Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. xyz company in u.s. has an account payable (a/p) i

XYZ company in U.S. has an account payable (A/P) in the amount of 8,000,000 due...

70.2K

Verified Solution

Question

Accounting

XYZ company in U.S. has an account payable (A/P) in the amount of 8,000,000 due in 180 days. Given the information below, if XYZ adopts the covered forward hedge, how much fund in dollar does it need to secure now to take care of the A/P in 180 days? - Spot rate (/$) = 120.00 - 180 day forward rate (/$) = 117.50 - $ investment/lending rate = 9.00% - $ borrowing rate = 10.00% - investment/lending rate = 5.00% - borrowing rate = 6.00%

answers:

64,535.65

65,153.21

66,424.49

62,463.40

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

3. If the government were to reduce income taxes, how would the reduction affect output and...

Economics
Q

1.) On August 1,2018, the Corporation issued P 5,000,000, 8% bonds dated March 1,2018 and maturing...

Accounting
Q

Why does genetic drift affect a small population more than a large one A the...

Biology
Q

2 tx By expanding in a Maclaurin series and integrating term by term show that...

Basic Math
Q

59 60 Using right triangles Use a right triangle sketch to complete the following exercises...

Calculus
Q

mutritionist is studying the effects of the nutrients folic acid choline and inositol He has...

Algebra
Q

Cost-benefit analysis provides a method for identifying the most efficient alternative. Consider its relationship to...

Accounting
Q

A company purchased new furniture at a cost of $30,000 on September 30. The furniture...

Accounting
Q

Taylor, a single taxpayer, has $16,100 AGI. Assume the taxable year is 2022. Use Standard...

Accounting
Q

Identify the situations in which process-costing systems are appropriate

Accounting
Q

Sunn Company manufactures a single product that sells for $155 per unit and whose variable...

Accounting
Q

7 Vulcan Company's contribution format income statement for June is as follows: 10 points Vulcan...

Accounting