We write, we don’t plagiarise! Every answer is different no matter how many orders we get for the same assignment. Your answer will be 100% plagiarism-free, custom written, unique and different from every other student.
I agree to receive phone calls from you at night in case of emergency
Please share your assignment brief and supporting material (if any) via email here at: [email protected] after completing this order process.
No Plagiarism Guarantee - 100% Custom Written
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…………………………..