2. How effective was the individual mandate in expanding the exchange risk pools
The pooling of hazard is central to the idea of protection. A health care coverage hazard pool is a gathering of people whose medicinal expenses are joined to ascertain premiums. Pooling dangers together permits the greater expenses of the less beneficial to be balanced by the generally lower expenses of the solid, either in an arrangement in general or inside a top rating class. As a rule, if the hazard pool is bigger, the premiums will be unsurprising and stable. The Affordable Care Act (ACA) necessitates that back up plans utilize a solitary hazard pool when creating premiums. The single hazard pool includes all inside well as outside ACA-agreeable plans of the commercial center/trade inside a state. As such, safety net providers must pool the majority of their individual market enrollees together when setting the costs for their items.
Notwithstanding the suffering ubiquity of the ACA's assurances for individuals with previous conditions, the individual command – which requires the vast majority to keep up medical coverage inclusion or else pay a punishment – has reliably been seen adversely by a significant offer of people in general. The objective of the individual command was to support youthful and solid individuals to get or remain guaranteed, which would help spread out the expense of more wiped out individuals who might enlist and utilize more administrations due to the ACA's standard changes. The individual mandate was staged in over a three-year time span from 2014 through 2016 and had two particular segments: a necessity to hold least basic medical coverage inclusion, and a "mutual duty" installment (i.e., punishment) for the individuals who neglected to follow the prerequisite.
2. How effective was the individual mandate in expanding the exchange risk pools
2. Foreign Exchange Risk and the Cost of Borrow- ing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could poten- tially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.5 million, a one year period, an initial spot rate of SF1.5000/S, a 5.000% cost of debt, and a 34% tax rate, what is the effective cost of debt for...
Diversification is regarded as a strategy for foreign exchange risk management and such a strategy may also be effective at addressing which of the following types of risk as well? The availability and cost of capital through diversifying risks associated with restrictive capital markets Political risks such as expropriation or blocked funds The risk of variability of future cash flows due to domestic business cycles All of the above
STUDY QUESTIONS 1. Discuss each individual ACSM Risk Factor Threshold. Specifically, how do the individual ACSM Risk Factor Thresholds match up with the modifiable and nonmodifiable risk factors for coro- nary heart disease listed by the AHA? 2. Given the 2013 scientific statement from the AHA as well as the 2008 Physical Activity Guidelines for Americans, does the ACSM preparticipation physical activity screening guidelines aid or hinder the concept of increasing physical activity behavior of all Americans? 3. Diabetes is...
Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.40 million, a one-year period, an initial spot rate of SF1.5500/$, a 4.661% cost of debt, and a 40% tax rate, what is the effective after-tax cost of debt for one year for...
How does use of the risk/need/responsivity model impact effective rehabilitation services?
Foreign Exchange Risk and the cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.4 million, a one-year period, an initial spot rate of SF1.5300/$, a 4.515% cost of debt, and a 35% tax rate, what is the effective after-tax cost of debt for one year for...
Explain how principal-agent theory can help our understanding of exchange risk./ 3.
Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.4 million, a one-year period, an initial spot rate of SF1.4800/$, a 5.401% cost of debt, and a 34% tax rate, what is the effective after-tax cost of debt for one year for...
Foreign Exchange Risk and the Cost of Borrowing Swiss Francs. The chapter demonstrated that a firm borrowing in a foreign currency could potentially end up paying a very different effective rate of interest than what it expected. Using the same baseline values of a debt principal of SF1.7 million, a one-year period, an initial spot rate of SF1.4900/$, a 4.559% cost of debt, and a 34% tax rate, what is the effective after-tax cost of debt for one year for...
A Question on Foreign Exchange Risk Collapse As the CFO of a multinational company, which financial securities can you use to manage the foreign exchange risk that your company faces? How do they work? Hint: Think about financial derivatives!