Question: It's needed asap 3.1 Torinto AXE Ltd is a United States company doing a financial plan for the following year. It has no foreign subsidiaries,

 It's needed asap 3.1 Torinto AXE Ltd is a United States

It's needed asap

3.1 Torinto AXE Ltd is a United States company doing a financial plan for the following year. It has no foreign subsidiaries, but more than half of its sales are from exports. Its foreign cash inflows to be received from exporting and cash outflows to be paid for imported supplies over the next year are disclosed as follows: Currency Mexican Pesos (MXP) Singapore dollars (S$) New Zealand dollars (NZ$) Canadian dollars (C$ Total Inflow 15 000 000 7 000 000 6 500 000 21 000 000 Total Outflow 9 000 000 9 000 000 3 200 000 4 000 000 The spot rates and one-year forward rates as of today are: Currency MXP S$ NZS C$ Spot rate US$0.05 US$0.73 US$0.66 US $0.76 One-year forward rate US$0.04 US$0.71 US$0.63 US$0.79 Using the information given above, calculate the net exposure of each foreign currency in United States dollars. (20)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!