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Nonamiya [84]
2 years ago
13

An example of transaction exposure is when:__________.

Business
1 answer:
makkiz [27]2 years ago
8 0

Answer: companies have obligations for the purchase of goods at previously agreed prices.

Explanation:

Transaction exposure is the uncertainty

that is typically faced by businesses that are involved in international trade. It is the risk that there will be a fluctuation in the currency exchange rates after a firm might have already taken part in a financial obligation.

Therefore, an example of transaction exposure from the question will be when companies have obligations for the purchase of goods at previously agreed prices.

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For the month of May, the company planned for activity of 112 births, but the actual level of activity was 114 births. The actua
s2008m [1.1K]

Answer:

D)

Explanation:

i think its right.. but i may be wrong.. i tried either way.

4 0
3 years ago
Starling Inc. is a public stock company that provides natural gas for businesses. Although this company generates a large profit
erik [133]

Answer:

Have defined value creation too narrowly in terms of financial performance thereby contributing to black swan events ( B )

Explanation:

Black swan events are events that come as a surprise to a company or individual with great / devastating effects and these events are usually due to inappropriate foresight to the problem.

A company that generates huge profits is not supposed to reduce the maintenance budget because ill maintained equipment will not result to efficient production and huge profits. the leaking of their pipelines and the significant environmental problem is an example of the Black swan event due to the trimming of maintenance budget by the Management.

6 0
2 years ago
Select the four common tools managers use to analyze competitive intelligence and develop competitive advantages. SWOT Analysis
iragen [17]

Answer:

Competitive Advantage refers to those attributes which makes a company's products stand out in the market against those of it's competitors and helps it gain a competitive edge.

Managers usually use the following four tools to analyze competitive intelligence to develop competitive advantages:

  1. Michael Porter's generic strategies
  2. Michael Porter's five forces model
  3. Value Chain analysis which aims to identify the value added at each level of production and assign extra importance to those stages which contribute immensely to a product's value.
  4. SWOT Analysis which is strengths weaknesses opportunities and threats. To maximize strengths, identify and limit weaknesses, sense and grab opportunities and minimize or avoid threats.

3 0
2 years ago
The current sections of Birmingham Inc.’s balance sheets at December 31, 2019 and 2020, are presented here. Birmingham’s net
jekas [21]

Answer:

Net Income 193,000

Non-monetary terms:

Depreciation expense    25,000

amortization expense       10,000

gain on disposal          <u>     (7,000)   </u>

Adjusted Income            221,000

Change in Working Capital:

Increase in A/R        (27,000)

Decreasein Inv          17,000

Increase in Prepaid   (5,000)

Increase Accrued /P   11,000

Decreasein A/P         (6,000)

Change In Working Capital     (10,000)

From Operating Activities    211,000

Investing

Sale of Equipment  47,000

Financing

Bonds Issued   60,000

Cash Flow              318,000

Beginning Cash   99,000

Cash Flow           318,000

Ending Cash        417,000

Explanation:

We first remove the non.monetary concetps from the net income.

Then we adjust for the change in working capital which are the incrase and decrease in the current assets and liabilities account

Increase in asset and decrease in liabilities represent cash outflow

while the opposite is true when an asset decrease(convert to cash) or a liablity increase (delay of the payment)

6 0
3 years ago
The required return on the stock of Moe's Pizza is 10.4 percent and aftertax required return on the company's debt is 3.28 perce
Katarina [22]

Answer:

WACC - new project = 6.408% rounded off to 6.41%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,

WACC = wD * rD * (1 - tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • r represents the cost of each component
  • D, P and E represents debt, preferred stock and common equity
  • rD * (1 - tax rate) is the after tax cost of debt

We first need to calculate the WACC of the company and then adjust it for the new project.

WACC = 35% * 3.28%  +  65% * 10.4%

WACC = 7.908%

As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,

WACC - new project = 7.908%  -  1.5%  

WACC - new project = 6.408% rounded off to 6.41%

4 0
2 years ago
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