--%>
Assignment Help - homework help

Evaluation of discount and premium

Describe how discount and premium are evaluated whenever the assets are priced-to-market. When would law of one price prevail within the international capital markets in case foreign equity ownership restrictions are imposed?

E

Expert

Verified

Premium and discount are determined by:

a) Severity of the restrictions imposed on the foreigners and

b) Ability of foreigners to alleviate the effect of these restrictions by using their own domestic securities. In special case where the foreigners may exactly imitate the securities under the restriction, then the PTM will cease to apply.

   Related Questions in Financial Accounting

  • Q : Define Budgetary Control Give a brief

    Give a brief introduction of the term ‘Budgetary Control’ also writes down its characteristics?

    		•
  • Q : Currency trading at discount or at

    What is currency trading at discount or at premium in forward market?

    		•
  • Q : Fundamenetal Issues on Management

    1.  Somerset Ltd manufactures components for the motor industry. In one of its workshops it has three workers, Joe, Jack and Jonny, who at any one time work on batches of the same component. The standard time allowed to produce one unit is one hour. The workers rate of pay is

    		•
  • Q : Multiplicity-Creativity as process

    Define the term Multiplicity (Creativity as process) in creative industry ? And also state the different personality traits and intellectual aptitudes which might contribute to creative thinking ?

    		•
  • Q : International portfolio for buying

    Why it is easier for an investor willing to diversify his portfolio internationally for buying depository receipts instead of actual shares of the company?

    		•
  • Q : Meaning of drawing What is the meaning

    What is the meaning of drawing in financial accounting?

    		•
  • Q : Separately-priced-items strategy

    Problem 1.  The manager of Joe's Menswear has noticed that over the past two holiday seasons their usual sales strategy of marking down prices has not been yielding the boost in revenues that it once did.  JM sell men's suits, dress shirts,

    		•
  • Q : Partner Reflection HRD Programs If you

    If you are working with a partner for your assignment, please answer the following questions individually and submit your paper separately.1. Why did you want to work together? 2. How did you di

    		•
  • Q : Avoidable Interest The book says

    The book says "avoidable interest is the amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for the asset." This makes it sound like avoidable interest is the total amount of interest paid for an asset. I know it's not but I was wonder

    		•
  • Q : What is Capital Capital : In easy word,

    Capital: In easy word, capital signifies the amount or asset that is invested in business by businessman or owner of business. Whenever the business is closed, after paying exterior creditors, balance amount will be his capital that he can attain.

    		•