Country and Company Analysis

Country and Company Analysis

The primary theme of the paper is Country and Company Analysis in which you are required to emphasize its aspects in detail. The cost of the paper starts from $99 and it has been purchased and rated 4.9 points on the scale of 5 points by the students. To gain deeper insights into the paper and achieve fresh information, kindly contact our support.

Creative Technologies Limited uses Singapore dollar (SGD) other than the U.S. dollar (Creative Technologies Limited, 2015). The other currency in which the financial reports of the company is denominated (Singapore dollar) has depreciated over the years. In January 2015, the Singapore dollar was exchanging as SGD 1.33 to one dollar. The currency depreciated by 7.5% through the year to exchange at 1USD/ 1.43 SGD. The depreciation in the value of the currency in which the company foreign currency is denominated reflects the contraction in the economy and poor performance of the industries in the country (Singapore).  Based on this information, I would not invest in either the stock or the bond of the Creative Technologies Limited assuming I have a one-year investment horizon. This is because the value of the investment would depreciate.

As an investor, using USD 1000 to invest in either the stock or the bond of the Creative Technologies Limited would translate into an investment worth SGD 1330. After one year of the investment, the investment of SGD 1330 would be worth USD 930.07. This means that the investment in the stock would lead to a loss of USD 69.93. The loss is to be incurred due to the appreciation of the USD dollar against the foreign currency (Singapore dollar), where more Singapore dollars will be required to get one US dollar. Stock or debt (bond) investment in Creative Technologies Limited has to…………………………..

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