Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Globalcorp makes a sale of goods to a foreign firm and will receive FC 380,000 three months later. Globalcorp has incurred costs in dollars and wishes to make definite the amount of dollars it will receive in three months. It plans to approach a foreign bank to borrow an amount of local currency such that the principal plus interest will equal the amount Globalcorp expects to receive. The interest rate it must pay on its loan is 28%. With the borrowed funds, Globalcorp purchases dollars at the current spot rate that are invested in the United States at an interest rate of 8%. When Globalcorp receives the FC 380,000 at the end of three months, it uses the funds to liquidate the loan at the foreign bank. The effective tax rate in both countries is 40%.
a) What is the net amount that Globalcorp will receive if the current spot rate is FC 1.90 to the dollar?
b) How much less is this than the amount Globalcorp would have received if the remittance had been made immediately instead of three months later?
c) At what forward rate of exchange would the amount received by Globalcorp have been the same as that it would have obtained using the capital markets? Would Globalcorp have sold the FC forward short or long to hedge its position?
d) If a speculator took the opposite position from Globalcorp in the forward market for FC, would the speculator sell long or short? If the speculator received a risk premium for holding this position, would this place the current forward rate in FC above or below the expected future spot rate in FC per dollar?
Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.
In this essay, we are going to discuss the issues of financial management in a non-profit organisation.
Evaluate venture's present value, cash and surplus cash and basic venture capital.
This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?
Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.
In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).
Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.
Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.
How much will you have left over each half year if you adopt the latter course of action?
A quoted company is considering several long-term sources of finance for expansion into new foreign markets.
This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.
This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd