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Sav [38]
3 years ago
7

"If Lazer Co. desires to lock in the maximum it would have to pay for its net payables in euros but wants to be able to capitali

ze if the euro depreciates substantially against the dollar by the time payment is to be made, the most appropriate hedge would be"
Business
1 answer:
Crazy boy [7]3 years ago
5 0

Answer:

D) purchasing euro call options.

Explanation:

If Lazer purchased euro call options it would be basically buying the right to purchase euros at a specified currency exchange rate. This way Lazer would know what is the maximum amount it will have to pay for the euros it needs to cover its debts. The call option give the buyer the right to purchase the euros but not the obligation, so if the euro depreciates, then Lazer can simply decide to not use the call option.

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According to dan bricklin, inventor of visicalc, what is the most effective and efficient way to move forward with an idea?
Step2247 [10]

The most effective and efficient way to move forward with an idea is "create a prototype".

A prototype is an early example, model, or arrival of an item worked to test an idea or process or to go about as a thing to be reproduced or learned from. It is a term utilized in an assortment of settings, including semantics, plan, hardware, and programming.

4 0
3 years ago
Zach Taylor is settling a $20,000 loan due today by making 6 equal annual payments of $4,727.53. Determine the interest rate on
kotykmax [81]
Thank you for posting you question here. I hope the answer will help. The interest rate on this loan if the payments begin one year after the loan is signed is 11%. Below is the solution:

N=6
PMT=4,727.53
PV=20,000
FV=0
I=?
<span>I=11%</span>
8 0
3 years ago
Alabama and Mississippi each have 9 units of labor. They can use their units of labor for the production of chickens and cotton.
Alekssandra [29.7K]

Answer and Explanation:

As it is given that

1. For each unit of labor, Alabama will generate 3 units of chicken.

Thus Alabama can produce a maximum of 27 units of chicken with 9 units of labor.

2. With every unit of labor, Alabama will generate 7 units of cotton.

Thus Alabama can produce a maximum of 63 units of cotton with 9 units of labor.

For each unit of labor,  Mississippi will generate 4 units of chicken.

Therefore Mississippi can produce a maximum of 36 units of chicken with 9 units of labor.

For each unit of labor, Mississippi will produce 6 units of cotton.

While Mississippi can produce up to 54 units of cotton with 9 units of labor.

Alabama could be seen producing more cotton than Mississippi using all the labor while using all the labor Mississippi can produce more chicken than Alabama.

Hence,

For producing chicken, Mississippi has the absolute advantage

For producing cotton,  Alabama has the absolute advantage

Now

Albama's opportunity cost for generating a chicken unit is

= (7 ÷ 3)

= 2.33 units of cotton.

Albama's opportunity cost for generating a cotton unit is

= (3 ÷ 7)

= 0.43 units of chicken.

Mississippi's opportunity cost for generating a chicken unit is

= (6 ÷ 4)

= 1.50 units of cotton.

Mississippi's opportunity cost of generating a cotton unit is

=  (4 ÷ 6)

=  0.67 units of chicken

Therefore

Alabama can produce cotton relatively to Mississippi at a  lower cost of opportunity.

In comparison with Alabama, Mississippi can produce chicken at lower opportunity costs.

Hence, we can conclude that

Mississippi has a competitive advantage for chicken production.

Alabama has a competitive advantage in cotton production.

Mississippi is supposed to grow chicken and Alabama is supposed to make cotton.

6 0
3 years ago
Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers
Slav-nsk [51]

Sales Returned and Allowances $50

Allowance for Sales Return and Allowances $50

Lavender expects 5 jars at $10 each ($50 total) to be returned.

Explanation:

Lavender Corporation sells 100 jars of essential oil to Bed, Bath, and Relax on December 1, 20X5, for $10 each. Lavender offers a right to return the product for any reason. Based on past sales, Lavender expects Bed, Bath, and Relax to return 5 jars

<u>Using the above stated information we get  the given data :-</u>

Sales Returned and Allowances $50

Allowance for Sales Return and Allowances $50

Lavender expects 5 jars at $10 each ($50 total) to be returned.

<u>The adjusting journal entry on December 31 reflects</u>

  • The right of return by debiting Sales Returns and Allowances (a contra-revenue account) and
  • Crediting Allowance for Sales Returns and Allowances (a contra-asset account to Accounts Receivable).
5 0
3 years ago
Network Analytics Inc. (NAI) recently made a sale to a foreign trading partner, but the customer does not need to make a payment
emmainna [20.7K]

Answer:

The question is missing the options which can be found in the attached.

The correct option is banker's acceptance

Explanation:

Banker's acceptance is a guarantee by a bank to the exporting party to pay a sum of money at specific date.

In international business, exporters would require additional security against their receivable usually request for a banker's acceptance also known as bill of exchange.

The bank pays the exporter a discounted amount as agreed then chase the importer for the full value of the transaction.The difference between the discounted amount paid by the bank and the full value recoverable from the importer is the bank's margin.

4 0
3 years ago
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