Which of the following losses is most likely to be covered under your auto liability insurance?

Speculative risk is NOT:

1. Boeing imported a Rolls-Royce jet engine for £6.5 mil payable in one year
   • The US interest rate 4.00% per annum
   • The UK interest rate 6.50% per annum
   • The Spot exchange rate   $ 1.80/£ today

The company decides to use options to hedge the risk of pound exchange one year later. What kind of options should the company buy? Put or Call?

Assume the strike price of the option is $1.82/£ with a premium of $.02/£ paid today. What is the dollar cost one year later if the spot rate then is 1.60 and 2.00 respectively?

How to utilize the money market tools to hedge the risk of pound exchange one year later? In particular, answer which loan (US or UK) to borrow and to lend? How much is the dollar cost one year later (a number you would know today)?

Berne Company (lessor) enters into a lease with Fox Company to lease equipment to Fox beginning January 1, 2016. The lease terms, provisions, and related events are as follows:

1. Kiki Box Company produces cardboard boxes that are sold in bundles. The market is perfectly competitive, with boxes currently selling for price of $100 per bundle. Kiki’s total and marginal cost, where Q is measured in number of bundles per year, are:

TC = 2,000,000 + 0.001Q²

MC = 0.002Q

1. Calculate Kiki’s profit maximizing quantity.   
2. Calculate total profits earned by this firm.
3. Identify the fixed cost.

Bright Futures Company Telephone Expense $ 1,150, Cash $ 3,00, Accounts Payable $ 1,540, Jason Bright $ 800, Fee's Earned $ 15,700, Rent Expense $ 1,400, Supplies, $ 140, Accounts Recievable 1,500, Computer $ 20,000, Jason Bright Capital $ 14,320, Wage Expense $ 4,800, Utilities Expense $ 750, Notes Payable $ 2,400, Office Expense $ 420. Create a Statement of Owners Equity.

6.) Hold all other factors constant and indicate whether each of the following situations generally signals good or bad news about a company: a) Increase in earnings per share b) Increase in price/earnings ratio c) Increase in current ratio d) Decrease in inventory turnover e) Increase in debt ratio f) Decrease in times interest earned coverage ratio

Company: Walmart grocery

Describe the total market for your solution: Who are potential customers? (ex: “Everyone who ________”). Who are their Target Customers? Be specific including an explanation of the most key segments within this market. Identify and briefly describe at least three target segments that this company serves, being sure to identify them using as many as possible of the target characteristics outlined in the market segmentation module (demographic, geographic, psychographic or behavioral).

There is a general consensus among both academics and practitioners, that NPV is the best investment decision rule, because it takes into account all of the cash flows of a project, its risk, and time value of money, as well as being a good measure of the economic value created by the project for a company's shareholders. Nevertheless, NPV is not perfect. One of the down sides of NPV, is that it does not reflect the sizeof the project being considered. This means that when companies have limited resources, as they do in the real world (i.e. there is capital rationing), and when they have multiple projects to choose from, again, as they do in the real world, they cannot rely solely on individual project NPVs. Please meet with your team to answer the following:

1. Suppose a company has three independent projects to choose from, A, B, and C, and all have positive NPVs, i.e. $1,000, $700, and $400, for each project, respectively. Assume also that projects A, B, and C require initial investments of $1,600, $1,100, and $500, and respectively. If the company has a total budget of $1,600 that it can allocate to capital projects, please answer the following:

a. What are the different project combinations (among A, B, and C) that could be taken together, assuming you (try to) invest as much of the $1,600 total budget as possible?

b. Which one of the project combinations, identified in part (a), should be picked and why?

c. Would it be possible to use the Profitability Index (PI) method to give us the correct answer (about which combination of projects to pick)? Please find the PI for each standalone project, A, B, and C, and check to see if we can use it to select the same set of projects as in part (b). (Hint: the PI of project X can also be computed from: (NPV of X + Initial Investment for X) / (Initial Investment for X).

2. (Here is a very different type of question): Traditional capital budgeting rules need some estimate of a project's future cash flows or profits, as well as estimates of the project's risk (and required return). Please search the Web for some examples of firms and/or industries where this information is inherently very difficult to obtain, or is extremely unreliable. Are there any alternative decision rules (even industry specific ones) that may be used other than the ones explicitly covered in this chapter (i.e. NPV, PI, IRR, Payback, Discounted Payback, AAR, etc)?

Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019, the end of the current year, Pitman Company's accounting clerk prepared the following unadjusted trial balance:

The data needed to determine year-end adjustments are as follows:

Required:

Unexpired insurance at October 31, $5,450.

Supplies on hand at October 31, $670.

Depreciation of building for the year, $3,610.

Depreciation of equipment for the year, $3,130.

Unearned rent at October 31, $2,020.

Accrued salaries and wages at October 31, $3,530.

Fees earned but unbilled on October 31, $20,730.

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense.

2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.

Adjusting Entries and Adjusted Trial Balances

Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October 31, 2019, the end of the current year, Pitman Company's accounting clerk prepared the following unadjusted trial balance:

The data needed to determine year-end adjustments are as follows:

Required:

Unexpired insurance at October 31, $3,930.

Supplies on hand at October 31, $480.

Depreciation of building for the year, $2,600.

Depreciation of equipment for the year, $2,250.

Unearned rent at October 31, $1,450.

Accrued salaries and wages at October 31, $2,540.

Fees earned but unbilled on October 31, $14,920.

1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense.

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2. Determine the balances of the accounts affected by the adjusting entries, and prepare an adjusted trial balance. If an amount box does not require an entry, leave it blank.