The Legal Environment of Business: Text and Cases
10th Edition
ISBN: 9781337535878
Author: Frank B. Cross; Roger LeRoy Miller
Publisher: Cengage Learning US
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Chapter 21, Problem 6BCP
Summary Introduction
Case s ummar y: A person CH was working as a janitor for the company KFM-GM. She developed sensitivity to the cleaning products. The physician gave a restriction of non-exposure to the cleaning solutions. She asked the company to eliminate the restrooms from her cleaning route or a respirator should be provided to her by the company. The company told her that there would be no work available within the restriction physicians had imposed on her. The company refused to provide the respirator to CH.
To find: The violation of the American with Disabilities Act by the company KFM-GM.
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General accounting question
Victoria Exports (Canada). A Canadian exporter, Victoria Exports, will be receiving six payments of €13,800, ranging from now to 12 months in the future. Since the company keeps cash balances in both Canadian dollars
and U.S. dollars, it can choose which currency to exchange the euros for at the end of the various periods. Which currency appears to offer the better rates in the forward market? (Click on the icon to import the table into
a spreadsheet.)
Period
Days Forward
spot
1 month
C$/euro
1.3347
1.3370
US$/euro
1.3219
1.3224
m
2 months
3 months
1.3392
30
60
1.3229
90
1.3235
180
1.3438
12 months
360
1.3464
1.3239
1.3269
6 months
1.3416
Calculate the forward premium, the Canadian dollar proceeds, and the difference from the spot rate proceeds in the C$/Euro forward market below: (Round the forward premium to three decimal places and the Canadian
dollar amounts to the nearest cent.)
Days
Forward Premium
C$ Proceeds of
Difference
Period
Forward
C$/euro
on the C$/euro
€13,800
Over Spot…
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The Legal Environment of Business: Text and Cases
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