How can the company manage the risk

Assignment Help Financial Accounting
Reference no: EM132948780

Problem 1: A Indian company has committed to pay $ 10 million in two months. Present exchange rate is Rs 73 per dollar. Company is worried about the possible of fluctuations in the exchange rate. How can the company manage this risk if their risk appetite is that a fall or rise in the rate by Rs.0.25 is acceptable?

Reference no: EM132948780

Questions Cloud

How much was the net income for the year : Beginning stockholder's equity was $120,000. Ending equity was $195,000. How much was the net income for the year
How long will take to repay the debt : If the interest rate is 3 percent, how long will it take you to repay the debt? You have graduated from college but unfortunately have $39,000 in outstanding.
Determine the manager total compensation : Determine the manager's total compensation and total pretax operating income for the firm, assuming that revenues from preparing tax returns remain unchanged
What is the npv of the project for paul restaurant : What is the NPV of the project? Paul Restaurant is considering the purchase of a $11,000 soufflé maker. The soufflé maker has an economic life of 8 years.
How can the company manage the risk : A Indian company has committed to pay. How can the company manage this risk if their risk appetite is that a fall or rise in the rate by Rs.0.25 is acceptable?
Explain michael porter approach to the industry analysis : Outline and explain Michael Porter's approach to the industry analysis? Is there a relationship between the Industry analysis and the Porter generic
Role of mission statements in an organisation : (a) Evaluate the role of Mission Statements in an organisation. (b) Assess the key characteristics of effective Mission Statements.
Calculate the average unit cost : Vaughn Company made three purchases of merchandise in the following sequence: (1) 320 units at $8, (2) 430 units at $9, Calculate the average unit cost
What t-bill rate is implied : What T-Bill rate is implied? Nifty currently stand at Rs 8000. A Nifty index future contract with delivery in 146 days sells for Rs 8200

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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