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Analyze the use of capital budgeting techniques in strategic financial
management.
Format your report consistent with APA guidelines.
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FIN 486 Week 4 KFC and the Colonel Case Study
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FIN 486 Week 4 Apply: KFC and the Colonel Case Study Purpose
This assignment allows students to provide practical business
strategies. Assignment Instructions Review the Week 4 Case Study.
Summarize the following in 2 to 3 pages:  Discuss issues raised
concerning Sanders’ approach in connection with the sale to Brown
and Massey.  Include some of the other options that Sanders may
have considered other than the $2,000,000 cash price.  Explain the
reasons for regulatory control over financial markets. Let’s assume
Colonel Sanders obtained a six-month loan of $150,000 Canadian
dollars from an American bank to finance the acquisition of a building
for another Canadian franchise in Quebec province. The loan will be
repaid in Canadian dollars. At the time of the loan, the spot exchange
rate was U.S. $0.8995/Canadian dollar and the Canadian currency
was selling at a discount in the forward market. The contract after six
months (face value = C$150,000 per contract) was quoted at U.S.
$0.8930/Canadian dollar.  Explain how the American bank could
lose on this transaction assuming no hedging.  Assume the bank
does hedge with the forward contract, what is the maximum amount it
can lose? Format your paper to current APA standards. Click the
Assignment Files tab to submit your Microsoft® Word assignment.
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