May I please have some assistance with the below questions?
Q1. A firm’s cash position would most likely be helped by
a. delaying payment of accounts payable.
b. more liberal credit policies for their customers.
c. purchasing land for investment purposes.
d. holding larger inventories.
Q2. Financial forecasting is the process of attempting to estimate a firm’s future financing requirements.
a. True
b. False
Q3. What differentiates “discretionary financing needs” from “external financing needs”?
a. assets
b. retained earnings
c. sales
d. spontaneous liabilities
Q4. MDX Sales Corp. is expecting a 10% increase in sales next year. MDX has an inventory balance of $1,000,000 and uses the percent of sales forecasting method. Which of the following could explain why the inventory forecast of $1,100,000 might be too high?
a. The current inventory balance of $1,000,000 is lower than usual because of a one-time end of year fire sale.
b. The company is going to change its depreciation method in the coming year.
c. The growth in sales could be as high as 15%.
d. A fixed amount of inventory is required to do business, so inventory doesn’t increase proportionally with sales.
Q5. Issuing new short-term bonds to finance an expansion is an example of spontaneous financing.
a. True
b. False
Q6. Cash budgets do not provide reasonable predictions for asset requirements when the asset purchases are lumpy.
a. True
b. False
Q7. The cash budget represents a detailed plan of future cash flows.
a. True
b. False
Q8. A company calculates its discretionary financing needed and determines this amount of capital cannot be raised at a reasonable cost. Which of the following would reduce the amount of discretionary financing needed?
a. reduce the company’s net profit margin
b. reduce the company’s sales growth rate
c. increase the company’s dividend payout ratio
d. increase the proportion of the company’s sales that are made on credit
Q9. Gerentology Associates, a highly profitable company, is considering two growth strategies, one that will achieve sales growth of 20% in one year, and the other that will achieve 20% growth in sales, but over a 4-year time frame. Assuming Gerentology Associates uses the percent of sales method, which of the following statements is true?
a. Discretionary financing needed will be much greater for the 4-year growth strategy.
b. Discretionary financing needed could be much less for the 4-year growth strategy due to retained earnings.
c. The asset balances at the end of 4 years for strategy two will be much greater than the asset balances required at the end of year one for strategy one.
d. Discretionary financing needed could be much greater for the slow growth strategy because interest charges will accumulate on the company’s debt.
Q10. The key ingredient in a firm’s financial planning is an accurate sales forecast.
a. True
b. False
Q11. For a growing firm, external financing needed will most likely be greater than discretionary financing needed due to increases in accounts payable and accruals.
a. True
b. False
Q12. A company collects 25% of its sales during the month of sale, 65% one month after the sale, and 10% two months after the sale. The company expects sales of $50,000 in August, $80,000 in September, $90,000 in October, and $60,000 in November. How much money is expected to be collected in October?
a. $90,000
b. $79,500
c. $55,000
d. $22,500
Q13. Which of the following is a disadvantage of the use of current liabilities?
a. greater risk of illiquidity
b. less flexibility
c. higher interest costs
d. the hedging principle
Q14. The Missouri River Pendant Company uses commercial paper to satisfy part of its short-term financing requirements. Next week, it intends to sell $18 million in 90-day maturity paper on which it expects to have to pay discounted interest at an annual rate of 7 percent per annum. In addition, Stoney River expects to incur a cost of approximately $25,000 in dealer placement fees and other expenses of issuing the paper. What is the effective annual cost of credit to Missouri River?
a. 7.7%
b. 7.5%
c. 7.3%
d. 7.1%
Q15. Simpson Conglomerates borrows $12,000 for a short-term purpose. The loan will be repaid after 120 days, with Simpson paying a total of $12,400. What is the approximate cost of credit using the APY, or annual percentage yield, calculation?
a. 4.33%
b. 10.34%
c. 12.25%
d. 12.46%
Q16. Which of the following would normally occur if a firm increases its investment in current assets?
a. The firm’s liquidity would be improved.
b. The firm’s net working capital would decline.
c. The firm’s liquidity would be worsened.
d. The firm’s profit margin would improve.
Q17. Total assets must always equal the sum of temporary, permanent, and spontaneous sources of financing.
a. True
b. False
Q18. Blastdale Corp. is considering borrowing $15,000 for a 60-day period. The firm will repay the $15,000 principal amount plus $200 in interest. What is the effective annual rate of interest? Use a 360-day year.
a. 7.2%
b. 8.0%
c. 8.2%
d. 10.5%
Q19. You are working on your company’s cash budget for the coming year and you believe there may be short periods of time where financing is required. Which of the following sources of short-term financing is most certain to be available when needed?
a. trade credit
b. line of credit with a bank
c. revolving credit agreement with a bank
d. accounts receivable
Q20. Which of the following is most likely to be a temporary source of financing?
a. commercial paper
b. preferred stock
c. long-term debt
d. common stock
Q21. Marley Financial plans to sell $50,000,000 of 120-day commercial paper, on which it expects to pay discounted interest at a rate of 5% per year. Dealer fees are expected to be $30,000. The effective cost of credit to Marley Financial is
a. 5.27%.
b. 5.64%.
c. 6.22%.
d. 7.53%.
Q22. The cash conversion cycle is a measure of a firm’s effectiveness in managing its working capital.
a. True
b. False
Q23. The primary sources of collateral for secured loans are accounts receivable and inventory.
a. True
b. False
Q24. The primary advantage that pledging accounts receivable provides is
a. the flexibility it gives to the borrower.
b. that the financial institution bears the risk of collection.
c. the low cost as compared with other sources of short-term financing.
d. that the financial institution services the accounts.
Q25. Idaho Mining, Inc borrows at prime plus 1.5% on its line of credit. The line requires a 15% compensating balance. If prime rate is 9%, what is the nominal APR of the line of credit?
a. 9.0%
b. 6.0%
c. 10.6%
d. 12.4%
Q26. The time necessary for a deposited check to clear through the commercial banking system causes which of the following types of floats?
a. mail
b. processing
c. transit
d. disbursing
Q27. Flashbinder Guitars, Inc. is considering a lockbox system that will increase its check processing cost by $.15 per check. The company estimates an average check size of $1,700 and expects the lockbox to reduce check collection time by 3 days. What annual before-tax yield must Flashbinder Guitars, Inc. earn on its marketable securities for the lockbox system to be beneficial?
a. 1.825%
b. 1.118%
c. 1.074%
d. 0.735%
Q28. If you were a treasurer for a Fortune 1,000 corporation who has responsibility for investing “excess cash balances,” which of the following alternatives would you be least likely to select?
a. commercial paper
b. common stock
c. bankers’ acceptances
d. U.S. Treasury bills
Q29. Which of the following would be an example of the “precautionary motive” for a firm holding cash balances?
a. purchase of inventory
b. anticipating a strike
c. purchase fixed assets
d. make dividend payments
Q30. An extremely liquid asset is one that can be sold for cash quickly without a reduction in price below its current market value.
a. True
b. False
Q31. A retailer sells most of its merchandise on credit and bills clients monthly. Which of the following elements of float does the retailer have the most control over?
a. mail float
b. processing float
c. transit float
d. disbursing float
Q32. In the basic EOQ model the optimal inventory level is the point at which
a. total cost is minimized.
b. total revenue is maximized.
c. carrying costs are minimized.
d. ordering costs are minimized.
Q33. Mountain Snow Sports, Inc. is trying to determine the optimal order quantity for snow boards for the next twelve months. Annual sales are expected to be 1,000,000 units at a retail price of $400 each. The cost of carrying snow boards is $80 per year. Studies show that it costs Mountain Snow $250 to prepare and receive an order. What is the EOQ?
a. 2,750
b. 2,500
c. 2,000
d. 1,850
Q34. Cash management system objectives include
a. maintaining sufficient cash to meet disbursal needs.
b. maintaining idle cash balances at “doomsday event” levels.
c. maintaining accounts payable balances at zero by early bill payment.
d. all of the above are objectives of the system.
Q35. Krause Precision Tools, Inc. will use an estimated 700,000 small processors in its manufacturing process next year. The carrying cost of processor inventory is $3.00 per unit and the cost of reordering processors is $100 per order. What is Krause’s economic ordering quantity for small processors?
a. 6,340
b. 6,831
c. 7,118
d. 7,300
Q36. Transit float is caused by
a. the time necessary for a deposited check to clear the banking system and become usable funds to the company.
b. the time funds are not available, through the company’s bank account, until its payment check has cleared the banking system.
c. the elapsed time from the moment a customer mails his remittance check until the firm begins to process it.
d. the time required for the firm to process remittance checks.
Q37. The purpose of carrying inventory is to
a. make different production processes more dependent on sales.
b. make sales more independent of the production process.
c. have collateral for loans.
d. improve the current ratio.
Q38. A British-made component costs 36 U.K. pounds. A company in the United States needs to buy these components and the current indirect quote indicates that one dollar will buy .6250 pounds. Ignoring transactions costs, how much will one component cost in U.S. dollars?
a. $22.50
b. $45.94
c. $57.60
d. $72.00
Q39. Money-market hedges and forward market hedges rely on the
a. interest rate parity theory.
b. purchasing power parity theory.
c. law of large numbers.
d. capital asset pricing model.
Q40. Suppose the current spot rate in New York is .0119 dollars per yen. Inflation for the coming year in the United States is expected to be 3%, while inflation for the coming year is Japan is expected to be only 1%. Using the purchasing power parity theory, what is the expected spot rate at the end of the year should be
a. .0110147 dollars per yen.
b. .0108159 dollars per yen.
c. .0138373 dollars per yen.
d. .0121356 dollars per yen.
Q41. Foreign currency forward rates aid traders by reducing uncertainty regarding future market fluctuations.
a. True
b. False
Q42. Only purely domestic firms that buy all of their inputs and sell all of their outputs in their home countries are unaffected by events in international financial markets.
a. True
b. False
Q43. If you are an importer of goods and you will make payment for the purchase of inventory on 90-day terms, which of the below is the correct term for the exchange rate that you will use?
a. indirect rate
b. spot rate
c. direct rate
d. forward rate
Q44. A narrow spread indicates efficiency in the spot exchange market.
a. True
b. False
Q45. With international investing, unlike domestic investing, exchange rate risk could cause a marginally-positive-NPV project to be rejected due to the additional risk.
a. True
b. False
Q46. The spot exchange rate is 1.57 dollars per pound. The 30-day forward exchange rate is .6211 pounds per dollar. Therefore, pounds in the forward market are selling at a ________ to the current spot rate.
a. .958 discount
b. .958 premium
c. .04 discount
d. .04 premium
Q47. Assume that the British pound is worth 1.6242 U.S. dollars. If a new Jaguar costs $138,000, what is the cost in British pounds?
a. 201,000
b. 84,965
c. 71,642
d. 119,998
Q48. The 30-day forward exchange rate is .01073033 dollars per yen. If this forward rate represents a per year discount of 2.5% from the current spot rate, what is the current spot exchange rate?
a. .01073033 dollars per yen
b. .01257754 dollars per yen
c. .01329684 dollars per yen
d. .01093833 dollars per yen
Q49. A wide bid/ask spread could indicate which of the following?
a. the presence of arbitrageurs
b. large volume transactions are taking place
c. frequent trading of a currency
d. an inefficient market
Q50. The asked rate is also known as the selling rate or the offer rate.
a. True
b. False
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May 3 2010 Leven Corp Negotiated A Short Term Loan Of 685 000 The Loan Is Due O
/in Uncategorized /by developerMay 3, 2010, Leven Corp. negotiated a short- term loan of $ 685,000. The loan is due October 1, 2010, and carries a 6.86% interest rate. Use ordinary interest to calculate the interest. What is the total amount Leven would pay on the maturity date?
SolutionParticularLoanInterest RatePeriod Amount6850000.06865 months Interest19579.58Total amount payable= Loan+InterestTotal amount payable= 704579.6
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May 40 June 39 July 36 August 44 Using Simple Exponential Smoothing With An Init
/in Uncategorized /by developermay 40
June 39
July 36
August 44
using simple exponential smoothing with an initial forecast for june of 36 and smoothing constant of x=.6, forecast the number of couches to be sold in September. if you also had to make a forecast for October (two months from now) what would it be
Which of the forecasting methods used in part c above will mbe more responsive to changes in demand
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May Co Prepared An Aging Of Its Accounts Receivable At December 31 2007 And Dete
/in Uncategorized /by developerMay Co. prepared an aging of its accounts receivable at December 31, 2007 and determined that the net realizable value of the receivables was $300,000. Additional information is available as follows:Allowance for uncollectible accounts at 1/1/07—credit balance: $ 34,000Accounts written off as uncollectible during 2007: 23,000Accounts receivable at 12/31/07: 325,000Uncollectible accounts recovered during 2007: 5,000For the year ended December 31, 2007, May’s bad debt expense would be
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May I Ask For The Answer For This Question
/in Uncategorized /by developerMay i ask for the answer for this question?
Prior to 1997, PepsiCo, a major soft drink company, had a restaurant division consisting of Kentucky Fried Chicken, Taco Bell, and Pizza Hut. The only cola beverage these restaurants served was Pepsi. Assume that the major reason PepsiCo owned fast food restaurants is an attempt to increase its share of the cola market. Under this assumption, some Pizza Hut patrons who order a cola at the restaurant and are told they are drinking a Pepsi will switch and become Pepsi drinkers instead of Coke drinkers on other purchase occasions. However, studies have shown that some customers refuse to eat at restaurants unless they can get a Coke.
PepsiCo sells Pepsi Cola to non-PepsiCo restaurants at RM0.53 per gallon. This is the market price of Pepsi-Cola. Pepsi-Cola’s variable manufacturing cost is RM0.09 per gallon and its total (fixed and variable) manufacturing cost is RM0.22 per gallon. PepsiCo produces Pepsi-Cola in numerous plants located around the world. Plant capacity can be added in small increments (e.g., a half-million gallons per year). The cost of additional capacity is approximately equal to the fixed costs per gallon of RM0.13.
Required:
What transfer price should be set for Pepsi transferred from the soft drink division of PepsiCo to a PepsiCo restaurant such as Taco Bell? Justify your answer. You are to consider the transfer price in the presence of divisional interdependencies.
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May I Have The Answer Of This As Soon As Possible
/in Uncategorized /by developer(1, -0.5)
Plot the following vector fields in the x-y plane; For each vector field, investigate the following questions that get at the nature of the vector field.
(a) How the magnitude changes when (x, y) → 0 and (x, y) → ∞
(b) How a particle would move if dropped at any given point? Choose 2-3 points and describe and/or draw their trajectories.
(i) Indicate any special points or axis that may be exceptions to part (b) such as any undefined points
(c) Indicate the sign (+ or -) of the divergence and curl in 2 regions. You do not have to choose the same regions for the divergence and curl.
1. F(x, y) = x^i + y^j
2. F(x, y) =− yi^ + x j^
3. F(x, y) = i ︿ + j ︿
4. F(x, y) = − xi^ + −y j ^
5. F(x, y) = − yi − y j ^
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May I Please Have Some Assistance With The Below Questions
/in Uncategorized /by developerMay I please have some assistance with the below questions?
Q1. A firm’s cash position would most likely be helped by
a. delaying payment of accounts payable.
b. more liberal credit policies for their customers.
c. purchasing land for investment purposes.
d. holding larger inventories.
Q2. Financial forecasting is the process of attempting to estimate a firm’s future financing requirements.
a. True
b. False
Q3. What differentiates “discretionary financing needs” from “external financing needs”?
a. assets
b. retained earnings
c. sales
d. spontaneous liabilities
Q4. MDX Sales Corp. is expecting a 10% increase in sales next year. MDX has an inventory balance of $1,000,000 and uses the percent of sales forecasting method. Which of the following could explain why the inventory forecast of $1,100,000 might be too high?
a. The current inventory balance of $1,000,000 is lower than usual because of a one-time end of year fire sale.
b. The company is going to change its depreciation method in the coming year.
c. The growth in sales could be as high as 15%.
d. A fixed amount of inventory is required to do business, so inventory doesn’t increase proportionally with sales.
Q5. Issuing new short-term bonds to finance an expansion is an example of spontaneous financing.
a. True
b. False
Q6. Cash budgets do not provide reasonable predictions for asset requirements when the asset purchases are lumpy.
a. True
b. False
Q7. The cash budget represents a detailed plan of future cash flows.
a. True
b. False
Q8. A company calculates its discretionary financing needed and determines this amount of capital cannot be raised at a reasonable cost. Which of the following would reduce the amount of discretionary financing needed?
a. reduce the company’s net profit margin
b. reduce the company’s sales growth rate
c. increase the company’s dividend payout ratio
d. increase the proportion of the company’s sales that are made on credit
Q9. Gerentology Associates, a highly profitable company, is considering two growth strategies, one that will achieve sales growth of 20% in one year, and the other that will achieve 20% growth in sales, but over a 4-year time frame. Assuming Gerentology Associates uses the percent of sales method, which of the following statements is true?
a. Discretionary financing needed will be much greater for the 4-year growth strategy.
b. Discretionary financing needed could be much less for the 4-year growth strategy due to retained earnings.
c. The asset balances at the end of 4 years for strategy two will be much greater than the asset balances required at the end of year one for strategy one.
d. Discretionary financing needed could be much greater for the slow growth strategy because interest charges will accumulate on the company’s debt.
Q10. The key ingredient in a firm’s financial planning is an accurate sales forecast.
a. True
b. False
Q11. For a growing firm, external financing needed will most likely be greater than discretionary financing needed due to increases in accounts payable and accruals.
a. True
b. False
Q12. A company collects 25% of its sales during the month of sale, 65% one month after the sale, and 10% two months after the sale. The company expects sales of $50,000 in August, $80,000 in September, $90,000 in October, and $60,000 in November. How much money is expected to be collected in October?
a. $90,000
b. $79,500
c. $55,000
d. $22,500
Q13. Which of the following is a disadvantage of the use of current liabilities?
a. greater risk of illiquidity
b. less flexibility
c. higher interest costs
d. the hedging principle
Q14. The Missouri River Pendant Company uses commercial paper to satisfy part of its short-term financing requirements. Next week, it intends to sell $18 million in 90-day maturity paper on which it expects to have to pay discounted interest at an annual rate of 7 percent per annum. In addition, Stoney River expects to incur a cost of approximately $25,000 in dealer placement fees and other expenses of issuing the paper. What is the effective annual cost of credit to Missouri River?
a. 7.7%
b. 7.5%
c. 7.3%
d. 7.1%
Q15. Simpson Conglomerates borrows $12,000 for a short-term purpose. The loan will be repaid after 120 days, with Simpson paying a total of $12,400. What is the approximate cost of credit using the APY, or annual percentage yield, calculation?
a. 4.33%
b. 10.34%
c. 12.25%
d. 12.46%
Q16. Which of the following would normally occur if a firm increases its investment in current assets?
a. The firm’s liquidity would be improved.
b. The firm’s net working capital would decline.
c. The firm’s liquidity would be worsened.
d. The firm’s profit margin would improve.
Q17. Total assets must always equal the sum of temporary, permanent, and spontaneous sources of financing.
a. True
b. False
Q18. Blastdale Corp. is considering borrowing $15,000 for a 60-day period. The firm will repay the $15,000 principal amount plus $200 in interest. What is the effective annual rate of interest? Use a 360-day year.
a. 7.2%
b. 8.0%
c. 8.2%
d. 10.5%
Q19. You are working on your company’s cash budget for the coming year and you believe there may be short periods of time where financing is required. Which of the following sources of short-term financing is most certain to be available when needed?
a. trade credit
b. line of credit with a bank
c. revolving credit agreement with a bank
d. accounts receivable
Q20. Which of the following is most likely to be a temporary source of financing?
a. commercial paper
b. preferred stock
c. long-term debt
d. common stock
Q21. Marley Financial plans to sell $50,000,000 of 120-day commercial paper, on which it expects to pay discounted interest at a rate of 5% per year. Dealer fees are expected to be $30,000. The effective cost of credit to Marley Financial is
a. 5.27%.
b. 5.64%.
c. 6.22%.
d. 7.53%.
Q22. The cash conversion cycle is a measure of a firm’s effectiveness in managing its working capital.
a. True
b. False
Q23. The primary sources of collateral for secured loans are accounts receivable and inventory.
a. True
b. False
Q24. The primary advantage that pledging accounts receivable provides is
a. the flexibility it gives to the borrower.
b. that the financial institution bears the risk of collection.
c. the low cost as compared with other sources of short-term financing.
d. that the financial institution services the accounts.
Q25. Idaho Mining, Inc borrows at prime plus 1.5% on its line of credit. The line requires a 15% compensating balance. If prime rate is 9%, what is the nominal APR of the line of credit?
a. 9.0%
b. 6.0%
c. 10.6%
d. 12.4%
Q26. The time necessary for a deposited check to clear through the commercial banking system causes which of the following types of floats?
a. mail
b. processing
c. transit
d. disbursing
Q27. Flashbinder Guitars, Inc. is considering a lockbox system that will increase its check processing cost by $.15 per check. The company estimates an average check size of $1,700 and expects the lockbox to reduce check collection time by 3 days. What annual before-tax yield must Flashbinder Guitars, Inc. earn on its marketable securities for the lockbox system to be beneficial?
a. 1.825%
b. 1.118%
c. 1.074%
d. 0.735%
Q28. If you were a treasurer for a Fortune 1,000 corporation who has responsibility for investing “excess cash balances,” which of the following alternatives would you be least likely to select?
a. commercial paper
b. common stock
c. bankers’ acceptances
d. U.S. Treasury bills
Q29. Which of the following would be an example of the “precautionary motive” for a firm holding cash balances?
a. purchase of inventory
b. anticipating a strike
c. purchase fixed assets
d. make dividend payments
Q30. An extremely liquid asset is one that can be sold for cash quickly without a reduction in price below its current market value.
a. True
b. False
Q31. A retailer sells most of its merchandise on credit and bills clients monthly. Which of the following elements of float does the retailer have the most control over?
a. mail float
b. processing float
c. transit float
d. disbursing float
Q32. In the basic EOQ model the optimal inventory level is the point at which
a. total cost is minimized.
b. total revenue is maximized.
c. carrying costs are minimized.
d. ordering costs are minimized.
Q33. Mountain Snow Sports, Inc. is trying to determine the optimal order quantity for snow boards for the next twelve months. Annual sales are expected to be 1,000,000 units at a retail price of $400 each. The cost of carrying snow boards is $80 per year. Studies show that it costs Mountain Snow $250 to prepare and receive an order. What is the EOQ?
a. 2,750
b. 2,500
c. 2,000
d. 1,850
Q34. Cash management system objectives include
a. maintaining sufficient cash to meet disbursal needs.
b. maintaining idle cash balances at “doomsday event” levels.
c. maintaining accounts payable balances at zero by early bill payment.
d. all of the above are objectives of the system.
Q35. Krause Precision Tools, Inc. will use an estimated 700,000 small processors in its manufacturing process next year. The carrying cost of processor inventory is $3.00 per unit and the cost of reordering processors is $100 per order. What is Krause’s economic ordering quantity for small processors?
a. 6,340
b. 6,831
c. 7,118
d. 7,300
Q36. Transit float is caused by
a. the time necessary for a deposited check to clear the banking system and become usable funds to the company.
b. the time funds are not available, through the company’s bank account, until its payment check has cleared the banking system.
c. the elapsed time from the moment a customer mails his remittance check until the firm begins to process it.
d. the time required for the firm to process remittance checks.
Q37. The purpose of carrying inventory is to
a. make different production processes more dependent on sales.
b. make sales more independent of the production process.
c. have collateral for loans.
d. improve the current ratio.
Q38. A British-made component costs 36 U.K. pounds. A company in the United States needs to buy these components and the current indirect quote indicates that one dollar will buy .6250 pounds. Ignoring transactions costs, how much will one component cost in U.S. dollars?
a. $22.50
b. $45.94
c. $57.60
d. $72.00
Q39. Money-market hedges and forward market hedges rely on the
a. interest rate parity theory.
b. purchasing power parity theory.
c. law of large numbers.
d. capital asset pricing model.
Q40. Suppose the current spot rate in New York is .0119 dollars per yen. Inflation for the coming year in the United States is expected to be 3%, while inflation for the coming year is Japan is expected to be only 1%. Using the purchasing power parity theory, what is the expected spot rate at the end of the year should be
a. .0110147 dollars per yen.
b. .0108159 dollars per yen.
c. .0138373 dollars per yen.
d. .0121356 dollars per yen.
Q41. Foreign currency forward rates aid traders by reducing uncertainty regarding future market fluctuations.
a. True
b. False
Q42. Only purely domestic firms that buy all of their inputs and sell all of their outputs in their home countries are unaffected by events in international financial markets.
a. True
b. False
Q43. If you are an importer of goods and you will make payment for the purchase of inventory on 90-day terms, which of the below is the correct term for the exchange rate that you will use?
a. indirect rate
b. spot rate
c. direct rate
d. forward rate
Q44. A narrow spread indicates efficiency in the spot exchange market.
a. True
b. False
Q45. With international investing, unlike domestic investing, exchange rate risk could cause a marginally-positive-NPV project to be rejected due to the additional risk.
a. True
b. False
Q46. The spot exchange rate is 1.57 dollars per pound. The 30-day forward exchange rate is .6211 pounds per dollar. Therefore, pounds in the forward market are selling at a ________ to the current spot rate.
a. .958 discount
b. .958 premium
c. .04 discount
d. .04 premium
Q47. Assume that the British pound is worth 1.6242 U.S. dollars. If a new Jaguar costs $138,000, what is the cost in British pounds?
a. 201,000
b. 84,965
c. 71,642
d. 119,998
Q48. The 30-day forward exchange rate is .01073033 dollars per yen. If this forward rate represents a per year discount of 2.5% from the current spot rate, what is the current spot exchange rate?
a. .01073033 dollars per yen
b. .01257754 dollars per yen
c. .01329684 dollars per yen
d. .01093833 dollars per yen
Q49. A wide bid/ask spread could indicate which of the following?
a. the presence of arbitrageurs
b. large volume transactions are taking place
c. frequent trading of a currency
d. an inefficient market
Q50. The asked rate is also known as the selling rate or the offer rate.
a. True
b. False
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May I Use You Again To Finish Up The Presentation Project
/in Uncategorized /by developerMay I use you again to finish up the presentation project?
Name:Tutor:Course:Date:Question 1: How long does it take to complete the BSN course?Answer:There are different durations that are taken to complete the course in BSN. It depends on ofmany…
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May Somebody Please Construct This Essay For Me To Reflect On I Am A 13 Year Old
/in Uncategorized /by developerMay somebody please construct this essay for me to reflect on, I am a 13 year old and I cant answer this question, I was a 5 yer old when the events of this prompt occurred. I cannot support this argument with observation or experience.
Regarding America’s 2009 economic crisis,
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Maya Made This Picture To Represent A Chemical Reaction There Are Two Overlappin
/in Uncategorized /by developerMaya made this picture to represent a chemical reaction: There are two overlapping circles on the left, one white and the other with vertical lines. It is labeled ZX. There is a gray circle labeled Y on the right of ZX. There is a plus sign between ZX and Y. An arrow pointing right is shown on the right of the gray circle labeled Y. Two overlapping circles, one white and the other gray are shown on the right of the arrow and is labeled XY. On the right of XY there is a small circle with vertical lines labeled Z. There is a plus sign between XY and Z
Which of the following statements best explains the type of chemical reaction represented by Maya’s picture?
It is neither a synthesis reaction nor a decomposition reaction because the total mass of the products is less than the total mass of the reactants.
It is neither a synthesis reaction nor a decomposition reaction because two reactants form two products.
It represents a synthesis reaction because the same atoms are present in the reactants and products.
It represents a decomposition reaction because two reactants break apart and form two products.
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Mayer Biotechnical Inc Develops Manufactures And Sells Pharmaceuticals
/in Uncategorized /by developerMayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significant research and development (R&D) expenditures are made for the development of new drugs and the improvement of existing drugs. During 2011, $220 million was spent on R&D. Of this amount, $30 million was spent on the purchase of equipment to be used in a research project involving the development of a new antibiotic. The controller, Alice Cooper, is considering capitalizing the equipment and depreciating it over the five-year useful life of the equipment at $6 million per year, even though the equipment likely will be used on only one project. The company president has asked Alice to make every effort to increase 2011 earnings because in 2012 the company will be seeking significant new financing from both debt and equity sources. “I guess we might use the equipment in other projects later,” Alice wondered to herself.Required:1.Assuming that the equipment was purchased at the beginning of 2011, by how much would Alice’s treatment of the equipment increase before tax earnings as opposed to expensing the equipment cost?2.Discuss the ethical dilemma Alice faces in determining the treatment of the $30 million equipment purchase.
Question:Mayer Biotechnical, Inc., develops, manufactures, and sells pharmaceuticals. Significantresearch and development (R&D) expenditures are made for the development of newdrugs and the…
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