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QveST [7]
3 years ago
7

In the Frankfurt market, Aldi stock closed at €5 per share. On the same day, the euro U.S. dollar spot exchange rate was €.625/$

1.00. Aldi trades as an ADR in the OTC market in the United States. Five underlying Aldi shares are packaged into one ADR. The no-arbitrage U.S. price of one ADR is
Business
1 answer:
Ipatiy [6.2K]3 years ago
6 0

Answer:

$15.625

Explanation:

The computation of the no-arbitrage U.S. price of one ADR is shown below:

= Euro U.S. dollar spot exchange rate × closing price per share × number of shares

= €.625 × €5 per share × 5 shares

= $15.625

Simply we multiply the  Euro U.S. dollar spot exchange rate with the  closing price per share and the number of shares so that the correct price of one ADR  can be come

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The firm repurchases shares from a major shareholder through privately determined discussions. What method is described in the p
Ivahew [28]

Answer: Direct negotiation

Explanation:

Since the firm repurchases shares from a major shareholder through privately determined discussions, then this is referred to as a direct negotiation.

A direct negotiation occurs when a company approaches one or some if it's largest shareholders directly so that the company can buy back the shares that was sold to them by the company back from them. In this case, the shares purchase price will include a premium.

7 0
2 years ago
The two categories of cost comprising conversion costs are
Dmitry [639]

Answer:

b. direct labor and factory overhead

Explanation:

The conversion cost is that convert which is used to convert the raw material to the finished goods inventory. It is a combination of the direct labor cost and the factory overhead or manufacture overhead cost.

It can be fixed or variable marinating costs only. It does not include direct material cost

It is computed by taking a difference of production cost and raw material cost

Hence option b is correct

7 0
3 years ago
An owner of a landscaping business received extra income in the previous month. She is considering either buying a new lawnmower
Klio2033 [76]

Answer:

The opportunity cost will be Buying a new lawnmower

Explanation:

Opportunity cost refers to the cost of a forgone alternative. In this scenario, since the owner of a landscaping business has decided to spend the extra income on advertising campaign in order to increase sales, the forgone alternative here becomes buying a new lawnmower.

6 0
3 years ago
Phi Upsilon Nu, a student social organization, has two different locations under consideration for constructing a new chapter ho
Elza [17]

Answer:

Phi Upsilon Nu

The total annual costs for the Alpha Ave. location with twenty persons living there is:

= $9,000.

Explanation:

a) Data and Calculations:

ANNUAL OPERATING COSTS

LOCATION   FIXED        VARIABLE                Total Costs

Alpha Ave.  $5,000      $200 per person     $9,000 ($5,000 + $200 * 20)

Beta Blvd.   $8,000       $150 per person     $11,000 ($8,000 + $150 * 20)

b)The variable cost of each location varies according to the number of persons living there and the rate incurred per person.  The fixed cost does not vary, at least, with the relevant range for either location.  When the total variable costs are computed, these are added to the fixed cost to obtain the total costs.  Then there is a comparison of the two locations to determine the location with the least total costs.

7 0
3 years ago
Amounts collected by the lender and held in a trust or impound account for future payment are called what?
Aleonysh [2.5K]

The amounts collected by the lender and held in a trust or impound account for future payment are called Reserves.

Reserves are earnings that have been appropriated or set apart, for use for a selected cause in addition down the road. A few examples of specific reserves include capital redemption reserves, contingency reserves, debenture redemption reserves, and dividend equalization reserves. each of these reserves has a particular purpose, but, if important, specific reserves can every so often be used for bills that are not their meant functions.

Reserves may be funded by way of annual working surpluses, or thru a funding plan. These price ranges are considered to be "savings bills" so no fees can be charged without delay to them; the simplest transfer object codes must be utilized to reserve money owed.

A lender is a man or woman, a set (public or non-public), or an economic institution that makes finances available to a person or business with the expectation that the price range could be repaid. Compensation will include the charge of any hobby or costs.

Learn more about economic institutions here brainly.com/question/4230044

#SPJ4

5 0
1 year ago
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