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Naily [24]
4 years ago
5

Suppose that Boeing Corporation exported a Boeing 747 to Lufthansa and billed €10 million payable in one year. The money market

interest rates and foreign exchange rates are given as follows:
The U.S. one-year interest rate: 6.10 % per annum

The euro zone one-year interest rate: 9.00 % per annum

The spot exchange rate: $ 1.50 /€

The one-year forward exchange rate $1.46/€

Assume that Boeing sells a currency forward contract of €10 million for delivery in one year, in exchange for a predetermined amount of U.S. dollars. Suppose that on the maturity date of the forward contract, the spot rate turns out to be $1.40/€ (i.e. less than the forward rate of $1.46/€). Which of the following is true?

A) Boeing gained $0.6 million from forward hedging.

B) Boeing would have received only $14.0 million, rather than $14.6 million, had it not entered into the forward contract. Additionally, Boeing gained $0.6 million from forward hedging.

C) Boeing would have received only $14.0 million, rather than $14.6 million, had it not entered into the forward contract.

D) none of the options
Business
1 answer:
g100num [7]4 years ago
8 0

Answer: B

Explanation:

Boeing would have received only $14.0 million, rather than $14.6 million, had it not entered into the forward contract. Additionally, Boeing gained $0.6 million from forward hedging

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ch4aika [34]

Answer:

$91,100

Explanation:

Calculation to determine the total cost of merchandise purchased

Using this formula

Total cost of merchandise purchased = Invoice cost of merchandise purchases + Cost of transportation in - Purchase returns and allowances - Purchase discount

Let plug in the formula

Total cost of merchandise purchased= $100,000 + $500 - $400 - $9,000

Total cost of merchandise purchased= $91,100

Therefore the total cost of merchandise purchased is $91,100

3 0
3 years ago
As a general rule, __________ seems to work best when the consumer target market for the product is alike across countries and c
Serggg [28]
The correct answer to fill in the blank is product extension.
7 0
4 years ago
The basic premise of​ ______ is that firms should establish objectives and evaluate strategies on criteria other than using only
mart [117]

Answer:

D, balanced scorecard

Explanation:

A balanced scorecard is a management strategy in which managers are able to assess the amount of job done by employees under their area of control.

It also helps to see whatever complications or success that are as a result of the job done by the employees.

A balance scorecard involves the satisfaction of customers by how much time, quality of service, performance of service, among other things. Also, the balance scorecard is helps to focus on some other important roles that could affect customer satisfaction.

Cheers.

3 0
3 years ago
Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000
rusak2 [61]

Answer:

1,875,000 Economic Value Added

Explanation:

Net Operating Profit After Taxes  - Invested Capital x Weighted Average Cost of Capital = Economic Value added

This represent the return on the shareholders after their investment return is paid. It is the value generated from the investent resources.

3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

18,000,000 x 5% =         (900,000)  Required Return

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4 years ago
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Kay [80]

Answer:

b. From a commercial market into a reseller market.

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It is a commercial marketing following the fact that the marketing organization defines success primarily in terms of financial gain.

This financial gain is the same reason for expansion.

Supplying to other stores who will in turn sell to others makes it a reseller market.

5 0
3 years ago
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