Answer:
the required rate of return i r=0.13%
Explanation:
In order to calculate the required rate of interest in the case of a perpetual preferred stock we will use the following formula:
P(p) = D(p) / r
where P(p) is the preferred price of the stock, D(p) is the preferred dividend price and r is the required rate of interest.
This gives us the following values:
30 = 4 / r
r = 4 / 30
r = 0.13%
Answer:
Option D
Explanation:
In simple words, A determined currency rate, also called a fixed currency value, refers to the form of exchange rate regimes during which a currency agency sets or pegs the value of the currency against both the value of yet another currencies, a combination of other currencies, or another value factor, like gold.
Thus, in order to keep the currency at a fixed level the monetary authority must increase their liability also but on a domestic level only as two accounts are considered to be separate in such systems.
Answer:
option (C) $5 in the U.S. and 3 euros in Italy
Explanation:
Data provided in the question:
Nominal exchange rate, E = 0.80 euros per dollar
Real exchange rate = 
Now,
Real exchange rate = [ Price of good in US ] ÷ [ Price of Good in Italy ]
= 
Here,
PU = Price of US in dollars
PI = Price of Italy in Euros
Thus,
Real exchange in rate
= 
or
= 
hence,
we get
Ratio of Price of a good in US to Price of a Good in Italy =
or
we can say $5 in the U.S. and 3 euros in Italy
option (C) $5 in the U.S. and 3 euros in Italy
Answer:
$22
Explanation:
The computation of the predetermined manufacturing overhead rate per hour is shown below:
= Total Factory overhead ÷ Estimated labor hours
where,
Total factory overhead is
= Salary of factory supervisor + Heating and lighting costs for factory + Depreciation on factory equipment
= $37,000 + $22,300 + $5,600
= $64,900
And, the machine hours is 2.900
So, the predetermined overhead rate is
= $64,900 ÷ 2,900
= $22
This is the answer but the same is not given in the options
