Business, 29.05.2020 06:01 zuberskylar

5. Louisville Co. is a U. S. firm considering a project in Austria which it has an initial cash outlay of $6 million. Louisville will accept the project only if it can satisfy its required rate of return of 15 percent. The project would definitely generate 2 million euros in one year from sales to a large corporate customer in Austria. In addition, it also expects to receive 4 million euros in one year from sales to other minor customers in Austria. Louisville's best guess is that the euro’s spot rate will be $1.26 in one year. Today, the spot rate of the euro is $1.40, while the one-year forward rate of the euro is $1.34. If Louisville accepts the project, it would hedge the receivables resulting from sales to the large corporate customer, and none of the expected receivables due to expected sales to other minor customers.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 00:40

Gdonald was unhappy that his company did not provide good transport facilities. he found it very strenuous to drive to work on his own, and this eventually led to job dissatisfaction. hence, he recommended ways to solve this problem. according to the evln model, this information suggests that donald's main reaction to job dissatisfaction was:

Answers: 3

Answer

Business, 22.06.2019 06:30

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

Answers: 3

Answer

Business, 22.06.2019 22:00

Anheuser-busch inbev is considering you for an entry-level brand management position. you have been asked to prepare an analysis of the u.s. craft beer industry as part of the selection process. prepare a 3-5 page report that includes a description of the industry’s strategically relevant macro-environmental components, evaluates competition in the industry, assesses drivers of change and industry dynamics, and lists industry key success factors. the company’s management also asks that you propose the basic elements of a strategic action plan that will allow the company to improve its competitive position in the market for craft beer. you must provide a heading in your report for each of the required elements of the assignment.

Answers: 3

Answer

Business, 23.06.2019 00:20

Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:

Answers: 3

Answer

You know the right answer?

5. Louisville Co. is a U. S. firm considering a project in Austria which it has an initial cash outl...

Questions