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nekit [7.7K]
3 years ago
5

A U.S. firm holds an asset in Great Britain and faces the following scenario: State 1 State 2 State 3 Probability 25% 50% 25% Sp

ot Rate ($/Pound) 2.2 2.0 1.80 Asset value (P* in pound) 2000 2500 3000 Asset value (P in $) 4400 5000 5400 where, P* = Pound sterling price of the asset held by the U.S. firm P =dollar price of the same asset The variance of the exchange rate a. 0.02 b. 0.10 c. 0.01 d. none of the above
Business
1 answer:
Korvikt [17]3 years ago
7 0

Answer:

The answer is letter B.

Explanation:

The mean is 2.03 =($2.5+ $2 + $1.6)/ 3 ; [0.25(2.5-2.03)²] + [0.5(2-2.03)²] + [0.25(1.6- 2.03)²] = 0.055225+0.00045 + 0.046225= 0.1019

Letter B = 010

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FARO Technologies, whose products include portable 3D measurement equipment, recently had 36 million shares outstanding trading
erma4kov [3.2K]

Answer:

A. $117 million

B.13%

C. $21.75

Explanation:

B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date

Expected Loss= 390*30%

Expected Loss= $117 millions

Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions

B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss

First step is to calculate the Existing Shares Value

Existing Shares Value =36*$25

Existing Shares Value= $900 millions

Now let calculate the Expected Loss %

Expected Loss % = $ 117/$ 900

Expected Loss % = 13%

Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%

C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement

Price Per Share: $ 25*(1 - 0.13)

Price Per Share$25*0.87

Price Per Share: $21.75

Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75

6 0
2 years ago
How much does the sky weigh?
Alona [7]

Answer: 11 billion billion pounds

Explanation:

4 0
3 years ago
Read 2 more answers
Gemini Inc. has prepared a market plan for its air conditioners. The managers at Gemini have outlined several activities for the
Westkost [7]

The correct answer is C) implementation.

Gemini Inc. has prepared a market plan for its air conditioners. The managers at Gemini have outlined several activities for their subordinates based on a marketing plan. The employees are required to finish these activities within specific time frames. The managers have also allocated a budget for each activity. In the context of marketing planning, the concept that illustrates the scenario is<u><em> implementation.</em></u>

When talking about the marketing plan, the first stage in the planning where managers establish the goals, the strategies and tactics to reach those goals. Those strategies and tactics come to reality in the implementation stage, when management gives every department and employee the activities they need to do in order to accomplish the goals. The implementation is the operative part that has to be done in the allocated time and within the budgetary restriction to fulfill the programs and accomplish goals.

8 0
3 years ago
Assume that labor is a variable input. the average wage of workers increases in a purely competitive industry. this change will
Korolek [52]

Assume that labor is a variable input. The average wage of workers increases in a purely competitive industry. This change will result in an increase in marginal cost for firms in the industry and a decrease in the industry supply curve.

    Businesses may decide to request a wide variety of inputs. The most prevalent two are labor and capital in perfect competitive industry.

    Marginal labor output in terms of revenue. The firm decides how much labor to demand by examining the marginal revenue product of labor after it is aware of the level of demand for its production. The additional revenue the business makes by hiring one more unit of labor is known as the marginal revenue product of labor (or any input). The marginal product of labor has an association with the marginal revenue product of work. The value of the marginal product of labor in a market with perfect competition is the firm's marginal revenue product of labor.

To learn more about perfectly competitive market click here:

brainly.com/question/28081306

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6 0
1 year ago
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on January 1, 2021. The bonds sold
Semmy [17]

Answer:

discount on bonds payable 18,383,020.48 debit

other comprehensive income 18,383,020.48 credit

--to adjust Bonds at 12/31/2021 market value --

other comprehensive income  4.739.000‬ debit

    discount on bonds payable   4.739.000‬ credit

--to adjust Bonds at 12/31/2022 market value --

Explanation:

We solve for the book value at year-end using effective rate

<u>First year:</u>

<u>First payment</u>

830,000,000 x 5.5% = 45,650,000

767,557,868  x 6.0% = 46,053,472.08

Amortization              403,472.08

<u>Second Payment</u>

830,000,000 x 5.5% =                         45,650,000

(767,557,868 + 403,472.08)  x 6.0% = 46,077,680.4

Amortization               427680.4

Carrying value at year-end

767,557,868 + 403,472.08 + 427,680.40 = 768,389,020.48

We need to recognize a deferred gain for the difference between these and the 750,000,000 market value at December 31th

which is $ 18,383,020.48 as these as not been realized it will be part of other comprehensive income

We will increase the discount to adjust the bonds payable account net balance.

<u>Second year:</u>

We repeat the process

<em>First Payment:</em>

830,000,000 x 5.5% = 45,650,000

Interest expense 750,000,000 x 6% = 45,000,000

Amortization  650000

Carrying value 750,000,000 + 650,000 = 750,650,000

<em>Second Payment:</em>

830,000,000 x 5.5% = 45,650,000

750,650,000 x 6% = 45,039,000

Amortization 611000

Carrying Value 750,650,000 + 611,000 = 751,261,000

Wer now compare this with the 756,000,000

as now the debt of the company has increased we are going to decrease the discounttand recognize a deferred loss through other comprehensive income as it wasn't realized

756,000,000 - 751,261,000 = 4.739.000‬

7 0
3 years ago
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