Answer:
Sell pound forward
Explanation:
Forward rate = $1.51 *(1+2.65%) = 1.51 * 1.0265 = 1.55
Amount receivable in case of forward hedge = 100,000 * 1.55 = 155,000
Premium payable on put options = 100,000 * 0.3 = 3,000
Amount receivable in put options = 100,000 * 1.54 = 154,000
Net receivables in put options = 154,000 - 3,000 = 151,000
Conclusion: Higher amount is available in case of forward hedge. So, sell pound forward
Answer: Option (b) is correct.
Explanation:
Given that,
Price of island = $24 worth of goods
Goods include beads, trinkets, cloth, kettles, and axe heads.
Annual interest rate(r) = 4%
Number of periods(n) = 391
Future value will be calculated from the following formula:
= 24 × 4,571,257.29
= $109,710,174.93
Answer:
If Pinnacle was an all equity firm its WACC would be the same as the cost of equity capital which is 15%.Also if it was an all equity firm all the free cash flow would be available to the shareholders as there was no debt and no money needed to be given to the debtors
The formula to find the value of a firm using the FCF is
FCF*(1+G)/WACC-G
14*(1+0.5)/0.15-0.5
=14.7/0.10=147
The value of Pinnacle as an all equity firm would be $147 million
Explanation:
Answer:
The expected cash collections for April, May, and June is Net operating income $ 59,500, $ 62,000, $ 67,000 respectively.
Explanation:
If there're no other events such as late payments, return of good, recall of debts.... the cash collected is the net operating income (sales deducted cost of goods sold and all related expenses).
Answer:
The statement is: False.
Explanation:
One of the main disadvantages of mass production is the fact that it requires a large number of production units and processes. As the output increases, more labor hand and organizational management are requested. Thus, in front of sudden market changes, it will be harder for such manufacturing companies to adapt.
