Speculating originally provided the economic rationale to create financial futures
Indicate whether the statement is true or false.
Answer: FALSE
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Concerning foreign exchange trading, bank purchases from and sales to their customers are classified as retail transactions when the amount involved
a. is less than 100,000 units of currency. b. is less than 500,000 units of currency. c. is less than 1 million units of currency. d. is greater than 1 million units of currency.
Research can include all of the following methods EXCEPT ________
A) interviews B) intuitive information C) test scores D) questionnaires
Blooming Products Inc sells flower bulbs to local nurseries. Each bag of bulbs sells for $2. The company's accountant has prepared the following sales forecast (in bags) for the fourth quarter of 2013: October 5,000 bags November 9,000 bags December 8,000 bags Historically, the cash collection of sales has been as follows: 50 percent in the month of sale, 40 percent in the month following sale,
and 10 percent in the second month following sale. Cash receipts for December are expected to be: A) $13,800 B) $ 8,000 C) $16,200 D) $ 8,100
Which of these statements about valuation models is NOT correct?
A) NPV employs a weighted average cost of capital discount rate that reflects potential reinvestment. B) IRR and NPV calculations typically make the same investment recommendations only when the projects are independent of each other. C) If cash flows are not normal, IRR may arrive at multiple solutions. D) IRR is a more robust determinant of project viability than NPV.