The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase. The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings. Characters in the case: Company AP Person TC To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Question

Want to see the full answer?

Answer 1

Question

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please provide answer

Radium Tech Inc. has net sales of $320,000, cost of goods sold of $210,000, selling expenses of $15,000, and non-operating expenses of $6,000. What is the company's gross profit? correct answer

answer plz

Answer 2

Question

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Answer 6

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Answer 7

Chapter 10, Problem 3CDQ

Summary Introduction

Case summary:

The Person TC (Chief Executive officer of AP Company) has reported a loss of $5 billion in their revenue during the fourth quarter of 2016. This loss in the Company’s revenue was due to exchange rates changes. The impact on the company was significant, because the company’s revenue has reduced by 2% from an 8% increase.

The AP Company was engaged very much in hedging to protect from the foreign exchanges fluctuations. However, the appreciation of the dollar is much faster than forecasted so the company’s hedging activity has been unsatisfactory in order to protect the value of its overseas earnings.

Characters in the case:

Company AP

Person TC

To discuss: The reasons for the Country U’s dollar were so strong during the period 2014-2016 and whether the strength in the dollar a rational response to economic fundamentals.

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 10.5 - Prob. 1DYK Ch. 10 - Prob. 1CTD Ch. 10 - Prob. 2CTD Ch. 10 - Prob. 3CTD Ch. 10 - Prob. 4CTD Ch. 10 - Prob. 5CTD Ch. 10 - Prob. 1CDQ Ch. 10 - Prob. 2CDQ Ch. 10 - Prob. 3CDQ Ch. 10 - Prob. 4CDQ

Solution Summary: The author analyzes the reasons why the country's dollar was strong during the period 2014-2016 and whether it was a rational response to economic fundamentals.

Concept explainers

Want to see the full answer?

Chapter 10 Solutions