Calculate the ex post financing cost in USD

Assignment Help Financial Management
Reference no: EM132029221

Consider a U. S.- based MNC that obtains a one-year loan of GBP 40 million at a rate of 4 percent. When the loan is obtained, the GBP is trading at GBPUSD equals 1.60. The MNC expects the GBP to strengthen to GBPUSD equals 1.64 at year- end. The MNC obtains the loan in spite of this forecast because it could offset this GBP liability (short position) against its U. K. operations. Suppose the GBP actually strengthens to 1.62. Calculate the ex post financing cost in USD. Format x.xx%

Reference no: EM132029221

Questions Cloud

What factors of the cage framework have influenced : What is the country where you wish to visit for your vacation, and why? What factors of the CAGE framework have influenced your decisions?
What characteristics of both the bond : What characteristics of BOTH the bond and the type of investor that caused you to make that selection.
Summing the total miles run or walked in a typical week : While-End or (For End) repetition using C code. The following theme should be used:
Planning the implementation of windows : Gigantic Life Insurance is planning the implementation of Windows 10 for their internal staff. As part of the migration process, you want to standardize
Calculate the ex post financing cost in USD : Suppose the GBP actually strengthens to 1.62. Calculate the ex post financing cost in USD.
What is the total amount needed for the trip : What is the total amount needed for the trip? How many U.S. dollars will you need to convert to Australian dollars to reach this amount?
What are all the architecture styles that is used : What are all the architecture styles that is used in Zookeeper?
What is the profitability index on investment : What is the internal rate of return on this potential investment? What is the profitability index on this investment?
How trustworthy and easy the sites appear to be : Explore two different job search websites. Compare how trustworthy, useful, and easy the sites appear to be. Consider which site performed better.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

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).

  Conduct a what-if analysis

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.

  Determine operational expenditures

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.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

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.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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