What was the spot rate at the time the payment was received

Assignment Help Finance Basics

Reference no: EM131943151

Question: Barrington Fertilizers, Inc., exports its specialized lawn care products to Canada. It made a sale worthc$1, 167,000, with the payment due in 90 days. Its banker gave it a forward quote of $1.0121/cs. By using the forward rate, the firm gained an additional $8, 276, 58 over what it would have gotten if it had sold the Canadian dollars in the spot market 90 days later. What was the spot rate at the time the payment was received?(Round intermediate calculations to the nearest whole dollar, e.g. 5.275 and final answer to 4 decimal places, e.g. 15, 2500.)

Reference no: EM131943151

Questions Cloud

What are the earnings per share : Barnyard, Inc.'s 2008 income statement lists the following income and expenses: EBIT = $505,000, Interest expense = $52,500, and Taxes = $157,000.

What should the exchange rate be : From the base price level of 100 in 1979, Saudi Arabian and U.S. price levels in 2008 stood at 300 and 612, respectively.

What is the best estimate of the firm cost of equity : Barton Industries estimates Its cost of common equity by using three approaches: the CAPM, the bond-yield-plus-risk-premium approach, and the DCF model.

Calculating the firm weighted average cost of capital : Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock.

What was the spot rate at the time the payment was received : Barrington Fertilizers, Inc., exports its specialized lawn care products to Canada. It made a sale worthc$1, 167,000, with the payment due in 90 days.

What is the aftertax cost of debt : Bargeron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt.

Define what is the operating cash flow for the project : Barnie's Luxury Pets is considering a new store requiring $24,000 in networking capital and $225,000 in capital expenditures. The new location is expected.

Determine the relative rate of inflation : From the base price level of 100 in 1981, Saudi Arabian and U.S. price levels in 2010 stood at 350 and 100, respectively. Assume the 1981 $/riyal exchange rate.

Finding the cost of new equity : Banyan Co.'s common stock currently sells for $37.50 per share. The growth rate is a constant 12%, and the company has an expected dividend yield of 2%.

User Account

All Pages