Thornton Corporation has extensive liabilities denominated in Cyprus pounds resulting from imports from Cyprus. However, Thornton's revenues are denominated solely in U.S. dollars. Which of the following is probably not true?
a. Thornton would benefit from a depreciation of the Cyprus pound.
b. Thornton has at least some transaction exposure.
c. Thornton has at least some economic exposure.
d. Thornton has at least some translation exposure.
e. All of the above are true.
d. Thornton has at least some translation exposure.
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Samuelson Engines wants to save $750,000 to buy some new equipment six years from now. The plan is to set aside an equal amount of money on the first day of each quarter starting today. The firm can earn 4.75 percent on its savings. How much does the firm have to save each quarter to achieve its goal?
A. $26,872.94 B. $26,969.70 C. $27,192.05 D. $27,419.29 E. $27,911.08
Which of the following is true of direct marketing channels?
A) Direct marketing channels offer the greatest opportunity for sales communication and customer interaction. B) Direct marketing channels yield very low margins for the manufacturer. C) Direct marketing channels do not allow the manufacturer control over the sales messages and service quality. D) Direct marketing channels are most suited for inexpensive products that are bought in low quantities. E) Direct marketing channels result in the lowest out-of-pocket marketing expenses for the manufacturer.