答案基础知识水平技能模块纸张历真题及.pdfVIP

16A

17C

Twelve-monthforwardrate=1·415x(1·02/1·018)=€1·418per$1

18B

19D

Costofequity=4+(1·2x5)=4+6=10%

WACC=(10x0·7)+(6x0·3)=7+1·8=8·8%

20A

Netassetvalue(NAV)=140m–15m–20m=$105m

Numberofordinaryshares=25m/0·5=50mshares

NAVpershare=105m/50m=$2·10pershare

SectionB

1(a)Forwardmarkethedge:

Thedollarvalueofaforwardmarkethedgeinsixmonths’timecanbecalculated:

Futurevalue=750,000/2·412=$310,945

Moneymarkethedge:

RoseCoipectingaeuroreceiptinsixmonths’timeanditcanhedgethisreceiptinthemoneymarketsbyborrowingeuros

tocreateaeuroliability.Theseeuroscanbeconvertedintodollarsatspotandthenplacedondepositforsixmonths.

Euroborrowingratefor6months=8·0/2=4%

Dollardepositratefor6months=2·0/2=1%

Eurostobeborrowednow=750,000/1·04=€721,154

Dollarvalueoftheseeurosatspot=721,154/2·349=$307,005

Futurevalueofdollardeposit=307,005x1·01=$310,075

Theforwardmarkethedgewouldbterby310,945–310,075=$870andwouldthereforebepreferredonfinancial

groundsbyRoseCo.

(b)Aforwardrateagreement(FRA)canfixtheborrowingrateonasumofmoneyforanagreedperiodstartingonanagreed

futuredate.

AcompanycanuseanFRAtomanageinterestrateriskbecausetheFRAfixesthefutureborrowingrateforanagreedperiod,

andhencefixesthecompany’sfutureborrowingcost.

IfthefutureinterestratepaidbythecompanyturnsouttobehigherthantheborrowingrateintheFRA,thebankwill

compensatethecompanywiththedifferencweenthetworatesappliedtotheagreedsumfortheagreedperiod.Ifthe