Exchange gains and losses

Assignment Help Financial Management

Reference no: EM131343514

Exchange Gains and Losses

Your Boston-headquartered manufacturing company, Wruck Enterprises, obtained a 55 million peso loan from a Mexico City bank last month to fund the expansion of your Monterrey, Mexico plant. When you took out the loan the exchange rate was 73 U.S. cents per peso, but since then, the exchange rate has dropped to 68 U.S. cents per peso. Has Wruck Enterprises made a gain or a loss due to the exchange rate change, and how much? Note that your shareholders live in the United States. Round your answer to the nearest dollar. Enter your answer in dollars.

The company made a -Select-gainlossItem 1 of $.

Reference no: EM131343514

Questions Cloud

Write about the impact on nursing : Write a paper of 750-1,000 words about the impact on nursing of the 2010 IOM report on the Future of Nursing. In your paper, include: The impact of the IOM report on nursing education

What is the 90 day forward rate of the pound : The spot rate of British pound is quoted at $1.49. The 90-day forward rate exhibits a 2% discount. What is the 90-day forward rate of the pound.

Explain how that can be possible : Suppose we have two companies, A and B, and it is expected both will pay $1.50 in dividend every year forever.- Explain how that can be possible?

Describe the manner in which social media provides a venue : Read "#SOCIALCHANGE" located on pages 474 and 475 of the textbook. Describe the manner in which social media provides a venue for activism. Provide one (1) example of online support for an issue or cause.

Exchange gains and losses : Your Boston-headquartered manufacturing company, Wruck Enterprises, obtained a 55 million peso loan from a Mexico City bank last month to fund the expansion of your Monterrey, Mexico plant. When you took out the loan the exchange rate was 73 U.S. Has..

Evaluating two projects for this year capital budget : Capital budgeting criteria A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: Calculate MIRR for each project.

What is the future value of 24 periodic payments : What is the future value of 24 periodic payments of $4,620 each made at the beginning of each period and compounded at 8% per period?

What do you think dance will look like in 2026 : What do you think dance will look like in 2026? Discuss what you think the trending issues will be socially, politically, technologically, etc, and how you see these tends informing the movement/dance you imagine happening in 2026. Address who is ..

What is the project internal rate of return : A project has an initial cost of $51,700 and is expected to produce cash inflows of $18,700, $26,800, and $44,100 over the next 3 years, respectively. What is the project’s internal rate of return? 22.63 percent 20.57 percent 28.34 percent 29.96 perc..

User Account

All Pages