logo

Report on Overseas Operations of AGL Energy Ltd and Adalta Ltd

10 Pages1376 Words84 Views
   

Added on  2020-06-03

Report on Overseas Operations of AGL Energy Ltd and Adalta Ltd

   Added on 2020-06-03

ShareRelated Documents
Finance Table of Contents
Report on Overseas Operations of AGL Energy Ltd and Adalta Ltd_1
Question 1:.......................................................................................................................................1Question 2........................................................................................................................................1Question 3........................................................................................................................................1Question 4........................................................................................................................................2Plan B...............................................................................................................................................2Question 1........................................................................................................................................2Brief Background of each companies' business:.........................................................................2Question 2........................................................................................................................................3Question 3........................................................................................................................................5REFERENCES ...............................................................................................................................6
Report on Overseas Operations of AGL Energy Ltd and Adalta Ltd_2
Question 1:Ans: If the Thailand Baht- denominated cash flows are converting into Australian dollars today,Then in that case, Blades is not subject to the forecasted depreciation of the baht, that willemergence in conversion of the baht in to the Australian dollars. Although, if the baht arechanging into Australian dollars today, they will be invested in Australia and get get a interest at6 percent. On the other hand, if amount would be invested in Thailand in that case, 15% interestwill be earned. Question 2Ans: If the earnings earned in Thailand are invested in Thailand, then Blades wouldrequired to borrow extra amounts in the Australia at an interest rate of 10% for supporting itsAustralian operations. In addition to this, Blades would not invest few of the remitted amountwhich have earned from Thailand and invested in Australia. Question 3Plan 1: Invest funds in ThailandCalculation of baht-denominated earnings:Price per pair of “Speedos” THB 4594* Pairs of “Speedo” *1,80,000 pairs=Bath denominated revenues=THB 826,920,000Amount invested in Thailand at a rate of 15% per Annum= 826,920,000*15%=124,038,000Amount received after one year = 826,920,000+124,038,000=THB950,958,000.Conversion of THB into Australian dollars=THB950,958,000*0.0361=Australian$34,329,583.8.Amount received after 1 year in Australian dollars= $34,329,583.8.Plan 2: Converts funds immediatelyCalculation of baht-denominated revenues:Price per pair of “Speedos” THB 4594* Pairs of “Speedo” *1,80,000 pairs=Bath denominated revenues=THB 826,920,0001
Report on Overseas Operations of AGL Energy Ltd and Adalta Ltd_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
International Finance Assignment : Blades Inc
|14
|2770
|146

Investing Excessive Funds in Thailand
|11
|2082
|60

International Finance Assignment
|11
|1682
|38

International Finance Assignment Solved
|11
|1218
|120

International Finance Assignment : RioTinto
|14
|2795
|16

International Finance Assignment PDF
|15
|2831
|26