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How is treasury stock shown on the balance sheet?()
A.as an asset
B.as a decrease in stockholders equity
C.as an increase in stockholders equity
D.treasury stock is not shown on the balance sheet
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A.as an asset
B.as a decrease in stockholders equity
C.as an increase in stockholders equity
D.treasury stock is not shown on the balance sheet
(i) Following an investigation you discover that commissions were paid to a senior official in one country to ensure that the local drug licensing agency concerned facilitated the acceptance of one of your principal revenue earning drugs for use within its national health service.
(ii) You have discovered that an agent of your firm, aware that the licensing agreement might be forthcoming,
purchased several call option contracts on your company’s equity.
(iii) A senior member of the firm’s treasury team has been taking substantial positions in currency futures in order to protect the risk of loss on the translation of dollar assets into the domestic currency. Over the last 12 months significant profits have been made but the trades do not appear to have been properly authorised. You discover that a long position in 50, $250,000 contracts is currently held but over the last four weeks the dollar has depreciated by 10% and all the signs are that it will depreciate considerably more over the next two months.
(iv) One drug company has managed to copy a novel drug that you have just released for the treatment of various forms of skin cancer. You have patent protection in the country concerned but your company has not been able to initiate proceedings through the local courts. Contacts with the trade officials at your embassy in the country concerned suggest that the government has made sure that the proceedings have not been allowed to proceed.
The company’s chief financial officer has asked you to look into these issues and, with respect to (iv), any World Trade
Organisation (WTO) agreements that might be relevant, and to advise her on how the company should proceed in each case.
Required:
Prepare a memorandum advising the Chief Financial Officer on the issues involved and recommending how she should, in each case and in the circumstances, proceed.
Treasury bills are short-term and virtually free of default risk.
A.Right
B.Wrong
C.Doesn't say
(ii) the strategy of the business regarding its treasury policies. (3 marks)
(Marks will be awarded in part (b) for the identification and discussion of relevant points and for the style. of the
report.)
The reasons for the popularity of Treasury bills are the following except that ______.
A.they are the only money market instruments affordable to individual investors
B.they are highly liquid
C.they are risk-free
D.they give higher return than other money market instruments
A.Right
B.Wrong
C.Doesn't say
A.Right
B.Wrong
C.Doesn't say
A.The Queen of Britain
B.The Foreign and Commonwealth Office
C.The Prime Minister and Cabinet
D.The Ministry of Defence and the Treasury
Which of the following are interest-earning securities?
A.Bank deposit certificates in Eurodollars.
B.Gilt-edged stocks.
C.United States Treasury Bonds.
D.All of the above.
A、$0.
B、$40,000.
C、$100,000.
D、$200,000.