Main function of Letter of Credit (L/C) is to solve credit risk relating to the importer if the following explanation (or expression) is correct, please indicate "True". Or, if the following explanation (orexpression) is wrong, please indicate “False”.

Main function of Letter of Credit (L/C) is to solve credit risk relating to the importer if the following explanation (or expression) is correct, please indicate "True". Or, if the following explanation (orexpression) is wrong, please indicate “False”.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 24Q: Can a credit entry be described as a generally positive or negative transaction? Explain.

See similar textbooks

Related questions

Q: A stock has an expected return of 10.2 percent. The expected return on the market is 9 percent and…

A: Beta of the stock is calculated using Capital Asset Pricing model(CAPM) below Expected return on…

Q: Kro Ltd has designed a new product and conducted a market survey to assess its viability. The survey…

A: NPV is one of the discounted cash flow methods (DCF) used for evaluating capital investment…

Q: Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more…

A: The value of a firm refers to the measurement of the market value of the business in economic terms.…

Q: Using the data in the table to the right, calculate the return for investing in the stock from…

A: Final Price is $40.39 Initial Price is $32.09 Dividend on Feb 5 is $0.21 Dividend on May 14 is $0.18…

Q: What are the expected returns for stock A and stock B? State Probability Return on A Return on B…

A: State Probability Return on A Return on B Boom 0.6 0.35 0.1 Bust 0.4 0.05 0.25 Expected…

Q: ou have just completed a $25.000 feasibility study for a new coffee shop in some retail space you…

A: Data given: Feasibility study=$25000 Cost of space bought two years ago=$105000 Amount you would net…

Q: Find the total amount of money donated for 2 years.

A: The formula to determine the sum of geometric sequence is as follows: Sum = a(1-rn)1-r Where a =…

Q: What is the IRR for the following project if its initial after-tax cost is R5 000 000 and it is…

A: IRR is the rate of return which the project generates over its useful life.

Q: ). At a certain interest rate the present values of the following two payment patterns are equal:…

A: Present value is the equivalent amount of money today required that is to be paid in future based on…

Q: The Simmons Company expects earnings of $30 million next year. Its dividend payout ratio is 40…

A: Cost of raising additional dollar for fund is calculated using the marginal cost of capital concept.…

Q: ichelle Smith is planning on taking her family to Disney World in three (3) years’ time. She plans…

A: Future value of the money include the amount that is being deposited over the period and amount of…

Q: (Net present value calculation) Carson Trucking is considering whether to expand its regional…

A: Net Present Value (NPV) is the sum of the present value of all expected future cash inflows and…

Q: Consider the following information: Probability of State of Economy State of Economy Recession .20…

A: State of Economy Probability of State of Economy Rate of return if state Occurs Recession 0.2…

Q: XYZ Manufacturing Corporation currently has production equipment that has 4 years of remaining life.…

A: Net Investment (NINV) is the total cost incurred at time "0" to start the project or buy the…

Q: payment occurs in year 1, the interest rate is 10% and the present value at year zero for the…

A: Present value The value of future money at the present is known as the present value of money. The…

Q: What is the expected return on a portfolio with 45% investment in asset A and the remainder in asset…

A: Expected return on portfolio is calculated using following equation Expected return on portfolio =…

Q: Current assets Net Fixed assets Total assets Accounts payable and accurals. Short term debt Long…

A: Market Risk Premium = 5.2% Risk Free Rate = 5.5% Beta = 1.526

Q: Question 71 Principal & Interest (P&I) flows can come from: O a. employment O b. tax revenue O c.…

A: Analysis of the given options: a. employment ANALYSIS-Employment can result in cash flow to employee…

Q: When evaluating projects using internal rate of return,? A. projects having lower early-year cash…

A: Internal rate of return is the rate of return at which the net present value is equal to zero.…

Q: (Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually…

A: Project A Project B Initial Cash Outlay $ 95,000.00 $ 95,000.00…

Q: Narda's parents made P20,000 into an account that will earn an effective interest rate of 8% for 4…

A: Effective interest rate is the actual rate earned after considering the effect of compounding.…

Q: Maddux Corporation has EBIT of $725,000 per year that is expected to continue in perpetuity. The…

A: First we need to calculate net income from EBIT. Net income =EBIT(1-Tax) Value of unlevered…

Q: Should Tangshan Mining company accept a new project if its maximum payback is 3.5 years and its…

A: The Payback period method is the capital budgeting method for finding out the period within which…

Q: EBIT-EPS and capital structure Data-Check is considering two capital structures. The key information…

A: A leveraged company is one that has long term debt in its capital structure along with equity. More…

Q: Return on Common Stock You buy a share of The Ludwig Corporation stock for $19.40. You expect it to…

A: Analysts, investors, and a company's management use growth rates to evaluate a firm's growth…

Q: Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence,…

A: Non constant Growth Year 3 Dividend, D3 $1.50 Supernormal growth rate, gs 33% Normal…

Q: (Net present value calculation) Big Steve's, makers of swizzle sticks, is considering the purchase…

A: Net present value(NPV) is the difference between present value of all cash inflows and Initial…

Q: Which deposit accumulates to the biggest amount: A, B, C, D or E?

A: Accumulated amount The total amount currently owned by a particular investment is called the…

Q: ashions recently paid a R2 annual dividend. The company is projecting that its dividends will grow…

A: The value of stock can be found out based on the two stage dividend growth model and one is variable…

Q: agreed to pay 28% down. What

A: Given Purchase Price of the House =$ 151362 and down payment =28%

Q: The calculation of WACC involves calculating the weighted average of the required rates of return on…

A: Debt = $2.7 million Preferred stock = $3 million Common equity = $3.3 million

Q: population of a country was approximater million. Use the exponential growth model A = Aet, in which…

A: The growth in the population do not follow any patterns but for simplicity it is assumed that growth…

Q: Suppose that stock price is $21, the exercise price is $23, the risk-free interest rate is 4% per…

A: Options gives the opportunity to buy or sell stocks on the expiration by payment of small amount of…

Q: Face Value of a Bond is £100, the Maturity is 2 years, Yield is 2%, the Frequency of yield is…

A: Price of bond is the present value of coupon payments and present value of par value of the bond…

Q: Esfandairi Enterprises is considering a new three-year expansion project that requires an initial…

A: In a typical capital budgeting decision, we have a project whose quantum and timing of cash flows…

Q: Holtzman Clothiers's stock currently sells for $30.00 a share. It just paid a dividend of $1.75 a…

A: Compute the expected stock price after 1 year, using the equation as shown below: Stock…

Q: Companies often come across projects that have positive NPV opportunities in which the company does…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: You want a seat oin the board of directors of Four Keys. Inc. The company hase 290000 shares of…

A: Shares refer to the percentage of ownership in the form of equity. Shareholders are eligible for a…

Q: The firm can sell 8% preferred stock at its R80 per share par value. Assume that the par value…

A: Solution:- Preference share are the shares which get preference over the common shares at time of…

Q: The TLC Yogurt Company has decided to capitalize on the exercise fad and plans to open an exercise…

A: NPV is defined as the sum of the present values of all future cash inflows less the sum of the…

Q: der the information for assets A, B, and C below: State Boom Average Bust Probability 0.2 0.4 0.4…

A: Portfolio is the combination of the stocks and return on portfolio depends on the stocks in the…

Q: our 13-year old cousin knows that you are in college and learning corporate finance. She is very…

A: The concept of time value of money will be applicable here. As per the concept of time value of…

Q: Holtzman Clothiers's stock currently sells for $29.00 a share. It just paid a dividend of $2.75 a…

A: The stock price is the market value of the stock and is decided by the discounted value of future…

Q: A call option written on a stock selling for $72 per share with a $72 exercise price. The stock's…

A: Black Scholes Model Particular Value Stock Price S $ 72.00 Strike Price K $ 72.00…

Q: Miles is 33 years old and single his only income consisted Of 10,500 in wages. What is the maximum…

A: The maximum amount an individual contribute under traditional IRA for the tax year 2020 is $6,000…

Q: The following is the information on preferred stock issued by Huntington Power Co. Calculate the…

A: Preferred Stock selling price = $98. Preferred Stock Dividends = $7 per share. Cost of Preferred…

Q: The investor has R50,000 to invest A, B and C. R12,000 will be invested into asset A. The beta for…

A: The beta of the market is exactly equal 1 because it is the index against which all the other stocks…

Q: Pat will receive 100,000 in 3 years. Over the next three years, the interest rates will vary as…

A: Future value The value of an investment at a certain time in the future is called future value.…

Q: stock is a special form of stock having a fixed periodic dividend that must be paid prior to payment…

A: Preferred stocks are very different kind of equity that carry the fixed dividend payments to be paid…

Q: Based on the following stock price and shares outstanding information, compute the beginning and…

A: The Information we have is as follows -

Question

Main function of Letter of Credit (L/C) is to solve credit risk relating to the importer

if the following explanation (or expression) is correct, please indicate "True". Or, if the following explanation (orexpression) is wrong, please indicate “False”.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.