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Cloud [144]
4 years ago
6

A U.S. firm holds an asset in Great Britain and faces the following scenario:

Business
1 answer:
Lady_Fox [76]4 years ago
3 0

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.

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BigorU [14]

Answer:

Project planning plays an essential role in helping guide stakeholders, sponsors, teams, and the project manager through other project phases. Planning is needed to identify desired goals, reduce risks, avoid missed deadlines, and ultimately deliver the agreed product, service or result.

Explanation: The key in planning is to look at each of the knowledge areas below and make sure you and your team will address each of these areas in ways that will help reach all the end goals.

Communications

Costs

Human resources

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Quality of deliverables

Business requirements

Risks

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The key to a successful project is in the planning. Creating a project plan is the first thing you should do when undertaking any project.

Often project planning is ignored in favor of getting on with the work. However, many people fail to realize the value of a project plan for saving time, money and many problems.

7 0
3 years ago
An important feature of a job order cost system is that each job:_______.
sammy [17]

Answer:

D

Explanation:

it has it's own distinguishing characteristics ....Form used to record the cost chargeable to a specific job and to determine the total and unit cost of the completed job

6 0
3 years ago
Tom is responsible for a group of manufacturing assembly workers who report to him. tom is a __________ manager.
jok3333 [9.3K]

Tom is a First line manager. First line managers are managers who are supervising the people who are in the manufacturing field, example of first line managers are foreman and shift heads. Their role is directly coordinate to the workers by assigning tasks, checking the quality of employees’ works, and giving heads up information to executive managers of the success and problems that arise in the company.

3 0
3 years ago
On January 2, Year 1, Jones Corporation purchased a truck for $39,000. The truck has a 5-year estimated life and a $4,000 estima
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Answer:

Straight-line method:

  • depreciation expense year 1 = ($39,000 - $4,000) / 5 = $7,000
  • depreciation expense year 2 = $7,000
  • depreciation expense year 3 = $7,000
  • depreciation expense year 4 = $7,000
  • depreciation expense year 5 = $7,000

200 declining balance method:

  • depreciation expense year 1 = 2 x 1/5 x $39,000 = $15,600
  • depreciation expense year 2 = 2 x 1/5 x $23,400 = $9,360
  • depreciation expense year 3 = 2 x 1/5 x $14,040 = $5,616
  • depreciation expense year 4 = 2 x 1/5 x $8,424 = $3,369.60
  • depreciation expense year 5 = $5,054.40 - $4,000 = $1,054.40

Sum-of-years-digits method:

  • depreciation expense year 1 = 5/15 x $35,000 = $11,666.67
  • depreciation expense year 2 = 4/15 x $35,000 = $9,333.33
  • depreciation expense year 3 = 3/15 x $35,000 = $7,000
  • depreciation expense year 4 = 2/15 x $35,000 = $4,666.67
  • depreciation expense year 5 = 1/15 x $35,000 = $2,333.33
8 0
3 years ago
Expenditure by business on capital goods is known as what
AURORKA [14]
Answer:

Investment Spending or Capital Expenditure.

Explanation:

Capital Expenditure or Investment Spending mainly deals with business expenditure on capital goods or factor/inputs of production which are used in the production process.
7 0
3 years ago
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