Multiple Choice
In 1995,Ajax Manufacturing's German subsidiary has the following balance sheet:
Suppose the DM appreciates from $0.70 to $0.76 during the period.
-Under the temporal method,what is Ajax's translation gain loss.?
A) a gain of $294,000
B) a gain of $192,000
C) a loss of $174,000
D) a loss of $12,000
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The ability to take advantage of the
Q2: A _ involves simultaneously borrowing and lending
Q3: Suppose PepsiCo hedges a ¥1 billion dividend
Q4: Suppose markets are efficient,there are no taxes,and
Q6: Suppose it is 1987 and General Motors
Q7: In a forward market hedge,a company that
Q8: In 1993,Ford simultaneously borrows Spanish pesetas at
Q9: If you fear the dollar will rise
Q10: On March 1,1998,Bechtel submits a franc-denominated bid
Q11: U.S.borrowing rate for 1 year = 9.5%<br>U.S.deposit