Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Ocean traders of North America is a firm based in Mobile, Alabama, that specializes in seafood exports and commonly uses letters of credit (L/Cs) to ensure payment. It recently experienced a problem, however. Ocean Traders has an irrevocable L/C issued by a Russian bank to ensure that it would receive payment upon shipment of 16,00 tons of fish to a Russian firm. This bank backed out of its obligation, however, stating that it was not authorized to guarantee commercial transactions.
a. Explain how an irrevocable L/C would normally facilitate the business transaction between the Russian importer and Ocean Traders of North America (the U.S. exporter).b. Explain how the cancellation of the L/C could create a trade crisis between the U.S. and Russian firms.c. Why do you think situations like this (cancellation of the L/C) are rare in industrialized countries?d. Can you think of any alternative strategy that the U.S. exporter could have used to protect itself better when dealing with a Russian importer?
A new machine that will last four years would cost $50,000. What is the cost of taking on the new line of business? Round to the nearest dollar and assume a 9 percent cost of capital.
Reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges, it had issued $4,000 of bonds that carry a 7 percent interest rate,
The 1-year forward rates for transactions beginning at times t = 0, 1, 2 are t f where 0 f = 0.06; 1 f = 0.065; 2 f = 0.07. Compute the par yield for a 3-year bond. please answer quickly, objective type question.
how much interest on interest will she have earned by the time her daughter starts college? Assume she makes no further deposits or withdrawals.
IBM and AT&T decide to swap $1 million loans. IBM currently pays 9.0% fixed and AT&T pays 8.5% on a LIBOR + 0.5% loan. What is the net cash flow for IBM if they swap their fixed loan for a LIBOR + 0.5% loan and LIBOR rises to 8.5%? show work.
Application: Developing a Budget, Review the information in this week's Learning Resources (including the Media) dealing with both volume budgets and staffing and supply budgets, what is included in each, and how they vary from each other.
At the end of 2005, the Long Life Light Bulb Corporation declared it had produced a gross profit of $1 million. The company has also established that over the course of this year it has incurred $345,000 in operating costs and $125,000 in interest co..
A stock has a beta of 1.05, the expected return on the market is 14 percent, and the risk-free rate is 8.4 percent. What must the expected return on this stock be?
Computation of the current price of the bond and What is the value of the same bond if the interest is paid semi-annually
Calculate the degree of operating leverage for 10,500 and 12,000 based on a starting point of 9,500 used in part b.
Explain decision making on the basis of the IRR and NPV criterion and Compute the net present value for each project if the firm has a 10% cost of capital. Which project should be adopted
What should be the prices of the following preferred stocks if comparable securities yield 7 percent? Why are the valuations different?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd