Epsilon Inc., a U.S. based company, must pay ¥1,000,000,000 to its Japanese component supplier in 3 months. Epsilon approaches a dealer and enters into a USD/JPY currency forward contract, containing
A. The dealer will deliver yen on expiration.
B. The amount of USD exchanged for JPY is determined at expiration.
C. Epsilon may receive or pay JPY,depending on the exchange rate at expiration.
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The financial statement that would be most helpful to an analyst in understanding the changes that have occurred in a companys retained earnings over a year is the statement of:
A. Changes in equity
B. Financial position
Comprehensive income
The type of voting in board elections that is most beneficial to shareholders with a small number of shares is best described as:
A. Statutory voting.
B. Voting by proxy.
Cumulative voting.
An analyst reviews a corporate bond indenture that contains these two covenants:
1) The borrower will pay interest semi-annually and principal at maturity.
2) The borrower will not incur additAn analyst reviews a corporate bond indenture that contains these two covenants:
1) The borrower will pay interest semi-annually and principal at maturity.
2) The borrower will not incur addit
A. Both are affirmative covenants.
B. Covenant 1 is negative and Covenant 2 is affirmative.
Covenant 1 is affirmative and Covenant 2 is negative.
Which is most likely considered a secondary source of liquidity?
A. Trade credit.
B. Liquidating long-term assets.
Centralized cash management system.