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DIA [1.3K]
2 years ago
6

Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports

to Belgium in one month. Jensen estimates the standard deviation of monthly percentage changes of the euro to be 2.5 percent over the last 50 months. Assume that these percentage changes are normally distributed. Using the value-at-risk (VaR) method based on a 97.5 percent confidence level, what is the maximum one month loss in dollars if the expected percentage change of the euro during next month is 2 percent? Assume that the current spot rate of the euro (before considering the maximum one-month loss) is $1.35.
Business
1 answer:
Julli [10]2 years ago
5 0

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

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Cost of Units Transferred Out and Ending Work in ProcessThe costs per equivalent unit of direct materials and conversion in the
Svetradugi [14.3K]

Answer:

Completed and transferred-out production $ 116,500

Inventory in process, ending $3150

Explanation:

Eve Cosmetics Company

Filling Department

Costs per equivalent unit of direct materials  $0.25

Costs per equivalent unit of conversion $ 2.00

                                                                          Equivalent Units

Particulars                                                     Direct Materials     Conversion

Inventory in process, beginning of period     0                2,500

Started and completed during the period   50,000       50,000

Transferred out of Filling (completed)             50,000       52,500

Inventory in process, end of period                 3,000         1,200

Total units to be assigned costs                    53,000         53,700

<em>We multiply the cost per unit to the equivalent units of production both in the completed and ending inventory to get the total costs.</em>

Completed and transferred-out production $ 116,500

Materials = 50,000 units * $ 0.25= $12500

Conversion = 52,000 units * $ 2.0= $104,000

Inventory in process, ending $3150

Materials = 3,000 units * $ 0.25= $ 750

Conversion = 12,00 units * $ 2.0= $2400

7 0
2 years ago
What is the new payment on a 25-year, monthly payment, adjustable-rate mortgage after five years if the interest rate changes fr
Neko [114]

Answer:

Option A is correct

Explanation:

R = [P*(r/12)]/[1-(12/(12+r))]^(12*r)

t = time = 25 years

P = initial principal = 125000

R = initial interest rate = 9.75

So therefore:

R = 125000* (0.0975/12)/[ 1 - (12/(12+0.975)]^(300)

R = 1015.625/(1-0.088)

R = $1113.62 per month

Compounding R for the first five years = 6205.4

Balance = 125000 - 6205.4 = 118792.7

So therefore with the new rate = 8.75

New P = 118792.7

t = 20

R = 118792.7*(0.0875/12)/[1- (12/(12+0.0875))^(240)]

R = 866.197/0.825

R = 1049.93 = $1050

4 0
3 years ago
Amy and Lance are newlyweds. This is Lance's second marriage. Because of problems that occurred before his divorce (his ex-wife
yanalaym [24]

Answer:

c. Tenancy by the entirety

Explanation:

Based on the information provided within the question it can be said that in this scenario the best account recommendation would be a Tenancy by the entirety. This is an account in which each spouse in a marriage has an equal and undivided interest in the account and approval from both parties is needed to empty out the account.

8 0
2 years ago
Several factors can contribute to long-term organizational success. one is the establishment of a core ideology that collins and
andrew11 [14]

Original Source Material

Student Version

Merck, in fact, epitomizes the ideological nature--the pragmatic idealism--of highly visionary companies. Our research showed that a fundamental element in the "ticking clock" of a visionary company is a core ideology--core values and a sense of purpose beyond just making money--that guides and inspires people throughout the organization and remains relatively fixed for long periods of time.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Several factors can contribute to long-term organizational success. One is the establishment of a core ideology that Collins and Porras (2002) describe as "core values and sense of purpose beyond just making money" (p. 48). Also, the importance of a visionary leader that guides and inspires people throughout the organization and remains relatively fixed for long periods of time is hard to over emphasize.

References:

Collins, J. C., & Porras, J. I. (2002). Built to last: Successful habits of visionary companies. New York, NY: Harper Paperbacks.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

This is not plagiarism.

Answer: Option 3.

<u>Explanation:</u>

Plagiarism in very simple words is the copying of the content of the document that has been written by some one else in to your own document. During this copying the due acknowledgement is also not given to the document from which it has been taken.

The document that has been talked about in the question above is not an example of plagiarism. The proof for this is the due acknowledgement given to the references from whose document the content has been taken into the document.

8 0
2 years ago
Greet the customer and thank them for contacting our company
Verdich [7]

Answer:

ok

Explanation:

7 0
3 years ago
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