Answer:
C : $3,000,000
Explanation:
The Levi Strauss has sold futures at the price of $0.83/lb. The spot price for cotton is $0.81/lb. The difference between spot and exchange price is 0.02/lb ($0.83/lb - $0.81/lb). On November 30, The future prices of cotton raised to 0.85/lb. The average spot of the inventory when purchased was 0.58/lb. To record the inventory in balance sheet we will use average spot plus difference of spot and exchange price $0.58/lb + $0.02/lb = $0.60/lb. The total amount which will be reported in balance sheet will be 200 futures contacts * 25,000lbs * $060/lb = $3,000,000.
Answer:
The correct answer is project A, B and D.
Explanation:
According to the given scenario, the given data are as follows:
Low risk WACC project = 8%
Average risk WACC project = 10%
High risk WACC project = 12%
As the company always prefer the projects that exceeds the WACC projects.
So,
- Project A has 15% which exceeds the high risk WACC project.
- Project B has 12% which exceeds the average risk WACC project
- Project C has 11% which does not exceeds the high risk WACC project, hence it is not the correct answer.
- Project D has 9% which exceeds the low risk WACC project.
Answer: marketing orientation
Explanation:
Wholesalers controlled the marketing process during the 19th century, because they distributed unbranded commodity products from the manufacturers. But, when those markets got crowded, the wholesalers began playing off one supplier against another. This dramatically hurt the profits of the manufacturers, so they started to look for ways to wrest control back. The manufacturers shifted their emphasis from an orientation towards production to a marketing orientation. They were committed to new product development, developing their own sales teams, labeling and naming their products, and participating in strong national brand marketing.
This answer requires that we fill in the blanks
- The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealth
- The larger the NPV, the more value the project adds; and added value means a higher stock price.
- The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACC
- When the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project.
- When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.
What is the NPV?
In order to get the NPV we have to make the following calculations for the projects A and B.
This is calculated as
Project A
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= $355. 237
For the project B
We would have to perform similar calculation
Hence we would have
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= 378.98
From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.
Read more on NPV here:
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Lorraine is involved in Media Planning. Media planning<span> basically involves </span> sourcing and selecting optimal media<span> platforms that would be leveraged on to best promote a product. In this case, Lorraine's job generally entails </span><span>determining the best combination of </span>media<span> to achieve the marketing campaign objectives of Sibil furnishings. Therefore she is involved in media planning.</span>
