How much money will Husky Sporting Goods Company have

Assignment Help Accounting Basics
Reference no: EM133053432

Question - A U.S. firm, sells merchandise today to a British company for £100,000. The current exchange rate is $1.38/£, the account is payable in three months, and the firm chooses to hedge by borrowing £98,765.43 today and exchanging the proceeds today for dollars; the loan will be paid back with the £100,000 accounts receivable (money market hedge). If Husky converted the borrowed pounds into dollars today and invested that amount at its WACC of 6% (2% for 90 days), how much money in U.S. dollars will Husky Sporting Goods Company have in 90 days?

Reference no: EM133053432

Questions Cloud

Penetrate systems in order to steal technology : There are a variety of ways that a cyber-attack can cause economic damage. In many cases, attackers try to "penetrate" systems in order to steal technology
How much should Youth report as carrying value of machine : On July 1, 2020, Youth Corporation purchased a machine at a cost of P300,000. How much should Youth report as carrying value of the machine
Calculate the market value of the bonds : The cost of debts on the Bonds is 8% annually and 2% quarterly. The bonds are redeemable on 30 June 2024. Calculate the market value of the Bonds
Tasks commonly associated with intelligent beings : The ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings is called?
How much money will Husky Sporting Goods Company have : A U.S. firm, sells merchandise today to a British company for £100,000. How much money in U.S. dollars will Husky Sporting Goods Company have in 90 days
Develop practical tools and resources for career planning : Assignment Goal: Develop practical tools and resources for career planning.
Aware of challenges facing your organization : An IT unit within the US Department of Defense you must be keenly aware of challenges facing your organization
Determine the quantity of rentals and the sales revenue : Elizabeth Botosan operates a bed and breakfast hotel in a resort area near Lake Michigan. Determine the quantity of rentals and the sales revenue
Steps of risk procedure is identify : Explain opportunities and threats and give example of each from own life. The Steps of risk procedure is Identify, Assess, Plan, Implement and Communication.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Examine the key inferences of corporate ethics

Examine the key inferences of corporate ethics related to internal controls and accounting principles which lead to the litigation or fine for the accounting.

  Prepare any necessary journal entries for each transactions

Prepare any necessary journal entries for each of the chronological transactions listed above. Make sure each journal entry is complete

  If kelsey k company invests 250000 today it can expect to

if kelsey k. company invests 250000 today it can expect to receive 50000 at the end of each year for the next seven

  What is the current status of ifrs from the sec perspective

What is the current status of IFRS from the SEC perspective? What is the current status of the convergence effor fro the FASB perspective?

  What is the project net cash flow

If the tax rate is 23 percent, what is the project's Year 0 net cash flow? Year 1? Year 2? Year 3

  Which step in accounting cycle would not generally performed

Which of the following steps in the accounting cycle would not generally be performed daily? The first required step in the accounting cycle is.

  What would her payments have been based on the value of car

If she had wanted to make quarterly payments, what would her payments have been based on the value of the car as determined in part (1)

  This overhead cost will be shared by the purchasing

tylers consulting company has purchased a new 15000 copier. this overhead cost will be shared by the purchasing

  Journalize the entries to record the foregoing transactions

July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, Journalize the entries to record the foregoing transactions

  Prepare slaton entry to record the exchange

The used truck cost P20,000, The new truck is worth P35,000. Slaton also made a cash payment of P33,000. Prepare Slaton's entry to record the exchange.

  Make the same profit or loss regardless of the ski model

What is the total sales revenue at which X-Cee-Ski Company would make the same profit or loss regardless of the ski model it decided to produce

  Which journal entries correctly records cost of goods? sold

The company had purchased the inventory for $900. Which of the following journal entries correctly records the cost of goods? sold

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