Twice Inc. is a San Antonio-based MNC that produces and sells FSF (Full Self-Flying) drones in both the U.S. and the foreign markets. The global demand for drones is fast-growing and the commercial drone industry is expected to sell 1 million, 1.2 million, 1.5 million, 1.9 million, and 2.4 million drone units, respectively, in 2021, 2022, 2023, 2024, and 2025. Twice Inc.'s FSF drone model Sharon324 is getting popular dramatically and its global drone market share is expected to be 35%, 40%, 44%, 47%, and 49%, respectively, in 2021 to 2025. The current unit price of Sharon324 is $1,800, but it is expected to decline by 10% every year thanks to a recent innovation in the core processor technology.
Based on the information above, what is the projected revenue for Twice Inc. in 2025?
Assume that Smith Corp. will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.68, a 90-day expiration date, and a premium of $.04. A put option exists on British pounds with an exercise price of $1.69, a 90-day expiration date, and a premium of $.03. Smith Corporation plans to purchase options to cover its future payables. It will exercise the option in 90 days (if at all). It expects the spot rate of the pound to be $1.76 in 90 days. Determine the amount of dollars it will pay for the payables, including the amount paid for the option premium.
Blake Inc. needs €1,000,000 in 30 days. It can earn 5 percent annualized on a German security. The current spot rate for the euro is $1.00. Blake can borrow funds in the United States at an annualized interest rate of 6 percent. If Blake uses a money market hedge to hedge the payable, what is the cost of implementing the hedge?
= MYR1,500,000(.20)(.30) + MYR1,500,000(.25)(.7)=
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