User Account

All Pages

Manufacture wine goblets

Assignment Help Finance Basics
Reference no: EM131412100

You manufacture wine goblets. In mid-June, you receive and order for 10,000 goblets from Europe. Payment of €400,000 is due in mid-December. You expect the €uro to rise from its present rate of $1=€1.5, to a rate of $1=€1.4 by December. You can borrow €uros at 6% per annum and dollars at 15% per annum (assume that the rate at which you borrow is same as the rate you would receive if you invested in a bank account). What should you do if?

(a) Scenario 1: the current 180-day forward rate is $1 = €1.35

(b) Scenario 2: the current 180-day forward rate is $1 = €1.45

Reference no: EM131412100

Questions Cloud

Implement a vpn system that supports pptp : Your report must address the protocols and ports that need to be considered as the firewall policy is created. Prepare a one- to two-page report that addresses these issues.
Construct a dot plot or stem plot of the averages : Construct a dot plot or stem plot of the averages from the sampling by touch.- Construct a dot plot or stem plot of the averages from the sampling by random numbers.
Determining the responsibility of everyone : At Lakeside Manufacturing, budgets are the responsibility of everyone. Each department collaborates in determining its expected needs, and sales personnel determine the likely sales volume. Al Talbott, one of the production managers, believes in b..
Who is whole foods market to millennial moms : Who is Whole Foods Market to Millennial Moms? Emphasize the emotional elements and personal meaning of Whole Foods Market to Millennial Moms.
Manufacture wine goblets : You manufacture wine goblets. In mid-June, you receive and order for 10,000 goblets from Europe. Payment of €400,000 is due in mid-December. You expect the €uro to rise from its present rate of $1=€1.5, to a rate of $1=€1.4 by December.
Which competitors might be adversely affected : The rumor mill has been filled with stories of Amazon and its desire to the enter the world of brick and mortar retailing. Now comes evidence (via a liquor license) that it is planning a drive-through grocery. Your task is to write a position pape..
Whether or not given is a good sampling plan : She decides to sample lakes by randomly dropping grains of rice on the map and measuring the area of the lakes hit by the rice. Comment on whether or not you think this is a good sampling plan.
Weighted average cost of capital : What is the weighted average cost of capital for Crescent Corporation?
What was the purpose of the research project : What did the results of the study imply about the frequency of automated attacks versus the frequency of manually controlled attacks against Web servers?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the effective annual rates

Jasmine Scents has been given two competing offers for short-term financing. Both offers are for borrowing $15,000 for 1 year. The first offer is a discount loan at 8%; the second offer is for interest to be paid at maturity at a stated interest rate..

  Average accounts receivable balance

Eco-Friendly Products has annual credit sales of $900,000 and an average collection period of 30 days. Assume a 360-day year. What is the company`s average accounts receivable balance?

  Question based on public finance

Assume military bureaucracy consistently misinforms Congress on the total expenses of producing military hardware. suppose that it underestimates the actual costs and that the political representatives believe these estimates.

  What is effective annual rate on arrangement

A firm sells its $1,150,000 receivables to a factor for $1,138,500. The average collection period is 1 month. What is the effective annual rate on this arrangement?

  A firm uses only debt and equity in its capital structure

a firm uses only debt and equity in its capital structure. the firms weight of equity is 75. the firms cost of equity

  What is swimkidss margin of safety

Swimkids is a swimsuit manufacturer. They sell swim suits at a selling price is $30 per unit. Swimkids variable costs are $18 per unit. Fixed costs are $87,200. Swimkids expects sales of $280,800 next year. What is Swimkids's margin of safety?

  What profit-maximizing strategy should she choose

A General Motors executive is considering how to price the 2013 Chevy Volt electric car in order to maximize profits for the company.

  Which strategy works best if a bidding war erupts

If you were Smith's financial advisor, which strategy would you advise he establish? Or would you argue that he not speculate on this takeover?

  Problem regarding the inventory turnover

ABC Corporation currently has an inventory turnover of 11.9, a payables turnover of 21.63, and a receivables turnover of 13.07. How many days are in the cash cycle?

  Which payment option would you prefer

You need a kidney replacement and thus you will be paying for it. The doctor offers you two options to pay: $40,000 in 4 years or $65,000 in 10 years. The current discount rate is 8%. Which payment option would you prefer.

  Assume that the expected return on stocks is 12 the

assume that the expected return on stocks is 12 the standard deviation of stocks is 18 and the riskfree rate is 5.

  Understanding of how to make important decisions

Your boss, the chief executive officer (CEO), realizes that you do not have much practice in this higher level, decision-making process and has asked you to write a memo describing your understanding of how to make important decisions.

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd