On september 1, year 1, keefer company received an order to sell a machine to a customer in canada at a price of 100,000 canadian dollars. the machine was shipped and payment was received on march 1, year 2. on september 1, year 1, keefer company purchased a put option giving it the right to sell 100,000 canadian dollars on march 1, year 2, at a price of $75,000. keefer company properly designates the option as a fair value hedge of the canadian-dollar firm commitment. the option cost $1,700 and had a fair value of $2,800 on december 31, year 1. the fair value of the firm commitment is measured through reference to changes in the spot rate. the following spot exchange rates apply: date u. s. dollar per canadian dollar september 1, year 1 $ 0.75 december 31, year 1 0.73 march 1, year 2 0.71 keefer company’s incremental borrowing rate is 12 percent. the present value factor for two months at an annual interest rate of 12 percent (1 percent per month) is 0.9803. what was the net impact on keefer company’s year 1 income as a result of this fair value hedge of a firm commitment?

Rossdale co. stock currently sells for $68.91 per share and has a beta of 0.88. the market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. the company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. what is your best estimate of the company's cost of equity?

David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum.should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?

The servers at gerry frasier's busy ice cream shop decided that putting more ice cream in the sundaes and cones would bring back more customers. after three months, gerry was surprised to discover that his profit had