On June 1, Alexander Corporation sold goods to a foreign customer at a price of 1,230,000 pesos and will receive payment in three months on September 1. On June 1, Alexander acquired an option to sell 1,230,000 pesos in three months at a strike price of $0.057. Relevant exchange rates and option premiums for the peso are as follows: Date Spot Rate Put Option Premium for September 1 (strike price $0.057) June 1 $ 0.057 $ 0.0024 June 30 0.060 0.0021 September 1 0.055 N/A Alexander must close its books and prepare its second-quarter financial statements on June 30. a-1. Assuming that Alexander designates the foreign currency option as a cash flow hedge of a foreign currency receivable, prepare journal entries for these transactions in U. S. dollars. a-2. What is the impact on net income over the two accounting periods

Consider the following two stocks, a and b. stock a has an expected return of 10%, 10% standard deviation, and a beta of 1.20. stock b has an expected return of 14%, 25% standard deviation, and a beta of 1.80. the expected market rate of return is 9% and the risk-free rate is 5%. security would be considered a good buy if we include the stock in a well diversified a portfolio because a. b, it offers better alpha b. a, it offers better alpha c. a, it offers better sharpe ratio d. b, it offers better sharpe ratio

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine

In a small group, members have taken on the task roles of information giver, critic/analyzer, and recorder, and the maintenance roles of gatekeeper and follower. they need to fulfill one more role. which of the following would be most effective for their group dynamics? a dominator b coordinator c opinion seeker d harmonizer