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topjm [15]
4 years ago
12

What is exchange rate risk?

Business
1 answer:
Hunter-Best [27]4 years ago
6 0

Answer:

It fluctuates

Explanation:

The exchange rate is always changing therefore say £1 was worth $2 then it changed to £1 being worth $1.50. Its constsantly changing.

You might be interested in
Which is the best answer
Ipatiy [6.2K]
The answer would be between A and D.
3 0
3 years ago
Your company experienced 20% percent turnover last year. This means 20 percent of people employed at the beginning of the year w
Stella [2.4K]

Answer:

48

Explanation:

Employee turnover is the rate at which employees leave a company, whether voluntary or involuntary.

In this company, 20 percent of employees leave every year.

If the company intends to have 40 more workers, it should plan to hire the 40 plus an extra 20 percent.

The company should hire 40 plus 20% of 40

=40 + (20/100 x 40)

=40 +(0.2 x40)

=40 +8

=48

The company should hire 48 workers

3 0
3 years ago
Casey Corporation reported net income of $96,000, depreciation expense of $3,400, and cash flow from operations of $53,700. Comp
viktelen [127]

Answer:

The quality of Income ratio is 0.56

Explanation:

Here in this question, we are interested in computing the quality of income ratio

Mathematically;

Quality Income Ratio = Cash flow from Operating Activity/Net Income

= 53,700/96,000 = 0.56

So what does this ratio tell us?

The indication we have from this calculation is that it is the operating activities that is supplying the bulk of the cash needed by the company (0.56 is 56%).

The remaining cash needs of 0.44 or 44% is sourced from other activities of the company and not its operating activities

5 0
4 years ago
In each of the following situations, identify if there is a positive or negative externality in play. Explain you answer thoroug
Vitek1552 [10]

Answer:

1. Positive Externality ; 2. Negative Externality ; 3. Positive Externality.

Explanation:

Externalities are benefits or harms to other parties , without payment received or made for them respectively.

Positive Externalities : Externalities positively effecting others. Eg-Education

Negative Externalities : Externalities positively effecting others . Eg-Pollution.

1. Bridal Shop's signage facelift creates benefit for other strip mall businesses also (better business visibility), without former receiving money & latter paying money.

2. Local church celebration creates benefit for all attendants (recreational benefit) ,without former receiving money & latter paying money.

3. Local School bus ramp construction creates harm for commuters of that area (traffic inconvenience) , without former paying money & latter receiving money

7 0
3 years ago
You anticipate your firm will need 20,000 bushels of oats in December so you hedged your position today at the closing price whe
guapka [62]

Answer:

The answer is "2,040".

Explanation:

Since in the event the company needs the oats, it should take a long position today to hedge them. As indicated throughout the question, the price of the halftime show was set, and the present settling price of 218.50 cents was $2,1850. Moreover, the industry wants 20,000 boxes with oats and the next claim is 5,000, and that is why 4 agreements (20000/5 000) occupy a longer time. So the actual market price of $228.70, i.e. $22870, is 228.70 so hedging would have the corresponding profit/loss:

Gain/Loss = \text{(Market price on the date of settlement - Futures price at the date of booking)} \times Quantity\  hedged

= (2.2870- 2.1850)\times 20000  \\\\          = 0.102 \times 20000     \\\\       = 2040

8 0
3 years ago
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