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vivado [14]
3 years ago
8

On March 1, Pimlico Corporation (a U.S.-based company) expects to order merchandise from a supplier in Sweden in three months. O

n March 1, when the spot rate is $0.44 per Swedish krona, Pimlico enters into a forward contract to purchase 695,000 Swedish kroner at a three-month forward rate of $0.460. At the end of three months, when the spot rate is $0.455 per Swedish krona, Pimlico orders and receives the merchandise, paying 695,000 kroner. What amount does Pimlico report in net income as a result of this cash flow hedge of a forecasted transaction
Business
1 answer:
luda_lava [24]3 years ago
7 0

Answer and Explanation:

The computation is shown below:

a. As a premium expense

= ($0.460 - $0.44) × 695,000

= $13,900

b. As a difference of 3 months spot rate and spot rate

= ($0.455 - $0.44) × 695,000

= $10,425

The first one represents the premium expense for $13,900 and the second part represents the adjustment to the net income in a positive way

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Answer: A limited liability company

Explanation:

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The characteristics of a limited liability company includes:

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2. Members have the option of managing the company by themselves or employing managers.

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8 0
3 years ago
Spencer Co.'s common stock is expected to have a dividend of $3 per share for each of the next 9 years, and it is estimated that
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Answer:

the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is $86.27

Explanation:

The computation of the maximum price the investor would be willing to pay for a share of Spencer Co. common stock today is shown below:

Expected dividend is

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5 0
3 years ago
IE 9-3 ... AS/AD Model – Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the
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Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the RIGHT shifting AD caused by increased "G" spending . If the Price Level increases to $2.34, then Real Production GDP will have increased to $5200 b and 2 million people will have gained jobs. In the Business Cycle the economy will have moved from Point "x" toward Point y.

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This shows how various events will change in two of our major macroeconomic indicators: Actual GDP and inflation.

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You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the cu
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Answer:

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its all da same because it just a company

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