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2 years ago

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a:_________

Business

1 answer:

koban [17]2 years ago

8 0

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a <u>forward transaction.</u>

<h3>What is a forward contract?</h3>

A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.

A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.

Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.

Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.

For more information on <u>Forward Transaction</u>, refer to the given link:

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A piece of labor-saving equipment has just come onto the market that Mitsui Electronics, Ltd., could use to reduce costs in one

alexandr402 [8]

Answer:

Mitsui Electronics, Ltd.

1a. Payback period = 5.6 years

1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.

2a. Simple rate of return = 17.86%

2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.

Explanation:

a) Data and Calculations:

Purchase cost of the equipment = $ 448,000

Annual cost savings that will be provided by the equipment = $ 80,000

Life of the equipment = 10 years

1a. Payback period = 5.6 years ($448,000/$80,000)

1b. No. The equipment would not be purchased if the company requires a payback period of four years or less.

Annual return = $80,000

Initial cost of the equipment = $448,000

2a. Simple rate of return = 17.86% ($80,000/$448,000 * 100)

2b. Yes. The equipment would be purchased if the company's required rate of return is 13%.

6 0

3 years ago

During a conference call with the corporate office, you are told by a senior executive that you will be going abroad in the next

vladimir2022 [97]

Answer:

C.Clarify the situation, and ask specific questions about the overseas company's cultural and ethical practices. Also, ask what your company policies are regarding intercultural ethics.

Explanation:

In doing business with foreign cultures one needs to know the expected way transactions are conducted in the country.

A senior executive told you on conference call that you should increase expense amount because when you travel abroad for a trip you will give $5,000 each to top executives of a large account.

In your locale it may be considered bribery, but in the foreign country it may be rude not to give a gift when doing business.

So you need to clarify what acceptable ethical practices are with the foreign company.

6 0

3 years ago

Pharrell, Inc., has sales of $602,000, costs of $256,000, depreciation expense of $62,500, interest expense of $29,500, and a ta

hjlf

Answer:

The earnings per share figure is $1.89

Explanation:

Sales of $602,000

Costs of $256,000

Depreciation expense of $62,500

Interest expense of $29,500

Tax rate of 40 percent.

-> Profit Before Tax = Sales - Cost - Depreciation Expense - Interest expense

= $602,000 - $256,000 - $62,500 - $29,500

= $254,000

Net profit = Profit before Tax x (1 - Tax rate) = $254,000 * (1 - 40%) = $152,400

Earnings per share = (net profit - dividend paid for preferred stock)/ common stock outstanding = ($152,400-$44,500)/ 57,000

= $1.89

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4 years ago

The balance sheet of California Clothing reports total equity of $600,000 and $700,000 at the beginning and end of the year, res

kolbaska11 [484]

Answer:

10%

Explanation:

return on equity = net income / average equity = $65,000 / [($600,000 + $700,000) / 2] = $65,000 / $650,000 = 0.1 = 10%

Return on equity (ROE) measures the profitability of a company by comparing the net income generated in the year against the company's equity. The higher the ROE, the more profitable the company is. In this case, each dollar invested generates $0.10 in profit.

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3 years ago

Claire is severely injured in a car accident. The local hospital cannot treat Claire’s injuries. In order to survive, Claire mus

mote1985 [20]

Does it matter that the helicopter company <em>performed its obligation</em> under the contract?

Yes, it does matter because they had a legally binding agreement.

<h3>What is a Contractual Agreement?</h3>

This refers to the legally binding document which two parties attest their signature to about an agreement for a particular thing with the terms clearly stated.

With this in mind, we can see that Claire who was involved in a car accident needs to go to a hospital in another state for better treatment for her injuries and she signs a contractual agreement that she would pay for the helicopter expenses.

In light of this, the argument which Claire can make to rescind the agreement is that her life was in danger and she needed the services of the helicopter company which had her Universal Right to Life.

Read more about contractual agreements here:
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3 years ago