If BT had hedged its U.S. dollar interest rate swap with P&G, explain how BT would have lost twice when the deal collapsed
What will be an ideal response?
BT lost once when P&G refused to pay its side of the deal. If BT hedged the P&G deal, then any gains it made from P&G would have been offset (except for a small spread) by losses to its hedge counterparties. P&G's refusal to pay did not nullify BT's obligation to pay the counterparties with whom it hedged. Therefore, BT would have lost twice.
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The task of crafting a company's strategy is typically a job for the company's whole management team, not just a small group of senior executives. True or false? Explain and support your answer.
What will be an ideal response?
Revealing the presentation plan to the audience decreases their understanding of the presentation
Indicate whether the statement is true or false
Austin's Pub Supply uses the periodic inventory system and the gross method of accounting for sales. The company had the following sales transactions during August:August 2Sold merchandise to Jo's Pub and Grub on credit for $3,750, terms 2/15, n/60. The items sold had a cost of $1,200. August 4 Jo's Pub and Grub returned merchandise that had a selling price of $300. The cost of the merchandise returned was $110.August 13Jo's Pub and Grub paid for the merchandise sold on August 2, taking any appropriate discount earned.Prepare the journal entries that Austin's Pub Supply must make to record these transactions.
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"The stock price of a passively managed ETF will also sell in the marketplace within 1% of its NAV." Explainwhy you agree or disagree with this statement
What will be an ideal response?