Answer: Enter into a futures contract
Explanation:
Wheldon Wheels inc. operates in the United states, The company exports car Parts to Taiwan which means they do business with companies in Taiwan. The amount that Wheldon Wheels inc receives when they export car parts depends on the Exchange rate between a US dollar and Taiwan Dollar.
Exchange rates between currencies fluctuates every day in the market which presents a problem of uncertainty because when exchange rate changes the value of the transaction changes and that will increase or decrease a company's profits in each transaction.
Wheldon Wheels Expects to receive 20 000 000 Taiwan dollars in 90 days, since the company is in The united states the amount of 20 000 000 of Taiwan Dollars Receivable will need to be converted into US dollars. The Problem is, The exchange rate may decrease or increase in the next 90 days which will affect how much Wheldon Wheels receives in dollars.
Wheldon Wheels inc may Protect them selves against Exchange rate Fluctuations by entering into A Future Contracts with a Bank or exchange dealer. Futures Contract will provide Wheldon Wheels inc with an opportunity to sell 20 000 000 Taiwan Dollars in 90 days at a fixed predetermined exchange rate. The Dealer Promises to Buy 20 000 000 Taiwan Dollars in 90 days at a Predetermined Fixed exchange rate.
example
suppose the (WW) enters into a Futures contract to sell 20 000 000 Taiwan Dollar in 90 days at an Fixed exchange rate of $1 = 1.5 Taiwan dollar, if the market exchange rate in 90 days is $1 = 1.3 Taiwan dollar Wheldon Wheels inc would be protected. The Exchange rate for the 20 000 000 Taiwan Dollar transaction would remain at $1 = 1.5 Taiwan dollar
Answer:
- Write clearly and concisely
- Use a font, size, and style that is suitable
- Eliminate mistakes.
- Remain polite even when dealing with a dispute
Explanation:
Business letters are meant to use formal language because they are to serve as official communication between the parties involved. As such, writing should be clear and concise which means it should be straight to the point.
Use a font, size and style that is suitable and will be taken seriously for instance, Times New Roman and Arial are widely used as they project professionalism. There should be no mistakes which means the letter should be proofread and even when dealing with disputes, politeness should be maintained as emotive writing is not to be featured in formal writing.
The entry to record the issuance of common stock at a price above par includes credit to cash.
Common stock is a protection that represents ownership in a organization. In a liquidation, commonplace stockholders get hold of whatever property remain after creditors, bondholders, and favored stockholders are paid.
Common stock is a form of company fairness ownership, a kind of safety. The phrases balloting proportion and normal proportion also are used often out of doors of the us. they're called fairness stocks or regular shares inside the united kingdom and different Commonwealth nation-states.
For instance, if a employer pronounces a dividend of $10 million and there are 20 million shareholders, investors will acquire $0.50 for each commonplace share they personal.
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Answer:
the answer is 3 days later
Explanation:
Answer:
9 pizzas
Explanation:
Given that:
A pizza is ordered frozen from a local pizza establishment and baked at the cafeteria.
Judith anticipates a weekly demand of 10 pizzas.
Opening weeks in a year = 45 weeks
Opening days in a week = 5 days
Daily demand = 10/5 = 2
Ordering cost = $15
Holding cost = $0.40 /pizza/year
Lead time = 4 days
Safety stock = 1 pizza
The objective is to determine the optimal reorder point.
The optimal reorder point = (daily demand × lead time) + safety stock
The optimal reorder point =( 2 × 4 ) + 1
The optimal reorder point = 8 + 1
The optimal reorder point = 9 pizzas
