1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
andreyandreev [35.5K]
2 years ago
8

Jaguar has full manufacturing costs of their Sminustype sedan of pound​22,803. They sell the Sminustype in the UK with a​ 20% ma

rgin for a price of pound​27,363. Today these cars are available in the US for​ $55,000 which is the UK price multiplied by the current exchange rate of ​$2.01/pound. Jaguar has committed to keeping the US price at​ $55,000 for the next six months. If the UK pound appreciates against the USD to an exchange rate of ​$2.15/pound​, and Jaguar has not hedged against currency​ changes, what is the amount the company will receive in pounds at the new exchange​ rate?
Business
2 answers:
Anika [276]2 years ago
3 0

Answer:

Explanation:

Old Price         27363

Exchange Rate 2.01

USD Value         55000

the company has committed to sale at $55000 existing price for next six months.

No currency hedge contract has been made by jaguar, in such case due to appreciation of pound the value of dollar will decrease but due to commitment by jaguar not to fluctuate the cost the total amount receivable in pounds will decrease as compared to 6 months before

USD Value         55000

Exchange Rate  2.15

Price in Pounds      25581

Decrease in pounds = 27363-25581 = 1782 loss

murzikaleks [220]2 years ago
3 0

Answer:

25581.40 Pounds

Explanation:

in this problem we firstly evaluate if the $55000 does include the margin of 20% for the old exchange rate which is $2.01/ pound which we will say ($55000)/($2.01/ pound) = 27363 Pounds therefore it is already adjusted to margin percentage then when we now calculate the new amount the company will receive with the new exchange rate taking place we will calculate also by dividing the dollar price of the jaguar by the new exchange rate of the dollar to the pound in order to find out the new pound price of the jaguar model. As we are told in this statement that for the next six months the jaguar will remain $55000 so we know that its dollar price will not change as jaguar has not hedged against currency changes therefore the UK price will be $55000/($2.15/pound) = 25581.40 Pounds as we see in this problem that the pound has really appreciated to the dollar because the UK price of the jaguar has dropped from 27363 Pounds to 25581.40 pounds.

You might be interested in
Vangaurd Health System bonds have an annual coupon rate of 8 percent and a par value of $1,000 and will mature in 20 years. If y
Umnica [9.8K]

Answer:

Price willing to pay=$1105.94

Explanation:

Annual Coupon Payment=$1,000*0.08

Annual Coupon Payment=$80

Calculating Present Value (PV) of Par Value:

PV=\frac{FV}{(1+i)^{20}}

Where:

i is the rate of return.

FV is par value

PV=\frac{\$1000}{(1+0.07)^{20}}

PV= $258.419.

Calculating PV of annual Coupon Payment:

PV=A\frac{1-(1+i)^{-20}}{i}

i is the coupon rate

A is the annual Payment

PV=\$80\frac{1-(1+0.07)^{-20}}{0.07}

PV=$847.521

Price willing to pay= Present Value (PV) of Par Value+ PV of annual Coupon Payment

Price willing to pay=$258.419+$847.521

Price willing to pay=$1105.94

8 0
3 years ago
Ralph pays his workers $ 100 each, and labor is the only variable cost. At a quantity of 5000 chickens, how many workers does he
Flura [38]

Answer:

He hires 8 workers

Explanation:

The total cost is $1600 for 5,000 chickens minus the fixed cost of  $800, which equals $800. The total cost is total of fixed cost and variable cost as in absence of production the total variable cost is zero so from this we can conclude that total fixed cost is zero.

Then divide the total variable cost ($800) buy what Ralph pays his workers ($100), which comes to 8.

6 0
3 years ago
What is the main advantage for businesses that participate in the globalized market?
Likurg_2 [28]

Answer:

A is your answer

Explanation:

can i get brainiest

8 0
2 years ago
Read 2 more answers
Getting the listener’s full attention, questioning him or her, and asking him or her to paraphrase the message are all technique
timama [110]

Answer:

poor listening

Explanation:

Based on the information provided within the question it can be said that this is done in order to overcome poor listening. This refers to individuals who get distracted when listening and hear/understand very little to nothing of what they were supposed to be listening to. By making sure their attention is on you and asking them to repeat what you just said allows the individual to pay more attention to what you are saying and helps the information stick.

3 0
3 years ago
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA). The
Rasek [7]

Answer:

13 years

Explanation:

Note that, if we add the annual interest rate of 7.9% to $8000 [(0.079*8000)+8000] we get a total value of $8632. We perform random division of the 8632 with 11 12, 13 years we note that at 13 years the total annual payment is lowest.

Such that 8632/13 years= $664 lower than paying $750.

8 0
3 years ago
Other questions:
  • What is a opportunity cost?
    6·1 answer
  • If the allocation base in the pre-determined overhead rate does not drive overhead costs, it will nevertheless provide reasonabl
    7·1 answer
  • You can now sell 40 cars per month at $20,000 per car, and demand is increasing at a rate of 3 cars per month each month. What i
    15·2 answers
  • Which of the following represents a reason for globalizing operations? Select one:
    12·1 answer
  • d $22000 for her dream vacation. If she is able to earn 9% per annum on an investment, how much will she need to set aside at th
    14·1 answer
  • In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:
    13·1 answer
  • As a finance manager at AllSports Communication, Charlie worries about the firm's borrowing requirements for the upcoming year.
    14·1 answer
  • Pronghorn Corporation shipped $20,800 of merchandise on consignment to Gooch Company. Pronghorn paid freight costs of $2,200. Go
    6·1 answer
  • Coronado Industries reported total manufacturing costs of $450000, manufacturing overhead totaling $68000, and direct materials
    7·1 answer
  • Jessica submitted to cancel event request form to cancel event she is scheduled to conduct three weeks from today the only adver
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!