Can someone explain that math and write out the order in how you solve this, I cannot get 64,700,163.

10.3 Examine the alternatives available Question 7, Moorraat View an example | All parts showing :) Americas) and one-third in euros (Europe). In September, Mattel delivers a large shipment of toys (primarily Barbies and Hot Wheels) to a major distributor in Antwerp. The receivable, 45 million, is due in 90 days, Ma standard terms for the toy industry in Europe. Mattel's treasury team has collected the following currency and anc wh market quotes in the popup window: 5. The company's foreign exchange advisors believe the euro will be indi at about $1.4223/ in 90 days. Mattel's management does not use currency options in currency risk win management activities. Assume a 360-day financial year. Ma a. How much in U.S. dollars will Mattel receive in 90 days without a hedge if the expected spot rate in 90 days fina is the same as the current spot rate of $1.4144/? The Credit Suisse forward rate of $1.4171/? The Barclays a. forward rate of $1.4196 / ? The expected spot rate of $1.4223/? san b. How much in U.S. dollars will Mattel receive in 90 days if the accounts receivable is covered by the Credit of Suisse 90-day forward contract? The Barclays 90-day forward contract? c. How much in U.S. dollars will Mattel receive in 90 days with a money market hedge? b. I d. Advise Mattel on which hedging alternative is probably preferable. 90- e ... toys. The amount of proceeds in U.S. dollars Mattel will receive in 90 days with a money market hedge is a. computed as follows: san accounts receivable 90 Proceeds = x spot rate x1 + WACC X 90 360 1 + euro borrowing rate x 360 45,000,000 Proceeds = 90 $1.4144 / x 1 + 0.12 x 360 = $64,700,163 90 1 + 0.053 x 360 d. The money market hedge guarantees Mattel the greatest dollar value for the accounts receivable when using the cost of capital as the reinvestment rate (carry-forward rate). Print Close