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6 Pages
###### Management

1-    Calculate the following performance indicators relating to the proposal: a-    NPV based on a cost of capital of 11%.b-    IRR. (Hint use 5%)c-  ...

Type

Course Work

Subject

Finance

4 Pages

Task: Learning Objectives After studying this module, you should be able to:1. understand the importance of finance, money and markets2. identify the basic forms of business structures3. discuss t ...

Course

FIN111

Type

Home Work

Subject

Finance

University

University of Wollongong

11 Pages
###### ASB9041 Private Bank Wealth Management

Task: The word limit for this assignment is 3,500 which does not include referencing. Where an assignment exceeds the stated word limit, the following rules will apply:   a. Award a mark that refl ...

Course

ASB9041

Type

Assignment

Subject

Finance

University

Bangor University

0 Page
###### Macquarie Group Ltd

...

Course

FINS3635

Subject

Finance

University

University of New South Wales

Season

Spring

### Question

1. You decided not to hedge Porsche’s currency exposure. If the expected final sales volume is 35,000, what are your total revenues

a) if the exchange rate (bid-ask) remains at \$1.11/€ - \$1.12/€? Let’s call this the baseline scenario.

b) if the investors consider the euro a safe haven currency during the pandemic? How does this compare to the baseline case?

c) if the investors consider the U.S. dollar a safe haven currency during the pandemic? How does this compare to the baseline case?

2. Assume that you and the Porsche’s management team decided to hedge using forward contracts. Assume that the expected final sales volume is 35,000. What are your total revenues and the percentage gains/losses from hedging (compared to no hedging)

a) if the exchange rate (bid-ask) remains at \$1.11/€ - \$1.12/€?

b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

3. As the CFO, you decided to hedge using option contracts. Assuming expected final sales volume is 35,000, what are your total revenues and the percentage gains/losses from hedging (compared to no hedging)

a) if the exchange rate (bid-ask) remains at \$1.11/€ - \$1.12/€?

b) if the investors consider the U.S. dollar a safe haven currency during the pandemic?

4. Assume that the Scenario 2 (Pandemic) took place in 2020 and the euro became a safe haven currency during the pandemic. What are your cash flows (profits) if you did not hedge, hedged using forward contracts, and hedged using option contracts?

5. Assume that the Scenario 2 (Pandemic) took place in 2020 and the U.S. dollar became a safe  haven currency during the pandemic. What are your cash flows (profits) if you did not hedge, hedged using forward contracts, and hedged using option contracts?

6. Based on the calculations in Part B, do you believe that it is a good policy to hedge Porsche’s currency exposure? Why?

### EFB312 International Finance

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## More EFB312 EFB312 International Finance: Questions & Answers

Q

### Management

1-    Calculate the following performance indicators relating to the proposal: a-    NPV based on a cost of capital of 11%.b-    IRR. (Hint use 5%)c-    Payback period in both nominal and present-value terms?Do these indicators suggest that ...

Q

Task: Learning Objectives After studying this module, you should be able to:1. understand the importance of finance, money and markets2. identify the basic forms of business structures3. discuss the financial goals of a business4. identify the key financial decisions facing the financial manager ...

Q

### ASB9041 Private Bank Wealth Management

Task: The word limit for this assignment is 3,500 which does not include referencing. Where an assignment exceeds the stated word limit, the following rules will apply:   a. Award a mark that reflects deficiencies in the work as submitted, that is in line with explicit marking criteria and is pr ...

Q

...

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