XYZ Corporation, located in the United States, has an accounts payable obligation of ¥750 million payable in one year to a bank in Tokyo. The current spot rate is ¥116/$1.00 and the one year forward rate is ¥109/$1.00. The annual interest rate is 3 percent in Japan and 6 percent in the United States. XYZ can also buy a one-year call option on yen at the strike price of $0.0086 per yen for a premium of 0.012 cent per yen. The future dollar cost of meeting this obligation using the forward hedge is
A. $6,653,833.
B. $6,450,000.
C. $6,880,734.
D. $6,545,400.
Answer: C
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Which one of the following procedures is incorrect for setting up and maintaining a petty cash fund?
a. A check is prepared for a fixed amount; when the check is cashed, the money is entrusted to a petty cash custodian. b. An entry is recorded to establish the fund and obtain the cash. c. When appropriate documentation is presented, cash payments are made from the fund; the petty cash custodian retains the documentation. d. When the petty cash fund is replenished, an entry is recorded to recognize an increase in the petty cash account.
Use the information in the table regarding this seven-month project to calculate the SPI in terms of dollars and compare it with the SPI calculated in terms of time. Perform both calculations for months 1 through 6
Then use the SPI(t) to provide the Estimate at Completion for Time (EACt). Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 PV ($) $125 $275 $500 $875 $1,485 $2,325 $2,670 EV ($) $150 $320 $510 $850 $1425 $2280 $0
Bruce lived in Tennessee and had an appliance store in Tennessee. Bruce's residence and the appliance store, however, were within twenty miles of the Virginia state line. Bruce advertised heavily in both Tennessee and Virginia. Susan, one of his customers from Virginia, had an unfortunate experience with a refrigerator purchased from Bruce in that the refrigerator caught on fire and burned down
Susan's house which was worth $200,000 . Susan obtained proof that the refrigerator had actually been returned to Bruce because it malfunctioned and that, rather than repair the refrigerator and sell it as used, Bruce sold the refrigerator to her as new without repairs. Susan sued Bruce in federal district court in Virginia on a number of theories. Bruce opposed the lawsuit on the basis that it could only be filed in a state court and also on the basis that he was not subject to jurisdiction in Virginia. Which of the following is the most likely result in regard to Bruce's claim that he was not subject to jurisdiction in a court located in Virginia? a. Bruce would not be subject to jurisdiction in a Virginia court because he did not live there nor was his store located there. b. Bruce would not be subject to jurisdiction in a Virginia court because a consumer complaint was involved, not a dispute involving two business entities. c. Bruce would be subject to the jurisdiction of courts in Virginia because Tennessee borders Virginia, and federal courts have jurisdiction over citizens from any surrounding state. d. Bruce would be subject to the jurisdiction of courts in Virginia because his contacts with the state were such that maintenance of the suit would not offend traditional notions of fair play and substantial justice.
Which of the following is a drawback of using the industry life cycle as a framework to guide strategic choice?
A. The framework does not explain everything about changes in industries. B. The framework believes that the number and size of competitors remain constant throughout the life cycle. C. The framework is based on the tenet that industries can be rejuvenated even in the declining stage. D. The framework believes that the life cycle of industries is unpredictable.