Scribd Logo
Upload

Welcome to Scribd!

  • 43 views

    With The Fixed Rate Baseline Assumption We Have The INR 1,344 1.00 RMB With The Fixed Rate Baseline Assumption INR 1,344 1.00 RMB We Have

    Uploaded by

    Long Phan
    China Noah's profitability, as measured by return on sales, changes depending on whether the INR/CNY exchange rate follows forecast spot rates, forward rates, or a fixed baseline rate. Under the fixed baseline rate, ROS is lowest at 13.5% in 2010 and 11.8% in 2011. If spot rates are used, ROS is higher at 14.1% in 2010 and 12.6% in 2011. Using forward rates yields the highest ROS of 14.5% in 2010 and 13.23% in 2011.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    With The Fixed Rate Baseline Assumption We Have The INR 1,344 1.00 RMB With The Fixed Rate Baseline Assumption INR 1,344 1.00 RMB We Have

    Uploaded by

    Long Phan
    43 views3 pages
    China Noah's profitability, as measured by return on sales, changes depending on whether the INR/CNY exchange rate follows forecast spot rates, forward rates, or a fixed baseline rate. Under the fixed baseline rate, ROS is lowest at 13.5% in 2010 and 11.8% in 2011. If spot rates are used, ROS is higher at 14.1% in 2010 and 12.6% in 2011. Using forward rates yields the highest ROS of 14.5% in 2010 and 13.23% in 2011.

    Original Description:

    Original Title

    Untitled

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    China Noah's profitability, as measured by return on sales, changes depending on whether the INR/CNY exchange rate follows forecast spot rates, forward rates, or a fixed baseline rate. Under the fixed baseline rate, ROS is lowest at 13.5% in 2010 and 11.8% in 2011. If spot rates are used, ROS is higher at 14.1% in 2010 and 12.6% in 2011. Using forward rates yields the highest ROS of 14.5% in 2010 and 13.23% in 2011.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    43 views3 pages

    With The Fixed Rate Baseline Assumption We Have The INR 1,344 1.00 RMB With The Fixed Rate Baseline Assumption INR 1,344 1.00 RMB We Have

    Uploaded by

    Long Phan
    China Noah's profitability, as measured by return on sales, changes depending on whether the INR/CNY exchange rate follows forecast spot rates, forward rates, or a fixed baseline rate. Under the fixed baseline rate, ROS is lowest at 13.5% in 2010 and 11.8% in 2011. If spot rates are used, ROS is higher at 14.1% in 2010 and 12.6% in 2011. Using forward rates yields the highest ROS of 14.5% in 2010 and 13.23% in 2011.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 3

    2.

    How does China Noah's profitability (using return on sales as the primary metric)
    change depending on whether the IDR/CNY exchange rate follows (a) forecast spot rates,
    (b) forward rate quotes, or (c) fixed rate baseline assumption?

    With the fixed rate baseline assumption we have the INR 1,344 = 1.00 RMB
    In 2010:
     With the fixed rate baseline assumption = INR 1,344 = 1.00 RMB we have:
    Return on Sales = 13.5% (in CNY)
    13.5 %
    ROS(INR )= =0.01 %
    1,344
     If the swapping scale were to chain per the gauge, -> Spot rate IDR 1,410 = 1.00 CNY in
    2010

    Return on Sales:

    ROS(CNY )=0.01 % × 1410=14.1 %

     If China Noah were to utilize money advances, the 2010 forward rate is IDR 1,450 = 1.0
    CNY

    Return on Sales:

    ROS(CNY )=0.01 % × 14 5 0=14.5 %

    In 2011:

     With the fixed rate baseline assumption = INR 1,344 = 1.00 RMB we have:
    Return on Sales = 11.8% (in CNY)
    1 1.8 %
    ROS(INR )= =0.0 09 %
    1,344

     If the swapping scale were to chain per the gauge, -> Spot rate IDR 1,405 = 1.00 CNY in
    2011

    Return on Sales:

    ROS(CNY )=0,009 % × 14 05=12.6 %

     If China Noah were to utilize money advances, the 2010 forward rate is IDR 1470= 1.0
    CNY

    Return on Sales:

    ROS(CNY )=0,009 % × 14 70=13.23 %

    You might also like