Answer:
1) Lower interest rate
2) Devaluation of Local Currency Risk
Explanation:
1) The main reason why so many East Asian companies and banks borrow dollars, yen, and Deutsche marks instead of their local currencies to finance their operations is that the loans/finance obtained in the local currencies (from local financial institutions i.e. commercial banks, etc) carry a higher interest rate making the debt more costly than the foreign currency debt.
2) The major risk those companies are exposing themselves to is the devaluation risk of their respective local currencies against the foreign currencies, which eventually makes the foreign currency loans higher in terms of payment in the local currency.
Answer:
Prospecting.
Explanation:
This is known to be the first step that is been taken in a bid to get potential customers in a marketing process. Its made by of these marketers is firstly to qualify a recipient as a prospect and is other cases, someone who may have a need for your business products or services, or not. Its goal of is to develop a database of likely customers and then systematically communicate with them in the hopes of converting them from potential customer to current customer.
Answer:
Soft rationing
Explanation:
Soft rationing is when a company reduces the capital funds it uses for it business processes. This can occur as a result of internal factors like shareholders not wanting to have a high debt profile for the company, wanting to raise capital slowly, and the uncertainty of future funding needs (some future project may be more important than present ones).
In this scenario Brubaker & Goss management has decided to allocate the available funds based on the profitability index of each project since the company has insufficient funds to fulfill all of the requests.
This is using soft rationing to limit use of funds.
Answer:
$34,244.98
Explanation:
For computing the settlement worth in present value terms first we have to determine the future value which is shown below:
Value at year 4 = Annuity × [1 - 1 ÷ (1 + interest rate)^number of years] ÷ interest rate
= $7,275 × [1 - 1 ÷ (1 + 0.07)^7] ÷ 0.07
= $7,275 × [1 - 0.6227497419
] ÷ 0.07
= $7,275 × 5.3892894016
= $39207.08
Now the present value is
As we know that
Future value = Present value × (1 + interest rate)^number of years
$39,207.08 = Present value × (1 + 0.07)^2
So, the present value is
= $39,207.08 ÷ 1.1449
= $34,244.98
We simply applied the above formula so that the present value comes i.e today's value
The consulting company has an experienced team that can offer value to a specific set of customers—manufacturers with a need to reduce cost
