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How might you try to use futures contracts on euros to capitalize 1. Forward Premium. Compute the forward discount or premium for the Mexican peso whose 90- day forward rate is $.102 and spot rate is $.10. State whether your answer is a discount or premium. 2. Speculating with Currency Futures. Assume that the euro’s spot rate has moved in cycles over time. How might you try to use futures contracts on euros to capitalize on ...

Other / Other 14 Apr 2016

Alice Duever purchased a put option on British pounds 1. Speculating with Currency Put Options. Alice Duever purchased a put option on British pounds for $.04 per unit. The strike price was $1.80 and the spot rate at the time the pound option was exercised was $1.59. Assume there are 31,250 units in a British pound option. What was Alice’s net profit on the option? 2. Speculating with Currency Put Options. Bulldog, Inc., has s ...

Other / Other 14 Apr 2016

Analytical procedures are the most expensive type 1. Tests of controls may be performed prior to substantive tests of transactions. a. True b. False 2. Tests of details of balances focus on beginning and ending of the year balances. a. True b. False 3. If tests of controls reveal that controls are sufficiently effective to justify reducing control risk, the auditor is justified in reducing substantive audit tests. a. True ...

Other / Other 14 Apr 2016

What are the four steps auditors 1. Discuss the major determinants of the extent of tests of details of balances. 2. What are the four steps auditors follow when they plan to reduce assessed control risk? Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help ...

Other / Other 14 Apr 2016

Riverside Bank offers to lend you $50,000 at a nominal rate 1. What’s the present value of $4,500 discounted back 5 years if the appropriate interest rate is 4.5%, compounded semiannually? a. $3,089 b. $3,251 c. $3,422 d. $3,602 e. $3,782 2. What’s the future value of $1,200 after 5 years if the appropriate interest rate is 6%, compounded monthly? a. $1,537.69 b. $1,618.62 c. $1,699.55 d. $1,784.53 e. $1,873.76 ...

Other / Other 14 Apr 2016

Which of the following actions would increase its quick ratio 1. A firm wants to strengthen its financial position. Which of the following actions would increase its quick ratio? a. Offer price reductions along with generous credit terms that would (1) enable the firm to sell some of its excess inventory and (2) lead to an increase in accounts receivable. b. Issue new common stock and use the proceeds to increase inventories. c. Spe ...

Other / Other 14 Apr 2016

Auditing standards require that tests of controls be performed 1. The auditor must communicate significant deficiencies in internal control only after the entire audit is complete to ensure the auditor has a sufficient understanding of the circumstances surrounding the deficiency. a. True b. False 2. The results of tests of controls and tests of details of balances affect the design of substantive tests of transactions. a. True ...

Other / Other 14 Apr 2016

Your child’s orthodontist offers you two alternative payment 1. You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year payments. How much interest would you be paying in Year 2? a. $1,994.49 b. $2,099.46 c. $2,209.96 d. $2,326.27 e. $2,442.59 2. Your bank offers to lend you $100,000 at an 8.5% annual interest rate to start your new business. The terms r ...

Other / Other 14 Apr 2016

A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years 1. A U.S. Treasury bond will pay a lump sum of $1,000 exactly 3 years from today. The nominal interest rate is 6%, semiannual compounding. Which of the following statements is CORRECT? a. The periodic interest rate is greater than 3%. b. The periodic rate is less than 3%. c. The present value would be greater if the lump sum were discounted back for more periods. d. ...

Other / Other 14 Apr 2016

When an auditor believes that analytical procedures 1. (Public) Which of the following types of procedures will be performed in an audit of internal control over financial reporting? Procedures to obtain an understanding of internal control Ratio analysis a. Yes Yes b. No No c. Yes No d. No Yes 2. Tests of details of balances focus on: a. beginning of the year balances. b. end of the year balances. c. transa ...

Other / Other 14 Apr 2016