Not sure but the answer is most likely q50
Answer:
C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Explanation:
given data
State 1 State 2 State 3
Probability 25% 50% 25%
Spot rate $ 2.50 /£ $ 2.00 /£ $ 1.60 /£
P* £ 1,800 £ 2,250 £ 2,812.50
P $4,500 $4,500 $4,500
solution
company holds portfolio in pound. so to get hedge, they will sell that of the same amount.
we get here average value of the portfolio that is
The average value of the portfolio = £ (0.25*1800 + 0.5*2250 + 0.25*2812.5)
The average value of the portfolio = 2278.13
so correct option is C) Sell £2,278.13 forward at the 1-year forward rate, F1($/£), that prevails at time zero.
Answer:
Must be offset by an equal increase in liabilities and stockholders' equity
Explanation:
Accounting Equation is stated as :
Asset = Equity + Liabilities
thus
<em>The Left Hand Side must always equal the Right Hand Side.</em>
therefore,
An increase in total assets: must be offset by an equal increase in liabilities and stockholders' equity.
Answer: Management Team
Explanation: The management team has authority over positions, resumes, and overall organizational structure of the business.
Answer:
$267,142.86
Explanation:
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
As such, the total sales less the total cost gives the net income.
Let the required sales be $Y
Y - 0.3Y - 147,000 = 40,000
0.7Y = 40,000 + 147,000
Y = 187,000/0.7
= $267,142.86
