User Account

All Pages

What is the cash-flow cost of hedging translation

Assignment Help Finance Basics
Reference no: EM133253183

Can someone help me on the below 2 questions?

1. What is the cash-flow cost of hedging translation exposure with forward contracts:

  1. The interest rate differential between the foreign subsidiary and the parent's currencies.
  2. The forward premium/discount on the currency in which the exposure is measured
  3. The unknown (at times of hedging) percentage of the actual foreign currency depreciation/appreciation.
  4. The unknown (at times of hedging) speculative gain/loss resulting from settling the forward contract

2. What is the cash-flow cost of hedging translation exposure with a currency option:            

  1. The unknown (at times of hedging) percentage of the actual foreign currency depreciation/appreciation.
  2. The unknown  (at times of hedging) speculative gain/loss resulting from exercising the option + option premium
  3. The interest rate differential between the foreign subsidiary and the parent's currencies.
  4. The option premium on the currency in which the exposure is measured

Reference no: EM133253183

Questions Cloud

Tax court decision : Summarize with at least five sentences the Tax Court decisions determined in Johnson v. United States. Do you agree or disagree with the Tax Court's decision?
Currency-deposit ratio and the money multiplier : What is the relationship between the currency-deposit ratio and the money multiplier?
Find required payments on termination : Rondo ltd is a restaurant equipment supply company with offices and retail stores in Ontario and Québec. The organization started operations in 1993 and current
What is the value of an investor : Parramatta Enterprises (PE) has recently issued $23 million in floating rate notes in order to fund the next stage of an investment project. The notes pay an an
What is the cash-flow cost of hedging translation : 1. What is the cash-flow cost of hedging translation exposure with forward contracts:
What is the tcf associated with the purchase : Builtrite is considering purchasing a new machine that would cost $75,000 and the machine would be depreciated (straight line) down to $0 over its five-year lif
Calculate in an excel file using the financial functions : Calculate in an Excel file using the financial functions found in Excel. We want to obtain a loan of $5,000 over 3 years. You are offered a interest of 7% per y
How much money will he need to save monthly : How much money will he need to save monthly to have this amount when he begins retirement? (Round the final answer to 2 decimal places)
Estimated cost of equity : ABC Co. is trying to estimate its optimal capital structure. The company has a capital structure that consists of 25 percent debt and 75 percent equity, based o

Reviews

Write a Review

Finance Basics Questions & Answers

  The before-tax cash flow from the sale of the property is

you are considering the acquisition of an office building. the purchase price is 775000. seventy-five percent of the

  Define winner curse in the context of m

1. Define winner's curse in the context of M & A's. How can the buying company avoid the pitfalls of the winner's curse?

  Calculate the premium percentage received by the grey

Calculate the premium percentage received by the Grey stockholders. Assume both that immediate synergistic earnings of $3 million per year will occur as a result of the merger and that the P/E ratio of the combined companies is 10.5.

  How much money does the firm expect to collect in the month

The remaining 2 percent of sales is never collected. How much money does the firm expect to collect in the month of July?

  Determining the average market return

Assume the average market return over the next 50 years is expected to be 9.1%. If an investor contributes $19 thousand

  Find the price of stock

Delilah, Corporation currently pays a $2.25 common stock dividend, with dividends expected to grow at a 4 percent rate over the long-term. Assuming a risk free rate of 4.25 percent,

  What is the accounting break-even point

If the required rate of return is 13% per year, what is the accounting break-even point? (Answer to the nearest whole unit.)

  What is the ethical issue that diane faces

Diane is a financial analyst working for a large chain of discount retail stores. Her company is looking at the possiblity of replacing the existing.

  Determining the interest to finance education

Most of the students want to pay off these loans in 15 years but want to make sure their yearly payments account for no more than 7% of their gross annual

  Choose the provision of the sabanes oxley act

Choose the provision of the Sabanes Oxley Act you believe is the most important and explain the reason for your choice.

  Calculate mitsubishi cash conversion cycle

Calculate Mitsubishi's cash conversion cycle. Assuming Mitsubishi holds negligible amount of cash and market securities, calculate its total assets turnover.

  Determine the effect the change had on stakeholders

Determine the effect the change had on stakeholders, and to what degree stakeholders have resisted. Assess how well stakeholder resistance was addressed.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd