Reference no: EM131077950
1. If a U.S. firm desires to avoid the risk from exchange rate fluctuations and it will need C$200,000 in 90 days to make payment on imports from Canada, it could
A) obtain a 90-day forward purchase contract on Canadian dollars.
B) obtain a 90-day forward sale contract on Canadian dollars.
C) purchase Canadian dollars 90 days from now at the spot rate.
D) sell Canadian dollars 90 days from now at the spot rate.
2. Assume that Swiss investors are benefiting from CIA due to a high U.S. interest rate. Which force results from the act of this CIA?
A) Upward pressure on the Swiss franc's spot rate
B) Upward pressure on the U.S. interest rate
C) Downward pressure on the Swiss interest rate
D) Upward pressure on the Swiss franc's forward rate
|
Balance sheets assets liabilities-equity-accounts payable
: Just Dew It Corporation reports the following balance sheet information for 2014 and 2015. JUST DEW IT CORPORATION 2014 and 2015 Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets Current liabilities Cash $ 4,350 ..
|
|
Trade deficit-floating exchange rate will adjust to reduce
: Explain why a stronger dollar could enlarge the U.S. balance of trade deficit. Why could a weaker dollar affect the U.S. balance of trade deficit? It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current ..
|
|
After accounting for the premium paid
: A firm wants to use an option to hedge NZ$11.5 million in receivables from New Zealand firms. The premium is $0.03. The exercise price is $0.50. If the option is exercised, what is the total amount of dollars received (after accounting for the premiu..
|
|
What would be the total system costs
: Assume the firm changed to a continuous review system to control the item depicted in Table 5. What would be the total (annual) Q system costs?
|
|
Firm desires to avoid risk from exchange rate fluctuatios
: If a U.S. firm desires to avoid the risk from exchange rate fluctuations and it will need C$200,000 in 90 days to make payment on imports from Canada, it could. Assume that Swiss investors are benefiting from CIA due to a high U.S. interest rate. Whi..
|
|
Discount rate should the firm apply to project cash flows
: Titan Mining Corporation has 14 million shares of common stock outstanding, 900,000 shares of 9 percent preferred stock outstanding and 220,000 ten percent semiannual bonds outstanding, par value $1,000 each. What discount rate should the firm apply ..
|
|
Project has the same risk as the firms typical project
: Titan Mining Corporation has 14 million shares of common stock outstanding, 900,000 shares of 9 percent preferred stock outstanding and 220,000 ten percent semiannual bonds outstanding, par value $1,000 each. What discount rate should the firm apply ..
|
|
Long-term debt ratio-firm have in net fixed assets
: Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.6. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets..
|
|
Calculations indicates that the projects are equally risky
: In calculating the risk associated with two potential projects (A & B), which of the following statistical calculations indicates that the projects are equally risky?
|