This document discusses how multinational corporations can manage economic and translation exposure through hedging strategies. It explains that economic exposure refers to how exchange rate fluctuations can impact future cash flows. MNCs can assess economic exposure and reduce it by restructuring operations to balance exchange rate sensitive cash flows. Translation exposure results from translating foreign subsidiary financials to the home currency, but does not directly impact cash flows. MNCs can hedge translation exposure using forward contracts to offset gains or losses from currency fluctuations. However, hedging translation exposure has limitations from inaccurate forecasts and accounting distortions.
explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
Unit 2.2 Exchange Rate Quotations & Forex MarketsCharu Rastogi
This presentation deals with exchange rate quotations, common currency symbols, direct and indirect quotes, American terms, European terms, cross rates, Bid and Ask rates, Mid rate, Spread and its determinants, Spot markets, Forward Markets, Premium and Discounts, various practices of writing quotations, calculating broken period forward rates, Speculation and arbitrage, Forex futures and Currency Options.
Unit 2.2 Exchange Rate Quotations & Forex MarketsCharu Rastogi
This presentation deals with exchange rate quotations, common currency symbols, direct and indirect quotes, American terms, European terms, cross rates, Bid and Ask rates, Mid rate, Spread and its determinants, Spot markets, Forward Markets, Premium and Discounts, various practices of writing quotations, calculating broken period forward rates, Speculation and arbitrage, Forex futures and Currency Options.
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Part 1: Native American’s Forced Assimilation
Instructions: Watch the video
( https://www.vox.com/2019/10/14/20913408/us-stole-thousands-of-native-american-children) to get a history of assimilation in theUS. Then answer the following questions.
1.What was the purpose for the forced assimilation of Native Americans?
2.Name two strategies the US used to assimilate Native Americans and explain how each of these strategies worked.
Part 2: Keywords for Asian American Studie “Assimilation” (pp. 14-17) https://books.google.com/books?id=bo_dBwAAQBAJ&printsec=frontcover&dq=Keywords+for+Asian+American+Studie&hl=en&newbks=1&newbks_redir=0&sa=X&ved=2ahUKEwjsrcHi7OnnAhWnl3IEHeZyDKMQ6AEwAHoECAUQAg#v=onepage&q=Keywords%20for%20Asian%20American%20Studie&f=false
Instructions: Answer the following questions. Provide a passage from the reading (i.e., “Assimilation”) in addition to your response to support your responses.
1.What are the five different definitions or perspectives on assimilation? As you identify them, note which one you think is most accurate for the contemporary situation of assimilation.
2.According to Lisa Park, how is assimilation enforced in our society?
3.What are the criticism of assimilation?4.What does Lisa Park say is a unique experience of assimilation for Asian Americans? (p. 17)
Part 3: Assessing assimilation in our societyAnswer the following questions based on your observations, experiences, or insights.
1.Do immigrants have a duty to learn and adopt the local culture, or should they try to retain their native culture?
2.What does successful assimilation look like? What are some results of it?
3.What does unsuccessful assimilation look like? What are some results of it?
4.How does race fact into the process or act of assimilation?
Valuation outputBase year12345678910Terminal yearRevenue growth rate70.00%70.00%70.00%70.00%70.00%56.55%43.10%29.65%16.20%2.75%2.75%Revenues$ 1,328.70$ 2,258.78$ 3,839.93$ 6,527.88$ 11,097.40$ 18,865.58$ 29,534.07$ 42,263.25$ 54,794.31$ 63,670.99$ 65,421.94$ 67,221.04EBIT (Operating) margin-1.64%-0.23%1.18%2.60%4.01%5.43%6.84%8.26%9.67%11.09%12.50%12.50%EBIT (Operating income)$ (21.86)$ (5.21)$ 45.46$ 169.63$ 445.34$ 1,023.93$ 2,020.72$ 3,489.47$ 5,299.16$ 7,058.25$ 8,177.74$ 8,402.63Tax rate0.00%0.00%0.00%0.00%0.00%0.00%7.00%14.00%21.00%28.00%35.00%35.00%EBIT(1-t)$ (21.86)$ (5.21)$ 45.46$ 169.63$ 445.34$ 1,023.93$ 1,879.27$ 3,000.94$ 4,186.33$ 5,081.94$ 5,315.53$ 5,461.71- Reinvestment$ 659.64$ 1,121.38$ 1,906.35$ 3,240.79$ 5,509.35$ 7,566.30$ 9,027.79$ 8,887.27$ 6,295.52$ 1,241.81$ 1,877.46FCFF$ (664.84)$ (1,075.92)$ (1,736.72)$ (2,795.45)$ (4,485.42)$ (5,687.03)$ (6,026.85)$ (4,700.94)$ (1,213.58)$ 4,073.72$ 3,584.25Cost of capital10.03%10.03%10.03%10.03%10.03%9.63%9.22%8.81%8.41%8.
Monte Carl Simulation is a powerful and effective tool when used properly helps to navigate the expected Net Present Value NPV. This presentation helps to improve the pattern to ackowlege onthe Odessa Investment by Decision Dres.
Our growth strategy is on track.
"The fundamental strength of our business, which is underpinned by contracted revenues and geographical diversity, together with the proven industry experience of our management team and the expertise and commitment of our staff, have ensured that once again we have delivered a solid performance, despite the challenging conditions that we continue to experience in our European market. This illustrates the resilience of our business model.
Our growth strategy is on track. Organic growth will continue apace through the expansion of services and geographies and we have a clearly defined path to continue our acquisitive growth in a highly fragmented global business aviation services sector. Our strategic goal is to double the scale of the business over the next two years."
Marwan Khalek, Chief Executive.
Analysis of Financial Statements.(Ratio analysis, Du Pont system ,Effects of ...Tanjin Tamanna urmi
Five Categories of Fin. Ratios
Liquidity: Ability to meet current obligations
Asset Mgmt: Proper & effective use of assets
Asset utilization (i.e., Total Asset Turnover Ratio:
TAT = Sales / T. Assets
Debt Mgmt: extent of debt & level of safety afforded creditors
Debt utilization (i.e., Equity Multiplier:
EM = T. Assets / T. Eqty
Profitability: reflects effects of liquidity, asset mgmt, & debt on operating results
Expense Control: Profit Margin:
PM = Net Income / Sales
Market Value: indicators of what investors think of firm’s past results & future prospects
There are 76 red xxx’s – each worth 1.18 points. You only need to.docxchristalgrieg
There are 76 red xxx’s – each worth 1.18 points. You only need to fill in where you see red xxx’s (big or small)
CHAPTER 1
THE McGEE CAKE COMPANY
1. The advantages to a LLC are: xxxx
The biggest disadvantage is: xxxx
2. .xxxx
C-2 CASE SOLUTIONS
3. .xxxx
CHAPTER 2
CASH FLOWS AND FINANCIAL STATEMENTS
Below are the financial statements that you are asked to prepare.
1. The income statement for each year will look like this:
Income Statement
2010
2011
Sales
xxxx
xxxx
Cost of goods sold
163,849
206,886
Selling and administrative
xxxx
xxxx
Depreciation
46,255
52,282
EBIT
$79,110
$90,584
Interest
10,056
11,526
EBT
$69,054
$79,058
Taxes (use the problem to figure
This amount out
xxxx
xxxx
Net income
$55,243
$63,246
Dividends(read the case to find out how much this is)
xxxx
xxxx
Addition to retained earnings
(this would be whatever the net income is less the dividends paid out)
xxxx
xxxx
2. The balance sheet for each year will be:
Balance Sheet as of Dec. 31, 2010
Cash
xxxx
Accounts payable
xxxx
Accounts receivable
xxxx
Notes payable
xxxx
Inventory
xxxx
Current liabilities
$60,832
Current assets
$72,651
Long-term debt
xxxxx
Net fixed assets
xxxxxx
Owners' equity
xxxxx
Total assets
$276,719
Total liab. and equity
$276,719
In the first year, equity is not given. Therefore, we must calculate equity as a plug variable. Since total liabilities and equity is equal to total assets, equity can be calculated as:
Equity = $276,719 – 60,832 – 103,006
Equity = $112,881
Balance Sheet as of Dec. 31, 2011
Cash
xxxx
Accounts payable
xxxx
Accounts receivable
xxxx
Notes payable
xxxx
Inventory
xxxx
Current liabilities
$68,121
Current assets
$100,834
Long-term debt
xxxx
Net fixed assets
xxxx
Owners' equity
Xxxx(see below)
Total assets
$349,459
Total liab. and equity
$349,459
The owner’s equity for 2011 is the beginning of year owner’s equity, plus the addition to retained earnings, plus the new equity, so:
Equity = $112,881 + 31,623 + 20,500
Equity = $165,004
3-6 are completed for you so you can answer the questions
3. Using the OCF equation: (
OCF = EBIT + Depreciation – Taxes
The OCF for each year is:
OCF2010 = $79,110 + 46,255 – 13,811
OCF2010 = $111,554
OCF2011 = $90,584 + 52,282 – 15,812
OCF2011 = $127,054
4.
To calculate the cash flow from assets, we need to find the capital spending and change in net working capital. The capital spending for the year was:
Capital spending
Ending net fixed assets
$248,625
– Beginning net fixed assets
204,068
+ Depreciation
52,282
Net capital spending
$96,839
And the change in net working capital was:
Change in net working capital
Ending NWC
$32,713
– Beginning NWC
11,819
Change in NWC
$20,894
So, the cash flow from assets was:
Cash flow from assets
Operating cash flow
$127,054
– Net capital spending
96,839
– Change in NWC
...
describing the exchange rate systems, explaining how government uses direct and indirect intervention to influence exchange rates, and how government intervention in the forex markets.
here we are trying to explain how firms can benefit from forecasting exchange rate, to describe common technique that used to forecast, how to evaluate forecasting performance
here we are explaining exchange rate movements, how the equilibrium exchange rate is determined, what kind of factor that affect the equilibrium exchange rate
this chapter we are going to explain key, components of the BoP, and explain how the international flow of funds is influenced by economic factors and other factors
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
2. Chapter Objectives
• To explain how an MNC’s economic exposure can
be hedged; and
• To explain how an MNC’s translation exposure can
be hedged.
3. Economic Exposure
• Economic exposure refers to the impact exchange
rate fluctuations can have on a firm’s future cash
flows.
• Recall that corporate cash flows can be affected by
exchange rate movements in ways not directly
associated with foreign transactions.
4. Economic Exposure
• Exchange rate changes are often linked to
variability in real growth, inflation, interest rates,
governmental actions,… If material, the changes
may cause firms to adjust their financing and
operating strategies.
• The importance of managing economic exposure
can be seen from the case of the bankruptcy of
Laker Airways, and from the the 1997-98 Asian
crisis.
5. Economic Exposure
• A firm can assess its economic exposure by
determining the sensitivity of its expenses and
revenues to various possible exchange rate
scenarios.
• The firm can then reduce its exposure by
restructuring its operations to balance its
exchange-rate-sensitive cash flows.
• Note that computer spreadsheets are often used to
expedite the analysis.
6. Economic Exposure
• Restructuring may involve:
increasing/reducing sales in new or existing foreign
markets,
increasing/reducing dependency on foreign suppliers,
establishing or eliminating production facilities in
foreign markets, and/or
increasing or reducing the level of debt denominated in
foreign currencies.
7. Economic Exposure
• MNCs must be very confident about the long-term
potential benefits before they proceed to
restructure their operations, because of the high
costs of reversal.
8. Managing Madison Inc.’s Economic Exposure
(in Millions) C$=$.75 C$=$.80 C$=$.85
Sales:
(1) U.S. $300.00 $304.00 $307.00
(2) Canadian C$4= 3.0 C$4= 3.20 C$4= 3.40
(3) Total $303.00 $307.20 $310.40
Cost of gods sold:
(4) U.S. $ 50.00 $ 50.00 $ 50.00
(5) Canadian C$200= 150.00 C$200= 160.00 C$200= 170.00
(6) Total $200.00 $210.00 $220.00
(7) Gross profit $103.00 $ 97.20 $ 90.40
Operating expenses:
(8) U.S. - Fixed $ 30.00 $ 30.00 $ 30.00
(9) U.S. - Variable 30.30 30.72 31.04
(10) Total $ 60.30 $ 60.72 $ 61.04
(11) EBIT $ 42.70 $ 36.48 $ 29.36
Interest expense:
(12) U.S. $ 3.00 $ 3.00 $ 3.00
(13) Canadian C$10= 7.50 C$10= 8.00 C$10= 8.50
(14) Total $ 10.50 $ 11.00 $ 11.50
(15) EBT $ 32.20 $ 25.48 $ 17.86
9. Managing Madison Inc.’s Economic Exposure
• The amount of Madison’s earnings before taxes is
inversely related to the strength of the Canadian
dollar, since the higher expenses more than offset
the higher revenue.
• Madison may reduce its exposure by increasing
Canadian sales, reducing orders of Canadian
materials, and/or borrowing less from Canadian
banks.
10. Translation Exposure
• Translation exposure results when an MNC
translates each subsidiary’s financial data to its
home currency for consolidated financial reporting.
• Translation exposure does not directly affect cash
flows, but some firms are concerned about it
because of its potential impact on reported
consolidated earnings.
11. Translation Exposure
• An MNC may attempt to avoid translation exposure
by matching its foreign liabilities with its foreign
assets.
• To hedge translation exposure, forward or futures
contracts can be used. Specifically, an MNC may
sell the currency that its foreign subsidiary receive
as earnings forward, thus creating an offsetting
cash outflow in that currency.
12. Translation Exposure
• For example, a U.S.-based MNC that is concerned
about the translated value of its British earnings
may enter a one-year forward contract to sell
pounds.
• If the pound depreciates during the fiscal year, the
gain generated from the forward contract position
will help to offset the translation loss.
13. Translation Exposure
• Hedging translation exposure is limited by:
• inaccurate earnings forecasts,
• inadequate forward contracts for some currencies,
• accounting distortions (the choice of the translation
exchange rate, taxes, etc.), and
• increased transaction exposure (due to hedging
activities).
14. Translation Exposure
• In particular, if the foreign currency depreciates
during the fiscal year, the transaction loss
generated by a forward contract position will
somewhat offset the translation gain.
• Note that the translation gain is simply a paper
gain, while the loss resulting from the hedge is a
real loss.
15. Translation Exposure
• Perhaps, the best way for MNCs to deal with
translation exposure is to clarify how their
consolidated earnings have been affected by
exchange rate movements.
16. Impact of Hedging Economic Exposure
on an MNC’s Value
( ) ( )[ ]
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=
n
t
t
m
j
tjtj
k1=
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,,
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ERECFE
=Value
E (CFj,t ) = expected cash flows in currency j to be
received by the U.S. parent at the end of period t
E (ERj,t ) = expected exchange rate at which
currency j can be converted to dollars at the end of
period t
Hedging Decisions on
Economic Exposure
17. Chapter Review
• Managing Economic Exposure
• Assessing Economic Exposure
• Reducing Economic Exposure through Restructuring
• Issues Involved in the Restructuring Decision
18. Chapter Review
• Managing Translation Exposure
• Use of Forward Contracts to Hedge Translation Exposure
• Limitations of Hedging Translation Exposure
• Alternative Solution to Hedging Translation Exposure
• How Economic Exposure Management Affects an
MNC’s Value