Answer:
C. Sell 28,000,000 rubles
Explanation:
By doing so, the company will <u>immediately receive</u> the amount equivalent in Canadian Dollars by selling 28 million rubles in forward and after 90 days when the invoice amount (28 million rubbles) is received from building the pipeline, will be used to netting of the forward contract.
In this way, company can hedge the currency exposure, and reduce the risk which can be generated from currency volatility.
The answer is: [A]: " Nov. "
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Answer:
Years to maturity Price of Bond C Price of Bond Z
4 $1,084.42 $711.03
3 $1,065.93 $774.31
2 $1,045.80 $843.23
1 $1,023.88 $918.27
Explanation:
Note: See the attached excel for the calculations of the prices of Bond C and Bond Z.
The price of each bond of the bond can be calculated using the following excel function:
Bond price = -PV(rate, NPER, PMT, FV) ........... (1)
Where;
rate = Yield to maturity of each of the bonds
NPER = Years to maturity
PMT = Payment = Coupon rate * Face value
FV = Face value
Substituting all the relevant values into equation (1) for each of the Years to Maturity and inputting them into relevant cells in the attached excel sheet, we have:
Years to maturity Price of Bond C Price of Bond Z
4 $1,084.42 $711.03
3 $1,065.93 $774.31
2 $1,045.80 $843.23
1 $1,023.88 $918.27
The law of increasing opportunity costs is reflected in a production possibilities curve that is concave to the origin.
Answer:
The Company's cash cycle is 17.3 days
Explanation:
The cash cycle is computed by the following formula:
Receivable No of days+ Inventory No of days- Payables No of days
31.4 days + 22.4 days - 36.5 days = 17.3 days
In the above question, Ives Corp is making an efficient operation of its cash resources. The payables are more than inventory, so the payables are financing the inventory as well as partly the receivables.
