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kumpel [21]
1 year ago
10

Can I get the answer and explanation to attached question please?

Business
1 answer:
lord [1]1 year ago
7 0

The value of the holdings of Megahurtz International Car Rentals at year end is CA$176,923.08

The value of the holdings if the real went up against the dollar is $266, 667. 67.

<h3>How to find the value of the holdings?</h3>

The exchange rate before the real declined was:

= 270,000 / 200, 000

= 1.35 real per dollar

The new exchange rate after the Real declined was:

= 1.35 x 1.3

= 1.755 Real per dollar

The value of the holdings at year end in Real will therefore be:

= 270, 000 x 1.15

= 310, 500 Real

In Canadian dollar this is:

= 310, 500 / 1.755

= CA$176,923.08

The new exchange rate as a result of the Real increasing in value is:
= 1.35 x (1 - 16% increase in value)

= 1.134 Real per dollar

The value of the holdings at year end would therefore be:

= 270,000 x (1 + 12% earning)

= 302, 400 Reals

In Canadian Dollar this is:

= 302, 400 / 1.134

= CA$266, 666. 67

Find out more on the value of holdings at brainly.com/question/15352363

#SPJ1

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<h3>What is a zero-based budget?</h3>

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