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Greendale PLC

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C/F/733. Hedging Strategies in dealing with foreign currency exchange: case study of Green Plc

WORDS:
3150
DATE:
2010
PRICE:
39.99 GBP

The paper looks at the risks of dealing with foreign currency and hedging strategies used by the companies to mitigate these risks. The strategies of Green plc used to hedge the currency exchange risk are described including the hedging of forwards, money market and currency options. Hedging transactions that could be used by the treasurer are described, the profit and loss analysis of two scenarios is conducted, interest rate swaps are considered highlighting their advantages and disadvantages. This paper is answering the following assignment questions: Describe the main types of risk facing an organisation (like Green plc) which has dealings in foreign currency. Describe and illustrate the three hedging strategies available to Green plc. Weigh up the advantages and disadvantages of each strategy. Show all calculations.

 

KEYWORDS: Exchange rate risk, hedging strategy, forward contract, futures contract, currency options currency swaps, Green Plc,

 

S/F/250. Investment appraisal of Greendale's project

WORDS:
4450
DATE:
2010
PRICE:
49.99 GBP

The paper looks at the project proposal of Greendale PLC to develop a new range of environmentally friendly products providing calculations of the discount rate to evaluate the Net Present Value (NPV) of the project. Investment appraisal techniques (IAT) of payback period (PP), accounting rate of return (ARR), NPV and internal rate of return (IRR) are described highlighting their benefits and drawbacks, the best suited IAT for the project is selected. The investment appraisal of the project is presented identifying the main sources of its financing.

 

KEYWORDS: Investment appraisal, Greendale, finance,