the best one for Dozier. After their bid was accepted‚ Dozier has three options to choose from. Of the three choices‚ the 1st alternative yields the most profit. However‚ the profit from alternative 1 cannot be guaranteed‚ and it is much more volatile. The company wants to expand its market to the U.K. and also guarantee the profit (while minimizing exchange risk). Therefore‚ alternative 2‚ which has a higher profit margin than alternative 3 is the best hedging choice for Dozier. Alternative
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UVA-F-0745 DOZIER INDUSTRIES (A) Richard Rothschild‚ the chief financial officer of Dozier Industries‚ returned to his office after meeting with two officers of Southeastern National Bank. He had requested the meeting to discuss financial issues related to Dozier’s first major international sales contract‚ which had been confirmed the previous day‚ January 13‚ 1986. Initially‚ Rothschild had contacted Robert Leigh‚ a vice president of the bank‚ who had primary responsibilities for Dozier’s
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Dozier Industries Case On January 13‚ 1986 Dozier Industries‚ an American based firm‚ received notice that a bid on a project in the United Kingdom had been accepted. The project was to bring in £1‚175‚000 in revenue. Therefore‚ the revenue received for this project will need to be transferred into US dollars. When Dozier issued the bid on December 3‚ 1985 the project the exchange rate was $1.4820/£. This rate would have provided Dozier with the desired 6% profit on the project. On January
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Dozier Industrias Dozier Industries Case Dozier Industrias caso Dozier Industrias tiene tres opciones para elegir la hora de decidir sobre la mejor manera de manejar su primera cobrar en dólares fuera de Estados Unidos denominada: 1. 1. Entering into a forward contract in which Dozier would sell forward British Pounds. La suscripción de un contrato a plazo en el que Dozier vendería libras británicas hacia adelante. 2. 2. Execute a spot market transaction to create a synthetic forward hedge
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Dozier Since the acceptance of Dozier Industries’ bid‚ the company CFO has been exploring the methods available to best manage the exchange risk associated with the award payment being dispersed in British Pounds (GBP). He originally considered a forward contract or a spot contract‚ but is now investigating how currency options could help hedge against uncertain foreign exchange exposure. The CFO needs to decide whether or not options contracts might provide some benefit to hedge the currency
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Dozier Hedging Alternatives Forward Market Hedge: Dozier would purchase U.S. dollars under a forward contract. The contract would obligate Dozier to pay £1‚057‚500 in exchange for £1‚057‚500 x 1.4198 $/£ = $1‚501‚438.50 assuming the transaction was at the quoted 3-month forward rate in Exhibit 4. Relative to the value of the contract at the current exchange rate‚ £1‚057‚500 x 1.4370 $/£ = $1‚519‚627.50 Dozier would accepting a reduction in the revenue from the contract of $1‚519
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INTRODUCTION Hepatitis B is the most common serious liver infection in the world and can estimated one third of the Global Population has been infected with the Hepatitis B virus. Therefore it continues to be a major global health problem. (WHO‚ 2009) This infection is highly prevalent to the third world countries which include the Philippines. It is caused by the Hepatitis B virus that attacks the liver and can cause both acute and chronic disease. A single virus particle can cause the disease
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Hepatitis B Vaccine It takes only 3 shots to protect yourself and your loved ones against hepatitis B for a lifetime. In 1981‚ the Food and Drug Administration approved the first vaccine for hepatitis B‚ which was plasma-derived (i.e. made from blood products). This vaccine was discontinued in 1990 and is no longer available in the U.S. The currently used hepatitis B vaccines are made synthetically (i.e. they do not contain blood products) and have been available in the U.S. since 1986. You
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HEPATITIS B VIRUS 2 HEPATITIS B VIRUS Hepatitis B is a viral infection that is caused by the hepatitis b virus (HBV). It is a serious inflammatory condition of the liver. There are two types of hepatitis B which are acute and chronic. When a person first becomes infected with the virus it is known as an acute infection. Depending on how the persons body reacts to the virus determines whether or not they exhibit any symptoms
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Pages a) Demographic Profile: a. Name: Mr. R. A. b. Address: Ibaan‚ Batangas c. Age: 44 years old d. Status: Single e. Occupation: Farmer (previously) f. Educational Attainment: High-school graduate g. Chief Complaint: Hematemesis and melena h. Admitting Diagnosis: Hepatitis B infection i. Final Diagnosis: Esophageal varices s/t liver cirrhosis s/t chronic hepatitis B infection j. Date and Time of Admission: 3/3/13 07:00 am
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