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3 years ago

Trading in foreign currency options would most likely be: __________

1 answer:

3 0

There are different kinds of trade. Trading in foreign currency options would most likely be an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.

<h3>Currency option hedges</h3>

Currency option hedges are known to be tools that are used in international business.

An example, when an American importer is said to agree to buy some food equipment from a Chinese manufacturer at a later future date. The transaction will be carried out in Chinese currency.

The American importer has therefore made an hedge by buing currency options on the Chinese currency.

Learn more about trade from

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Which one is the best choice. Please explain why. I’ll give extra points.

S_A_V [24]

Answer:

Explanation:

Surplus for Donovan: 10 - 4.50 = 5.50

Surplus for Rudy: 8 - 4.50 = 3.50

Surplus for Mike: 6 - 4.50 = 1.50

Surplus for Royce: 4 - 4.50 = -0.50

Sum of all surpluses: 5.50+3.50+1.50-0.50=10

7 0

2 years ago

Innovative Products reported net income of $219,000. Beginning and ending inventory balances were $44,500 and $46,500, respectiv

andrew11 [14]

Answer:

$213,500

Explanation:

Given the information above, first, we'll determine increase in inventory

Increase inventory = Ending inventory - Beginning inventory

Increase inventory = $46,500 - $44,500

Increase inventory = $2,000

We will also calculate decrease in account payable

Decrease in accounts payable = Beginning accounts payable - Ending accounts payable

Decrease in accounts payable = $40,500 - $37,000

Decrease in accounts payable = $3,500

Therefore,

Net operating cash flows = Net income - Increase inventory - Decrease in accounts payable

Net operating cash flows = $219,000 - $2,000 - $3,5000 = $213,500

3 0

3 years ago

if you followed the suggestions of robert m. mcmath, which of these provides the best advice for a marketer for colgate, when la

dimaraw [331]

Robert M. McMath, would be best for a marketer like Colgate to launch a new consumer product like toothpaste Study past toothpaste product failures and learn from them.

What is Product launching?
A product launch involves multiple teams, including sales teams, customer support teams, product teams, product marketing, event management, and even managers. Each team aligns and collaborates to maximize go-to-market potential, building anticipation, interest, brand awareness and momentum in the process. Some product launches are more memorable and successful than others. For example, when Apple releases a new iPhone, it circulates several press releases and articles before unveiling the new design at its annual conference. This creates so much excitement and hype that potential users line up at retail outlets overnight to get their hands on the device.

To learn more about Product launching
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5 0

1 year ago

Your neighborhood self-service laundry is for sale and you consider investing in this business. For the business alone and no ot

Oduvanchick [21]

Answer:

The complete present value calcuation is below.

The net present value of this project is: $77,930.58 (assuming a value for the sale of the business equal to the purchase price).

Explanation:

For this problem, the first and basic question is:

<em>Prepare a net present value calculation for this project. What is the net present value of this project?</em>

<em />

<h2>Solution</h2>

The net present value is equal to: the present value of the future cash flows less present value of the investements.

<u>1. Present value of the future cash flows:</u>

The discount factor is equal to 1 / [1 + (1 + r)ⁿ]

Where:

r = 5% = 0.05
n = the number of year

Year Cash flow Discount factor Present value

1 $30,000 1/(1 + 0.05) $30,000/1.05 = $28,571.43

2 $30,000 1/(1 + 0.05)² $30,000/(1.05)² = $27,210.88

3 $30,000 1/(1 + 0.05)³ $30,000/(1.05)³ = $25,915.13

4 $30,000 1/(1 + 0.05)⁴ $30,000/(1.05)⁴ = $24,681.07

5 $30,000 1/(1 + 0.05)⁵ $30,000/(1.05)⁵ = $23,505.78

5 $240,000* 1/(1 + 0.05)⁵ $240,000/(1.05)⁵ = $188,046.28

*For the year 5 you must also consider the value of the business, which is unknow. You should have some information about it. Although unrealistic, at this stage we can just assume a value: let's say it is the same purchase price: $240,000. That is what the last line shows:

The discount the value of the value of the business is:

$240,000 / (1.05)⁵ = $188,046.28

The total present value of the future cash flows is the sum of the present values of all the cash flows:

$28,571.43 + $27,210.88 + $25,915.13 + $24,681.07 + $23,505.78 + $188,046.28 = $317,930.58

<u>2. Calculate the net present value:</u>

Net present value =

= Total present value of future cash flows - investment

Net present value = $317,930.58 - $240,000 = $77,930.58

5 0

3 years ago

PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the United States, PEZ

aleksandrvk [35]

Answer:

PEZ Candy Inc.

1. PEZ Candy Inc. would be more likely to use process costing for the manufacture of its PEZ candies.

The reason is that the manufacturing of candies involves continuous processing of materials that results into candies. The processes are not customizable for separate orders.

2. PEZ Candy Inc. would incur these types of costs in the manufacture of its PEZ candies:

a. Direct material = sugar

b. Direct labor = wages of factory workers

c. Manufacturing overhead = utilities expenses

i. indirect materials = cleaning supplies

ii. indirect labor = factory supervisor's salary

iii. other manufacturing overhead = depreciation expense of factory equipment

3. PEZ Candy Inc. would be more likely to use job costing to calculate the cost of one particular birthday party hosted at the PEZ Visitor Center. The reason is that it is a specific event. It does not involve a continuous process.

Explanation:

a) Data and Calculations:

Materials for PEZ candy include:

Direct materials:

Sugar (95%)

Fruit flavoring

Coloring

Corn syrup

Product = PEZ candies

Services: customized birthday parties

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3 years ago