Reference no: EM132956632
Noman Co is an Australian company with the following transactions: Company Transactions
Gateway Ltd Expected receipt of £360,000 in one month's time
Gateway Ltd Expected payment of £210,000 in one month's time
Modern Pte Ltd Expected receipt of £380,000 in three months' time
The following information is relevant to Noman Co:
One-month forward rates (£/AUD$1) 0.55220 - 0.55229
Spot rate (£/AUD$1) 0.55226 - 0.55235
Australian Dollar $ Pound sterling £
Deposit Borrowing Deposit Borrowing
Interest rate per year 5% 5.8% 5.2% 6%
Required:
a. Determine the expected Australian Dollar receipts from UK Company, Modern Pte Ltd in three months' time using a money market hedge.
b. Assuming Noman Co and Gateway Ltd agreed to apply bilateral matching to mitigate the currency exposure. Determine the net amount of payment or receipt by Noman Co in Australian Dollar.
|
What is the standard deviation for a portfolio
: Given the following expected returns for asset x and y. The rate of return for asset x are: 14, 12, 16, 17, and 19 for year 2015, 2016, 2017, 2018, and 2019, re
|
|
Calculate sact tax liability
: SACT Corp. has sales of RM5,000,000. The firm's cost of goods sold is RM3,000,000; and its total operating expenses are RM600,000. The firm's interest expense i
|
|
What is the dirty price of bond date
: The bonds pay interest on December 1 and June 1. What is the dirty price of this bond if today's date is May 1? Assume a 360-day year
|
|
What do results suggest as a general rule
: Your analysis on the Future Value. Which option would you choose? What do your results suggest as a general rule for approaching such problems?
|
|
Determine the expected australian dollar receipts
: Noman Co is an Australian company with the following transactions: Company Transactions
|
|
Prepare the company operations cash flow
: Given the following information. You are required to prepare the company's operations cash flow.
|
|
Why fred will always have more money regardless
: Explain why Fred will always have more money regardless of how long they live. Fred and Wilma are cousins born. They were both born on July 29th 1997.
|
|
Which is calculated as sales minus variable cost of good
: On the variable costing income statement, __________________ is calculated as Sales minus Variable Cost of Goods Manufactured.
|
|
What is the net present value of project
: A company is considering a 6-year project that requires an initial outlay of $25,000. The project engineer has estimated that the operating cash flows will be $
|