Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year
Answer:
Wyman company should recognize a foreign exchange loss in the amount of $12,600
Explanation:
On the date of sale: £1 = $1.35
So £60,000 = 60,000 × $1.35 = $81000
On the date of payment: £1 = $1.14
So £60,000 = 60,000 × $1.14 = $68, 400
The amount Wyman company received on the date of payment is $12,600 less than the amount it ought to have received on the date of sale.
So Wyman company should recognize a foreign exchange loss in the amount of $12,600
This reflects geocentric attitude.
The World Trade Organization (WTO) is the only global international organization addressing manufacturing the principles of trade between nations. The North American trade Agreement (NAFTA) was implemented to market trade between the U.S., Canada, and Mexico.
A company's employees, managers and board of directors compose a business's internal stakeholders. Employees of the manufacturing corporation are invested within the company's performance to make sure they still be paid and retain their jobs.
The Agreement Establishing the WTO recognizes the necessity for positive efforts to make sure that developing countries, and particularly those who are least-developed, share within the growth of international trade.
They make it easier for nations to try and do business. They increase product choices for consumers. They prevent two nations from exchanging manufacturing goods. Better risk management. One among the many advantages of international trade is market diversification.
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Answer:
It would decrease the net assets by $60,800
Explanation:
The computation of the translation adjustment for 2017 is shown below:
For common stock
= Issued amount × (revised exchange rate - exchange rate)
= $1,000,000 × (0.42 - 0.48)
= -$60,000
For dividend
= Dividend paid × (revised exchange rate - exchange rate)
= $20,000 × (0.42 - 0.46)
= -$800
For net income
= Net income × (revised exchange rate - exchange rate)
= $80,000 × (0.42 - 0.42)
= $0
So, it would decrease the net assets by $60,800 ($60,000 + $800)
The correct answer is 20 boxes of Cracker Jacks.
If you have $10 and the cost of the Cracker Jacks is 50 cents per box, then the maximum quantity that you can purchase is 20 boxes. This is calculated by dividing $10 by 50 cents, which equals 20.
