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DanielleElmas [232]
3 years ago
13

YZ Corporation, located in the United States, has an account payable of 750-million yen payable in one year to a bank in Tokyo.

The current spot rate is yen 116 per $ and the one year forward rate is yen 109 per $. The annual interest rate is 3 percent in Japan and 6 percent in the United States (assume the same lending and borrowing rates). The future (in one year) dollar cost of meeting this obligation using the money market hedge is:
Business
1 answer:
EleoNora [17]3 years ago
8 0

Answer:

Dollar cost of the foreign payable = $  6,653,833.28  

Explanation:

The money market hedge would be set up as follows:

<em>Step 1: Deposit in Yen (Tokyo)</em>

Deposit an amount in Yen  equal to

Amount to be deposited= Payable/(1+deposit rate)

= 750,000,000/(1.03)

=  Yen 728,155,339.8

<em>Step 2 : Convert the sum</em>

Convert Yen 728,155,339.8 at the spot rate  of yen 116 per $

Dollar amount =  728,155,339.8   / 116

                         = $ 6,277,201.205

<em>Step 3: Borrow at home (US)</em>

Borrow $ 6,277,201.205  for one year at an interest rate of 6%

Amount due (inclusive of interest) = Amount borrowed × 1.06

                                                       =$ 6,277,201.205 × 1.06

                                                        = $  6,653,833.28  

Dollar cost of the foreign payable = $  6,653,833.28  

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Answer:

The correct answer is “Pricing below competitors”.

Explanation:

It is given that the organization is operating with a lower cost structure as compared to its competitor and it is also enjoying the economies of scale. Since lower cost structure makes the organization capable to keep the price of its product lower as compared to its competitor. Moreover, the lower price of a commodity will attract new customers. Consequently, its sales volume will increase.

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2 years ago
Which of the following is true of using direct marketing channels?
podryga [215]

Answer:

c

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3 years ago
In a catalog a coat was on sale for $65.55 this week. It regularly sells for $77.77. If the sales tax is 6% and shipping is belo
bazaltina [42]

Answer:

$14.96

Explanation:

Shipping and handling charges are attached.

Given: Discounted price= $65.55.

           Regular sales price= $77.77

           Sales tax= 6%.

Now, find the cost of coat after tax.

Cost of coat= 77.77+(77.77\times 6\%)

⇒ Cost of coat= 77.77+ 4.66= \$ 82.43

Adding shipping charges to the cost= 82.43+8.95= \$91.39

Hence, cost of coat after tax and shipping charges= $91.39.

Next finding total cost of coat if sold at discount after tax.

Cost of coat at discounted price after tax= 65.55+(65.55\times 6\%)

⇒ Cost of coat at discounted price after tax= 65.55+ 3.93

⇒ Cost of coat at discounted price after tax= \$ 69.48

Adding shipping charges to the cost of coat= 69.48+6.95=\$ 76.43

Hence, cost of coat at discounted price after tax and shipping charges= $76.43.

Finding saving amount by ordering coat at the sale price or discounted price.

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7 0
3 years ago
A distributor of personal computers has five locations in a city. In the year's first quarter, the sales in units were: Location
iragen [17]

Answer:

It is observed  that the value of test statistics (19.168) is greater than the critical value (13.277), thus the rejected hypothesis, H₀ at α = 0.01.

There is enough evidence to conclude or deduce that sales were the same for all locations

Explanation:

Solution

Given that:

Object: Test whether the sales were the same for all locations by applying 1% significance level.

The Null Hypothesis H₀ : Sales were the same for all locations

E₁ =  70 +75 +70+ 50 + 35/5 = 60

The Alternative Hypothesis Hₐ : Sales were not the same for all locations

Now,

The decision rule:

the Level of Significance be α = 0.01

Degrees of freedom is df= Number of categories -1

=5-1 = 4

Note: Kindly find an attached copy of part of  the work solution of this given question

3 0
3 years ago
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ololo11 [35]

Answer:

ISP

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