Apple Inc. is a U.S.-based company, that designs, manufactures, and markets mobile communication and media devices,...

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Apple Inc. is a U.S.-based company, that designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems. On September 30, Apple sold inventory to Yara International, a Norwegian company. The inventory was priced at NOK 46.65 million and payment is due in 180 days. Apple's multinational finance team collected the following currency and market quotes. Apple forecasts the Norwegian Krone (NOK) will be at about $0.1125/NOK in 180 days. Current spot rate ($/NOK) 180-day forward rate ($/NOK) Apple's WACC 180-day dollar interest rate 180-day krone interest rate 180-day dollar borrowing rate 180-day krone borrowing rate $0.1095 $0.1105 4.500% 2.000% 1.250% 4.000% 3.000% How much will Apple receive at the end of 180 days when it exercises the forward hedge? (round to the nearest dollar) Apple Inc. is a U.S.-based company, that designs, manufactures, and markets mobile communication and media devices, and personal computers. It also sells various related software, services, accessories, and third-party digital content and applications. The company offers iPhone, a line of smartphones; iPad, a line of multi-purpose tablets; and Mac, a line of desktop and portable personal computers, as well as iOS, macOS, watchOS, and tvOS operating systems. On September 30, Apple sold inventory to Yara International, a Norwegian company. The inventory was priced at NOK 46.65 million and payment is due in 180 days. Apple's multinational finance team collected the following currency and market quotes. Apple forecasts the Norwegian Krone (NOK) will be at about $0.1125/NOK in 180 days. Current spot rate ($/NOK) 180-day forward rate ($/NOK) Apple's WACC 180-day dollar interest rate 180-day krone interest rate 180-day dollar borrowing rate 180-day krone borrowing rate $0.1095 $0.1105 4.500% 2.000% 1.250% 4.000% 3.000% How much will Apple receive at the end of 180 days when it exercises the forward hedge? (round to the nearest dollar)

Answer rating: 100% (QA)

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