Suppose a U.S. importer purchases an Italian product today but will not pay for it for 90 days. The
cost of the product today is 35,000 euros. The spot exchange rate today is .6233 euros per dollar. The
importer creates a forward-market hedge.
The 90-day forward rate is .6100 euros per dollar. The
amount the U.S. importer will pay in 90 days is
A) $56,667. B) $57,377. C) $56,153. D) $55,683.
B
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In most situations, when writing a persuasive message to a manager in your own organization, ask for the desired action
A) in the first paragraph, along with stating the reader benefit. B) using a confident, hard-sell approach. C) by apologizing for the need for a decision. D) but leave the method of response up to the reader. E) after presenting most of the background information.
If a firm has $400,000 in credit sales and $80,000 in average accounts receivable, what will
happen to average days collections if accounts receivable increases? A) Average days collections will stay the same. B) Average days collections will increase. C) Average days collections will decrease. D) Cannot tell with the information provided.
A vertical allocation of customers or territory A)is a per se violation of Section 1 of the Sherman Act
B)is a rule of reason violation of the Sherman Act. C)is not a violation of the Sherman Act. D)is illegal if it adversely affects one party over the other.
The efficient market hypothesis
A) is based on the assumption that prices of securities fully reflect all available information. B) holds that the expected return on a security equals the equilibrium return. C) both A and B. D) neither A nor B.