NPV Period 0 (Today) Cash Flow $ (500) $ 150 $ 125 $ 175 $ 350 Dates 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 NPV $ 178 Discount Rate 5.39% Formula: =NPV(discount_rate, cash_flows) Use this formula for valuation analysis to determine the Net Present Value (NPV) of a series of cash flows, either how much a company is really worth or how much an investment in a project is worth. The discount rate is the interest rate used to determine the present value of future cash flows. This helps determine if the future cash flows from a project will be worth more than the initial capital needed to fund the project. Do not confuse the Cost of Capital with the Discount Rate! The cost of capital is the minimum rate needed to justify the cost of a new project and meet the finance costs.

The discount rate is the number that is needed to meet or exceed the cost of capital. Many companies calculate their weighted average cost of capital (WACC) and use it as their discount rate when budgeting for a new project (see the WACC tab). WACC (Ford Motor Company Example) ASSUMPTIONS Cost of Debt 5.0% 10-K report from SEC.gov company filings Tax Rate 28.00% 10-K report from SEC.gov company filings Debt & Equivalents $ 156,721 Debt as % of Total Capital 81.30% After Tax Cost of Debt 3.6% Risk Free Rate 2.46% Current 10 year Treasury Rate Beta (slope) 1.345 You can obtain from company stock analysts or caluculate it yourself (see BETA tab Equity Risk Premium (ERP) 7.96% Long Term Average = You can obtain from company stock analysts Equity as % of Total Capital 18.70% Cost of Capital 13.2% Debt Cash, Cash Equivalents, Short Term & Lont Term Markeatable Securities $ 5,-K report from SEC.gov company filings Long Term Debt $ 8,-K report from SEC.gov company filings Net Debt $ 2,894 Shares Outstanding Net Diluted Shares Outstanding 4,004.-K report from SEC.gov company filings Current Share Price $ 9.00 From Stock Market data (can use yahoo.finance.com) Equity Value $ 36,036.00 Weight Cost Debt 81.30% 3.60% Equity 18.70% 13.17% WACC 5.39% Formula is: (E/V x Re) + ((D/V x Rd) x (1 – T)) The weighted average cost of capital (WACC) is a financial metric that shows what the total cost of capital (the interest rate paid on funds used for financing operations) is for a firm.

E = market value of the firm’s equity (market cap) D = market value of the firm’s debt V = total value of capital (equity plus debt) E/V = percentage of capital that is equity D/V = percentage of capital that is debt Re = cost of equity (required rate of return) Rd = cost of debt (yield to maturity on existing debt) T = tax rate IRR Period 0 (Today) Cash Flow $ (500) $ 150 $ 125 $ 175 $ 350 Dates 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 IRR 18% Formula: =IRR(cash flows) Use it to determine the internal rate of return for a series of cash flows. MIRR Period 0 (Today) Cash Flow $ (500) $ 150 $ 125 $ 175 $ 350 Dates 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 MIRR 15% Borrowing Cost 5% Reinvestment 8% Formula: =MIRR(cash flows, cost of borrowing, reinvestment rate) This a is a variation of the internal rate of return that is very important for finance professionals.

The M stands for Modified, and this formula is particularly useful if the cash from one investment is invested in a different investment. If the business is high returning and produces an 18% IRR, but the cash along the way is reinvested in a bond at only 8%, the combined IRR will be much lower than 18% (it will be 15%, as shown in the example below). PMT Rate (per period) 2.8% # of Periods 30 years Present value (Loan value) $ 1,000,000 PMT $ (49,384.42) Per period Monthly PMT $ (4,115.37) PMT / 12 months Formula: =PMT(rate, number of periods, present value) Used to work with real estate financing and it is like a mortgage payment calculator. For a given loan amount, interest rate and time frame to repay (usually years or months) you can calculate how much the payments will be (includes both principal and interest).

IPMT Rate (per period) 4.5% Current Period 5 # of Periods 30 Years Present value $ 1,000,000.00 IPMT (41,844) Interest per period Principal Payment (7,540) Per period PMT (49,384) Total Payment (from the PMT formula tab Formula: = IPMT(rate, current period #, total # of periods, present value) Use this formula to calculate the interest portion of one fixed payment. You can calculate the principal payment in each period by taking the difference of PMT and IMPT. EFFECT Interest Rate 20.00% # of periods per year 12 Annual Interest Rate 21.94% Formula: =EFFECT(interest rate, # of periods per year) Use to calculate the effective annual interest rate for non-annual compounding. DB Cost $ 1,000,000.00 Salvage value $ 50,000.00 Life (# of periods) 12 Current Period 3 DB Depreciation $ 134,111.86 Formula: =DB(cost, salvage value, life/# of periods, current period) Use to avoid building a large Declining Balance (DB) depreciation schedule.

It is used to calculate your depreciation expense in each period. RATE # of Periods 10 Coupon (per period) $ 100.00 Cost of Bond $ (950.00) Face Value of Bond $ 1,000.00 Yield to Maturity (YTM) 12.1% Formula: =RATE(# of periods, coupon payment per period, price of bond, face value of bond, type) Use it to calculate the Yield to Maturity for a security. This is useful when determining the average annual rate of return that is earned from buying a bond. PV Interest Rate 5% # of Periods 20 Lump Sum in the Future $ 12,000,000 Present Value ,522,673.79 Interest Rate 2% # of Periods 10 Payment per period $ 1,000 Present Value ,866.22 Interest Rate 5% # of Periods 5 Payment per period $ 250,000 Present Value 5,881.54 With an interest rate of 5%, what is the current value of million dollars if you will receive it in 20 years? (Lump sum in the future.) =pv(rate,nper,pmt, [fv],[type]) What is the Present Value of putting ,000 a year into an interest bearing bank account with 2.25% rate for 10 years? (Basic Annuity Problem.) If you know that you can sell something (as asset) in 5 years for 0,000 and that the standard discount rate for that asset is 5%, what should you pay for the asset now?

The discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. This helps determine if the future cash flows from a project or investment will be worth more than the capital outlay needed to fund the project or investment in the present. (What to pay now.) FV Interest Rate 5.0% # of Periods 5 Payments (per period) - 0 Starting Value $ 10,000,000.00 Future Value $ 12,762,815.63 Interest Rate 4.6% # of Periods 10 Payments (per period) $ 1,000,000.00 Starting Value $ - 0 Future Value $ 12,316,833.33 Inflation Rate 4.5% # of Periods 10 Buy now $ 1,000.00 Payments (per period) $ - 0 Buy in the future 2 Future Value ,092.03 With an interest rate of 5%, what will the value of a million dollar investment today be worth in 5 years? (Lump sum in the future.) =fv(rate,nper,pmt, [pv],[type]) If I invest ,000 per year for 10 years with an interest rate of 4.55%, how much will I have in 10 years? (Basic Annuity Problem.) If you can buy something now for ,000 or that same item 2 years from now for ,100 with expected inflation at 4.5% per year, which item costs less?

In other words, should I buy it now or wait two years? (When to buy.) BETA Index Stock -1% -2% -1% -2% -6% -9% 9% 14% 11% 17% 3% 5% 10% 15% -5% -8% 3% 5% 5% 8% 6% 9% 1% 2% -2% -3% Beta (slope) 1.5 Formula: =SLOPE(dependent variable, independent variable) Use it to calculate the Beta (volatility) of a stock given the weekly returns for a stock and the index (or another stock) used to compare it to. Beta = Riskiness as compared to another stock or index FINANCIAL RATIOS Financial Ratios Company Name: From IBIS World Database Financial Ratio Formula Company Result Industry Average Profitability Profit Margin Net income/Annual Sales ERROR:#DIV/0! Operating Margin Operating Earnings (Income)/Sales ERROR:#DIV/0!

Return on Total Assets Net income/Total assets ERROR:#DIV/0! Basic Earning Power (BEP) EBIT/Total Assets ERROR:#DIV/0! Return on Common Equity Net income/Stockholders’ equity ERROR:#DIV/0! EBITDA Coverage EBITDA/Total Interest Payment ERROR:#DIV/0! Asset Management Days Sales Outstanding * Accounts receivable/(Annual sales/365) ERROR:#DIV/0!

Inventory Turnover COGS/Inventory ERROR:#DIV/0! Fixed Assets Turnover Annual Sales/Fixed assets ERROR:#DIV/0! Total Assets Turnover Annual Sales/Total assets ERROR:#DIV/0! Liquidity Current Ratio Current Assets/Current Liabilities ERROR:#DIV/0! Quick Ratio (Cash & Equivalents+Markeatable Securities+Accounts Receivables)/Current Liabilities ERROR:#DIV/0!

Debt Management Total Debt/Total Assets (Short-term Debt + Long-term Debt) / Total Assets ERROR:#DIV/0! Times Interest Earned EBIT/Interest charges ERROR:#DIV/0! Market Value Price/Earning (P/E) P/E ERROR:#DIV/0! Market/Book Market price per share/Book Value per Share ERROR:#DIV/0! * Calculation is based on 365-day year. From 10K SEC Filings Operating Earnings (Income)

Npvperiod0 Today123456789101112cash Flow 500 150 125 1

NPV Period 0 (Today) Cash Flow $ (500) $ 150 $ 125 $ 175 $ 350 Dates 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 NPV $ 178 Discount Rate 5.39% Formula: =NPV(discount_rate, cash_flows) Use this formula for valuation analysis to determine the Net Present Value (NPV) of a series of cash flows, either how much a company is really worth or how much an investment in a project is worth. The discount rate is the interest rate used to determine the present value of future cash flows. This helps determine if the future cash flows from a project will be worth more than the initial capital needed to fund the project. Do not confuse the Cost of Capital with the Discount Rate! The cost of capital is the minimum rate needed to justify the cost of a new project and meet the finance costs.

The discount rate is the number that is needed to meet or exceed the cost of capital. Many companies calculate their weighted average cost of capital (WACC) and use it as their discount rate when budgeting for a new project (see the WACC tab). WACC (Ford Motor Company Example) ASSUMPTIONS Cost of Debt 5.0% 10-K report from SEC.gov company filings Tax Rate 28.00% 10-K report from SEC.gov company filings Debt & Equivalents $ 156,721 Debt as % of Total Capital 81.30% After Tax Cost of Debt 3.6% Risk Free Rate 2.46% Current 10 year Treasury Rate Beta (slope) 1.345 You can obtain from company stock analysts or caluculate it yourself (see BETA tab Equity Risk Premium (ERP) 7.96% Long Term Average = You can obtain from company stock analysts Equity as % of Total Capital 18.70% Cost of Capital 13.2% Debt Cash, Cash Equivalents, Short Term & Lont Term Markeatable Securities $ 5,-K report from SEC.gov company filings Long Term Debt $ 8,-K report from SEC.gov company filings Net Debt $ 2,894 Shares Outstanding Net Diluted Shares Outstanding 4,004.-K report from SEC.gov company filings Current Share Price $ 9.00 From Stock Market data (can use yahoo.finance.com) Equity Value $ 36,036.00 Weight Cost Debt 81.30% 3.60% Equity 18.70% 13.17% WACC 5.39% Formula is: (E/V x Re) + ((D/V x Rd) x (1 – T)) The weighted average cost of capital (WACC) is a financial metric that shows what the total cost of capital (the interest rate paid on funds used for financing operations) is for a firm.

E = market value of the firm’s equity (market cap) D = market value of the firm’s debt V = total value of capital (equity plus debt) E/V = percentage of capital that is equity D/V = percentage of capital that is debt Re = cost of equity (required rate of return) Rd = cost of debt (yield to maturity on existing debt) T = tax rate IRR Period 0 (Today) Cash Flow $ (500) $ 150 $ 125 $ 175 $ 350 Dates 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 IRR 18% Formula: =IRR(cash flows) Use it to determine the internal rate of return for a series of cash flows. MIRR Period 0 (Today) Cash Flow $ (500) $ 150 $ 125 $ 175 $ 350 Dates 1/1/21 1/1/22 1/1/23 1/1/24 1/1/25 MIRR 15% Borrowing Cost 5% Reinvestment 8% Formula: =MIRR(cash flows, cost of borrowing, reinvestment rate) This a is a variation of the internal rate of return that is very important for finance professionals.

The M stands for Modified, and this formula is particularly useful if the cash from one investment is invested in a different investment. If the business is high returning and produces an 18% IRR, but the cash along the way is reinvested in a bond at only 8%, the combined IRR will be much lower than 18% (it will be 15%, as shown in the example below). PMT Rate (per period) 2.8% # of Periods 30 years Present value (Loan value) $ 1,000,000 PMT $ (49,384.42) Per period Monthly PMT $ (4,115.37) PMT / 12 months Formula: =PMT(rate, number of periods, present value) Used to work with real estate financing and it is like a mortgage payment calculator. For a given loan amount, interest rate and time frame to repay (usually years or months) you can calculate how much the payments will be (includes both principal and interest).

IPMT Rate (per period) 4.5% Current Period 5 # of Periods 30 Years Present value $ 1,000,000.00 IPMT (41,844) Interest per period Principal Payment (7,540) Per period PMT (49,384) Total Payment (from the PMT formula tab Formula: = IPMT(rate, current period #, total # of periods, present value) Use this formula to calculate the interest portion of one fixed payment. You can calculate the principal payment in each period by taking the difference of PMT and IMPT. EFFECT Interest Rate 20.00% # of periods per year 12 Annual Interest Rate 21.94% Formula: =EFFECT(interest rate, # of periods per year) Use to calculate the effective annual interest rate for non-annual compounding. DB Cost $ 1,000,000.00 Salvage value $ 50,000.00 Life (# of periods) 12 Current Period 3 DB Depreciation $ 134,111.86 Formula: =DB(cost, salvage value, life/# of periods, current period) Use to avoid building a large Declining Balance (DB) depreciation schedule.

It is used to calculate your depreciation expense in each period. RATE # of Periods 10 Coupon (per period) $ 100.00 Cost of Bond $ (950.00) Face Value of Bond $ 1,000.00 Yield to Maturity (YTM) 12.1% Formula: =RATE(# of periods, coupon payment per period, price of bond, face value of bond, type) Use it to calculate the Yield to Maturity for a security. This is useful when determining the average annual rate of return that is earned from buying a bond. PV Interest Rate 5% # of Periods 20 Lump Sum in the Future $ 12,000,000 Present Value $4,522,673.79 Interest Rate 2% # of Periods 10 Payment per period $ 1,000 Present Value $8,866.22 Interest Rate 5% # of Periods 5 Payment per period $ 250,000 Present Value $195,881.54 With an interest rate of 5%, what is the current value of $12 million dollars if you will receive it in 20 years? (Lump sum in the future.) =pv(rate,nper,pmt, [fv],[type]) What is the Present Value of putting $1,000 a year into an interest bearing bank account with 2.25% rate for 10 years? (Basic Annuity Problem.) If you know that you can sell something (as asset) in 5 years for $250,000 and that the standard discount rate for that asset is 5%, what should you pay for the asset now?

The discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows. This helps determine if the future cash flows from a project or investment will be worth more than the capital outlay needed to fund the project or investment in the present. (What to pay now.) FV Interest Rate 5.0% # of Periods 5 Payments (per period) - 0 Starting Value $ 10,000,000.00 Future Value $ 12,762,815.63 Interest Rate 4.6% # of Periods 10 Payments (per period) $ 1,000,000.00 Starting Value $ - 0 Future Value $ 12,316,833.33 Inflation Rate 4.5% # of Periods 10 Buy now $ 1,000.00 Payments (per period) $ - 0 Buy in the future 2 Future Value $1,092.03 With an interest rate of 5%, what will the value of a $10 million dollar investment today be worth in 5 years? (Lump sum in the future.) =fv(rate,nper,pmt, [pv],[type]) If I invest $1,000 per year for 10 years with an interest rate of 4.55%, how much will I have in 10 years? (Basic Annuity Problem.) If you can buy something now for $1,000 or that same item 2 years from now for $1,100 with expected inflation at 4.5% per year, which item costs less?

In other words, should I buy it now or wait two years? (When to buy.) BETA Index Stock -1% -2% -1% -2% -6% -9% 9% 14% 11% 17% 3% 5% 10% 15% -5% -8% 3% 5% 5% 8% 6% 9% 1% 2% -2% -3% Beta (slope) 1.5 Formula: =SLOPE(dependent variable, independent variable) Use it to calculate the Beta (volatility) of a stock given the weekly returns for a stock and the index (or another stock) used to compare it to. Beta = Riskiness as compared to another stock or index FINANCIAL RATIOS Financial Ratios Company Name: From IBIS World Database Financial Ratio Formula Company Result Industry Average Profitability Profit Margin Net income/Annual Sales ERROR:#DIV/0! Operating Margin Operating Earnings (Income)/Sales ERROR:#DIV/0!

Return on Total Assets Net income/Total assets ERROR:#DIV/0! Basic Earning Power (BEP) EBIT/Total Assets ERROR:#DIV/0! Return on Common Equity Net income/Stockholders’ equity ERROR:#DIV/0! EBITDA Coverage EBITDA/Total Interest Payment ERROR:#DIV/0! Asset Management Days Sales Outstanding * Accounts receivable/(Annual sales/365) ERROR:#DIV/0!

Inventory Turnover COGS/Inventory ERROR:#DIV/0! Fixed Assets Turnover Annual Sales/Fixed assets ERROR:#DIV/0! Total Assets Turnover Annual Sales/Total assets ERROR:#DIV/0! Liquidity Current Ratio Current Assets/Current Liabilities ERROR:#DIV/0! Quick Ratio (Cash & Equivalents+Markeatable Securities+Accounts Receivables)/Current Liabilities ERROR:#DIV/0!

Debt Management Total Debt/Total Assets (Short-term Debt + Long-term Debt) / Total Assets ERROR:#DIV/0! Times Interest Earned EBIT/Interest charges ERROR:#DIV/0! Market Value Price/Earning (P/E) P/E ERROR:#DIV/0! Market/Book Market price per share/Book Value per Share ERROR:#DIV/0! * Calculation is based on 365-day year. From 10K SEC Filings Operating Earnings (Income) $0 Dupont Equation = Net Profit Margin x Asset Turnover Ratio x Financial Leverage Current Assets $0 = (Net Income / Sales) x (Sales / Total Assets) x (Total Assets / Total Equity) Current Liabilities $0 Net Profit Margin Asset Turnover Ratio Financial Leverage Short Term Debt $0 ERROR:#DIV/0!

ERROR:#DIV/0! ERROR:#DIV/0! Long Term Debt $0 Total Assets $0 Cash & Equivalents $0 Markeatable Securities $0 EBIT $0 EBITDA $0 Interest Payments or Charges $0 Annual Sales $0 Inventory $0 Accounts Receivable $0 Fixed Assets $0 Net income $0 Stockholders Equity $0 Cost of Goods Sold (COGS) $0 Average Inventory $0 Current Share Price $0.00 Find it in finance.yahoo.com Earnings per Share $0.00 Book Value $0.00 AFN & pro forma statement Pro Forma Statement Actual Forecast Basis Pro Forma Sales $ - 0 Oper. Costs excluding depreciation $ - 0 EBITDA $ - 0 $ - 0 Depreciation $ - 0 EBIT $ - 0 Interest EBT $ - 0 $ - 0 Taxes $ - 0 $ - 0 Net Income $ - 0 $ - 0 Additional Funds Needed Sales Sales to Increase Total Liabilities and Equity = Assets Accounts Payable Common Stock Retained Earnings Long Term Debt $ - 0 Total Liabilities $ - 0 New Common Stock Sale Profit Margin Retained Actual Net Income $ - 0 Addition to Retained Earnings $ - 0 Assets/Sales ERROR:#DIV/0!

Liabilities/Sales ERROR:#DIV/0! Next year's Sales (forecasted) $ - 0 Change in Sales $ - 0 Additional Funds Needed ERROR:#DIV/0! Exchange Rate EU/US $0.00 US/EU ERROR:#DIV/0! If euros sell for $1.50 (U.S.) per euro, what should dollars sell for in euros per dollar? Cross Rates Spot Rate US/MEX $0.00 Spot Rate US/YEN ¥0.00 Cross Exchange Rate MEX/YEN ERROR:#DIV/0!

At today’s spot exchange rates 1 U.S. dollar can be exchanged for 9 Mexican pesos or for 111.23 Japanese yen. You have pesos that you would like to exchange for yen. What is the cross rate between the yen and the peso; that is, how many yen would you receive for every peso exchanged? Foreign Investment Analysis V. Gomez Corporation - subsidiary in Mexico Chapman Inc. - Base in US Dividends in Mexican pesos $0.00 Forward Exchange rate in 1-year MEX/US 0.00 After 1-year peso depreciates 0.00 Peso-denominated dividend growth per year 0.00 Chapman owned Gomez shares 0 Present Value of Dividends stream (cost of equity) 0% Pesos to dollars conversion $0.00 Growth rate in dollar denominated pesos $0.000 Growth rate ERROR:#DIV/0!

Total growth rate of dividends in dollars 0.00% Total Price per share in US dollars ERROR:#DIV/0! Total Equity ERROR:#DIV/0! Chapman Inc.’s Mexican subsidiary, V. Gomez Corporation, is expected to pay to Chapman 30 pesos in dividends in 1 year after all foreign and U.S. taxes have been subtracted. The exchange rate in 1 year is expected to be 0.10 dollars per peso.

After this, the peso is expected to depreciate against the dollar at a rate of 4% a year forever due to the different inflation rates in the United States and Mexico. The peso-denominated dividend is expected to grow at a rate of 8% a year indefinitely. Chapman owns 10 million shares of V. Gomez. What is the present value of the dividend stream, in dollars, assuming V.

Gomez’s cost of equity is 13%? Foreign Capital Budgeting What we know: Calculations: Forecasted Cash Flow NPV in US $181.82 Initial investment $2,000 Rate of Return in US 20% Cash inflow Year 1 $2,400 Forward Exchange Rate 0.. Risk Adjusted Cost of Capital (%) 10% Interest Rate of Parity 0.98544 US/SF 0.96 Cash Flow Year-0 in SF 1,-Year Risk Free Securities in US (%) 3% Cash Flow Year 1 in SF 2,270.-Year Risk Free Securities in Switzerland (%) 1.5% NPV in SF 144.04237 Rate of Return in SF 18.2524% Note that the rate of return in Swiss francs is 18.2524% vs. 20% in U.S. dollars because the Swiss Franc in the forward market is expected to sell at a premium to the U.S. dollar. Thus, the U.S. dollar return is reduced by the appreciation of the Swiss Franc to the U.S. dollar.

Currency Appreciation Spot rate CHF/US $0.00 Appreciation 0% Spot rate appreciation 0.00 US/CHF ERROR:#DIV/0! Suppose that the exchange rate is 0.60 dollars per Swiss franc. If the franc appreciates 10% against the dollar, how many francs would a dollar buy tomorrow? Purchasing Power Parity Computer in US $0 Computer in EUR € 0 Spot Rate EUR/US ERROR:#DIV/0! A computer costs $500 in the United States.

The same model costs 550 euros in France. If purchasing power parity holds, what is the spot exchange rate between the euro and the dollar? Interest Rates Parity Year 6-months 6-months T-bills 0% 0.-months Japanese Bonds 0.00% 0.0000 Spot market YEN/US $0.-month forward exchange rate for 1 YEN $0.00000 The nominal yield on 6-month T-bills is 7%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 5.5%. In the spot exchange market, 1 yen equals $0.009. If interest rate parity holds, what is the 6-month forward exchange rate?

Spot and Forward Rates 15,000 watches in francs 0 CHF Spot rate CHF/US -days Forward rate CHF/US 0 Exchange rate CHF/US in 90-days 0.00 Cost of watches in US dollars ERROR:#DIV/0! 90-days Cost of watches in US dollars ERROR:#DIV/0! If Exchange rate is 0.50 in 90-days ERROR:#DIV/0! Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today’s spot rate. The firm’s financial manager, James Desreumaux, has noted the following current spot and forward rates: On the same day, Desreumaux agrees to purchase 15,000 more watches in 3 months at the same price of 1 million Swiss francs. a.

What is the cost of the watches in U.S. dollars, if purchased at today’s spot rate? b. What is the cost in dollars of the second 15,000 batch if payment is made in 90 days and the spot rate at that time equals today’s 90-day forward rate? c. If the exchange rate for is 0.50 Swiss francs per dollar in 90 days, how much will Desreumaux have to pay (in dollars) for the watches? MSN 5550 Health Promotion: Prevention of Disease Case Study Module 2 Instructions: Read the following case study and answer the reflective questions. Please provide rationales for your answers.

Make sure to provide a citation for your answers. Deadline: Due by Sunday at 23:59 p.m. CASE STUDY: An Older Immigrant Couple: Mr. and Mrs. Arahan Mr. and Mrs. Arahan, an older couple in their seventies, have been living with their oldest daughter, her husband of 15 years, and their two children, ages 12 and 14.

They all live in a middle-income neighborhood in a suburb of a metropolitan city. Mr. and Mrs. Arahan are both college educated and worked full-time while they were in their native country. In addition, Mr. Arahan, the only offspring of wealthy parents, inherited a substantial amount of money and real estate.

Their daughter came to the United States as a registered nurse and met her husband, a drug company representative. The older couple moved to the United States when their daughter became a U.S. citizen and petitioned them as immigrants. Since the couple was facing retirement, they welcomed the opportunity to come to the United States. The Arahans found life in the United States different from that in their home country, but their adjustment was not as difficult because both were healthy and spoke English fluently. Most of their time was spent taking care of their two grandchildren and the house.

As the grandchildren grew older, the older couple found that they had more spare time. The daughter and her husband advanced in their careers and spent a great deal more time at their jobs. There were few family dinners during the week. On weekends, the daughter, her husband, and their children socialized with their own friends. The couple began to feel isolated and longed for a more active life.

Mr. and Mrs. Arahan began to think that perhaps they should return to the home country, where they still had relatives and friends. However, political and economic issues would have made it difficult for them to live there. Besides, they had become accustomed to the way of life in the United States with all the modern conveniences and abundance of goods that were difficult to obtain in their country. However, they also became concerned that they might not be able to tolerate the winter months and that minor health problems might worsen as they aged.

They wondered who would take care of them if they became very frail and where they would live, knowing that their daughter had only saved money for their grandchildren’s college education. They expressed their sentiments to their daughter, who became very concerned about how her parents were feeling. This older couple had been attending church on a regular basis, but had never been active in other church-related activities. The church bulletin announced the establishment of parish nursing with two retired registered nurses as volunteers. The couple attended the first opening of the parish clinic.

Here, they met one of the registered nurses, who had a short discussion with them about the services offered. The registered nurse had spent a great deal of her working years as a community health nurse. She informed Mr. and Mrs. Arahan of her availability to help them resolve any health-related issues. Reflective Questions 1.

What strategies could be suggested for this older adult couple to enhance their quality of life? 2. What community resources can they utilize? 3. What can the daughter and her family do to address the feelings of isolation of the older couple?

4. What health promotion activities can ensure a healthy lifestyle for them? CASE STUDY: An Older Immigrant Couple: Mr. and Mrs. Arahan Reflective Questions