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kherson [118]
3 years ago
15

You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$. Information for Forward Contra

ct: Forward exchange rate (one yr): 1.54 $/BP Information for Money Market Instruments (MMI): Current exchange rate: 1.50 $/BP Investment return at Aerion Fund Management (in UK): 4% annual Interest rate of borrowing from Bank of America (in USA): 2% annual Information you need for Currency Options Contract: Options premium: 0.015 $/BP Interest rate of borrowing from Bank of America (USA): 2% annual Allowed to exercise options at 1.54 $/BP If the break-even exchange rate for the Currency Options Contract is 1.46 $/BP, and you believe the exchange rate at the time of the payment would be 1.53 $/BP, should you sign the contract?
Business
1 answer:
inna [77]3 years ago
6 0

Answer:

why just 5 points? :( but thanks for the 5points atleast

Explanation:

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Cost of Goods Sold Allyson Ashley makes jet skis. During the year, Allyson manufactured 68,500 jet skis. Finished goods inventor
Nuetrik [128]

Answer:

Units sold= 63,465 units

Cost of goods sold= $114,237,000

Explanation:

Giving the following information:

Allyson manufactured 68,500 jet skis. Finished goods inventory had the following units:

January 1: 14,385

December 31: 19,420

First, we need to calculate the number of units sold:

Units sold= production of the period + beginning inventory - ending inventory

Units sold= 68,500 + 14,385 - 19,420= 63,465 units

Cost of goods sold= 63,465*1,800= $114,237,000

7 0
2 years ago
Standards are set by a.manufacturing engineers. b.accountants. c.other management personnel. d.All of these choices are correct
andrew11 [14]

Answer: d.All of these choices are correct.

Explanation: all of the listed options all make use of standar, manufacturing engineer, accountant, and other management personnel make use of standards to estimate the acceptable production efficiency. Standards are also set by this personnel’s to motivate employees so as to achieve efficient operations and use of man power.

8 0
3 years ago
The government can shift or influence supply in a market by providing subsidies (money) to businesses or by taxing them heavily.
scoundrel [369]
I think it’s false , sorry if it’s wrong :(
5 0
3 years ago
Entrepreneurial strategies an entrepreneur should adopt when undertaking entrepreneurial business venture
notsponge [240]
I don’t understand your question
4 0
2 years ago
Take It All Away has a cost of equity of 10.54 percent, a pretax cost of debt of 5.27 percent, and a tax rate of 35 percent. The
bogdanovich [222]

Answer:

9%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of common stock x Weightage of common stock ) + ( Cost of preferred stock x Weightage of preferred stock ) + ( Cost of debt ( 1- t) x Weightage of debt )

As WACC is calculated using Market values.

Company Value = 100%

Value of Debt = 28%

Value of Debt = 100% - 28% = 72%

WACC = ( 10.54% x 72% ) + ( 5.27% x 28% )

WACC = 7.59% + 1.48%  = 9.07% = 9% (rounded off)

6 0
3 years ago
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