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!
Q. Example on Bills of exchange?
ARG Co will be apprehensive to protect the sterling value of its expected dollar receipt. The quoted forward rates demonstrate that the dollar is weakening against sterling so that the sterling value of $500000 dollars will have fallen in three months. ARG Co is able to enter into a contract now with a bank to exchange its expected dollar receipt in three months time at the current forward rate. Such a agreement is called a forward exchange contract and is binding on both the bank and ARG Co. By acquiescent to an exchange at the current forward rate the company will be protected against any further deterioration in the sterling-dollar exchange rate. The sterling value occur from the contract will be $500000/1·8174 = £275118.
A bill of exchange is signifies of payment initiated by an exporter. It is signed (accepted) by an importer representative agreement to pay the amount on the face of the bill. This payment may perhaps either be on demand (sight bill) or on a mutually agreed future date (term bill).
The risk connected with overseas receivables is reduced by bills of exchange since these bills are a liquid short-term financial asset. They are able to be discounted sold at less than face value to a bank in order to provide advance payment of the amount due to be received from overseas receivables. A smaller discount will be charged if the bill of exchange is confirmed (countersigned) by the importer's bank.
Bills of exchange can be as well used in conjunction with documentary letters of credit also known as documentary credits to reduce export credit risk even further.
The purchase price is expected to be in the region of £30m - £40m now (year 0 ?? 2003) and further cash flow effects might include: ?? Annual cash inflows from New You ?? in a rang
Q. Explain Risk Adjusted Discount Rate Method? In the risk adjusted discount rate method the future cash flow from capital projects are discount at the hazard adjusted discount
Q. Degree of uncertainty in predicting cash balances? Probability approaches identify a degree of uncertainty in predicting cash balances and allow for a range of outcomes to
A Certificate of Deposit (CD) can be defined as a negotiable promissory note, secure and short-term in nature. CDs are issued at a discount to the face value, the
Examine about the Risk-based auditing A risk based audit will be reviewing the risk management process and considering main risks of the organisation as a whole. Risk manage
Limitations of participation: 1. Technology and organization today are so complex that specialized work roles are required making it difficult for people to participate succes
Q. Illustrate the Nature of Financial Management? Less Descriptive as well as More Analytical: - Financial management is less descriptive and more analytical. Because of the
In January 2010 your firm bought from an Italian firm goods payable in Euros worth EU2,000,000. Suppose that at that time the exchange rate of the Euros was 1EU=$1.25. Because th
Q. Basic Methods of Risk Management? Risk is inherent in business and hence there is no escape from the risk for a businessman. However, he may face this problem with greater c
While poverty reduction has become the main goal of development efforts, there is an on-going and sometimes heated debate about the elements that would be at the center of any sens
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd