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raketka [301]
3 years ago
14

Royal bank quotes a value for the japanese yen (¥) of $0.007, and a value for the canadian dollar (c$) of $0.821. the cross exch

ange rate quoted by the bank for the canadian dollar is ¥118.00. you have $500,000 to conduct triangular arbitrage. how much will you end up with if you conduct triangular arbitrage?
Business
1 answer:
USPshnik [31]3 years ago
5 0

If you have $500,000 and the yen exchange rate is .007, you would have

500,000/.007 = 71,428,571.43 yen

Then, if the exchange rate to Canadian dollars is 118 then you would have

71428571.43/118 = 605,326.88 dollars

Then if the exchange rate back to US dollars is .821, you would end up with

605,326.88 / .821 = $737,304.36

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6783$ a month I think that's the answer I hope
7 0
3 years ago
A company had net cash flows from operations of $341,000, net income of $286,000 and average total assets of $1,850,000. The cas
KatRina [158]

Answer: 18.43%

Explanation:

Based on the information given, the cash flow on total assets ratio will be calculated as:

= (net cash flows from operations / average total asset) × 100

= ($341,000 / $1850000) × 100

= 18.43%

Therefore, the answer to the question is 18.43%

8 0
3 years ago
Giorgio Italian Market bought $11,100 worth of merchandise from Food Suppliers and signed a 120-day, 9% promissory note for the
Anvisha [2.4K]

Explanation:

The journal entry is as follows

Notes receivable A/c Dr $11,100

         To Sales A/c $11,100

(Being the sales is recorded)

Since the merchandise transaction is done through note receivable so we debited the note receivable account and the transaction is of sale type so the sales account is credited. Both the transactions are recorded at $11,100

4 0
3 years ago
Assume the price of gasoline doubles tonight and remains at that price the next two years. The price elasticity of demand for ga
enyata [817]

Answer:

The correct answer is letter "D": more inelastic.

Explanation:

When its price changes, the supply, and demand for an inelastic good or service are not dramatically impacted. Whether the price of an inelastic product goes up or down, the buying habits of consumers remain roughly the same. <em>Prescription drugs, food, clothing, </em>and <em>gasoline</em> are common examples of inelastic goods.

Thus, <em>if the price of gasoline doubles tonight, that price would be considered more inelastic tomorrow compared to the current price until today than comparing the doubled price during the course of the upcoming two years</em>.

6 0
3 years ago
Brevik Builders has an expected ROE of 25%. Its dividend growth rate will be __________ if it follows a policy of paying 30% of
Tems11 [23]

Answer: C. 17.5%

Explanation:

The Return on Equity can be calculated by the formula;

ROE = Growth rate / (1 - dividend payout ratio)

25% = Growth rate / ( 1 - 30%)

Growth rate = 25% * 70%

Growth rate = 17.5%

6 0
3 years ago
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