When I called about the cost of theses items it was implied total would only be 35.00

"Albert applied for a consumer durables loan at Horizon Bank and had to provide his personal information in the loan application

ira [324]

Answer: c. legal but unethical

Explanation:

With John being in charge of the loan application when Albert came to apply, John had access to Albert's information.

John then used this information which he had LEGAL access to, to recommend a bank product to Albert.

This is legal but UNETHICAL because Albert did not know that any information he gave will be used for a reason different from his application for a loan.

4 0

3 years ago

Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can generate cash flows of $218

Pepsi [2]

Answer:

$519,799.59

Explanation:

Discount rate = R = 14.50%

Year Cash flows Discount factor PV of cash flows

1 218,000.00 0.873362 190,393.0131

2 224,000.00 0.762762 170,858.6793

3 238,000.00 0.666168 158,547.9011

Total of PV = NPV =  $519,799.59

Note:

Df = 1/(1+R)^Year

PV of cash flows = Cash flows x Df

7 0

3 years ago

Sellers allow customers to use credit cards for all of the following reasons: (You may select more than one answer. Single click

Tasya [4]

Answer:

c. seller receives cash sooner than if credit is granted directly to the customers

d. may allow seller to increase sales volume

Explanation:

When a customer uses a credit card, the bank that issued the card pays the seller immediately, and later, the bank recovers the money plus interest from the customer.

So this method allows for a faster collection of cash (basically immediatly) than if the seller granted the credit directly to the customer.

Credit cards also allow seller to increase sales volume because many people lack the cash necessary to pay down the full value of the purchase.

7 0

3 years ago

Uptown Promotions has three divisions. As part of the planning process, the CFO requested that each division submit its capital

Levart [38]

Answer:

d. soft rationing

Explanation:

Soft rationing -

It is the process in which the company itselves takes the decision to limit the amount of capital , which is used for the investment for a given period of time , is known as soft rationing .

It is referred to as soft , as the decision is taken by the firm itself , where the changes and alteration all are done by the firm only according to the future goals and practices .

hence , from the question , the situation given , depicts - soft rationing .

7 0

3 years ago

Cray Research sold a super computer to the Max Planck Institute in Germany on credit and invoiced €10 million payable insix mont

Reil [10]

Answer:

a) The expected loss from the forward hedging = $432,900

b) No I wouldn’t recommend hedging the euro receivable based on the fact that the future spot rate is better off than the forward exchange rate.

c) No I wouldn’t because in any case whether you hedge or not there will be no difference.

Explanation:

Solution.

Forward Exchange Rate = $1.10/€, therefore the equivalent of €10 million receivable from Germany in 6-month time = €10 million / Forward exchange rate ($1.10) = $9,090,909

However, the 6 months spot rate is $1.05/€, therefore if we simply wait till 6 months we will receive €10 million / Forward spot rate ($1.05) = $9,523,809.

a) The expected loss from the forward hedging = $9,523,809 - $9,523,809 = $432,900

b) No I wouldn’t recommend hedging the euro receivable based on the fact that the future spot rate is better off than the forward exchange rate.

c) No I wouldn’t because in any case whether you hedge or not there will be no difference. You’ll just end up paying hedging fees which will impact on profits adversely.

However it is always advisable to hedge foreign exchange risks because predictions could differ from reality and adverse movements in exchange rates could carry significant financial consequences which may not be comparable to the hedging costs.

7 0

3 years ago