1. A US company designs its products in US but manufactures those products in

China.

a) What type of currency exposure the US Company will face?

b) List three strategies to manage the operation exposure, and explain how

they can be used to hedge the operation exposure.

2. A US company has a manufacturing subsidiary in Brazil and it categorizes

Brazilian Real as the functional currency.

a) Explains the concept of functional currency;

b) Under US accounting, what currency translation method it will use for this

subsidiary?

c) Explain the benefit of using this translation method.

3. Join a research team and the team decides on a topic. < don't bother

Wrangler Company is a U.S. firm conducting a financial plan for the next year. It has no foreign subsidiaries, but more than half of its sales are from exports. Its foreign cash inflows to be received from exporting and cash outflows to be paid for imported supplies over the next year are shown in the following table:

The spot rates as of today are:

(a) Based on the information provided, determine the net transaction exposure of each foreign currency in dollars.

(b) Assume that the Canadian dollar net inflows may range from C$20,000,000 to C$60,000,000 over the next year. Explain the risk of hedging C$50,000,000 in net inflows. How can Wrangler Company avoid such a risk? Is there any tradeoff resulting from your strategy to avoid that risk?

Ethical dilemma # 7: I am a Level II fieldwork student and my classmates and I have a Facebook page that we use to stay in touch and share ideas. Some of my classmates use this Facebook page to complain about their clients, their supervisors, or our university faculty. Is this ethical?

Address the following questions regarding the assigned ethical dilemma

1. What is the dilemma?

2. What principle/principles does it violate?

3. What are options of action?

4. What are resources used to determine possible actions?

5. What are possible consequence to the individual breaking the principle?

5. World Trade In a Global Crisis – (20 pts.) Answer in one paragraph.

a) During this pandemic, does the law of comparative advantage still apply to trade?

b) During this crisis, what has happened to the value of the US dollar on world markets? What are the advantages and disadvantages of this in terms of the trade deficit and foreign travel?  Describe how you would show this trend on a foreign exchange graph.

c) Prior to the pandemic, the US and China were involved in a trade war. In an effort to reduce its trade deficit, the United States decided to slap tariffs on imported steel. Prior to the tariff, Chinese imported steel sold for less than the US domestic price.   Who wins and who loses because of the tariff?

Match these 10 frauds/schemes with the corresponding definitions/scenarios.   On the homework assessment, the definitions will have multiple choice options.

Skimming, payroll fraud scheme, lapping, illegal gratuities, investment scam, expense scheme, disbursement fraud, check tampering, asset misappropriation, billing scheme.

1. Rick Grimes is a real person. He is a friend of Sam who works at Parry Corporation. Sam adds Rick to the payroll of Parry Corporation. Rick does not work at Parry Corporation but he does cash the checks he receives from Parry Corp. and splits the money with Sam.
2. Ted is a City Commissioner. He negotiated a land deal with a group of private investors. After the deal was approved, Ted and his girlfriend were rewarded with a free trip to Cancun Mexico, all expenses paid.
3. Theft that is committed by stealing receipts, stealing assets on hand, or committing some type of disbursement fraud.
4. An employee who works the cash register enters a “no sale” on their cash register so that it appears a sale is being rung up to the customer and other observers. The employee is stealing the customer’s payment.
5. Having an organization pay for something it shouldn’t pay for or pay too much for something it purchases.
6. An individual promises a high paying dividend on an investment product they are selling. However, instead of investing the funds received, the individual pays “dividends” to initial investors using the amounts “invested” by subsequent investors/victims.
7. An employee at a company manufactures fake receipts using his computer and laser printer. The employee seeks reimbursement on these invented purchases.
8. This is a method of concealing the theft of cash designated for accounts receivable by crediting one account while abstracting money from a different account. The process is continuously repeated to avoid detection.
9. Sam is trusted employee at Pear Corp. He has possession of the company’s checks. He makes a check payable to himself. He fraudulently affixes the signature of an authorized maker (signer).
10. Lilly works at Pear Corporation. She is in a position that approves invoices for payment. She creates a shell company called Hooks. She opens a bank account for Hooks. She authorizes payments for invoices submitted from Hooks.

Please show your work, thank you!

Which of the following are consequences of the Central Limit Theorem? I'm not sure why II and III are correct and the others are not.

I) A SRS of resale house prices for 100 randomly selected transactions from all sale

transactions in 2001 (in Toronto) will be obtained. Since the sample is large, we

should expect the histogram for the sample to be nearly normal.

II) We will draw a SRS (simple random sample) of 100 students from all University

of Toronto students, and measure each person’s cholesterol level. The average

cholesterol level for the sample should be approximately normally distributed.

III) We want to estimate the proportion of Ontario voters who intend to vote for the

Liberal party in the next election, and decide to draw a SRS of 400 voters. The

percentage of the people in the sample who will say that they intend to vote

Liberal is approximately normally distributed.

IV) We will draw a SRS of 100 adults from the Canadian military, and count the

number who have the AIDS virus. The number of individuals in the sample who

will be found to have the AIDS virus should be approximately normally

distributed.

V) We are interested in the average income for all Canadian families for 2001. The

mean income for all Canadian families should be approximately normal, due to

the large number of families in the population.

An insurance company sells a $17,500, three-year term life insurance policy to an individual for $675. Find the expected return for the company if the probability the individual will live for the next three years is 0.99. (Round your answer to the nearest cent.)

An insurance company sells a $16,000, eight-year term life insurance policy to an individual for $1,620. Find the expected return for the company if the probability the individual will live for the next eight years is 0.93. (Round your answer to the nearest cent.)

As might be expected, wide variations in the use of financial leverage occur across industries and among the individual firms in each industry. Table 14.5 illustrates differences for selected companies in different industries, the ranking is in ascending order of the company’s long-term debt ratio.36 Petroleum, biotechnology, and steel companies use relatively little debt because their industries tend to be cyclical, oriented toward research, or subject to huge product liability suits. On the other hand, grocery stores, utility companies, and airlines use debt relatively heavily because their fixed assets make good security for mortgage bonds and their relatively stable sales make it safe to carry more than average debt. The TIE ratio gives an indication of how vulnerable the company is to financial distress. This ratio depends on three factors: (1) the percentage of debt, (2) the interest rate on the debt, and (3) the company’s profitability. Generally, low-leveraged companies such as Alphabet Inc. and Eli Lilly have high coverage ratios, whereas companies like Southern Company and Kroger, which have financed heavily with debt, have lower coverage ratios. Wide variations in capital structures also exist among firms in given industries. This can be seen from Table 14.5. For example, although the average ratio of long-term debt to total capital in 2017 for the aerospace industry was 55.36%, Rockwell Collins had a ratio of 36.31%. Thus, factors unique to individual firms,

1. In a large Midwestern university, a random sample of 100 entering freshman in 2009 found that 20 finished in the bottom third of their high school class. Admission standards at the university were tightened the next year. In 2011, a random sample of 100 entering freshman found that 10 had finished in the bottom third of their high school class. Let p1 be the proportion of admitted freshman who had finished in the bottom third of their high school class in 2009. Let p2 be the proportion of admitted freshman who had finished in the bottom third of their high school class in 2011.

The two sample proportions are 20% and 10% respectively which untested would seem like the proportion finishing in the bottom third of class has decreased. However, comparing the sample proportions does not build any uncertainty into it. This is why we perform an inference procedure.

To explore the suspicion above, conduct a significance test at level 0.05; calculator output is shown. Answer the following questions.

1. Give the test decision: do not reject (reject or do not reject)
2. Evidence ________does not favor_______(favors or does not favor) that college admissions standards for the bottom third of the class have changed from 2009 to 2011.
3. Is this result borderline? In other words, if you changed the decision level to another usual level such as 0.01 or 0.10, would it change the decision you made here? (yes or no)
4. A confidence interval for the true difference in proportions of freshman who had finished in the bottom third of class in years of 2009 and 2011 is (0.018, 0.182). This supports your decision in the significance test because the bounds are _______=_______in sign.