Reduce its economic exposure to exchange rate fluctuation

Assignment Help Financial Management
Reference no: EM131321572

UVA Co. is a US based MNC that obtains 40 percent of its foreign supplies fromThailand. It also borrows Thailand's currency (the baht) from Thai banks and converts the baht into dollars to support US operations. It currently receives about 10 percent of its revenue from Thai customers. Its sales to Thai customers are denominated in baht. Explain how UVA Co. ca reduce its economic exposure to exchange rate fluctuation.

Reference no: EM131321572

Questions Cloud

Write program to simulate rolling of two dice hundred times : Design, implement, test, and debug a C# program to simulate the rolling of two dice 100 times. Whenever the two dice display the same number, the program should show the roll sequence number.
When corporate taxes are only market imperfection considered : Under perfect capital markets, the valuation of a company __________ on the level of leverage". When corporate taxes are the only market imperfection considered,"
Description of the recommended administrative steps : Description of the recommended administrative steps and processes in a typical health care organization risk management program contrasted with the administrative steps and processes you can identify in your selected example plan
Why wep never realized its stated objectives : Unlike Infrared wireless devices, Bluetooth technology uses radio waves to communicate. What are the advantages of Bluetooth over these devices and also over 802.11 technology?
Reduce its economic exposure to exchange rate fluctuation : UVA Co. is a US based MNC that obtains 40 percent of its foreign supplies fromThailand. It also borrows Thailand's currency (the baht) from Thai banks and converts the baht into dollars to support US operations. It currently receives about 10 percent..
Create application that uses solid object-oriented principle : Create an application that uses solid object-oriented principles to simulate one retirement party and an accompanying implementation class that will instantiate one instance of the data definition class.
What are the capitalization criteria for a capital lease : What are the capitalization criteria for a capital lease - What comprises the lessee's minimum lease payments? What is excluded and How do IFRS differ from GAAP regarding accounting for leases? Are there any major issues?
What is the accepted explanation for the nursing shortage : What is the accepted explanation for the nursing shortage? Consider the following explanation: "There is no 'shortage' of nurses; there is a shortage of people willing to put up with the conditions nurses must work under." Do you agree? Why or why..
What would be the reading on the scale : Your mass is 50 kg. Suppose you are standing on a scale in an elevator that starts moving up and increases its speed at the rate of 3 m/s every second. What would be the reading on the scale?

Reviews

Write a Review

Financial Management Questions & Answers

  Determine whether the farmer should purchase the machine

A farmer in Mobile decides to purchase a machine that converts manure into biogas. He has 100 cows that create a total of 40 lb of manure every day, 365 days per year. Each pound of manure can be used to produce 1 ft^3 of biogas which can be sold for..

  Determine the interest payment for the three bonds

Determine the interest payment for the following three bonds

  What is the market value of the stock after rights offering

Suppose you own 40,000 shares of common stock in a firm with 2 million total shares outstanding. The firm announces a plan to sell an additional 0.6 million shares through a rights offering. What is the market value of the stock after the rights offe..

  What is the smallest expected gain over the next year

A stock has an annual return of 10.4 percent and a standard deviation of 41 percent. What is the smallest expected gain over the next year with a probability of 1 percent?

  Calculate the impact of the exhibit on company profit

Infinity Designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Home and Ga..

  Four-year project to improve its production efficiency

CSM Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $500,000 is estimated to result in $199,000 in annual pretax cost savings.

  According to the sharpe ratio

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. According to the Sharpe ratio, which fund performed better?

  What is the purpose of a dealer reserve in indirect lending

What is the purpose of a dealer reserve in indirect lending? When is a bank at risk with indirect loans?

  What is its level of inventory

Soaring Eagles Corp. has total current assets of $11,478,000, current liabilities of $5,058,000 and a quick ratio of 0.87. What is its level of inventory?

  The values of outstanding bonds change

The values of outstanding bonds change whenever the going rate of interest changes. in general, short-term interest rates are more volatile than long-term interest rates. therefore, short-term bond prices are more sensitive to interest ratw changes t..

  What is the company cost of new equity

Riverhawk Store (RS) dividends have been growing at 3 percent annually and are expected to continue this growth rate indefinitely. The company recently paid a dividend of $1.25 per share. Next year, it expects to add $3 million to retained earnings. ..

  Rate of return will you earn on initial investment in bond

Suppose you purchase a 30-year Treasury bond with a 7% annual coupon, initially trading at par. In 10 years time the bond's yield to maturity has risen to 8% (EAR). (Assume $100 face value bond)  If you sell the bond now, what internal rate of return..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd