Please answer the following question in two or three paragraphs (200+ words). The case study that relates to the question is listed below. This is for a public relations class. Thank you!
1.) What were some of the dangers of GM being so transparent in the social media with the news that it was filing chapter 11? What were the advantages of that transparency?
Case Study – General Motors Goes Social with a Financial Crisis:
General Motors used social media to help handle its bankruptcy financial crisis in May 2009. Despite hesitation from the legal and financial consultants advising GM, Christopher Berger convinced the CEO to use Twitter and Facebook to let shareholders know of the chapter 11 filing. Berger, director of global social media at GM, said that getting CEO Fritz Henderson on board with the idea was crucial. GM following a 20/80 policy on its social media posts – 20 percent was GM material posted to Facebook or Twitter or other places and 80 percent was responding to questions. “Even if they were venting and saying, ‘We hate you,’ we tried to respond,” Berger said. “During a crisis, you want to use social media as a tool to respond and make sure that consumers realized you are listening and you care.”
GM employed such social media tactics as posting blogs and live webcasts, playing a video interview on Facebook with Fritz Henderson, and putting the CEO on Twitter for an open conversation. “You cannot overcommunication during a crisis,” Berger said. “Go on every platform, every possible place somebody might be listening to you. The audience expects you to be there.”
During the first week of the crisis, GM engaged in direct conversations via Twitter, Facebook, and through various blogs with about 800 individual people. Berger noted that those 800 conversations were translated into communication with thousands more because followers to those sites would see the conversations. “Again, it’s not ‘Here’s GM’s message; here’s what they want us to know.’ It is real people interacting,” Berger added. “That was a particular benefit for us.”
In one particular effective strategy, GM even sought to engage its critics. GM invited a popular blogger and frequent GM critic, David Meerman Scott, to headquarters and gave him access to the CEO and anyone else he wanted to talk to. Within a week of the visit, Scott had posted four blogs about GM to his blog, Web Ink Now. Scott’s post were still critical of GM’s advertising strategy (something he had been critical of the motor company for previously), but were positive about the corporation overall. “You don’t engage everybody,” Berger noted, adding that critics not interested in a genuine conversation are not worth the time. “If somebody is giving good thought to their criticism, then you want to engage that person.”
To have an effective and credible social media presence during a crisis, it is important to establish a social media strategy before the crisis hits, Berger maintains. “There is no over. This is not a campaign. It is a commitment. This is a long-term way of doing business.”
In: Operations Management
Instruction 10.1:
Use the information for the following
problem(s).
| Bobcat Company, U.S.-based manufacturer of industrial equipment, just purchased a Korean company that produces plastic nuts and bolts for heavy equipment. The purchase price was Won7,500 million. Won1,000 million has already been paid, and the remaining Won6,500 million is due in six months. The current spot rate is Won950/$, and the 6-month forward rate is Won975/$. The six-month Korean won interest rate is 8% per annum, the six-month US dollar rate is 6% per annum. Bobcat can invest at these interest rates, or borrow at 2% per annum above those rates. A six-month call option on won with a 1,000/$ strike rate has a 2.0% premium, while the six-month put option at the same strike rate has a 1.4% premium. | ||||
| Bobcat can invest at the rates given above, or borrow at 2% per annum above those rates. Bobcat's weighted average cost of capital is 12%. Compare alternate ways that Bobcat might deal with its foreign exchange exposure. What do you recommend and why? | ||||
| Assumptions | Values | |||
| Purchase price of Korean manufacturer, in Korean won | 7,500,000,000 | |||
| Less initial payment, in Korean won | (1,000,000,000) | |||
| Net settlement needed, in Korean won, in six months | 6,500,000,000 | |||
| Current spot rate (Won/$) | 950 | |||
| Six month forward rate (Won/$) | 975 | |||
| Bobcat's cost of capital (WACC) | 12.00% | |||
| Options on Korean won: | Call Option | Put Option | ||
| Strike price, won | 1,000.00 | 1,000.00 | ||
| Option premium (percent) | 2.000% | 1.400% | ||
| United States | Korea | |||
| Six-month investment (not borrowing) interest rate (per annum) | 6.000% | 8.000% | ||
| Borrowing premium of 2.000% | 2.000% | 2.000% | ||
| Six-month borrowing rate (per annum) | 8.000% | 10.000% | ||
1 .Refer to Instruction 10.1. If Bobcat chooses to hedge its
transaction exposure in the forward market, it will ________ won
6,500,000,000 forward at a rate of ________.
A sell; won975/$
B sell; $950/won
C buy; won975/$
D buy; won950/$
2. Refer to Instruction 10.1. What is the cost of a call option hedge for Bobcat's won payable contract? (Note: Calculate the cost in future value dollars and assume the firm's cost of capital as the appropriate interest rate for calculating future values.)
A $145,053
B Won136,842
C $136,842.
D Won145,053
In: Finance
oltac Corporation (a U.S. company located in Charlotte, North Carolina) has the following import/export transactions denominated in Mexican pesos in 2017:
| March 1 | Bought inventory costing 114,000 pesos on credit. |
| May 1 | Sold 70 percent of the inventory for 94,000 pesos on credit. |
| August 1 | Collected 77,000 pesos from customers. |
| September 1 | Paid 67,000 pesos to suppliers. |
Currency exchange rates for 1 peso for 2017 are as follows:
| March 1 | $ | 0.23 | |
| May 1 | 0.24 | ||
| August 1 | 0.25 | ||
| September 1 | 0.26 | ||
| December 31 | 0.27 | ||
Assume that all receipts were converted into dollars as soon as they were received.
For each of the following accounts, how much will Voltac report on its 2017 financial statements?
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In: Accounting
•On 12/1/17, Balloon Co., a U.S. balloon manufacturer sells balloons to Maison Rue., a french company, for 20,000 Euro’s (€) on credit. Payment is due in 90 days (March 1, 2018). The current exchange rate is $1.2700 = 1 €. Balloon Co buys a 90-day forward contract to pay 20,000 €. Balloon contracts for the 90-day forward rate on 12/1/17 of $1.2500 = 1 €. On 12/31/17, spot rate is $1.2650 = 1 € and available forward rate to March 1, 2018 is $1.2520 = 1 €. Balloon uses a 6% discount rate. The 3/1/18 exchange rate is $1.2540 = 1 €. Using Fair Value Hedge method, prepare Balloon Co.’s all journal entries for 12/1/17, 12/31/17, and 3/1/18.
I understand the journal entry parts but I am just stuck on the present value part where the loss/gain for the future contract. please help!
In: Accounting
In: Finance
On December 1, year1, Pop Copration( U.S company)sold inventory
to Java A.M. inc. on credit.
?Java A.M will pay Pop corp. 10,000 eruos in 90days. Pop Corp has a
December 31 year-end.
The following rates are known:
?December 1 spot rate: 1USD=1.24 euros
?December 1, 90 day forward rat: 1 USD=1.4 euros
?December 31, spot rate: 1 USD= 1.20 euros
?December 31, 60-day forward rate: 1 USU=1.3 euros
?Prepare Sony Coro. jounral entries, December 1, December 31. March
1st.
Please help me. Thanks!
In: Accounting
| Exercise 13-4 | |||||||||||||||||
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On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. |
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| The acquisition was treated as a purchase transaction. The 2014 financial statements stated in Swiss francs are given below. | |||||||||||||||||
| GRANT MANAGEMENT CONSULTANTS | |||||||||||||||||
| Comparative Balance Sheets | |||||||||||||||||
| January 1 and December 31, 2014 | |||||||||||||||||
| Jan. 1 | Dec. 31 | ||||||||||||||||
| Cash and Receivables | 19,600 | 55,700 | |||||||||||||||
| Net Property, Plant, and Equipment | 39,600 | 36,800 | |||||||||||||||
| Totals | 59,200 | 92,500 | |||||||||||||||
| Accounts and Notes Payable | 30,100 | 32,200 | |||||||||||||||
| Common Stock | 19,700 | 19,700 | |||||||||||||||
| Retained Earnings | 9,400 | 40,600 | |||||||||||||||
| Totals | 59,200 | 92,500 | |||||||||||||||
| GRANT MANAGEMENT CONSULTANTS | |||||||||||||||||
| Consolidated Income and Retained Earnings Statement | |||||||||||||||||
| for the Year Ended December 31, 2014 | |||||||||||||||||
| Revenues | 76,500 | ||||||||||||||||
| Operating Expenses including Depreciation of 2,800 francs | 30,000 | ||||||||||||||||
| Net Income | 46,500 | ||||||||||||||||
| Dividends Declared and Paid | 15,300 | ||||||||||||||||
| Increase in Retained Earnings | 31,200 | ||||||||||||||||
| Direct exchange rates for Swiss franc are: | |||||||||||||||||
| Dollars per Franc | |||||||||||||||||
| 1-Jan-14 | $0.60 | ||||||||||||||||
| ######## | 0.5321 | ||||||||||||||||
| Average for 2014 | 0.5654 | ||||||||||||||||
| Dividend declaration and payment date | 0.581 | ||||||||||||||||
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Collapse question part |
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| (a) | |||||||||||||||||
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Translate the year-end balance sheet and income statement of the foreign subsidiary using the current rate method of translation. (Round answers to 0 decimal places, |
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In: Accounting
UnAdjusted trial balance 31 st May 2020
Office supplies 6,660
June Transaction
05-06-20 Purchased office supplies on credit, due 15 July 2020 $1,045
Additional Information
• A physical count of office supplies on 30th June shows $2940 of unused supplies on hand.
Journal entries for the year ended 30 june 2020 with workings P&L and SOFP Transaction
In: Accounting
In: Accounting
Utilizing the equal weighted series calculate the index values for each day for the market below.
| closing prices | Number of outstanding shares(milions) | |||||
| A | B | C | A | B | C | |
| 1st jan 2020 | 200 | 400 | 300 | 100 | 200 | 100 |
| 2nd jan 2020 | 250 | 420 | 180 | 100 | 200 | 200 |
| 3rd jan 2020 | 270 | 450 | 80 | 100 | 600 | 200 |
In: Finance