On October 31, Year 1, Trailer Homes Company (THC) determines that it will need to buy 175,000 lbs of aluminum siding panels on April 30, Year 2. In order to hedge the risk that the price of the aluminum siding panels will increase in six months. the Treasurer simultaneously takes a long position in an aluminum forward contract, where the company agrees to purchase 175,000 lbs of aluminum for $3.756/lb. on April 30, Year 2. The prices for the aluminum siding panels and the aluminum forward are as follows October 31, Year 1 January 31, Year 1 April 30 Year 2 Aluminum Siding/lb. Aluminum Forward/lb. $5.390 $5.552 $5.768 $3.756 $3.881 $3.925
Q: What is the present value of end-of-year cashflows of $1,000 per year, with the first cashflow…
A: Present value is the value today of future cash flows discounted to present terms using a specified…
Q: Over the last nine years, you have earned the following returns on the NZX Year Return (ending in…
A: High inflation is correlated with lower returns. Value stocks tends to perform better than growth…
Q: (a) (b) (c) What is the difference between the preferences of a risk-neutral manager and a risk-…
A:
Q: Third Avenue Railroad Company First Gold 5s were bonds (issued by the Third Avenue Railroad Company)…
A: Given The maturity date of bonds is 1 july 1937.
Q: QUESTION 1 In a forfaiting transaction, the forfait O buys the notes at a discount from face value…
A: Question 1 Forfaiting means when an Exporters sells his receivables to a financial service company…
Q: any four ways that render a contract voidable
A: These factors sometimes replicate that:There has been miscommunication round the agreement by either…
Q: Charecteristics Model approach IN FINANCE, can be used in determining the discount rate in equity…
A: The discount rate in the equity valuation describes the returns in the long term given as a…
Q: What is the number of months required for a deposit of $1320 to earn $16.50 interest at 3.75%?
A: Information Provided: Deposit = $1320 Interest amount = $16.50 Interest rate = 3.75%
Q: Question 3: A manufacturing Co. Ltd. opens the costing records, with the balances as on 1 April,…
A:
Q: A finance charge includes which elements?
A: Finance charge is a very common occurrence associated with the use of credit. For example users of…
Q: You plan to borrow $25,000 at a 3.4% annual interest rate compounded annually. The terms require you…
A: In case of amortization loan, equal payments at equal interval over the loan period are made. A…
Q: To start saving for retirement, Alexandra opens an RRSP that earns interest at a rate of 4.9%…
A: The future value is useful to investors and financial planners, as they use it to estimate how much…
Q: will you please show solution without excel step by step
A: As per the given information: Initial salary is $40,000 Salary rise after first year to $44,200…
Q: 5) Pisces Corporation is planning to buy a machine for $20,000 that may run for 4 years (probability…
A: We can incorporate risk in capital budgeting decision by developing a probability distribution of…
Q: As a medical administrator at the local hospital, you made a total purchase of $4447.85. Currently,…
A: Given: Total purchases = $4447.85 Saline solutions =40 Catheters = 25 Syringe = 150 Cost per saline…
Q: Returns earned over a given time period are called realized returns. Historical data on realized…
A: Given: Year Stock Return 2016 25.00% 2017 17.00% 2018 30.00% 2019 42.00% 2020 13.00%
Q: The free cash flow valuation model is based on the same principle as dividend valuation models; that…
A: Free cash flow can be used to determine the value of a share price. It uses the same principle of…
Q: What is the economic rationale for compulsory auto insurance? Suppose motor insurance coverage was…
A: Insurance as a sector is key to the development of any economy. Providing Security and Protection…
Q: It has decided to take factoring services of Pacific Factors on terms that factor will buy…
A: Please find below attached file
Q: Tony and Arlene Demming are trying to figure out their current financial health. They will pay off…
A: Gross household income is $5700 per month Interest income on investment is $95 per month
Q: You really want to go to the next FIFA World Cup. You estimate that there will be an "all-inclusive…
A: Cost of package (FV) = $200,000 Monthly interest rate (r) = 0.005 or 0.5% Number of savings (n) = 36…
Q: We have three assets A1, A2, A3 and the following information: E(r1)=15%, σ1=12%,; E(r2)=19% and…
A: The diversification of assets: A portfolio comprises various assets in order to reap the benefits of…
Q: An investor owns a portfolio of assets that will generate a cash flow of $445 with prob. 0.25,…
A: A portfolio is a collection of financial investments that may include closed-end funds and exchange…
Q: Ten (10) years ago Bruce invested $1,000. Today, the investment is worth $3,250. If interest is…
A: The annual rate of return is the compounded rate of return earned on the given principal amount…
Q: One year ago, Henderson Honey issued a 15-year bond for $1,000. The bond's coupon rate of interest…
A: Current yield formula= (coupon interest rate*maturity value)/previous year bond price. Capital…
Q: Which project would be the best investment to use if project B has (1,250,000) 3 yr payback, cost of…
A: Net Present Value: It is a measure of absolute profitability used by project managers in the areas…
Q: Discuss relevance of securities to Fund Managers and Treasurers when they trade in self-policed…
A: Fund manager has the responsibility of implementation of the investment strategy of the funds as…
Q: Ins 8. Suppose that today's interest rate on 1-year bonds is 4% (i10 year bonds next year, in two…
A: The Expectations Theory states that the investor would earn the same interest whether they invested…
Q: A bond with a coupon rate of 8.2% paid semi-annually, maturing in 5 years at a value of $1,000 and a…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…
Q: 2. Over the last five years, you have earned the following returns on the NZX Year Return (ending in…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: pay Cashbox Ltd has the option of buying a new computer system or 5 payments of $85000 each to be…
A: Present value would be the equivalent value of money today considering the time and interest rate…
Q: How much of the $520 million in assets represents permanent assets, and how much represents…
A: Information Provided: Growth rate = 7% Total assets at beginning = $420 million Total assets at the…
Q: Mr Smith's annual salary is $45,000. His regular workweek consists of four 10-hour workdays. He is…
A: Biweekly and bimonthly can mean the same thing because of the prefix bi-, which here can mean…
Q: Please solve complete in one hour
A: Answer (a) The Balanced Scorecard approach considers non-financial performance as well as financial…
Q: the financial institution do to lower these risks
A: The main risk is that interest rates will rise. Therefore, banks have to pay higher interest rates…
Q: At the end of 2021, the price per share of CAA PLC was 140 pence with a book value per share of 60…
A: Hi, since you have posted a question with multiple subparts we will answer the first three as per…
Q: The renowned artist Pablo Picasso created hundreds of paintings and sculptures as well as drawings…
A: Solution of a. According to the rule of supply and demand in economics, when something is available…
Q: Axis Wells and Excavation (AWE) currently generates $198,000 in annual credit sales. AWE sells on…
A: Day sales outstanding is the number of days it takes for the company to recover its revenue from…
Q: Note: The October 10 payment is not enough to cover the interest accrued to October 10. Nothing can…
A: Variable rate Loans: Loans whose interest rates are reset periodically are known as variable rate…
Q: What is the difference (Who can invest?) between Money Market, Bond Market, Equity Market, Foreign…
A: The money market is the part of the financial market that invests in short-term debt with low risk…
Q: State whether the following statement is true or false and provide a written explanation of your…
A: Dividend growth model A method that helps the investors to calculate the current price of the stock…
Q: Dynamic Systems has an outstanding bond that has a $1,000 par value and a 9 percent coupon rate.…
A: Intreast for 6 months =1000×9%×6/12=45 YTM For 6 months =12×6/12=6% Number of periods =10×2=20…
Q: Given the following information: Exchange rate - Canadian dollar 0.665 per DM (spot) Canadian dollar…
A: Steps) 1)Identification of currency 2)forward premium % 3)apply Rule 4)Action Arbitrage profit…
Q: he Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition…
A: The variable cost is directly tied to the amount of output, and a change in production alters the…
Q: International banking is both necessary and sufficient for financial development and stability,…
A: International business is very common now days and has been growing and important for any country…
Q: What are the financial issues, export practicalities and technicalities that an exporter would need…
A: When forming the export strategy there is need to consider the important financial policies which…
Q: Green Penguin Pencil Company has a total asset turnover ratio of 6.00x, net annual sales of $25…
A: Debt ratio indicates extent of leverage. The debt ratio is defined as the ratio of total debt to…
Q: What is the DEAR of the bank's
A: DEAR(Daily Earning at Risk) measures the potential loss in portfolio's value over a one-day period…
Q: Use present value analysis to determine which of the following three payment sequences would you…
A: Interest rate is r is 5% To Find: Present Value of All Sequence
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Commonly Corp. agrees to sell 100 of its products to M&H Co. for P30, 000 in August 2021. (P300 per product). Over the following six months, M&H will get the goods. The contract is updated after 60 items have been delivered, and Communion agrees to supply 80 more items for an extra P21, 600 (P270 per station) 90 more goods were supplied by commonly towards the conclusion of the year. Every sale is cash-on-delivery. Assume that the extra clause represents a potential amendment to the original contract. What annual income will be reported on the contract?In August 2021, Commonlo Corp. commits to selling 100 of its merchandise to M&H Co. for P30,000 (P300 per product). The merchandise is to be delivered to M&H over the next 6 months. After 60 merchandises were delivered, the contract is modified and Commonlo promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Commonlo delivered an additional 90 products. All sales are cash on delivery. Assume that the additional term is a prospective modification to the original contract How much revenue will be recognized on the contract for the year 2021? Next « PreviousCommando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per product). The goods will be delivered to M&H over the following six months. The contract is updated after 60 merchandises are supplied, and Common offers to provide 80 more things for an extra P21,600 (P270 per station). Commonlo provided an extra 90 goods at the end of the year. All sales are made in cash upon delivery. Consider that the added term is a potential change to the original contract. That however much income will be recognised under the contract in 2021?
- In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000 (P300 per product). The merchandise is to be delivered to Boy over the next 6 months. After 60 mierchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Atlantic delivered an additional 90 products. All sales are cash on delivery How much revenue will be recognized on the contract for the year 2020?In August 2020, Atlantic Corp, commits to selling 100 of its merchandise to Boy Co. for P30,000 (P300 per product). The merchandise is to be delivered to Boy over the next 6 months. After 60 mierchandises were delivered, the contract is modified and Commonio promises to deliver 80 more products for an additional P21,600 (P270 per station). At year-end, Atlantic delivered an additional 90 products. All sales are cash on delivery Assume that the additional terms anpective modification to the original contract. How much revenue will be recognized on the contract for the year 2020?Bridgeport Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Indigo Airlines for a period of 10 years. The normal selling price of the equipment is $281,987, and its unguaranteed residual value at the end of the lease term is estimated to be $21,100. Indigo will pay annual payments of $42,000 at the beginning of each year. Bridgeport incurred costs of $193,400 in manufacturing the equipment and $3,800 in sales commissions in closing the lease. Bridgeport has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 11%. Indigo Airlines has an incremental borrowing rate of 11%.
- On March 1, 2021, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand- alone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the stand- alone price of the replacement insurance service to be $60 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. Complete this question by entering your answers in the tabs below. Req 1 Reg 2 to 4 How many performance obligations are in this contract? Number of…On March 1, 2021, Gold Examiner receives $164,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,577 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $83 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1.The Titanic Shipbuilding Company has a noncancelable contract to build a small cargo vessel Construction involves a cash outlay of $271,000 at the end of each of the next two years. At the end of the third year, the company will receive payment of $645,000. The company can speed up construction by working an extra shift. In this case, there will be a cash outlay of $585,000 at the end of the first year followed by a cash payment of $645,000 at the end of the second year. Use the IRR rule to show the (approximate) range of opportunity costs of capital at which the company should work the extra shift. Note: Enter your answers as a percent rounded to 2 decimal places. Enter the smallest percent first. The company should work the extra shit the cost of capital is between
- On January 1, 20x6, BUNNY, a real estate company, entered into a contract to construct a subdivision on a piece of land it has acquired and, when construction is complete, to deliver the finished houses to their customers. The following information pertains to the said contract each customer is to sign. Each house costs 4,000,000 each (a total of 10 houses are to be constructed). Construction will take 2 years to complete. Payment terms are 50% by the end of the 1st year, 25% at the end of the 2nd year and the balance will be paid after 3 months from the final turn-over. The client can transfer the contract to another, should they not feel satisfied with the house on or before the house is 50% complete. The company incurred the following expenses for 20x6. Total cost of land- 2,000,000 Estimated total cost of construction - 25,000,000 (including the costs for the common areas, streets and light posts amounting to 5,000,000); Estimated total cost of contract for the 10 houses -…On March 1, 2021, Gold Examiner receives $166,000 from a local bank and promises to deliver 96 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink’s, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,680 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $70 per unit. Brink’s picked up the gold bars from Gold examiner on March 30, and delivery to the bank occurred on April 1. Required: Prepare the journal entry Gold Examiner wold record on March 1, March 30 and April 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select “ No journal entry required” in the first account field.) Record the receipt of cash by Gold Examiner. (March 01, 2021…On January 1, 20x6, BUNNY, a real estate company, entered into a contract to construct a subdivision on a piece of land it has acquired and, when construction is complete, to deliver the finished houses to their customers. The following information pertains to the said contract each customer is to sign. Each house costs P4,000,000 each (a total of 10 houses are to be constructed). Construction will take 2 years to complete. Payment terms are 50% by the end of the 1" year, 25% at the end of the 2nd year and the balance will be paid after 3 months from the final turn-over. The client can transfer the contract to another, should they not feel satisfied with the house on or before the house is 50% complete. The company incurred the following expenses for 20x6. Total cost of land - P2M; Estimated total cost of construction - P25M, (including the costs for the common areas, streets and light posts amounting to P5M); Estimated total cost of contract for the 10 houses-P40M; In CY 20x5, total…