Currency risk- if unexpected changes in currency values affect the value of the firm 4. Identify and describe the ways in which a US company can participate in international commerce. 5. The price of a currency forward contract is determined by the relationship between interest rates of the two countries in question and the time period covered by the contract. Is this statement exactly true, partly true or false?
What is financial risk? (0.5 points) possablity to lose money. What is diversification? (0.5 points) Spreading investments What is risk tolerance? (0.5 points) the amount of risk you can handle.
3. a. What is the best estimate of Ace’s cost of debt? b. Should flotation costs be included in the component cost of debt calculation? Explain.
What is financial risk? (0.5 points) Financial risk is the possibility of losing money. 3. What is diversification? (0.5 points) Diversification is an investment strategy in which you spread out your investments among many different types.
This week we learned that companies are required to prepare a statement of cash flows because it gives a more accurate snapshot of the actual cash flow of a company. Financial statements give an overall picture of how much revenue a company is reporting, but high revenue does not guarantee that the company has the ability to pay its bills. The statement of cash flows is a tool designed to help external users make sound economic decisions about the company. The statement of cash flows is divided into three sections: 1) operating activities, 2) investing activities, and financing activities. The operating activities section analyzes the company's flow of cash as it relates to a net loss or net income.
3. What is income? (0.5 points) Money that is earned from work, investments, business, etc. 4. What is a projection?
3. What is debt services default? 4. What is the Better Business Bureau? 5.
(0.5 points) prepaid cards 3. What is debt services default? (0.5 points) the failure to make a payment 4. What is the Better Business Bureau? (0.5 points) an organization that reports on the reliability and ethics of other companies and organizations 5.
The balance sheet connects to income statements, in turn also connected to cash flow statement. Occurrences or a change to the net cash activities of the cash flow statement affects the balance sheet. The balance sheet is useful when estimating the potential of the organization in order for them to achieve there long-term mission. However, cash flow statement displays the exchange of currency among an organization and external agents. For example, the cash flow can be affected when the company purchases products, and if the costs of the products are an outstanding amount in turn it will affect the assets on the balance sheet.