Answer:
Option A The impact of a change in the local currency on inflow and outflow variables can sometimes be indirect and therefore different from what is expected.
Explanation:
The reason is that the changes in the currency exchange rate in which the company receives the payment and is also not a home currency, such risk exposure is known as economic exposure. So the only option that correct here is option A.
Option B is incorrect because depreciation is non cash item and it is not exposed to currency fluctuations.
Option C and D are also incorrect because domestic firms don't face any economic exposure.
Answer to the question is microeconomics.
Microeconomics is a branch of mainstream economics that studies the behavior of persons and corporations in making selections related to the allocation of scarce sources and the interactions amongst these people and firms.
<h3>What is the difference between macroeconomics vs microeconomics?</h3>
Microeconomics has applications in trade, industrial organisation and market structure, labor economics, public finance, and welfare economics. Macroeconomics is the find out about of the selections of countries and governments. The term analyzes whole industries and economics instead than folks or specific companies.
Learn more about microeconomics here;
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People do go on vacation. Why this result in disciplinary action is that DBPR needs access to inspect records during regular business hours and he would risk disciplinary action if they wanted to see his records while he was away.
<h3>What is a Florida DBPR license?</h3>
The Department of Business and Professional Regulation (DBPR) is known to be a regulatory agency responsible with the licensing and monitoring of businesses and professionals in the State of Florida.
Since Harry is away, DBPR may needs access to inspect records during regular business hours and he would risk disciplinary action if they wanted to see his records while he was away.
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DBPR needs access to inspect records during regular business hours and he would risk disciplinary action if they wanted to see his records while he was away.
The storage unit might catch fire and no-one would be able to rescue the documents.
FREC only gives 24 hours notice to inspect records and he would be fined if they could not gain access to them.
There is not a problem since his Admin Assistant is good at taking messages and would make an appointment for them to come back when he has returned.
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Answer:
It is capital deepening (D)
Explanation:
Capital deepening typically represents an increase in the capital-labor ratio. This arises when there is infusion of additional capital(e.g technological improvement) into the production processes while work force is either kept constant or cut-down and thereby makes labor to be more productive.
Hence, as the capital-labor ratio increases, the marginal product of labor, i.e. the amount of product that can be produced by supplying one more unit of labor, increases because there are now more units of capital per worker.
Answer:
The required rate of return on the risky projects is 17.40%
Explanation:
The required rate of return on average risky projects of Frank and Sons can be computed using the cost of equity formula below:
Ke=Rf+beta*(Mr-Rf)
Rf is the risk rate of return on government security which is 7%
beta is the sensitivity of the project to market return is 1.3
Mr is the market expected return which is 15%
Ke=7%+1.3*(15%-7%)
Ke=7%+1.3*8%
Ke=7%+10.4%
Ke=17.40%
The required rate of return on the risky projects is 17.40%