3.67 Swiss franc Bid Ask 1.43 1.47 1.68 1.76 1.93 2.01 2.15 2.23 2.35 2.43 U. S. dollar Bid Ask 5.24 5.26 5.43 5.46 5.56 5.59 5.71 5.74 5.79 5.83 Japanese yen Bid Ask 0.23 0.26 0.36 0.39 0.56 0.59 0.82 0.85 1.15 1.18 1. （Fill out the answers， 7 pts） a. (Motivation of Interest rate swap) Caterpillar Inc has issued $200m Euro-dollar bonds. The coupon rate of these bonds is equal to Libor plus 1.5%. Coupons are paid annually. The company will lose if the interest rate (Libor) ____rises___(rises/drops)
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Managerial Issues Derek Kilkenny 4-29-13 University of Phoenix Paul Stokes When it comes to an organization’s information technology‚ the infrastructure management is part of the essential operations along with processes‚ equipment‚ policies‚ human resources‚ data‚ and external contracts. The goals of infrastructure management is to reduce duplication effort‚ enhance the flow of information throughout an information system‚ ensure an adherence to standards‚ promote adaptability
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References: Edmonds‚ T.P.‚ Tsay B.‚ & Olds‚ P.R. (2011). Fundamental Managerial Accounting Concepts. New York‚ NY: McGraw-Hill Itrwin.
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intervals for u. b. Using the 95 percent confidence interval‚ can we be 95 percent confident that u is at least 50 pounds? Explain c. Using the 99% confidence interval‚ can we be 99% confident that u is at least 50 pounds? explain d. Based on your answers to parts b and c‚ how convinced are you that the new 30-gallon trash bag is the strongest such bag on the market? (a) (i) 95% confidence interval for μ:n = 40 x-bar = 50.575 s = 1.65 % = 95 Standard Error‚ SE = σ/Ön = 0.2609 z- score
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Cost drivers‚ as propounded by Porter (1985) are the structural causes of the cost of an activity in the value chain. They determine the behaviour and level of costs within an activity. A cost driver can be completely‚ partly or not at all under the control of a firm. It is therefore important for a manager to understand these factors because according to the Neo-classical model of the firm‚ the firm’s objective is to maximise profit by producing a given level of output at the minimum cost level
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1. Basic Concepts Product cost = Direct Labor (DL) + Direct Materials (DM) + Manufacturing Overhead (MOH) Financial accounting Managerial Accounting + Sales + Sales - COGS - Variable Costs = Gross Profit = Contribution Margin - SG&A - Fixed Costs = Net Profit = Net Profit COGS (Cost of Goods Sold) is an “inventoriable cost” ( recorded in the Balance Sheet as inventory and expensed (Income Statement) when goods are sold SG&A (Selling‚ General & Administrative) are
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departments within a business‚ but they collaborate over time to achieve some set purpose‚ goal or project. For instance‚ before a small business creates a new product‚ it may organize a team composed of people from all departments – engineering‚ finance‚ legal‚ marketing‚ etc. – to consider all aspects of the potential new product to avoid costly surprises down the road. With a team‚ individuals recognize the expertise and talents of others needed to achieve the team’s goal. Additionally‚ teams are
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rather small company with a limited investor base utilizing this approach would seem to be counter intuitive. The possibility would exist with a high probability that offering goals may not be reached or sustained for any length of time post IPO. To answer the above question‚ please include responses to the following issues together with other issues that you think are important: ●The type of investors AVG is likely to attract ●The lessons learned from Google and Morningstar from their auction IPOs
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is better. Q2. Assume that you have given a choice between incurring an immediate outlay of Rs 10‚000 and having to pay Rs 2310 a year for 5 years (first payment due one year from now) the discount rate is 11%. What would be your choice? Will your answer change if Rs 2310 is paid in the beginning of each year for 5 years? Ans Option 1: Annuity Deferred: 2310*3.6959 = 8537.5 Option 2: Annuity Due 2310*3.6959 *1.11 = 9477 Both the options are better than paying lumpsum of Rs
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CASE I THE RISING EURO HAMMERS AUTO PARTS MANUFACTURERS Udo Pfeiffer‚ the CEO of SMS Elotherm‚ a German manufacturer of machine tools to engineer crankshafts for cars‚ signed a deal in late November 2004‚ to supply the U.S. operations of DaimlerChrysler with $1.5 million worth of machines. The machines would be manufactured in Germany and exported to the United States. When the deal was signed‚ Pfeiffer calculated that at the agreed price‚ the machines would yield a profit of €30‚000
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