Question B3:
Alcoa Chemical, a US company, has sold £2 million chemicals to CPL
Co. Payment is due in 180 days.
Spot rate: $1.60/£
180-day forward rate $1.56/£
180-day U.S. dollar interest rate (annualized) 3%
180-day Pound interest rate (annualized) 4%
180-day call option on pound at $1.57/£ premium $0.06 per
pound
180-day put option on pound at $1.57/£ premium $0.05 per
pound
(a) What is the hedged value of Alcoa's receivable using the
forward market hedge?
(b) What is the hedged value of Alcoa's receivable using the money
market hedge?
(c) Which of the hedging alternatives analyzed in parts (a) and (b)
would you recommend to Alcoa? Why?
(d) What alternative is available to Alcoa to use currency options
to hedge its receivable? What is the
hedged value of Alcoa's receivable using the option hedge?
(e) Discuss and compare the costs of hedging by forward contracts
and option contracts.
(Numbers should be rounded to at least 3 decimal places.
Please include currency symbols $, £ in
your answer)
Question B4:
Mill Company is evaluating the proposed acquisition of a new
milling machine. The machine's base price is
$150,000, and has a terminal value of $20,000. The company's cost
of capital is 8%. The project has a
life-time of 3 years. The operating cash flows are as
follows:
Year 1 Year 2 Year 3
1. After-tax savings $35,000 $35,000 $35,000
2. Depreciation tax savings $22,500 $25,000 $8,000
Net cash flow $57,500 $55,000 $43,000
(a) Find the net present value of this project (NPV). Should it be
accepted?
Suppose Mill Company wishes to expand its operations in the UK. The
exchange rate at the time of
investment is £1= $1.60.
(b) Use the PPP to find the exchange rate 1 year from now, 2 years
from now and 3 years from now. The
inflation rate in the U.S. (?$) is 3 percent and in the UK 5
percent (?£)
(c) Find the NPV in pounds. Should Mill Company invest in the UK?
(Numbers should be rounded to at least 3 decimal places.
Please include currency symbols $, £ in
your answer)
In: Finance
Listed below is the number of movie tickets sold at the Library Cinema-Complex, in thousands, for the period from 2004 to 2016. Compute a five-year weighted moving average using weights of 0.11, 0.17, 0.26, 0.13, and 0.33, respectively. Describe the trend in yield. (Round your answers to 3 decimal places.)
20048.79 20058.36 20067.78 20076.75 20087.4 20096.5 20106.53 20116.58 20125.56 20135.69 20145.77 20155.44 20165.33
The weighted moving averages are: (9 of them)
In: Statistics and Probability
1. In the research entitled, "Religion, Spirituality, and Health in Medically Ill Hospitalized Older Patient" by H.G. Koenig, L.K. George, & P. Titus (2004). Is the research design qualitative or quantitative?
2. Is the research design based on a positivist paradigm or constructionist paradigm?
3. What is the worldview of the nursing profession?
5. How are worldviews related to religion?
5. Discuss the aspects of the two paradigms that consistent with the nursing profession worldview.
6. Why is it important to know your worldview?
In: Nursing
JAVA PROGRAMMING
RecallNoIF!
Write a program named RecallNoIF that reads an integer representing a year. (In this case there is no prompt from the program.) The program prints out RECALL if the year was 2004, 2010 or 2015 and NO RECALL otherwise.
CONSTRAINT: Nowhere in the program is an if statement used.
REMINDER: the program's output is shown here in bold; the user's data entry is shown here in italics.
Sample Interactive Run 1:
2010
RECALL
Sample Interactive Run 2:
2012
NO RECALL
In: Computer Science
CASE STUDY
NEW LINE IN MOBILE PHONES
One of the oldest principles of marketing is that sellers may sell features, but buyers
essentially buy benefits. This is a distinction sometimes lost on technology led organizations,
and the service sector is no exception. Recent experience of the UK’s largest
telecommunications company, Della’s, illustrates how crucial it is to see service offers in
terms of the benefits they bring to customers. The company was aware of extensive research
which had found high levels of confusion among purchasers of mobile phones, with a
seemingly infinite permutation of features and prices. With four main networks to choose
from, dozens of tariffs and hundreds of handsets, it is easy to see why buyers sought a way of
simplifying their buying process. Throughout the 1990s, Della’s had positioned its UK
network as superior technically to its competitors. Advertising focused on high coverage rates
and call reliability.
Della’s was the UK's most popular mobile phone operator, with almost eight million
customers, including 4.2 million Pay as you Talk customers. It had opened the UK's first
cellular network on 1 January 1985 and was the market leader since 1986. Della's networks in
the UK - analogue and digital - between them carried over 100 million calls each week. It
took Della’s more than 13 years to connect its first three million subscribers but only 12
months to connect the next three million. Della’s had the largest share of the UK cellular
market with 33% and had more international roaming agreements than any other UK mobile
operator. It could offer its subscribers roaming with 220 networks in 104 countries.
Despite all of the above, Della’s was aware that although it was recognized as an extremely
strong business in the corporate marketplace, it was not so strong in the market for personal
customers. Research indicated that personal buyers bought Della’s for essentially rational
reasons rather than having any emotional attachment to the brand. The success of the
competing Digital network, which had developed a very strong image, was a lesson to Della’s
that many people did not understand many of the product features on offer, but instead
identified with a brand whose values they could share. Della’s recognized that it needed to be
perceived as adding value to a consumer’s lifestyle. Given the increasing complexity of
product features, positioning on technical features was likely to make life more confusing for
personal customers. An alternative approach was needed which focused on image and
lifestyle benefits.
QUESTION
Critically analyse the information provided on Della’s position in the market, and design a marketing plan to strengthen Della’s visibility and their competitive advantage.
Thanks for your assistance!!!
In: Operations Management
Differentiate the alternative components of the promotional mix and their respective values and appraise the relative emphasis that would be placed on the promotional mix elements in each of the following situations: A manufacturer of an infusion pump therapy kit for use in hospitals A hospital offering a nutrition workshop for seniors An academic medical center offering a helicopter service for trauma cases within a 200-mile radius of the facility A community medical center offering physician referral
In: Operations Management
An academic department has just completed voting by secret ballot for a department head. The ballot box contains four slips with votes for candidate A and three slips with votes for candidate B. Suppose these slips are removed from the box one by one.
(a) List all possible outcomes.
(b) Suppose a running tally is kept as slips are removed. For what outcomes does Aremain ahead of B throughout the tally?
In: Statistics and Probability
Describe a work or personal experience or if you have not dealt with a global negotiation, you may locate an article that deals with one of these techniques and describe it.
How would you handle it differently?
Which of the strategies do you believe is the most important and why?
Your initial response should be 200 to 300 words in length, include two academic sources that are properly cited, and is due by the end of the fourth day of the workshop.
In: Economics
Effective strategies for handling negotiations globally.
Describe a work or personal experience or if you have not dealt with a global negotiation, you may locate an article that deals with one of these techniques and describe it.
How would you handle it differently?
Which of the strategies do you believe is the most important and why?
Your initial response should be 200 to 300 words in length, include two academic sources that are properly cited
In: Economics
A two-sample z-test for two population proportions is to be performed using the approach. The null hypothesis is and the alternative is Use the given sample data to find the P-value for the hypothesis test. Give an interpretation of the p-value. A poll reported that 3 out of 50 college seniors surveyed did not have jobs, while 7 out of 50 college juniors did not have jobs during the academic year.
In: Statistics and Probability