Find the future foreign currency receivables

Assignment Help Finance Basics
Reference no: EM133075430

In Unit 3, we described how exchange rate risk could be hedged using forward contracts. In pegged or limited-flexibility exchange rate systems, countries imposing capital controls sometimes force their importers and exporters to hedge. First, assuming that forward contracts are to be used, and an exporter has future foreign currency receivables, what will the government force him to do? Second, how does this help the government in defending their exchange rate peg?

Reference no: EM133075430

Questions Cloud

What is the bank lcr : A bank has an adjusted amount of $536 million in high-quality liquid assets, and $425 million in adjusted potential outflows, with an additional $75 million in
How much tax will he pay on the sale of these investments : Two years ago, Sanjay purchased 2,500 units in a Canadian start-up company called Here We Go Inc. for $15,000. On October 22, 2021, he sold 1,250 shares when th
Find out the risk adjusted cost of capital of company a : Question - Find out the risk adjusted cost of capital of Company A with the following information - Foreign Investment Risk 4%
Average annual growth rate of dividends : What was the average annual growth rate of dividends for this firm? Round the answer to two decimal places in percentage form
Find the future foreign currency receivables : In Unit 3, we described how exchange rate risk could be hedged using forward contracts. In pegged or limited-flexibility exchange rate systems, countries imposi
Determine the amount of factory overhead : The overhead application rate is based on total estimated overhead costs of $275,000. Determine the amount of factory overhead
Explain the npv-irr-mirr and payback period : A firm is evaluating a project with an initial investment of $1,000,000 and an expected life of 3 years. Other relevant estimates are:
Calculate the amount of mortgage payment : Sandy purchased a house. Her bank approved a 25 year mortgage for $360,000 with a rate of 6.25 percent (compounded semi-annually as per bank requirements).
Price of a 4-year $100-par bond : The prices of a 1-year 1%-coupon bond, 2-year 2%-coupon bond, 3-year 3%-coupon bond, and 4-year 4%-coupon bond are $98.87, $100, $101.44, and $106.88, respectiv

Reviews

Write a Review

Finance Basics Questions & Answers

  What is cryptons cost of capital

Dividends have grown at the rate of 5.1% per yeat and are expected to continue to do so for the foreseeable future. What is Crypton's cost of capital where the firm's rate is 30%?

  Management discussion and analysis

One way Enron manipulated its financial statements was to sell assets at inflated prices to other firms, while giving a promise to buy back those assets at a later date. The incoming cash was recorded as revenue, but the promise to buy back the as..

  The firm pays out half of its growth in dividends

Today's dividend is $10. Next year dividend will Expected rate of return in the market is 15% and the firm's growth rate is 3%. The firm pays out half of its growth in dividends.

  What is the mean for the log price relative

The mean rate of return on a stock is estimated at 20% while the volatility is 40%: The risk free interest rate is 5%: What is the mean for the log price relative?

  How could each of the given employee groups benefit

How could each of the following employee groups benefit from knowledge management? Designers and engineers, Sales department staff, Executive Management.

  What is the market value of an investment

The interest rate will be 10% for one more year, but a year from now, it will fall to 5% and stay at 5% forever. What is the market value of an investment

  Find variances for both the revenue and expenditures sides

Find the variances for both the revenue and expenditures sides and then discuss two to three problematic areas for the agency.

  Visit the small business administration

Visit the Small Business Administration's "Environmental Regulations (Links to an external site.)Links to an external site."

  What would be the cost of new equity

Banyan Co.'s common stock currently sells for $40.00 per share. The growth rate is a constant 14.4%, and the company has an expected dividend yield of 6%.

  What is the firm market value

What is the firm's market value? Show your answer to the nearest $1. Do not use commas or the $ sign in your answer.

  What is the rate of return on the fund

If the gross return on assets is 15% and the total expense ratio is 3% of the year end value, what is the rate of return on the fund?

  What is the required return

1. If the dividend in year 0 is $1.20 and the growth rate is 3%, then the dividend in Year 7 is equal to:

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