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I’m studying for my Business class and need an explanation.
eWaste is becoming a world wide problem. Many third world countries burn eWaste. This releases toxic fumes into the atmosphere. Do you feel the U.S. should stop sending eWaste to foreign countries that use the practice of burning? Why or why not? Please answer. 50+ word count

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Question 1 Assume that the U.S. one-year interest rate is 5% and the one-year interest rate on euros is 8%. You have $100,000 to invest and you believe that the international Fisher effect (IFE) holds. The euro's spot exchange rate is $1.40. What will be the yield on your investment if you invest in euros?Answer 8%5%3%2.78%1 points Question 2 Assume that the inflation rate in Singapore is 3%, while the inflation rate in the U.S. is 8%. According to PPP, the Singapore dollar should ____ by ____%.Answer appreciate; 4.85depreciate; 3,11appreciate; 3.11depreciate; 4.851 points Question 3 Assume that U.S. and British investors require
a real return of 2%. If the nominal U.S. interest rate is 15%, and the nominal
British rate is 13%, then according to the IFE, the British inflation rate is
expected to be about ____ the U.S. inflation rate, and the British pound is
expected to ____.Answer 2 percentage points above; depreciate by about 2%3 percentage points above; depreciate by about 3%3 percentage points below; appreciate by about 3%3 percentage points below; depreciate by about 3%2 percentage points below; appreciate by about 2%1 points Question 4 The interest rate in the U.K. is 7%, while the interest rate in the U.S. is 5%. The spot rate for the British pound is $1.50. According to the international Fisher effect (IFE), the British pound should adjust to a new level of:Answer $1.47.$1.53.$1.43.$1.57.1 points Question 5 Latin American countries have historically experienced relatively high inflation, and their currencies have weakened. This information is somewhat consistent with the concept of:Answer interest rate parity.locational arbitrage.purchasing power parity.the exchange rate mechanism.1 points Question 6 Assume that the international Fisher effect (IFE) holds between the U.S. and the U.K. The U.S. inflation is expected to be 5%, while British inflation is expected to be 3%. The interest rates offered on pounds are 7% and U.S. interest rates are 7%. What does this say about real interest rates expected by British investors?Answer real interest rates expected by British investors are equal to the interest rates expected by U.S. investors.real interest rates expected by British investors are 2 percentage points lower than the real interest rates expected by U.S. investors.real interest rates expected by British investors are 2 percentage points above the real interest rates expected by U.S. investors.IFE doesn't hold in this case because the U.S. inflation is higher than the British inflation, but the interest rates offered in both countries are equal.1 points Question 7 Given a home country and a foreign country, purchasing power parity (PPP) suggests that:Answer a home currency will depreciate if the current home inflation rate exceeds the current foreign interest rate.a home currency will appreciate if the current home interest rate exceeds the current foreign interest rate.a home currency will appreciate if the current home inflation rate exceeds the current foreign inflation rate.a home currency will depreciate if the current home inflation rate exceeds the current foreign inflation rate.1 points Question 8 Assume that the U.S. inflation rate is higher than the New Zealand inflation rate. This will cause U.S. consumers to ____ their imports from New Zealand and New Zealand consumers to ____ their imports from the U.S. According to purchasing power parity (PPP), this will result in a(n) ____ of the New Zealand dollar (NZ$).Answer reduce; increase; appreciationincrease; reduce; appreciationreduce; increase; depreciationreduce; increase; appreciation1 points Question 9 According to the international Fisher effect, if investors in all countries require the same real rate of return, the differential in nominal interest rates between any two countries:Answer follows their exchange rate movement.is due to their inflation differentials.is zero.is constant over time.1 points Question 10 If interest rate parity holds, then the one-year forward rate of a currency will be ____ the predicted spot rate of the currency in one year according to the international Fisher effect.Answer greater thanless thanequal toanswer is dependent on whether the forward rate has a discount or premium1 points Question 11 According to the IFE, if British interest rates exceed U.S. interest rates:Answer the British pound's value will remain constant.the British pound will depreciate against the dollar.the British inflation rate will decrease.the forward rate of the British pound will contain a premium.today's forward rate of the British pound will equal today's spot rate.1 points Question 12 Which of the following theories suggests that the percentage change in spot exchange rate of a currency should be equal to the inflation differential between two countries?Answer purchasing power parity (PPP).triangular arbitrage.international Fisher effect (IFE).interest rate parity (IRP).1 points Question 13 Which of the following theories suggests that the percentage difference between the forward rate and the spot rate depends on the interest rate differential between two countries?Answer purchasing power parity (PPP).triangular arbitrage.international Fisher effect (IFE).interest rate parity (IRP).1 points Question 14 Which of the following theories suggests the percentage change in spot exchange rate of a currency should be equal to the interest rate differential between two countries?Answer absolute form of PPP.relative form of PPP.international Fisher effect (IFE).interest rate parity (IRP).1 points Question 15 Assume that the one-year interest rate in the U.S. is 7% and in the U.K. is 5%. According to the international Fisher effect, British pound's spot exchange rate should ____ by about ____ over the year.Answer depreciate; 1.9%appreciate; 1.9%depreciate; 3.94%appreciate; 3.94%1 points Question 16 A fundamental forecast that uses multiple values of the influential factors is an example of:Answer sensitivity analysis.discriminant analysis.technical analysis.factor analysis.1 points Question 17 Which of the following is not a limitation of fundamental forecasting?Answer uncertain timing of impact.forecasts are needed for factors that have a lagged impact.omission of other relevant factors from the model.possible change in sensitivity of the forecasted variable to each factor over time.1 points Question 18 Which of the following forecasting techniques would best represent sole use of today's spot exchange rate of the euro to forecast the euro's future exchange rate?Answer fundamental forecasting.market-based forecasting.technical forecasting.mixed forecasting.1 points Question 19 If the forward rate was expected to be an unbiased estimate of the future spot rate, and interest rate parity holds, then:Answer covered interest arbitrage is feasible.the international Fisher effect (IFE) is supported.the international Fisher effect (IFE) is refuted.the average absolute error from forecasting would equal zero.1 points Question 20 If speculators expect the spot rate of the Canadian dollar in 30 days to be ____ than the 30-day forward rate on Canadian dollars, they will ____ Canadian dollars forward and put ____ pressure on the Canadian dollar forward rate.Answer lower; sell; upwardlower; sell; downwardhigher; sell; upwardhigher; sell; downward1 points Question 21 Sensitivity analysis allows for all of the following except:Answer accountability for uncertainty.focus on a single point estimate of future exchange rates.development of a range of possible future values.consideration of alternative scenarios.1 points Question 22 If speculators expect the spot rate of the yen in 60 days to be ____ than the 60-day forward rate on the yen, they will ____ the yen forward and put ____ pressure on the yen's forward rate.Answer higher; buy; upwardhigher; sell; downwardhigher; sell; upwardlower; buy; upward1 points Question 23 Which of the following forecasting techniques would best represent the use of today's forward exchange rate to forecast the future exchange rate?Answer fundamental forecasting.market-based forecasting.technical forecasting.mixed forecasting.1 points Question 24 Small Corporation would like to forecast the value of the Cyprus pound (CYP) five years from now using forward rates. Unfortunately, Small is unable to obtain quotes for five-year forward contracts. However, Small observes that the five-year interest rate in the U.S. is 11%, while the Cyprus five-year interest rate is 15%. Based on this information, the Cyprus pound should ____ by ____% over the next five years.Answer appreciate; 16.22depreciate; 16.22appreciate; 6.66depreciate; 6.661 points Question 25 Which of the following forecasting techniques would best represent the use of relationships between economic factors and exchange rate movements to forecast the future exchange rate?Answer fundamental forecasting.market-based forecasting.technical forecasting.mixed forecasting.1 points Question 26 Assume that the forward rate is used to forecast the spot rate. The forward rate of the Canadian dollar contains a 6% discount. Today's spot rate of the Canadian dollar is $.80. The spot rate forecasted for one year ahead is:Answer $.860.$.848.$.740.$.752.1 points Question 27 If a particular currency is consistently declining substantially over time, then a market-based forecast will usually have:Answer underestimated the future exchange rates over time.overestimated the future exchange rates over time.forecasted future exchange rates accurately.forecasted future exchange rates inaccurately but without any bias toward consistent underestimating or overestimating.1 points Question 28 Which of the following is not a method of forecasting exchange rate volatility?Answer using the absolute forecast error as a percentage of the realized value.using the volatility of historical exchange rate movements as a forecast for the future.using a time series of volatility patterns in previous periods.deriving the exchange rate's implied standard deviation from the currency option pricing model.1 points Question 29 Assume that interest rate parity holds. The U.S. five-year interest rate is 5% annualized, and the Mexican five-year interest rate is 8% annualized. Today's spot rate of the Mexican peso is $.20. What is the approximate five-year forecast of the peso's spot rate if the five-year forward rate is used as a forecast?Answer $.131.$.226.$.262.$.140.$.174.1 points Question 30 Assume that the U.S. interest rate is 11 percent, while Australia's one-year interest rate is 12 percent. Assume interest rate parity holds. If the one-year forward rate of the Australian dollar was used to forecast the future spot rate, the forecast would reflect an expectation of:Answer depreciation in the Australian dollar's value over the next year.appreciation in the Australian dollar's value over the next year.no change in the Australian dollar's value over the next year.information on future interest rates is needed to answer this question.

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Question 1 Magent Co. is a U.S. company that has exposure to the Swiss francs (SF) and Danish kroner (DK). It has net inflows of SF200 million and net outflows of DK500 million. The present exchange rate of the SF is about $.40 while the present exchange rate of the DK is $.10. Magent Co. has not hedged these positions. The SF and DK are highly correlated in their movements against the dollar. If the dollar weakens, then Magent Co. will:Answer benefit, because the dollar value of its SF position exceeds the dollar value of its DK position.benefit, because the dollar value of its DK position exceeds the dollar value of its SF position.be adversely affected, because the dollar value of its SF position exceeds the dollar value of its DK position.be adversely affected, because the dollar value of its DK position exceeds the dollar value of its SF position.1 points Question 2 Transaction exposure reflects:Answer the exposure of a firm's international contractual transactions to exchange rate fluctuations.the exposure of a firm's local currency value to transactions between foreign exchange traders.the exposure of a firm's financial statements to exchange rate fluctuations.the exposure of a firm's cash flows to exchange rate fluctuations.1 points Question 3 Yomance Co. is a U.S. company that has exposure to Japanese yen and British pounds. It has net inflows of 5,000,000 yen and net outflows of 60,000 pounds. The present exchange rate of the Japanese yen is $.012 while the present exchange rate of the British pound is $1.50. Yomance Co. has not hedged its positions. The yen and pound movements against the dollar are highly and positively correlated. If the dollar strengthens, then Yomance Co. will:Answer benefit, because the dollar value of its pound position exceeds the dollar value of its yen position.benefit, because the dollar value of its yen position exceeds the dollar value of its pound position.be adversely affected, because the dollar value of its pound position exceeds the dollar value of its yen position.be adversely affected, because the dollar value of its yen position exceeds the dollar value of its pound position.1 points Question 4 Assume that your firm is an importer of Mexican chairs denominated in pesos. Your competition is mainly U.S. producers of chairs. You wish to assess the relationship between the percentage change in its stock price (SPt) and the percentage change in the peso's value relative to the dollar (PESOt). SPtis the dependent variable. You apply the regression model to an earlier subperiod and a more recent subperiod. In the recent subperiod, you increased your importing volume. You should expect that the regression coefficient in the PESOtvariable would be ____ in the first subperiod and ____ in the second subperiod.Answer negative; positivepositive; positivepositive; negativenegative; negative1 points Question 5 U.S. based Majestic Co. sells products to U.S. consumers and purchases all of materials from U.S. suppliers. Its main competitor is located in Belgium. Majestic Co. is subject to:Answer economic exposure.translation exposure.transaction exposure.no exposure to exchange rate fluctuations.1 points Question 6 Translation exposure reflects:Answer the exposure of a firm's international contractual transactions to exchange rate fluctuations.the exposure of a firm's local currency value to transactions between foreign exchange traders.the exposure of a firm's financial statements to exchange rate fluctuations.the exposure of a firm's cash flows to exchange rate fluctuations.1 points Question 7 Which of the following operations benefits from appreciation of the firm's local currency?Answer borrowing in a foreign currency and converting the funds to the local currency prior to the appreciation.receiving earnings dividends from foreign subsidiaries.purchasing supplies locally rather than overseas.exporting to foreign countries.1 points Question 8 Generally, MNCs with less foreign revenues than foreign costs will be ____ affected by a ____ foreign currency.Answer favorably; strongerfavorably; weakernot; strongernot; weaker1 points Question 9 Economic exposure refers to:Answer the exposure of a firm's international contractual transactions to exchange rate fluctuations.the exposure of a firm's local currency value to transactions between foreign exchange traders.the exposure of a firm's financial statements to exchange rate fluctuations.the exposure of a firm's cash flows to exchange rate fluctuations.the exposure of a country's economy (specifically GNP) to exchange rate fluctuations.1 points Question 10 Diz Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Swiss francs. These two currencies are highly correlated in their movements against the dollar. Yanta Co. is a U.S.-based MNC that has the same level of net cash flows in these currencies as Diz Co. except that its euros represent net cash outflows. Which firm has a higher exposure to exchange rate risk?Answer Diz Co.Yanta Co.the firms have about the same level of exposure.neither firm has any exposure.1 points Question 11 Which of the following is not a form of exposure to exchange rate fluctuations?Answer transaction exposure.credit exposure.economic exposure.translation exposure.1 points Question 12 Vada, Inc. exports computers to Australia invoiced in U.S. dollars. Its main competitor is located in Japan. Vada is subject to:Answer economic exposure.transaction exposure.translation exposure.economic and transaction exposure.1 points Question 13 When the dollar strengthens, the reported consolidated earnings of U.S.-based MNCs are ____ affected by translation exposure. When the dollar weakens, the reported consolidated earnings are ____ affected.Answer favorably; favorably affected but by a smaller degreefavorably; favorably affected by a higher degreeunfavorably; favorably affectedfavorably; unfavorably affected1 points Question 14 Vermont Co. has one foreign subsidiary. Its translation exposure is directly affected by each of the following, except:Answer the interest rate in the country of the subsidiary.proportion of business conducted by the subsidiary.its accounting method.the exchange rate movements of the subsidiary's currency.1 points Question 15 Lampon Co. is a U.S. firm that has a subsidiary in Hong Kong that produces light fixtures and sells them to Japan, denominated in Japanese yen. Its subsidiary pays all of its expenses, including the cost of goods sold, in U.S. dollars. The Hong Kong dollar is pegged to the U.S. dollar. If the Japanese yen appreciates against the U.S. dollar, the Hong Kong subsidiary's revenue will ____, and its expenses will ____.Answer increase; decreasedecrease; remain unchangeddecrease; increaseincrease; remain unchanged1 points Question 16 FAI Corporation will be receiving 300,000 Canadian dollars (C$) in 90 days. Currently, a 90-day call option with an exercise price of $0.75 and a premium of $0.01 is available. Also, a 90-day put option with an exercise price of $0.73 and a premium of $0.01 is available. FAI plans to purchase options to hedge its receivable position. Assuming that the spot rate in 90 days is $0.71, what is the net amount received from the currency option hedge?Answer $219,000$222,000$216,000$213,0001 points Question 17 Your company will receive C$600,000 in 90 days. The 90-day forward rate in the Canadian dollar is $.80. If you use a forward hedge, you will:Answer receive $750,000 today.receive $750,000 in 90 days.pay $750,000 in 90 days.receive $480,000 today.receive $480,000 in 90 days.1 points Question 18 Assume zero transaction costs. If the 90-day forward rate of the euro is an accurate estimate of the spot rate 90 days from now, then the real cost of hedging payables will be:Answer positive.negative.positive if the forward rate exhibits a premium, and negative if the forward rate exhibits a discount.zero.1 points Question 19 FAB Corporation will need 200,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option with an exercise price of $.75 and a premium of $.01 is available. Also, a 90-day put option with an exercise price of $.73 and a premium of $.01 is available. FAB plans to purchase options to hedge its payable position. Assuming that the spot rate in 90 days is $.71, what is the net amount paid, assuming FAB wishes to minimize its cost?Answer $144,000.$148,000.$152,000.$150,000.1 points Question 20 Hanson Corp. frequently uses a forward hedge to hedge its British pound (£) payables. For the next quarter, Hanson has identified its net exposure to the pound as being £1,000,000. The 90-day forward rate is $1.50. Furthermore, Hanson's financial center has indicated that the possible values of the British pound at the end of next quarter are $1.57 and $1.59, with probabilities of .50 and .50, respectively. Based on this information, what is the expected real cost of hedging payables?Answer $80,000.−$80,000.$1,570,000.$1,580,000.1 points Question 21 The real cost of hedging payables with a forward contract equals:Answer the nominal cost of hedging minus the nominal cost of not hedging.the nominal cost of not hedging minus the nominal cost of hedging.the nominal cost of hedging divided by the nominal cost of not hedging.the nominal cost of not hedging divided by the nominal cost of hedging.1 points Question 22 If interest rate parity exists and transactions costs are zero, the hedging of payables in euros with a forward hedge will ____.Answer have the same result as a call option hedge on payableshave the same result as a put option hedge on payableshave the same result as a money market hedge on payablesrequire more dollars than a money market hedge1 points Question 23 A money market hedge on payables would involve, among others, borrowing ____ and investing in the ____.Answer the foreign currency; U.S.the foreign currency; foreign countrydollars; foreign countrydollars; U.S.1 points Question 24 Mender Co. will be receiving 500,000 Australian dollars in 180 days. Currently, a 180-day call option with an exercise price of $.68 and a premium of $.02 is available. Also, a 180-day put option with an exercise price of $.66 and a premium of $.02 is available. Mender plans to purchase options to hedge its receivables position. Assuming that the spot rate in 180 days is $.67, what is the amount received from the currency option hedge (after considering the premium paid)?Answer $330,000$325,000$320,000$340,0001 points Question 25 If Lazer Co. desired to lock in the maximum it would have to pay for its net payables in euros but wanted to be able to capitalize if the euro depreciates substantially against the dollar by the time payment is to be made, the most appropriate hedge would be:Answer a money market hedge.purchasing euro put options.a forward purchase of euros.purchasing euro call options.selling euro call options.1 points Question 26 Blake Inc. needs €1,000,000 in 30 days. It can earn 5 percent annualized on a German security. The current spot rate for the euro is $1.00. Blake can borrow funds in the U.S. at an annualized interest rate of 6 percent. If Blake uses a money market hedge to hedge the payable, what is the cost of implementing the hedge?Answer $1,000,000.$1,055,602.$1,000,830.$1,045,644.1 points Question 27 Foghat Co. has 1,000,000 euros as receivables due in 30 days, and is certain that the euro will depreciate substantially over time. Assuming that the firm is correct, the ideal strategy is to:Answer sell euros forward.purchase euro currency put options.purchase euro currency call options.purchase euros forward.remain unhedged.1 points Question 28 Celine Co. will need €500,000 in 90 days to pay for German imports. Today's 90-day forward rate of the euro is $1.07. There is a 40 percent chance that the spot rate of the euro in 90 days will be $1.02, and a 60 percent chance that the spot rate of the euro in 90 days will be $1.09. Based on this information, the expected value of the real cost of hedging payables is $____.Answer −35,00025,000−1,0001,0001 points Question 29 Which of the following is the least effective way of hedging exposure in the long run?Answer long-term forward contract.currency swap.parallel loan.money market hedge.1 points Question 30 The ____ hedge is not a technique to eliminate transaction exposure discussed in your text.Answer indexfuturesforwardmoney marketcurrency option1 points Question 31 With regard to hedging translation exposure, translation losses ____, and gains on forward contracts used to hedge translation exposure ____.Answer are not tax deductible; are taxedare tax deductible; are taxedare not tax deductible; are not taxedare tax deductible; are not taxed1 points Question 32 Orlando Co. produces home appliances and sells them in the U.S. It outsources the production of the appliances to a Chinese manufacturer, and the imported appliances are priced in dollars. Its major competitor for appliances is located in Mexico. Based on this information, Orlando Co. is subject to ____ exposure.Answer economictransactiontranslationeconomic and transaction1 points Question 33 If the Singapore dollar appreciates against the U.S. dollar over this year, the consolidated earnings of a U.S. company with a subsidiary in Singapore will be ____ as a result of the exchange rate movement.Answer negativeadversely affectedfavorably affectedunaffected1 points Question 34 Mercury Co. has a subsidiary based in Italy and is exposed to translation exposure. Mercury forecasts that its earnings next year will be €10 million. Mercury decides to hedge the expected earnings by selling €10 million forward. During the next year, the euro appreciated. Mercury's consolidated earnings were ____ affected by the euro's movement, and Mercury's hedge position was ____ affected by the euro's movement.Answer favorably; favorablyfavorably; adverselyadversely; favorablyadversely; adversely1 points Question 35 If a U.S. firm has much more revenue than expenses denominated in euros, the firm will likely ____ if the euro ____.Answer benefit; weakensbe unaffected; weakensbe unaffected; strengthensbenefit; strengthens1 points Question 36 Sycamore (a U.S. firm) has no subsidiaries and presently has sales to Mexican customers amounting to MXP98 million, while its peso-denominated expenses amount to MXP41 million. If it shifts its material orders from its Mexican suppliers to U.S. suppliers, it could reduce peso-denominated expenses by MXP12 million and increase dollar-denominated expenses by $800,000. This strategy would ____ the Sycamore's exposure to changes in the peso's movements against the U.S. dollar. Regardless of whether the firm shifts expenses, it is likely to perform better when the peso is valued ____ relative to the dollar.Answer reduce; highreduce; lowincrease; lowincrease; high1 points Question 37 Depreciation of the euro relative to the U.S. dollar will cause a U.S.-based multinational firm's reported earnings (from the consolidated income statement) to ____. If a firm desired to protect against this possibility, it could stabilize its reported earnings by ____ euros forward in the foreign exchange market.Answer be reduced; purchasingbe reduced; sellingincrease; sellingincrease; purchasing1 points Question 38 Assume that Atlanta Co. is producing motorcycles and selling them to U.S. customers. Atlanta Co. obtains all of its supplies from American firms and has no competition in the U.S. It has one major competitor in Japan. Now assume that Phoenix Co. is producing office furniture and obtains its supplies from a Canadian firm. Based on this information, Atlanta Co. has ____ exposure and Phoenix Co. has ____ exposure.Answer transaction; translationtranslation; transactioneconomic; transactioneconomic; translation1 points Question 39 ____ is (are) not a limitation of hedging translation exposure.Answer Inaccurate stock price forecastsInadequate forward contracts for some currenciesTaxation on gains from forward contractsIncreased transaction exposure1 points Question 40 If a U.S. firm's expenses are more susceptible to exchange rate movements than revenue, the firm will ____ if the dollar ____.Answer benefit; weakensbe unaffected; weakensbe unaffected; strengthensbenefit; strengthens1 points Question 41 Translation losses are ____, while gains on forward contracts used to hedge translation exposure are ____.Answer tax deductible; not taxednot tax deductible; not taxednot tax deductible; taxedtax deductible; taxed1 points Question 42 Which of the following is an example of economic exposure but not an example of transaction exposure?Answer An increase in the dollar's value hurts a U.S. firm's domestic sales because foreign competitors are able to increase their sales to U.S. customers.An increase in the pound's value increases the U.S. firm's cost of British pound payables.A decrease in the peso's value decreases a U.S. firm's dollar value of peso receivables.A decrease in the Swiss franc's value decreases the dollar value of interest payments on a Swiss deposit sent to a U.S. firm by a Swiss bank.1 points Question 43 Sarakose Co. is a U.S. company with sales to Canada amounting to C$5 million. Its cost of materials attributable to the purchase of Canadian goods is C$7 million. Its interest expense on Canadian loans is C$5 million. The dollar value of Sarakose's "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of its cash flows would ____ if the Canadian dollar appreciates.Answer increase; increasedecrease; increasedecrease; decreaseincrease; decreaseincrease; be unaffected1 points Question 44 Wisconsin Inc. conducts business in Zambia. Years ago, Wisconsin established a subsidiary in Zambia that has consistently generated very large profits denominated in Zambian kwacha. Wisconsin wishes to restructure its operations to reduce economic exposure. Which of the following is not a feasible way of accomplishing this?Answer increase Zambian supply orders.increase Zambian sales.restructure debt to increase debt payments in Zambia.reduce Zambian sales.1 points Question 45 Assume that a Japanese car manufacturer exports cars to U.S. dealerships, which are priced in yen. The demand for those cars declines when the yen is strong. The manufacturer also produces some cars in the U.S. with U.S. materials and those cars are priced in dollars. The manufacturer could reduce its economic exposure by:Answer closing down most of its plants in the U.S.producing more automobiles in the U.S.relying completely on Japanese suppliers for its parts.pricing its exports in dollars.

Analyzing an Income Statement
Analyzing an Income Statement
ncome statements are presented in the table below for the Elf Corporation for the years ending December 31, 2010, 2009, and 2008. Write a one-paragraph analysis of Elf Corporation’s profit performance for the period. The focus of the analysis involves creating a common sized Income Statement for the three years and relating the parts of the statement to draw conclusions, ultimately to find the causes and effects of Elf's performance for those three years. Respond to at least two of your fellow students' postings. Elf Corporation Income Statements for the Years Ending December 31(in millions)201020092008Sales$700$650$550Cost of goods sold 350 325 275Gross profit350325275Operating Expenses: Administrative100100100Advertising and marketing 50 75 75Operating profit$200$150$100Interest expense 70 50 30Earnings before tax$130$100$ 70Tax expense (50%) 65 50 35Net income$ 65$ 50$ 35

ACC291 WEEK 5 Learning Team D Reflection
ACC291 WEEK 5 Learning Team D Reflection
Discuss
the objectives for Week Five. Your discussion should include the topics you
feel comfortable with, any topics you struggled with, and how the weekly topics
relate to application in your field.
Write a
350- to 1,050-word summary of your Learning Team’s discussion.Objectives: 1.1 Identify
situations that might lead to unethical accounting practices.1.2 Examine
the effects of unethical behavior and the Sarbanes-Oxley Act on financial
statements.Please combine other team member work to this paper. I need to take everyone's information and make it to one paper. Week+5+Team+D+Reflection.docx Bridgette+week+five+reflection.docx Rebeca+week+five+reflection.docx

ACC291 WEEK 5 Ratio Analysis Memo
ACC291 WEEK 5 Ratio Analysis Memo
Resources:
Virtual Organizations
Click the
Virtual Organization link on the
student website to access the Virtual Organizations.
Select
one of the Virtual Organizations as the basis for the assignment.
Obtain
faculty approval of your selected organization before beginning the assignment.
Access
the information contained in your selected organization’s balance sheet and
income statement to calculate the following:
·
Liquidity ratios
o
Current ratio
o
Acid-test, or quick, ratio
o
Receivables turnover
o
Inventory turnover
·
Profitability ratios
o
Asset turnover
o
Profit margin
o
Return on assets
o
Return on common stockholders’ equity
·
Solvency ratios
o
Debt to total assets
o
Times interest earned
Show your
calculations for each ratio.
Create a
horizontal and vertical analysis for the balance sheet and the income
statement.
Prepare a
350- to 700-word memo to the CEO of your selected organization in which you
discuss your findings from your ratio calculations and your horizontal and
vertical analysis. In your memo, address the following questions:
·
What do the liquidity, profitability, and
solvency ratios reveal about the financial position of the company?
·
Which users may be interested in each type of
ratio?- What
does the collected data reveal about the performance and position of the
company?Please take all the following documents and create it in to one solid paper that fits the instructors needs. Week+5+Memo+Analysis.docx Team+D-Riordan+Manufacturing+Balance+Sheet.xlsx Team+D-RiordanM+IncomeStatement.xls

Eastman Kodak cash flow statement.
Eastman Kodak cash flow statement.
Each chapter in the textbook contains a continuation of this problem. The objective is to learn how to do a comprehensive financial statement analysis in steps as you learn the content of each chapter. Keep this in mind as you complete each week’s written assignment. Using the Eastman Kodak 2007 Annual Report and Form10-K, complete the following requirements:Open the financial statement analysis template that you saved from the Eastman Kodak 1 assignment and input the data from the Eastman Kodak cash flow statement. All cash flows from discontinued operations should be combined and input on the line labeled as such toward the bottom of the statement. In 2005, add the loss from the cumulative effect of the accounting change to the loss from continuing operations and input in the first line “Income (loss) from continuing operations”. When you have finished inputting the data, review the cash flow statement to make sure there are no red blocks indicating that your numbers do not match the cover sheet information you input from the Eastman Kodak 1 assignment. Make any necessary corrections before saving the “print outs” for both your input and the common-size cash flow statement that the template automatically creates for you. You will submit the “print outs” to your instructor.Analyze the cash flow statement of Eastman Kodak. Write a 3-page summary that includes important points that an analyst would use in assessing the ability of Eastman Kodak to generate cash flows and the appropriateness of the use of cash flows.
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