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Verizon [17]
4 years ago
9

Assume that Parker Co. will receive SF200,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowi

ng rate 7% 5% 360-day deposit rate 6% 4% Assume the forward rate of the Swiss franc is $.50 and the spot rate of the Swiss franc is $.48. If Parker Co. uses a money market hedge, it will receive ____ in 360 days.
a. $101,904
b. $101,923
c. $98,769
d. $96,914
e. $92,307
Note– remember from class how we hedge receivables (that is borrow in the country where the receivables will be received)
Business
1 answer:
frez [133]4 years ago
3 0

Answer:

d. $96,914

Explanation:

Parker Co. can execute money market hedge in following steps:

(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)

so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.

(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428

(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days ; $96,914 = $91,428 * (1+6%)

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"PDQ Corporation has declared a rights offering to stockholders of record. The company has 5,000,000 shares outstanding and is s
Nimfa-mama [501]

Answer: C. II and III

Explanation:

There are 5,000,000 shares of PDQ Corporation as of when they declared the rights offering. This means that every share will get a right to buy stock.

However, as only 1,000,000 shares are being offered per the 5,000,000 shares outstanding it means that one stock may be purchased for every 5 rights.

A customer who owns 500 shares will therefore get 500 rights.

However with one stock up for sale per 5 rights they will receive the opportunity to buy;

= 500/5

= 100 shares

5 0
3 years ago
Perhaps the most significant federal statute specifically addressing cyber crime is the:________.
frosja888 [35]

Answer:

c. Computer Fraud and Abuse Act.

Explanation:

Computer Fraud and Abuse Act (CFAA) is a cyber security bill that was enacted in 1986 and is an amendment of of Comprehensive Crime Control Act of 1984.

The acts forbids a person to access a computer without proper authorisation or an excess of required authority.

Before this time cybercrime was prosecuted as mail and wire fraud. This was often inadequate.

Other provisions the act addresses are distribution of malicious code, denial of service attacks, and trafficking in passwords

3 0
3 years ago
In collaborative problem solving, it is important for the initiator to:
Solnce55 [7]

Answer:

The correct answer is B

Explanation:

Collaborative Problem Solving is the tool or a technique which is used for solving the problems and it makes the explicit respond.

The initiator is the person who initiates the response in the problem in order to solve the problems.

So, the vital as well as primary thing for the initiator is to avoid making the evaluative or measured conclusions as well as attribute the motives or purpose to the respondent, whose query it is.

3 0
3 years ago
During January, the solar cell factory begins 57,000 solar cells, and completes 53,000 of them. The remaining 4,000 solar cells
pogonyaev

Answer:

"2000 units" is the right solution.

Explanation:

The given values are:

Transferred from WIP,

= 53,000 units

Units sold,

= 61,000 units

Beginning inventory,

= 10000 units

Now,

The total number of finished goods will be:

= ( Beginning \Inventory + Transferred \ from \ WIP - Units \ Sold )

On substituting the values, we get

= ( 10000 + 53000 - 61000 )

= 2000 \ Units

4 0
3 years ago
Suppose that a consumer has a health insurance program with co-payments of $10 per doctor visit. If the consumer purchases 6 doc
Katarina [22]

Answer:

$300

Explanation:

Given that s a health insurance program with co-payments of $10 per doctor visit.

Thus,

amount paid by insurance in 1 visit = $10

Amount paid by insurance in 6 visit = $10*6 = $60

Total bill charged by the doctor in 6 visit = 360

Amount paid by the consumer = Total bill charged by the doctor in 6 visit - Amount paid by consumer in 6 visit = $360 - $60 = $300

Since , consumer is the third party payer he pays $300 out of total $360 bill charged by the doctor.

In fraction ,portion of bill paid by the third party payer = 300/360 = 5/6

Thus, 5/6 portion of bill is paid by third party payer.

3 0
3 years ago
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