The Hohner Marine Band harmonica retailed for €30 in Germany (see Exhibit 2). German retailers generally insisted on a 33% margin, and distributors took a 12% margin, based on the selling price of each. Hohner and its direct competitors sold a total of 800,000 units annually, with Hohner’s share at 75%. Hohner faced variable manufacturing costs of €2.70 per Marine Band, with fixed manufacturing costs of €900,000 and an annual advertising budget of €500,000. The Marine Band manager’s salary and expenses totaled €35,000. Marine Band salespeople working for Hohner were paid solely by a 10% commission on Hohner’s sales. Shipping costs, breakage, and insurance were €0.60 per unit. What is the unit contribution for Hohner?

Q: 1. Marcus would like to save up $3 million for his retirement. He has chosen a stock index fund that...

A: Hai there! thank you for the question. Question has multiple subparts. As per company guidelines exp...

Q: A five-month, 5% note for $2100 is issued June 1, 2020. What is the maturity value of the note?

A: Issue price = $2100 Interest rate = 5% Period = 5 Months  

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of 1...

A: Time Value of money states that each dollar has earning capacity hence a dollar today is worth more ...

Q: Anders discovered an old pay statement from 12 years ago. His monthly salary at the time was $2,650 ...

A:

Q: If you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate disc...

A: Amount that would be willing to pay for the asset today = present value of future cash inflows  

Q: Compute the present value for each of the following bonds: a. Priced at the end of its fifth year, a...

A: A bond is a financial instrument issued by large business organizations and governments to raise deb...

Q: Adding more stocks to his/her portfolio will result into which one of the following? specific risk a...

A:

Q: US-listed company’s common stock has a beta of 1.35. If the market risk premium is 13 percent and th...

A: Here the risk free rate is not given and hence we will first have to find the risk free rate. Then w...

Q: A company is expected to pay a dividend of $6.73 in the following period. If the expected growth rat...

A: D1 = $6.73 Growth rate (g) = 4% r = 11%

Q: Shawn has set up an "automatic account builder" plan with an investment company. At the end of each ...

A: The monthly deduction of $125 is an annuity. As the amounts are being deducted and deposited at the ...

Q: Assume that your client invests $2,300 at the end of each of the next four years. The investments ea...

A: Time value of money (TVM) refers to the concept which proves that the value of money today is higher...

Q: Howie Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him tw...

A: In the given case the howie long has won a $500000 prize and he has been offered two options either ...

Q: 2. 1 2 3. 4 6. 7. 8. 10 EOY 20 21 22 23 24 25 26 27 28 29 30 CF $300 $270 $240 $210 $180 Five deposi...

A: using the compounding formula: Amount = Principal1 +rnnt   for deposit $300 maturity value in EOY 30...

Q: Ray Miller was looking for funds to support his company's expansion. His bank offered him a $25,000 ...

A: Discount note is one of the ways to raise the funds in the form of short term borrowings. Borrower g...

Q: The value of $60 deposited in a bank for six years at a rate of 10% compounded annually is: O $96.36...

A: Compound interest is the amount of interest which is being charged or received on amount of principa...

Q: You will invest $31 per month. If the rate is 8.07%, how much will you have in 6 years?

A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper...

Q: ou found the following stock quote for DRK Enterprises, Inc., at your favorite website

A: a. Stock price = Dividend / Dividend yield = $0.83 / 0.0140 = $59.29  

Q: A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assum...

A: Ordinary interest = Principle * Interest rate * Number of days of loan taken / 360 days in a year

Q: What are the drivers to the cost of revenue and the trends? b. Are there any trends in sales and ma...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...

Q: " "vulnerability," a

A: Threat : A declaration of purpose to cause someone pain, harm, damage, or other hostile action as re...

Q: 7 8 9. 10 EOY 20 21 22 23 24 25 26 27 28 29 30 CF $300 A deposit was made at the EOY 2021, as shown ...

A: Deposit made in year 2021 is $300 Interest rate is  6% To Find: Equal Payment in period EOY26-30

Q: Finding the total interest of a loan is similar to finding the total interest in an annuity's

A: When you take a loan then you have to make payments towards the principal amount as well as towards ...

Q: Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 29.00% Babis...

A:

Q: estimated cash flows before tax (CFBT) are? 10,000; 11,000; 14,000; 15,000 and v machinery. The proj...

A: Tax rate is 55% Discount rate is 10% Depriciation Method is straight line   To Find: Average rate o...

Q: If the national debt increases, is it true that we need not worry about the debt as long as the coun...

A: National debt is the amount of money owed by the government. The government takes national debt in o...

Q: At what rate compounded annually will P50,000 earn P15,000 in 15 years?

A: Rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = P50,000 Present v...

Q: The required rate of return is 6%. Which of the following statement on decision rules is incorrect?

A: We can evaluate a project using various tools of capital budgeting like NPV, IRR, payback, discounte...

Q: From the given data, calculate the Debt to Total Assets Ratio for the MultiVerse Corp for 2021: Acco...

A: Debt to Total Assets ratio = Long term debt + Short term debtTotal Assets

Q: HYZEL Manufacturing Company presents the following: Statement of Comprehensive Income December 31, 2...

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three, as per...

Q: Five years ago (t=0), Cooper Inc. issued a 20-year zero-coupon bond with a yield to maturity of 10%....

A: Par value of bond (FV) = $1000 Yield to maturity after 5 years  = 6% Semi annual rate (r) = 6%/2 = 3...

Q: A new machine costing $100,000 is expected to save the McKaig Brick Company $15,000 per year for 12 ...

A: MACRS is a depreciation method which has highest depreciation in the early years of asset’s life. An...

Q: You are provided with the following exchange rate quotations: American Terms Bank quotations British...

A: Bid on (€/£) = 1/ Ask ($/€) Ask ($/€) = $1.4742 Bid ($/£) = $1.9712

Q: Find the compound interest if $2000 is invested for 12 years at 8% compounded quarterly.

A: Future value = Present value(1 + Rate)^Time where, Present value = $2000 Rate = 8% / 4 = 2% Time = 1...

Q: A growing annuity pays $1,000 at the end of the second year (t=2). The payment grows 3% per year til...

A: Payment after second year = $1000 Number of payments = 5 Growth rate = 3% Discount rate = 8%

Q: You have just received a bonus of $10,000 and are looking to deposit the money in a bank account for...

A: Value after a period can be calculated as: = Principal * (1 + Periodic Interest rate)^number of conv...

Q: ABC has a major supplier that offers a credit term of 2/15, n/45. Cash not yet used for payments are...

A: Credit Period:  It is the  payment terms  between the buyer and seller .Payment terms is  mentioned ...

Q: Pls help with below homework. The yield on a two-year bond is 4%. The yield on a four-year bond is 3...

A: The yield on a bond is the predicted profits created and realized on a fixed-income investment over ...

Q: Olsen Outfitters Inc. believes that its optimal capital structure consists of 70% common equity and ...

A: WACC: It stands for a weighted average cost of capital. It is the sum total of all proportionate cos...

Q: Examples of Current liabilities includes accounts payable, accruals and other short-term liabilities...

A: Current Liabilities are the liabilities (payments) that the company has to pay within a year. These ...

Q: To calculate free cash flow to equity (FCFE), the analyst needs which of the following:

A: Cash Flow From Operations (CF0): It refers to the amount of money coming in and going out of the com...

Q: Sunny Co. recently reported sales of P100 million, and net income of P10 million.  The firm has P80 ...

A: The increase in retained earnings can be calculated as increase in net income after dividend payouts...

Q: WHY IS MONEY MARKET IMPORTANT FOR BUSINESS?

A: The money market is a market of funds in which short-term funds are provided to the entities that ar...

Q: Find the compound interest if $2000 is invested for 12 years at 8% compounded quarterly. $3036 $1920...

A: Compound interest is the amount of interest which is charged or received on the principal or interes...

Q: Tea and Crumpet’s Inc. needs $11,302.77 to purchase a new commercial oven. If the company can afford...

A: Here, Required Amount (FV) is $11,302.77 Amount Deposited Today (PV) is $6,400 Interest Rate (r) is ...

Q: After the due date on Sept.4, Ashley made the following transactions using her credit card. Sept. 6 ...

A: Interest on average daily balance is 1% To Find: Average daily balance Finance Charge

Q: For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amount...

A: Amount of money that is required to be repaid can be calculated as: = Principal amount * ( 1 + Perio...

Q: An Australian firm asks the bank for an AS/SFr quote because it received SFr and wants to change it ...

A: Calculate the ask rate of US$/SFR by dividing 1 by the bid rate of SFR/US$ which is 1.4950. Thus, t...

Q: ABC Enterprise would like to evaluate/analyze a potential investment..  Given the following: Investm...

A: Discount rate is 14% Dividends / Revenue stream  is 100,000 Increase in revenue stream is 5,000 per ...

Q: What’s the present value of a $900 annuity payment over five years if interest rates are 8 percent? ...

A: The present value of annuity is calculated by present value of all future payments from an annuity a...

Q: Mrs. Euclid wants to have Php246,916.30, within 3 years for her daughter's graduation. How much shou...

A: Answer -  The future value annuity formula calculates the value at the end of given period n of a se...

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.