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vova2212 [387]
3 years ago
13

Celine Co. will need €500,000 in 90 days to pay for German imports. Today's 90-day forward rate of the euro is $1.07. There is a

40 percent chance that the spot rate of the euro in 90 days will be $1.02, and a 60 percent chance that the spot rate of the euro in 90 days will be $1.09. Based on this information, the expected value of the real cost of hedging payables is $____. A. 25,000 B. -1,000 C. 4,000 D. -35,000
Business
1 answer:
harkovskaia [24]3 years ago
7 0

Answer:

$1,000

Explanation:

The computation of the expected value of the real cost of hedging payable is shown below:-

Real cost of hedging 1 = (€500,000 × $1.07 × (90 ÷ 360)) - (€500,000 × $1.02 × (90 ÷ 360))  

= $133,750 - $127,500

= $6,250

Real cost of hedging 2 = (€500,000 × $1.07 × (90 ÷ 360)) - (€500,000 × $1.09 × (90 ÷ 360))

= $133,750 - $136,250

= -$2,500

Expected value of the real cost of hedging payable = (Real cost of hedging 1 × Spot rate Given Percentage) + (Real cost of hedging 2 × Given percentage)

= ($6,250 × 0.40) + (-$2,500 × 0.60)

= $2,500 - $1,500

= $1,000

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Choices companies give customers of the
gizmo_the_mogwai [7]
<h2>Choices companies give customers of the features to be included on the products they purchase are known as "options".</h2>

Explanation:

Options are nothing but an enhanced version of the basic product.

There are 'n' number of examples which can be given and I am listing few.

Example 1: Shampoo

Shampoo is the basic product, adding on to it with little conditioner effect and fragrance enhance the existing model and customer likes the enhanced feature / option.

Example 2: Automobile products

A basic automobile with rear mirror, seat cover, carpets, etc to attract customer.

Example 3: Mobile phones

Almost all the customers look mainly for the features and they get attracted towards the purchase only by reading the features.

Features are added to keep the product live in the market.

7 0
3 years ago
During its first year of operations, puffin, incorporated reported sales revenue of $388,200 but only collected $308,000 in cash
sp2606 [1]

During its first year of operations, puffin incorporated reported sales revenue of $388,200 but only collected $308,000 in cash from customers. at the end of the year, accounts receivable equals:$80200.

Annual revenue is the amount of money your business earns from sales in a year. This does not include costs and expenses. To calculate annual sales, multiply the quantity of each product sold by the selling price, then add the annual sales for each product to arrive at the total annual sales.

A legal entity is an entity that exists legally separate from its owners, managers, operators, employees, and agents. Legal entities have the same powers as individuals, including the right to own and dispose of property, the power to sue and be sued, and the power to contract for a profit. A business example is an agriculture. An example transaction is a home sale.

Learn more about revenue  here

brainly.com/question/25623677

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8 0
1 year ago
Selected information taken from the accounting records of Vigor Company follows:
MariettaO [177]

Answer and Explanation:

The computation is shown below:

But the following calculations must be done

Account receivable turnover = Net sales ÷ average account receivable

5 = Net sales ÷ ($900,000 + $1,000,000) ÷ 3

5 = Net sales ÷ $950,000

Now the net sales is

= $950,000 × 5

= $4,750,000

And,

Inventory turnover ratio = Cost of goods sold ÷ average of account receivable

4 = Cost of goods sold ÷ ($1,100,000 + $1,200,000) ÷ 3

4 = Cost of goods sold ÷ $1,150,000

Cost of goods sold

= $1,150,000 × 4

= $4,600,000

Now the gross profit is

a. The gross profit is

= Sales - cost of goods sold

= $4,750,000 - $4,600,000

= $150,000

2. The days sales outstanding in both the cases are as follows:

DSO in inventory

= 360 ÷ 4

= 90 days

And, DSO in account receivable

= 360 ÷ 5

= 72 days

7 0
2 years ago
What is the connection with the company Unocal and the Country of Burma?
balu736 [363]

Answer:

Unocal was attracted to Burma for several reasons. First, labor was cheap and relatively educated. Second, Burma was rich in natural gas resources. Third, Burma was an entry point into other international markets, particularly in and around Southeast Asia. Finally the political environment was extremely stable.

Explanation:

5 0
3 years ago
Which of the following is a risk (or potential pitfall) of cost leadership? Multiple Choice a. Cost differences increase as the
musickatia [10]

Answer:

d. Cost cutting in one area of the value chain might increase costs in another.  

Explanation:

Although cost leadership is an efficient way to dominate the competition,it does have potential pitfalls if not executed correctly. For example, if operating cost is decreased, the changed product feature may imply a higher marketing cost afterward. In order to be truly efficient, the cost leadership strategy has to be implemented in such a way, so it doesn't impact other value chain costs negatively (increasing them).

6 0
3 years ago
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