1. Which of the following qualifies as a hedged item?
a. A company’s work-in-process inventory of unfinished washers, dryers, and refrigerators.
b. Credit card receivables at JCPenney.
c. Bushels of corn owned by the Farmers’ Cooperative.
d. Salaries payable to employees of Ford Motor Company.
e. A three-year note issued by General Motors and payable in U.S. dollars.
f. A three-year note issued by Chrysler and payable in euros.
2. Which of the following qualifies as a hedging instrument?
a. An electricity futures contract purchased by Alliant Energy, an electrical power company.
b. A crop insurance contract purchased by Farmers’ Cooperative that pays the co-op for crop losses from drought or flood.
c. An option to buy shares of common stock in Ford Motor Company.
d. An option to sell shares of common stock in General Motors.
e. A four-year lease for office space in downtown Toronto.
3. Which of the following qualifies as an eligible risk for hedge accounting?
a. Alliant Energy’s risk that summer demand for electricity may exceed the company’s power-generating capacity.
b. Ford Motor Company’s risk that not enough steel will be available in six months when the company must purchase steel to produce a new sports utility vehicle.
c. The risk to American Express that its members won’t pay their credit card bills.
d. The risk to Farmers’ Cooperative that corn mold will destroy its inventory of corn held in silos for sale next year.
e. The possibility of changes in the exchange rate of U.S. dollars for Mexican pesos for Coca-Cola Company, which has a major foreign investment in Mexico.
If xâ = 30â, vâ = $200â, and fâ=$1,900â, then total costs equalJun 02 2021
To provide funding for the One-Belt-One-Road project, China established the:A. Asian Infrastructure Investment Bank. B. Asian Development Bank. C. China Import and Expo...Apr 28 2021
In 8 Iny etty dx dy 22. [L*as di Steve dy de 23. [" 3y3e") dx dy 24.Apr 22 2021
Extinguishment of Bonds Prior to MaturityOn December 1, 2014, Cone Company issued its 10%, $480,000 facevalue bonds for $560,000, plus accrued interest. Interest ispayabl...May 26 2021
A marketing firm tests three different brands of energy drinks to see how many equivalents ofpotassium per quart each contains. The results are given below.Brand A Brand ...Apr 20 2020
The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is: The income statement for the year ended December 31, 20Y9, is as follows: Additiona...May 09 2021
On January 1, 2011, Randa borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal ...Jul 19 2020
The slope of the tangent line to the curve 2x+y + x3 = 7 at (1, 3) is 2 15 15 2 15 2May 30 2021
A number of corporations today are working to reengineer corporate thinking and encourage an innovative environment. What types of steps would you recommend? Offer at lea...Jul 24 2020
What is the relationship between the following compounds?constitutional isomersenantiomersconformational isomersidentical compoundsdiastereomersMay 24 2021