the time of the loan, the spot exchange rate was U.S. $0.8995/Canadian dollar and the Canadian currency was selling at a discount in the forward market. The contract after six months (face value = C$150,000 per contract) was quoted at U.S. $0.8930/Canadian dollar.  Explain how the American bank could lose on this transaction assuming no hedging.  Assume the bank does hedge with the forward contract, what is the maximum amount it can lose? Format your paper to current APA standards. Click the Assignment Files tab to submit your Microsoft® Word assignment. ==============================================