XYZ Corp. entered into a long forward contract for 125 pieces of 1-ounce silver at a fixed price of P1,320 to be delivered one year from now. Its current price is P1,330. After one year, the price of silver was P1,340. What is the purchase price that XYZ will be paying for its order?
Q: Q25. Because of the importance of cash, the statement of cash flows has become the third primary…
A: Financial statements are the company’s performance report which is prepared at the end of the period…
Q: 7. Mark Hohman has decided that it is time to buy a new car. He has found his dream car for $25,502…
A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
Q: The regular financial statements in which every line has been divided by the sales for the year. A.…
A: 1) Common size income statement is an income statement in which each line is expressed as a…
Q: You deposit $300 each month into an account earning 3% interest compounded monthly. a) How much will…
A: Monthly deposit (P) = $300 Interest rate = 3% Monthly interest rate (r) = 3%/12 = 0.25% Period = 15…
Q: Use the data provided for Gotbucks Bank, Incorporated, to answer this question. Gotbucks Bank,…
A: Thanks for the question. Bartleby's Guideline: “Since you have posted a question with multiple…
Q: Assume BBB stock price is currently $20. In each six-month period, it will either fall by 50 percent…
A: Asset price $20.00 Strike price $15.00 Time/step, 1.00 yrs Risk free rate, r 5% for 6 Months
Q: What does tangible common equity reflect? Suppose that a bank has common stock of par value $200m…
A: The measure of calculating a company's financial capability to bear losses is known as the tangible…
Q: P: A 8% coupon, 30-year maturity bond with par value of S1,000. Assume annual interest rate is 8%…
A: Bartleby Honor Code states that when multiple questions are posted, the subject expert should solve…
Q: When coupon payment is expressed as a percentage of the bond’s par value and annualized by…
A: Coupons are the annual interest rates paid on a bond. It is usually expressed as a percentage of the…
Q: present value of a 5-year annuity-due
A: Present value refers to the current value of the future amount of the given cash flows at a…
Q: How much would Sally be willing to pay today for an annuity expected to pay $4,000 per year for 5…
A: As per the information provided: Annuity expected - $4,000 Period - 5 years Return - 10%
Q: If you want to have $60.000 in 8 years, how much do you need to deposit in the bank today if the…
A: Deposit required today = FV/(1+r)n Where FV - Future value = $60,000 r - Interest rate = 9% n -…
Q: P240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…
A: Future value refers to the value of an amount after a certain time period, after taking into account…
Q: The following financial information was provided by Anya Company: Net Income 8,255,000.00…
A: Given, Net income is 8,255,000 Tax rate is 35%
Q: Travellers Inn (Millions of Dollars) Cash $ 10 Accounts payable $ 10 Accounts 20 Accruals 15…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Iculate the Company's depreciation and amortization expe
A: The production volume of a corporation is determined by calculating NOPAT on operating income.By…
Q: B Company provided the balance sheet below: Cash 225 Accounts payable 150 Accounts…
A: Accounts payables are the liabilities which arises due to credit purchases from the suppliers. The…
Q: Arnold Inc. is considering a proposal to manufacture high-end protein bars used as food supplements…
A: Initial Investment $ 1,50,00,000.00 Sales revenue $ 50,00,000.00 Manufacturing costs…
Q: ment by using
A: The benefit cost ratio is calculated by : Present value of net benefits or cashinflows Prsent…
Q: ). Using the net present value method, which project should be accepted? (b). Using the internal…
A: We will use the different capital budgeting tools here. Mainly we will use NPV and IRR.
Q: An engineering analysis by net present worth (NPW) s to be made for the purchase of two devices A…
A: NPV is the difference between the Present Value of Cash Inflows and Initial Investment. A project…
Q: Eric has an option position on Langdon stock that results in a zero dollar payoff when the stock…
A: Purchasing a put option means the right to sell at certain security only if stock price is less than…
Q: Suppose TELSA's stock price is currently $20. A six-month call option on TELSA's stock with an…
A: One of the most fundamental concepts in current financial theory is the Black-Scholes model, often…
Q: A non-dividend-paying stock has a current price of 800 ngwee. In any unit of time (t, t + 1) the…
A: Given, (a) (u )= 25% Increase in % = 1 + 25% = 1.25 d = 20% Decrease % = 1 - 20% = 0.80 R = 1.04 Up…
Q: 1,6 billion gallons are sold every year, in over one hundred and sixty countries. The drink was…
A: Coca - Cola Cold drink was invented by Dr. John Pemberton in Atlanta. Name given by Frank Robison.…
Q: Exchange rate fluctuations can be used as a tool of speculation by speculators. Make an example of…
A: Speculators who anticipate rising prices want to make a profit by buying futures contracts.…
Q: Northern Wear stock has an expected return of 14.6 percent. Given the information below, what is the…
A: Probability of Recession (Pr) = 0.15 Probability of Normal (Pn) = 0.80 Probability of Boom (Pb) =…
Q: What is the yield to maturity of a bond that pays an 5.02% coupon rate with annual coupon payments,…
A: Solution:- Yield to maturity (YTM) means the annual rate of return provided by the bond, if the bond…
Q: Troy wants to buy an additional screen for his computer which he saw in an advertisement for RM2500…
A: In hire purchase agreement the ownership is transferred to the borrower only after the loan is…
Q: Melanie invests a total of $27,500 in two accounts paying 2% and 14% annual interest, respectively.…
A: Total investment = $27,500 First account interest rate = 0.02 Second account interest rate = 0.14…
Q: Suppose that a futures price is currently £30. The risk-free interest rate is 5% per annum…
A: Here, To Find: Bounds for the price =?
Q: ABC Corporation bought 5 short futures. The contract size is 10,000 shares of Mining Inc. The strike…
A: ABC Corporation bought 5 short futures. It means ABC is a Put Buyer. The put Buyer will exercise…
Q: If POST is 1234 and FLIRT is 56784, what is FROST? 58234 58243 43285 52384
A: Data given: If POST = 1234 FLIRT=56784 Workings P=1 O=2 S=3 T=4 F=5 L=6 I=7 R=8 T=4
Q: D4) Of the following 4 firms, which one should have the highest dividend payout ratio? Group of…
A: The entity pays out higher dividend when the entity has no alternative investment option which can…
Q: On the average, the announcement of a decrease in dividends can be interpreted by investors as bad…
A: A financial manager has to take three types of decisions for the company. They are investing…
Q: a) Risk can be separated into systematic and unsystematic risk. Define systematic and unsystematic…
A: The fraction of total risk produced by conditions beyond a company's or individual's control is…
Q: b) Troy wants to buy an additional screen for his computer which he saw in an advertisement for…
A: Cost additional screen of computer = RM2500 Deposits = 10% Number of monthly payments = 24 Interest…
Q: The balance sheet showed the following: Total current assets $3,250, accounts payable $470, 8% notes…
A: Current assets = $3250 Accounts payables = $470 Accrued wages = $180
Q: specialized in interior design services. The company has just paid a divVidend of $2 per share and…
A: The capital asset pricing model is a method of calculating the cost of equity. Under this method, a…
Q: he financial statements showed the following: Operating income $2,750,000, Depreciation $1,350,000,…
A: Operating income = $2,750,000 Depreciation = $1,350,000 Change in working capital = $860,000 Tax…
Q: A copyright is issued when a firm uses identifying words, names or symbols on its product to…
A: Copyright can be defined as the protection of work created by the artist which is original,…
Q: A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond…
A:
Q: Five years from today, the DMI Constructions needs P 5million for replacements of construction…
A: Future Value P 50,00,000.00 Interest Rate(Compounded Quarterly) 15%…
Q: Comprehensive Ratio Analysis Data for Lozano Chip Company and its industry averages follow.…
A: Ratio Analysis is the financial analysis technique to analyse the company's financial position. It…
Q: Hizzy Corp. bonds bearing a coupon rate of 15%, pay coupons semiannually, have three years remaining…
A: Bond price = $988 Face value = $1000 Coupon rate = 15% Semi annual coupon amount = 1000*0.15/2 = $75…
Q: Which of the following are false? I) Managers are reluctant to make dividend changes that might have…
A: As per Lintner’s stylized facts, Managers are reluctant to make the dividend changes that might have…
Q: John save Php 120 every quarter for 3 years earning 7% compounded monthly in a fund. How much will…
A: (1+i) = (1+i(12)/12)^12 (1+i) = (1+0.07/12)^12 (1+i) = 1.07229 i = 0.07229 = 7.23%
Q: Nt yet aeed The 5-year borrowing costs of two MNCS are summarized in the following table. A swap…
A: Given, Here, the (US) MNC having an absolute merit in the $ and (EU) MNC is having a comparitive…
Q: As an Analyst you were tasked to compute for the Weighted Average Cost of Capital of various…
A: Weighted average cost of capital (WACC) is the average cost of capital of the firm from all sources…
Q: Explain the concept of 'beta within the frame work of CAPM model. Discuss the relevance of the…
A: In the given question, we have to give a definition of beta within the framework of the CAPM model.
XYZ Corp. entered into a long forward contract for 125 pieces of 1-ounce silver at a fixed price of P1,320 to be delivered one year from now. Its current price is P1,330. After one year, the price of silver was P1,340. What is the purchase price that XYZ will be paying for its order?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000Boisjoly Watch Imports has agreed to purchase 15,000 Swiss watches for 1 million francs at today’s spot rate. The firm’s financial manager, James Desreumaux, has noted the following current spot and forward rates: On the same day, Desreumaux agrees to purchase 15,000 more watches in 3 months at the same price of 1 million Swiss francs. What is the cost of the watches in U.S. dollars, if purchased at today’s spot rate? What is the cost in dollars of the second 15,000 batch if payment is made in 90 days and the spot rate at that time equals today’s 90-day forward rate? If the exchange rate for is 0.50 Swiss francs per dollar in 90 days, how much will Desreumaux have to pay (in dollars) for the watches?On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
- 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?On March 1, 2024, Gold Examiner receives $157,000 from a local bank and promises to deliver 106 units of certified 1-ounce 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 $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $90 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.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?
- 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: 1.How many performance obligations are in this contract? Number of performance obligations ________________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…ABC Corporation entered into a short forward contract for 1,000 tons of potato at a price of P12,250 to be exercised one year from now. The current market price on the contract date is P12,000 per ton. On the agreed delivery, the price increased to P12, 300. What is the gain/(loss) attributable to this contract?
- On March 1, 2018, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units ofcertified 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 areplacement 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 $60per unit. Brink’s picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred onApril 1.Required:1. How many performance obligations are in this contract?St. Philip Company ordered parts costing €100,000 from a foreign supplier on January 15 when the spot rate was $0.20 per €. A one-month forward contract was signed on that date to purchase €100,000 at a forward rate of $0.23. The forward contract is properly designated as a fair value hedge of the €100,000 firm commitment. On February 15, when the company receives the parts, the spot rate is $0.22. At what amount should St. Philip Company carry the parts inventory on its books?a. $20,000b. $21,000c. $22,000d. $23,000Bridgeport 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%.