Answer:
equilibrium exchange rate = $0.11 = 1 peso.
Explanation:
<em>The purchasing power parity theory states the future spot rate and and he current spot exchange rate between two currencies can be linked to the relative inflation rate between the two currencies. </em><em>This also known as the law of one price.</em>
The model is given as follows:
S = So× (1+Fc)/(1+Fh)
Fh- inflation rate in Mexico,-
Fc- inflation rate in US,
So - Current spot rate
S- Future spot rate
S = 0.10 × (105/100)
= $0.11
equilibrium exchange rate = $0.11 = 1 peso.
Answer:
$5
Explanation:
Average total cost = total costs / total output
Total costs = variable costs + fixed costs
So we plug the amounts into the formula:
Average total cost = 57 + 143 / 40
= 5
So the average total cost for this ferm (per unit of output) is $5
Answer:
$3,762
Explanation:
The computation is as seen below
Total cost when the production is 9,900 units
Direct materials $8,316
Direct labor $11,187
Variable overhead $12,474
Total $31,977
But,
Their new cost on supplier offer is
= $2.85 × 9,900 units
= $28,215
In the case when the order is accepted, the net income would increase by
= $31,977 - $28,215
= $3,762
Suppose the fed sells $50 million of government securities to the bank of America. complete the sentences. the fed's total assets increase by $50 million and its total liabilities do not change.
<h3>
</h3><h3>
What are liabilities?</h3>
- A liability is defined in financial accounting as the future forfeitures of economic benefits that an entity must make to other entities as a result of previous transactions or other previous events, the resolution of which may result in the transfer or use of assets, the provision of services, or another future yielding of economic benefits.
- Financial accounting liabilities might be based on equitable duties or constructive obligations rather than having to be legally enforceable.
- A responsibility based on moral or ethical principles is referred to as an equitable obligation.
- Contrary to an obligation that is founded on a contract, a constructive duty is one that is suggested by a particular combination of circumstances.
To learn more about the liability, refer to the following link:
brainly.com/question/24534918
#SPJ4
Answer:
$3.03
Explanation:
Calculation for What should be Freedom Company's 2020 earnings per common share,
Earnings per common share =$1,160,000/ [$350,000 + ($100,000 × 4/12 )]
Earnings per common share=$1,160,000/($350,000+$33,333)
Earnings per common share=$1,160,000/$383,333
Earnings per common share= $3.03
Therefore What should be Freedom Company's 2020 earnings per common share is $3.03
