00:01
Hello students, here is a question.
00:02
Why did the firm borrow a foreign currency? was sac power justified in borrowing us dollar? so, the management of sac power has requested to approve requested for approval in 2023 foreign exchange strategy.
00:45
So, to manage the long -term currency risk exposure in utility of us dollar debt, sac power issued us dollar 619.
00:57
So, million of a debt in early 1990s, million debt in 1990s.
01:09
So, with a maturity range of 10 to 30 years, with a maturity of 10 to 30 years, the us dollar exchange the rate against the canadian dollar had since increased.
01:23
So, the canadian dollar rate has been depreciated.
01:27
So, increasing the effective burden of a debt and reducing a utility of net income by the end in 1991, by the end in 1999, sac power had held us dollar 112 million through foreign currencies firm.
01:54
By the end of 2001, the transaction value of us dollar has been increased to increased 2001 that will be ca canadian dollar 986 million and represent more than 50 percent of sac power long -term debt...