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Marrrta [24]
3 years ago
10

Rodgers Inc. is imports paper from Shanghai China. In a typical transaction Rodgers receives a delivery of paper from the Chines

e Company and pays the company in Yuan. In all transactions, the amounts and payments are set today, but all deliveries, payments, and revenues come 90 days later. How can Rodgers hedge its foreign currency risk
Business
1 answer:
kari74 [83]3 years ago
5 0

Answer:

Rodgers can hedge its foreign risk by using a Contract to buy Yuan in the futures market today at an agreed upon price in 90 days.

Explanation:

Solution

Since Rodgers receives a delivery of paper from the Chinese Company and pays the company in Yuan, so he has to hedge his exchange rate risk by buying or purchasing Yuan future contract for 90 days.

So, Rodgers Incorporation should make a contract to buy Yuan in the future market today at an agreed price in 90 days.

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In terms of dollars, the marginal benefit of working five days a week instead of four days a week is A) the wages received for 4
dalvyx [7]

Answer:

B) the wages received for the fifth day of work.

Explanation:

Marginal benefit is the increment in benefit generated by an increase by one unit of output. In this situation, the marginal benefit is given by difference in wage of working five days a week from the wage of working four days a week. Therefore, the marginal benefit is the wage received for the fifth day of work.

The answer is alternative B)

7 0
3 years ago
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
sertanlavr [38]

Answer:

$9.687

Explanation:

Given:

Year 3 dividend = $1.00

Year4&5 growth rate = 17%

Constant rate = 7%

Required return rate = 16%

Year 4 dividend wil be:

D4 = 1.00 * 1+growth rate

= 1.00 * (1+0.17)

= $1.17

Year 5 dividend=

D5 = $1.17 * (1+0.17)

= $1.3689

Value of stock after year 5 will be given as:

\frac{D5 * (1+growth rate)}{required return - growth rate}

= \frac{1.3689*(1+0.07)}{0.16-0.07}

= $16.2747

For the current value of stock, we have:

Cv= Fd* Pv of discounting factor

Where Cv = current value of stock

Fd = future dividend

Pv = Present value of discounting factor

Therefore,

C_v = \frac{1.00}{1.16^3} + \frac{1.17}{1.16^4} + \frac{1.3689}{1.16^5} + \frac{16.2746}{1.16^5}

=$9.6871382455

≈ $9.687

The value of stock today =

$9.687

8 0
3 years ago
a consumer has $100 to spend on two goods X and Y with prices $3 and $5 respectively. drive the equation of the budget line​
kotegsom [21]

Answer:

3X + 5Y = 100

Explanation:

Given that a consumer has $ 100 to spend on two goods X and Y with prices $ 3 and $ 5 respectively, the equation that represents this distribution is the following:

3X + 5Y = 100

Thus, the consumer may consume different combinations of products, as long as the sum of both amounts is $100 as a final result. For instance:

3x20 + 5X8 = 100

60 + 40 = 100

3x5 + 5x17 = 100

15 + 85 = 100

5 0
2 years ago
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iogann1982 [59]

I assumed you typo 821 by $21 per unit, then the answer will be

1-  financial disadvantage of accepting the special order is loss of $60,000

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a minimum selling price for these units is $14.00 per unit because it’s the price the company can earn if accept a special order, though lower than cost of producing and selling at $18.00

6 0
3 years ago
Ana has won a lottery. she was offered two options to receive the award: she can either take it in five installments of $60,000
ANTONII [103]
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8 0
3 years ago
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