Benjamin, inc., operates an export/import business. the company has considerable dealings with companies in the country of camerrand. the denomination of all transactions with these companies is alaries (al), the camerrand currency. during 2017, benjamin acquires 36,000 widgets at a price of 8 alaries per widget. it will pay for them when it sells them. currency exchange rates for 1 al are as follows: september 1, 2017 $ 0.47 december 1, 2017 0.43 december 31, 2017 0.49 march 1, 2018 0.44a. assume that benjamin acquired the widgets on december 1, 2017, and made payment on march 1, 2018. what is the effect of the exchange rate fluctuations on reported income in 2017 and in 2018? b. assume that benjamin acquired the widgets on september 1, 2017, and made payment on december 1, 2017. what is the effect of the exchange rate fluctuations on reported income in 2017? c. assume that benjamin acquired the widgets on september 1, 2017, and made payment on march 1, 2018. what is the effect of the exchange rate fluctuations on reported income in 2017 and in 2018? (input all amounts as positive values.)effect of exchange rate fluctuationsa. 2017 2018 b. 2017 c. 2017 2018

Afirm's before-tax cost of debt, rd, is the interest rate that the firm must pay on debt. because interest is tax deductible, the relevant cost of debt used to calculate a firm's wacc is the cost of debt, rd (1 – t). the cost of debt is used in calculating the wacc because we are interested in maximizing the value of the firm's stock, and the stock price depends on cash flows. it is important to emphasize that the cost of debt is the interest rate on debt, not debt because our primary concern with the cost of capital is its use in capital budgeting decisions. the rate at which the firm has borrowed in the past is because we need to know the cost of capital. for these reasons, the on outstanding debt (which reflects current market conditions) is a better measure of the cost of debt than the . the on the company's -term debt is generally used to calculate the cost of debt because more often than not, the capital is being raised to fund -term projects. quantitative problem: 5 years ago, barton industries issued 25-year noncallable, semiannual bonds with a $1,600 face value and a 8% coupon, semiannual payment ($64 payment every 6 months). the bonds currently sell for $845.87. if the firm's marginal tax rate is 40%, what is the firm's after-tax cost of debt? round your answer to 2 decimal places. do not round intermediate calcu

mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.

Consider 8.5 percent swiss franc/u. s. dollar dual-currency bonds that pay $666.67 at maturity per sf1,000 of par value. it sells at par. what is the implicit sf/$ exchange rate at maturity? will the investor be better or worse off at maturity if the actual sf/$ exchange rate is sf1.35/$1.00