What was the foreign exchange loss incurred on transaction

Assignment Help Financial Management

Reference no: EM132054800

Siam Cement. Siam Cement, the? Bangkok-based cement manufacturer, suffered enormous losses with the coming of the Asian crisis in 1997. The company had been pursuing a very aggressive growth strategy in the mid-1990s, taking on massive quantities of foreign-currency-denominated debt (primarily U.S. dollars). When the Thai baht (B) was devalued from its pegged rate of B25.1/$ in July 1997, Siam's interest payments alone were over $900 million on its outstanding dollar debt (with an average interest rate of 9.25% on its U.S. dollar debt at that time). Assuming Siam Cement took out $ 46 million in debt in June 1997 at 9.25% interest, and had to repay it in one year when the spot exchange rate had stabilized at Upper B 42.4 divided by $, what was the foreign exchange loss incurred on the transaction?

Reference no: EM132054800

Questions Cloud

Discuss the warrants for your claim : Discuss the warrants for your claim and the opposition in order to find the common ground, and show the common ground between your opponents'' claim

What is the probability that among 15 randomly observed : What is the probability that among 15 randomly observed sneezing individuals at least 3 will cover their mouth?

Confidence interval for the true average speed : Assuming the speed of a thunderstorm is approximately normal, construct a 99% confidence interval for the true average speed of a thunderstorm in his area.

Describe the role of intuition in decision making : Managers can use six categories of activities to establish a creative atmosphere in their organization. Please list and explain each one.

What was the foreign exchange loss incurred on transaction : Siam Cement. Siam Cement, the? Bangkok-based cement manufacturer, what was the foreign exchange loss incurred on the transaction?

Confidence interval for the proportion of elementary school : Determine the resulting 90% confidence interval for the proportion of elementary school teachers who are female.

Determine the sample proportion that was used to build : Determine the sample proportion that was used to build this confidence interval.

Estimated intercepts and slopes : The question is to give estimated intercepts and slopes, associated with their corresponding standard errors. The intercept is 1283.00, the slope of X1 is 25.28

How would you summarize what went wrong with this project : MGT 279. In summary, what does the report's author blame for the problems encountered on the Big Dig project?

User Account

All Pages