...Week 7 Assignment: Salem Manufacturing Directions For this assignment, you’ll read about Salem Manufacturing and answer the question that follows. This assignment is due at 11:59 p.m. on the seventh day of Week 7. Grading Criteria Use the following criteria to guide your work for your Week 7 assignment. Tasks | Target: | Week 7 Assignment: Salem Manufacturing | This assignment will be graded by a key provided by the instructor. Weekly assignments are worth 40 percent of your final grade, with the instructor taking the best four scores out of the five weekly assignments. (10 points) | Hedging using Foreign Currency Derivatives Shiela Penny is the Chief Financial Officer [CFO] of SALEM Manufacturing, a U.S. based manufacturer of gas turbine equipment. She has just concluded negotiations for the sale of a turbine generator to Crown, a British firm for One million pounds. This single sale is quite large in relation to SALEM’s present business. SALEM has no other current foreign customers, so the currency risk of this sale is of particular concern. The sale is made in September with payment due three months later in December. Shiela Penny has collected the following financial market information for the analysis of her currency exposure problem: Spot Exchange rate: $1.5640 per British pound. 1,000,000 x 1.5640 = 1,564,000 Three month forward rate: $1.5549 per pound 1,000,000 x 1.5549 = 1,554,900 SALEM’s cost of capital: 16% U.K...
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...Chapter 5 1. S=K (YZ) P A. K=100 Y=11,000 Z=1,200 P=20,000 B. Y,S,Z,P C. K. Use regression to estimate K. Log S=logK + logY + logX – logP To find the antilog of K, use the exponential logK. 5. Use Excel. Fill in the numbers. Look under 5 year moving average. Click on exponential smoothing tab. Look at the smoothing factor. Look at MSE for each mean squared errors. Use the MSE to choose the one that will give you the best focus and that would be the one with the smallest MSE. 6. A. Qd=18,000 + 0.4 (15,000) - 350 (50) + 90 (55) = 11,450 B. Qd = 18,000 + 0.4 (15,000) -350 (50) + 90 (50) = 11,000 Expected sales will fall when competitors reduce price. C. .7 (15,000) = 10,500 Qd = 18,000 + 0.4 (10,500) – 350 (50) + 90 (55) = 9,650 is the focus 9. Quarter 1, 2010 T=32: D11 = 1D21 = 0D31 = 0 Y = 8.25 + .125 (32) -2.75 (1) +.25 (0) + 3.5 (0) = 5.75 Chapter 6 2. Cummins could have established Internal Edges by setting up off setting payables in foreign currencies. As the dollars appreciates, these will become cheaper. As the dollar appreciates with price increase sales and revenue will decrease. It will be offset by the dollar falling cost for...
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...many decades, the Canadian dollar has been lower compare to the United States. This has its advantages and disadvantages for the video game industry in both countries. An advantage for the Canadian video game industry it is a disadvantage for US video game industry. Therefore, advantage for US video game is a disadvantage for Canadian Video game industry. For instances an advantage for Canada video game industry, the industry will experience a tremendous high inflow of American customers buying Canadian video games; meaning Canadian video game is constantly selling their products. Therefore, Canadian companies are doing better because in order for a company to be better off; the company’s accounts receivable and inventory turnover ratio must be higher and days to sell must be lower. This is a disadvantage for US because their dollar is worth more, but Canada is getting high inflow of tourist from US because of higher US exchange rate, as a result those tourists expend lots of revenue on Canadian goods and services. Since Canada is one of the biggest exporters in the world, an advantage for the US is that, the exports sales converts into larger amount in Canadian dollars (which is a disadvantage for Canada); meaning US production cost is lower in Canadian dollars. The Exchange rate changes all the time, an increase in Canadian dollar may also have its advantages and disadvantages for companies in general in Canada “As part of a globalized industry, a given Canadian publisher or developer...
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...reflect? ANSWER ($1.66 – $1.73)/$1.73 = –4.05% Therefore the Expected depreciation is 4.05 percent Q2.Assume that the U.S. inflation rate becomes high relative to Canadian inflation. Other things being equal, how should this affect the (a) U.S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of the Canadian dollar? ANSWER: If U.S inflation rate becomes high relative to Canadian dollars then the demand for Canadian dollars should increase, supply of Canadian dollars for sale should decrease, and the Canadian dollar’s value should increase. Q3. Assume U.S. interest rates fall relative to British interest rates. Other things being equal, how should this affect the (a) U.S. demand for British pounds, (b) supply of pounds for sale, and (c) equilibrium value of the pound? ANSWER: If U.S interest rates fall relative to British interest rate then the demand for pounds should increase, supply of pounds for sale should decrease, and the pound’s value should increase. Q4. Assume that the U.S. income level rises at a much higher rate than does the Canadian income level. Other things being equal, how should this affect the (a) U.S. demand for Canadian dollars, (b) supply of Canadian dollars for sale, and (c) equilibrium value of the Canadian dollar? ANSWER: Assuming no effect on U.S. interest rates and if U.S income level rises at a much higher rate, then demand for dollars should increase, supply of dollars for...
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...Scott Denham Deadbolt Project Executive Summary My name is Scott Denham. I am 29 years old and I grew up in Oregon. My background goes to early childhood, when I was very curious about finding out the way things work. As a young boy I would get watches for Christmas and tear them apart to see what was inside and how it worked. Later in life it was helping my father, who was a young engineer, tearing apart a transmission on a 1976 Honda Civic, CVCC, just to be around that. As I grew older I began racing motocross, and I was my own mechanic. I learned by practice what was inside an engine and how it worked. At age 18 I began chasing after adrenaline. The next step in my quest for a rush was skydiving. After a few years of skydiving I joined the industry working for Velocity Sports building container and harness systems for skydiving. I began coming up with ideas for new invention and dreamed of creating my own when that day came. I joined the army shortly after this and spent a few years in combat arms before deploying and eventually leaving the army. Upon leaving the army I came back to Oregon where I grew up to get an education and do something with my life. I began dating a woman, who shortly after we began dating had her deadbolt picked on her door and a man gained access to her home. When we discussed the incident with the management at the apartment complex, she suggested a deadbolt that did not have an outside face with a key slot. We said ok, lets get this done. She...
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...Alyssa Pimentel English 1301-232 Ms. Bullard October 20th 2013 Journal 2 – Tip Jar There are many dollars out there but none of them have the same serial number as me, That is why I am unique. Luckily I am not very old, only a couple years old. I have had plenty of homes in my short lifetime. I have almost been caught in a fire, I almost even drowned once. But the day I was finally taken out of the tip jar was the greatest adventure I have ever had. December 30th 1999, I was taken out of an old rusty can tip jar. As I was being stuffed into an envelope I screamed in excitement! “I’ll never have to smell this old bar again.” After being stuffed into the envelope I was thrown into a box, which was eventually tossed into the back of a plane. I thought, “This is going to be a great journey!” The air was hot and musty in the cargo I was flying in. I wished there were other dollars like me to talk to, but all there was were old hundred dollars bills and a couple of checks. The old hundred dollar bill seemed way to high class, hence he didn’t speak to me once, and dollar bills never dare speak to checks. So there I was, all alone in long, hot, boring plan ride. The sun was blazing when a ten year old took me out of his envelope. I lasted about twenty minutes in the hands of this child before I got completely drenched in ice cream. I was handed to an old man immediately after suffocating in ice cream. I was placed into a very old register, it smelt quite...
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... | | |X |Is the problem description clear, concise, and accurate? | | | |X |Are the inputs to the program identified? | | | |X |Are the outputs to the program identified? | | | |X |Does the test input result in the expected output? | | List of Defects Identify defects by checklist number and observed error, but do not include any corrective action. Display Menu Test Test #1: Valid Menu Selection = Canadian Dollars Inputs: Menu Selection = 1 Expected Output: “Do you want to continue with the conversion, Y = Yes, N = No” Currency Type = 1 Test #2: Invalid Menu Selection = Error Inputs: Menu Selection = 7 Expected Output: “Error 4: Invalid menu selection” Start program over...
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...Currency Swaps 5390 (JPY-INR) Interest rate and foreign exchange risk. Arvind Mills Forward Contracts 152.98 ($-INR) 2.25 (GBP-INR) 5 (INR-$) 703.67 21.88 Option Contracts 1 2 2.5 ($-INR) 547.16 Most of the revenue is either in dollars or linked to dollars due to export. Infosys Forward Contracts 119 ($-INR) 529 Options Contracts Range barrier options 4 ($-INR) 8 (INR-$) 2 ($-INR) 3 (Eur-INR) 18 36 971 Revenues denominated in these currencies. Tata Consultancy Services Forward Contracts 15 (Eur-INR) 21 (GBP-INR) 265.75 Option Contracts 8 3 0 ($-INR) 47.5 (Eur-INR) 76.5 (GBP-INR) 4057 Revenues largely denominated in foreign currency, predominantly US$, GBP, and Euro. Other currencie include Australian $, Canadian $, South African Rand, and Swiss Franc Ranbaxy...
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...When it comes to FX trading, traders have two sets of currencies that come in a pair. The fluctuations in the exchange rate between these two currencies are where a trader looks to make profit on the Exchange Market. If trader believes that the foreign currency will appreciate against the USD, the trader’s profits will rise with every increase in the exchange price. However if the foreign currency were to fall against the dollar, than the trader would take a loss. Seems simple enough, however traders have option to buy or sell that foreign currency at any time and can go both ways of the currency. So even if the foreign currency were to depreciate against the USD, the trader can still make a profit if they were to sell the dollar on the exchange market. To bring some clarity lets take a look at the Yen. If the Yen were appreciate (rises) against the dollar. A trader would than buy the Yen. By buying the Yen the buyer is also selling the dollar on expectation that the exchange price of the Yen will rise in value. The trader will than decide to close the position, selling the Yen with the exchange price higher than when they first bought it leaving them an increase in value or profit. Now if the Yen were to depreciate against the dollar, the YEN/USD exchange price will fall. That would than leave the trader with a loss as the exchange price falls below their purchase level and leave them a loss. In any trading market, the traders have the option of buying or selling currency...
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...=========================================== When reporting a crime to local police, you should insist on receiving the Comprobante de Denuncia as confirmation that a report has been made. Police officers may speak only Spanish. Passports and Visas A valid Canadian passport is required for Canadians intending to visit Cuba. The passport must be valid for at least one month beyond the date of your expected departure from Cuba. Canadians must also carry a tourist card (or visa), or a business or student visa. The tourist card is generally provided by tour operators or airlines, or can be obtained from a Cuban government office in Canada in the case of privately organized flights. It can also be purchased at certain airports in Canada. Health Insurance Since May 1, 2010, travellers must present proof of health insurance in order to enter the country. Upon arrival, travellers may be required to present an insurance policy, insurance certificate, or medical assistance card valid for the period of their stay in Cuba. Those who do not have proof of insurance coverage may be required to obtain health insurance from a Cuban insurance company when they arrive. Temporary residents also have to hold valid health insurance policies. Although proof of Canadian provincial health insurance is sufficient for visitors to enter Cuba, your provincial plan may cover only part of the costs and will not pay the...
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...U.S. and Canadian dollar. Historically, there have been sharp increases and decreases of the value of one currency to the other. In the early 1970s, the Canadian dollar was valued higher than the US dollar. In 2002, the Canadian dollar valued at an all-time low at US$0.6179. In 2007, Canada’s economic welfare increased as that of the US decreased. The two currencies were trading at parity for the first time since 1976. RBC forecasts that the Canadian dollar will appreciate to $1.08 before declining below parity in the second half of the following year. The biggest issues in this case are the timing and degree of change to which exchange rate fluctuations occur. In the past few years, the Canadian dollar has been showing strength compared to the US dollar. Most believed this increase was due to the high price of Canadian commodity exports, primarily oil. Despite the recent trend of Canadian dollar strength and the tough economic times in the US, Cain should be worried about the upcoming exchange rate fluctuation for a number of reasons: 1. The US markets are continuing to rally back after the crisis. 2. The largest international trader in Canadian dollars, RBC, has raised its outlook on the US dollar, and predicts soon the two currencies will be at parity (trading at the same price or equivalent value). 3. In the past 30 years the Canadian dollar has traded stronger than the US dollar two separate times, 1974 and 2007. Each separate occasion of Canadian dollar strength...
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...selfless Canadian soldiers who fought in the historical battle of Vimy Ridge perfectly stated, “[t]hey fought as Canadians and those who returned brought back with them a pride of nationhood that they had not known before.” War does not only change a single, individual person, but a country as a whole. The battle of Vimy Ridge changed Canada from a colony to a nation in many important ways, allowing Canada’s reputation around the world to become more independent, strong, and connected as a country. When Canada defeated the Germans at the battle of Vimy Ridge, the world saw us as a more independent country. The battle showed that we did not need Britain, and surprisingly, we ended up “emerging from the shadow.” For many years and through many battles, we depended on Britain and their guidance; however, Vimy was different. We came up with our own plan of action. We gathered strong, Canadian troops and generals, trained them properly so that everyone knew their own job, built our own trenches and brought our own artillery. The great Canadian Commander of the Canadian Corps by the name of Sir Arthur William Currie wanted and effectively tried to keep the Canadian troops separate from the British troops. These were all acts of Canadian independence. Our nation truly showed that we could fight and win against a very strong enemy and without our motherland helping us. Furthermore, during the battle, it was all Canadian soldiers, from one side to the next. It showed our Canadian independence...
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...to war to serve their country as well as demonstrating their patriotic duty to Britain as they left behind their loved ones on the Canadian homefront. The First World War had a profound impact on life in Canada during the war. As our Canadian soldiers faced conflicts and huge challenges on foreign battlefields, there were many changes coming for those left behind on the Canadian homefront as they faced many social challenges and a shift in life, as they knew it. During WW1, the Canadian homefront saw a great transformation in the role of women in Canadian society, reforms in the labour movement and an increase in tension between French and English Canadians due to the conscription crisis. At the turn of the century, the role of women in Canadian society began to change drastically as their roles expanded beyond the home. Many Canadians viewed the woman’s role as the mother and homemaker but Canada’s participation in WW1 dramatically altered how women were viewed. So many Canadian men enlisted in the war that Canadian labour force was hugely diminished because if men were at war, they could not be working in the factories so Canada was forced to turn to women to join the workforce. “As the number of volunteers increased it was becoming clear that a new source of labour would have to be found. Women soon filled the gap…Many Canadians felt some discomfort with this new role for women.” {Gage,58}Women joined the labour workforce in jobs that were traditionally filled...
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...Pequot War The Pequot war also known as the Mystic Massacre happened on May 26, 1637. Leading up to the war I will discuss how things went and developed that led to this event. I will also discuss how the cultures clashed and made one become more powerful than another. This was the first time English people engaged in the wholesale slaughter of Native Americans. Way before the Massacre even took place there were 20,000 people who left England in the great migration spiritual journey. They had their beliefs of religion and cultural values that were already set forth in their land. Within their journey the English come into contact with the Pequot. The Pequot are the most dominant and powerful group of Native Americans in the southern New England. The English and Pequot were equally puzzled by each other’s cultures. Native Americans and the English puritans saw the world around them in entirely different ways, especially with respect to land and ownership. The Native Americans had claimed the land and established where they lived. But the Native Americans had no real concept of land ownership. The English believed they had divine rights as which they purchased patents and rights to the land. The warfare from European and Native was different. Native Warfare was on a smaller scale. Although capture, torture, and other foul deeds were committed on people, large number of people were never killed in conflicts. The Natives were not prepared...
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...hand. From what I have learnt in the past few weeks, they are all far more present than I had realized. We see it in schools, justice system, job market etc. In the next few pages I will explain how they correlate in Canada today. More specifically relating to aboriginals and Muslims. Canada is home to more than 200 ethnic groups, with 16% of its population (over five million individuals) identifying as a visible minority. Information from the Census showed that Canada’s visible minority population grew 27% from 2001 to 2006, five times faster than the population as a whole. The diversity of Canada’s population is expected to continue to increase over the next two decades. According to projections by Statistics Canada up to 14.4 million Canadians (or about one-third of the population) will be members of a visible minority by 2031. The religious composition of the country is also changing, with some of the largest increases seen in Muslim, Hindu, Sikh and Buddhist denominations (cic.gc.ca). What Is Racism and who does it affect? The core beliefs of racism are that individuals can be divided into different categories based on the behavior, or economic and political success of some individuals within the group of individuals. Researchers have found that these assumptions are incorrect. It has been...
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