User Account

All Pages

What is the singapore dollar cost of this debt

Assignment Help Financial Accounting
Reference no: EM133005114

Question - Aluminika Starsing. Ltd is one of largest aluminium producing companies in Singapore. The company borrows £800,000 from a British bank at 8.5% interest at a time when the exchange rate is SG$ 20,000/£.

Required -

1. Case I: the duration of the loan is a year. What is the Singapore dollar(SG$) cost of this debt if the pound depreciates from SG$ 20,000/£ to SG$ 19,000/£ over the year? And if the pound appreciates to SG$ 22,500/£ over the year?

2. Case II: the duration of the loan is three years. The entire principal of the loan is to be repaid within three years, while the interest is paid annually in pounds. If pound is expected to appreciate against SG$ at 6% per annum, calculate the internal rate of return of this loan for Aluminika Starsing. Ltd?

Reference no: EM133005114

Questions Cloud

Calculate the dollar amount of IRA distribution : The distribution is subject to a 25 percent tax. Calculate the dollar amount of IRA distribution the investor is left with after paying taxes
What is the current stock price : Question - Forever 21 is expected to pay an annual dividend of $3.54 per share in one year, What is the current stock price
How much money will be in the account : Question - If you deposit $588.00 at 20.64% annual interest compounded daily, how much money will be in the account after 13.0 years
What are the nominal and effective costs of trade credit : What are the nominal and effective costs of trade credit under the credit terms of 1/10, net 40? Assume a 365-day year. Do not round intermediate calculations
What is the singapore dollar cost of this debt : What is the Singapore dollar(SG$) cost of this debt if the pound depreciates from SG$ 20,000/£ to SG$ 19,000/£ over the year
How much cash will be freed up : Question - Williams & Sons last year reported sales of $13 million, cost of goods sold (COGS) of $8 million, how much cash will be freed up
Difference between a sales-type and a direct financing type : Question - What is the difference between a sales-type and a direct financing type of finance leaser under ASC 842
Calculate the number of Tuesdays and Thursdays : You should expect the practice to be able to complete one physical exam every 20 minutes. Calculate the number of Tuesdays and Thursdays
What is the spending variance related to advertising : Purchased 160,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production. What is the spending variance

Reviews

Write a Review

Financial Accounting Questions & Answers

  A city government estimates that they must accrue 15

a city government estimates that they must accrue 1.5 million per employee to finance each employees retirement

  What are the relevant costs for the make alternative

The XYZ Company has offered to supply 11,800 units of S10 per year for $27.00 per unit. If CJP accepts the offer, $13.00 per unit of the fixed overhead would be saved. In addition, some of CJP's facilities could be rented to a third party for $24,000..

  Prepare the journal entry to record income tax expense

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2013.

  Calculate Luis shop cash flow from operations

Luis shop had cash flows from investing activities of 2,567,000. Calculate Luis shop's cash flow from operations for 20X5

  Suggestions for improvement from a human resources

Suppose that you are helping to create a website that provides a resume improvement service. For a fee, a customer submits his or her resume to the site and receives suggestions for improvement from a human resources professional. What requirement..

  Two products and uses conventional costing system

Kunkel Company makes two products and uses a conventional costing system in which a single plantwide predetermined overhead rate is computed based on direct labor-hours. Using the company's conventional costing system, compute the unit product costs ..

  Calculate taxable income and net income

Bateman Light began operations in 20X1. The company sometimes sells used warehouses on an instalment basis. In those cases, Bateman Light reports income in its income statement in the year of the sale, In its income tax return, though Bateman Light r..

  Preparation of financial statements and cash

preparation of financial statements and cash budget.1.nbspmancini inc. a retailer of specialty wall papers prepares a

  How much of payment will be interest

The annual payments will be $6261.41 When Nunez makes its first payment at the end of the first year of the loan, how much of the payment will be interest?

  How would the company accounting be affected

How would the company's accounting be affected if reversing entries were not made for payroll? What are the potential consequences for the business?

  Prepare the journal entries to record the given transaction

The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Bond issue costs associated with the bonds totaled $18,000.

  Interpretative write up of your financial analysis

Create an interpretative write up of your financial analysis, explaining trends and items of concern for the directors of FedEx. For each ratio, you should describe ratio, inform the directors about

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