Ex10-Transaction Exposure

1 ook MC algo 21-11 Triangle Arbitrage The exchange rates in New York for $1 are Can$1.1121 or £7407. In Toronto, Can$1 will buy £6748. How much profit can you earn on $16,000 using triangle arbitrage? Multiple Choice $210.51 $198.81 $26313

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Nikul

Problem 11 Consider the following information about two alternative credit strategies: Refused Credit Price per unit Cost per unit Grant Credit P75 P71 P32 P33 Quantity sold per quarter Probability of payment 6,200 6,900 1.0 .90 The higher cost per unit reflects the expense associated with credit orders, and the higher price per unit reflects the existence of a cash discount. The credit period will be 90 days, and the cost of debt is .75 percent per month. Required: Based on this information, should credit be granted? a. b. In (a), what does the credit price per unit have to be a break even? c. In (a), suppose we can obtain a credit report for P1.50 per customer. Assuming that each customer buys one unit and that the credit report correctly identifies all customers who will not pay, should credit be extended?

What would be the formulas for these?

Year 10 1 2 3 4 5 Units 30,000 66,000 73,000 80,000 88,000 Price (E) 250 278 308 342 380 Variable 140 147 154 162 170 cost per unit (E) Exchange rate ($/E) 2.0000 1,96 1.92 1.89 1.85 1.82

First part only

Page 328 EXERCISE 7.9 Industry Characteristics and Collection Performance e LO7-8 The following information was taken from annual reports of Goodyear Tire & Rubber and PPL Corp.., a public utility: Goodyear PPL Net sales $18.1 billion $ 11.5 billion Average accounts receivable 2.3 billion 923 million a. Compute for each company the accounts receivable turnover rate for the year. b. Compute for each company the average number of days required to collect outstanding receivables (round answers to nearest whole day). c. Explain why the figures computed for Goodyear in parts a and b are so different from those computed for PPL.

F1

Question 36 A company has daily purchases of $10,000 from its supplier.  The supplier offers trade credit under the following terms:  3/20, net 50 days.  The company finally chooses to pay on time (pay in the 50th day) but not to take the discount. We assume 365 days per year. What is the average level of the company’s free trade credit? ______     $30,000     $170,000     $200,000     $300,000 Question 37 Based on the information from Question 36, what is the average level of the company’s total trade credit?     $170,000     $200,000     $300,000     $500,000 38 . Based on the information from Question 36, what is the average level of the company’s costly trade credit?     $170,000     $200,000     $300,000     $500,000 Question 39 Based on the information from Question 36, what is the nominal annual cost of the firm’s costly trade credit?     28.6%     29.3%     33.5%…

Bid 7.05 Ask EURUSD 1M FWD EURUSD 2M FWD 14.99 15.15 EURUSD 3M FWD 22.57 23.05 EURUSD 4M FWD 30.25 30.55 EURUSD 5M FWD 38.03 38.43 EURUSD 6M FWD 45.91 47.2 EUR/USD Spot 7.34 1.1320 1.1322 What is the average annualized forward premium/discount for the EUR if you use the 4M forward contract?

QUESTION 25 The face amount of accounts receivable for Rio Inc. is $20,000. It was estimated that 5% of the accounts will not be collected, cash discounts of $500 will be exercised, and $200 of sales returns will be experienced. The net realizable value of accounts receivable is     $19,500     $19,300     $20,000     $18,300

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US Kimmel, Financial Accounting, 8e Helo I System Announcements CALCULATOR PRINTER VERSION 4BACK NEXT Multiple Choice Question 187 Pharoah Company had net credit sales during the year of $1407600 and cost of goods sold of $424000. The balance in accounts receivable at the beginning of the year was $115200 and at the end of the year was $190800. What was the accounts receivable turnover? О 6.00 7.90 О 1.20 O 9.20 Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 used SAVE FOR LATER SUBMIT ANSWER

X Cut LB Copy Format Painter Clipboard 1 Calibri 11 V Font Α Α΄ BIU A V Conditional Format as Cell Formatting Table Styles ✓ Styles Alignment 3. A bank offers to pay you a stated annual rate of 5%, compounded daily. How many years will it take you to double your money in this acc Wrap Text Merge & Center S General S $%9588-00 Number 4 ← V Insert A 1. You plan to invest $1,000 today in an investment that you expect will earn a stated annual rate of 9% compounded semi-annually. How much will your investment be worth in 10 years? ato of 5% compounded daily. How many years will it take you to double w

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QUESTION 16 Con-yay & JZ Incorporated has an average collection period (accounts receivable/daily credit sales) of 74 days. What is the accounts receivable turnover ratio (credit sales/accounts receivable) for Smart and Smiley? You may use a 360-day year. a. 4.86 b. 2.47 c. 2.66 d. 1.68

QUESTION 6 This year your company has $34 million of credit sales and average receivables of $7 million. Your company factor receivables by discounting 1%. What is the APR of factoring the receivables? 1.01% 1.00% 4.91% 5.00% 4.80%

plan A plan B plan C Down payment 1,789.91 2,309.65 3,764.51 Annual payments 5,097.70 7,450.16 9,845.78 Years 20 20 20 Discount rate 12% 12% 12% What is the present value of plan B?

Q. 4

Nine Question

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