Firm new expected us dollar operating cash flow level

Assignment Help Financial Management
Reference no: EM131329445

US company has operating cash flow measured in US dollars of $700 per year, given a current spot FX rate of 0.90 $/CA. The company has an FX operating exposure to the Canadian dollar of 0.50. If the Canadian dollar appreciates in value by 15% (relative to the US dollar), what is the firm’s new expected US dollar operating cash flow level?

Reference no: EM131329445

Questions Cloud

What will the dividend be one year from now : Dividend smoothing: The Deck Company just paid a dividend of $1.55 per share of stock. Its target payout ratio is 45 percent. In one year, the company expects to have earnings per share of $7.10. If the adjustment rate is .4, as defined in the Lintne..
Operating exposure to the pound : LZX Ltd. is a UK firm that exports products to the United States. LZX’s FX operating exposure to the US dollar is 1.80. If a US multinational acquired LZX, what would be the multinational’s FX operating exposure to the pound from LZX operation?
Compute company revenue exposure to the us dollar : Assume a firm’s home currency is British pounds. Let the current spot FX rate be 1.70 $/£ and the expected revenues be £500 per year. Assume that if the FX value of the pound changes to 1.80 $/£, the expected revenue in pounds would change to £750 pe..
Firm new expected us dollar operating cash flow level : US company has operating cash flow measured in US dollars of $700 per year, given a current spot FX rate of 0.90 $/CA. The company has an FX operating exposure to the Canadian dollar of 0.50. If the Canadian dollar appreciates in value by 15% (relati..
Firm new expected us dollar operating cash flow level : US company has operating cash flow measured in US dollars of $700 per year, given a current spot FX rate of 0.90 $/CA. The company has an FX operating exposure to the Canadian dollar of 0.50. If the Canadian dollar appreciates in value by 15% (relati..
Discussion on valuation using multiples of comparable firms : Discussion on valuation using multiples of comparable firms. Identify three peers of Apple Inc. Collect the P/E ratio and Enterprise Value / EBITDA ratio for Apple Inc. and its peers. Discuss why the above two multiples differ across the peer firms, ..
Present value of perpetuity and future value of an annuity : Effective Annual Rate A loan is offered with monthly payments and a 6.75 percent APR. What's the loan's effective annual rate (EAR)? Present Value of a Perpetuity What's the present value, when interest rates are 6.50 percent, of a $100 payment made ..
Price-product-promotion and place : One of your friends is contemplating opening a coffee shop near your college campus. She seeks your advice about size of the prospective customer base and how to market the business according to the four Ps. "Price, product, promotion, place" What st..
Calculate the debt ratio for firm : You have been asked to calculate the debt ratio for a firm that has following components to its financing firms: the firm has 1 million shares outstanding,trading at $50 per share, the firm has &25 milion in straight debt,carrying a market interest r..

Reviews

Write a Review

Financial Management Questions & Answers

  What will the dividend be eight years from now

The Garden Shoppe has adopted a policy of increasing the annual dividend on its common stock at a constant rate of 1.65 percent annually.- What will the dividend be eight years from now?

  Compute the standard deviation

The past five monthly returns for PG&E are −3.45 percent, 4.58 percent, 4.05 percent, 6.89 percent, and 3.86 percent. Compute the standard deviation of PG&E’s monthly returns. (Do not round intermediate calculations and round your final answer to 2 d..

  The risk per unit of return is measured by the

The risk per unit of return is measured by the

  Suppose a riskless project requires an initial investment

Suppose a riskless project requires an initial investment of $10 and will generate a one-time cash inflow of $30 two years later. Assuming a risk-free interest rate of 5%, which of the following statements about the project is NOT true?

  For capital budgeting evaluation of replacement projects

For capital budgeting evaluation of replacement projects, the computation of after-tax operating cash flows for each project (i.e., existing versus proposed) is compared to arrive at incremental cash flows. This calculation requires that both depreci..

  How much will be in the account at end of that time period

Johnny plans on depositing $8,000 into an account earning 3% per year at the end of each of the next 15 years. How much will be in the account at the end of that time period?

  What is Company Cost of Equity and WACC

Company X has Capital Structure compromised of 3.5 Billion in debt-Comprimosed entirely of bonds with a 5% coupon rate and 4.5%YTM and a $4Billion in equity. US Gov’s T-Bonds are trading at a rate of 1.85% and the historic Market return is 9.6%. Comp..

  What is the present value of the annuity

A 10-year annuity pays $2,500 per month, and payments are made at the end of each month. The interest rate is 9 percent compounded monthly for the first four years, and 7 percent compounded monthly thereafter. What is the present value of the annuity..

  What is the value of each warrant

Thomson Engineering is issuing new 10-year bonds that have 20 warrants attached. If not for the attached warrants, the bonds would carry a 9% interest rate. However, with the warrants attached the bonds will pay a 7% annual coupon and still sell for ..

  Equal the purchasing power of her current earnings

A client is concerned about the impact that inflation will have on her retirement income. The client currently earns $40,000 per year. Assuming that inflation averages 2.25% for the first five years, 2.5% for the next five years and 3.25% for the rem..

  Cost is expected to increase four percent annually

Bart? Simpson, age 10 ?, wants to be able to buy a really cool new car when he turns 18 . His really cool car costs ?$19,000 ?today, and its cost is expected to increase 4 percent annually. How much will? Bart's car? cost, and how much does Bart have..

  What is the simple deposit multiplier

What is the simple deposit multiplier? If the required reserve ratio is 15%, what is the value of the simple deposit multiplier?

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