Business
Business, 21.05.2021 01:00, klairecarregal6016

Shrewsbury Herbal is an old-line producer of herbal teas, seasonings, and medicines. Shrewsbury Herbal receives a large order today (February 17, 2021), and this time it's from a wholesaler in California, U. S., for $1,500,000. This U. S. wholesaler demands that the order be invoiced in their home currency (i. e., the U. S. dollar) and that delivery be made by the end of May 2021. Mr. Peters approaches you for financial advice. You have just learned how to use currency futures in hedging exchange rate exposure. So you advice Mr. Peters how to hedge its dollar position by entering into IMM futures contracts. The spot rate is $1.67/£ and the June futures price is $1.72/£. The size of a futures contract is £62,500. a. State a hedging strategy using futures contracts.
b. On May 31, 2021 the spot rate turns out to be $1.70/£, while the June futures price is $1.75/£. Calculate Shrewsbury Herbal's net £ gain or loss on its futures position. What is Shrewsbury Herbal's total net revenue for the receivables?

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 01:00, pizarroisaid
An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?
Answers: 2
image
Business, 22.06.2019 19:40, mahoganyking16
Chang corp. has $375,000 of assets, and it uses only common equity capital (zero debt). its sales for the last year were $595,000, and its net income was $25,000. stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15.0%. what profit margin would the firm need in order to achieve the 15% roe, holding everything else constant? a. 9.45%b. 9.93%c. 10.42%d. 10.94%e. 11.49%
Answers: 2
image
Business, 22.06.2019 19:40, izzyisawesome5232
The following cost and inventory data are taken from the accounting records of mason company for the year just completed: costs incurred: direct labor cost $ 90,000 purchases of raw materials $ 134,000 manufacturing overhead $ 205,000 advertising expense $ 45,000 sales salaries $ 101,000 depreciation, office equipment $ 225,000 beginning of the year end of the year inventories: raw materials $ 8,100 $ 10,300 work in process $ 5,900 $ 21,000 finished goods $ 77,000 $ 25,800 required: 1. prepare a schedule of cost of goods manufactured. 2. prepare the cost of goods sold section of mason company’s income statement for the year.
Answers: 3
image
Business, 23.06.2019 10:30, ruchierosanp1n3qw
Suggested retail price of $13,760, destination charge of $475, equipped with ac, cruise control, and a custom sound system for $800, $235, and $510, respectively. the sticker price for a vehicle with the these features and costs is
Answers: 2
Do you know the correct answer?
Shrewsbury Herbal is an old-line producer of herbal teas, seasonings, and medicines. Shrewsbury Herb...

Questions in other subjects:

Konu
Social Studies, 10.06.2021 16:00
Konu
Mathematics, 10.06.2021 16:00
Konu
Social Studies, 10.06.2021 16:00