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Dima020 [189]
3 years ago
15

Describe at least three exchange rate factors that are likely to attract foreign investors to a country's currency. Explain why

these factors are attractive to foreign investors.
Business
1 answer:
lana66690 [7]3 years ago
6 0

Answer: 1. High Interest

2. Low Government Debt

3. Political Stability

Explanation:

Foreign Investors are Investors and investors always like to invest where there are prospects of growth and profit.

High Interest Rates give them the opportunity to invest their money in a currency that will give them a great return because a country where there are high interest rates imparts this on its currency which causes it to rise in value thereby giving currency holders a capital gain.

Another factor is Government Debt. A country with high Government debt will typically be unable to raise funds through the bond market easily. This shortage of funds can lead to inflation which devalues currency causing foreign currency investors to flee.

Finally there is the Political Factor (other factors exist). A stable country politically stands a better chance of maintaining a higher value currency that one with lower political stability. This is because political Stability attracts investors and as more investments come into a country, this reflects in its currency by making it stronger which will attract foreign currency investors.

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A lockbox plan is most beneficial to firms that Select one: a. have widely dispersed manufacturing facilities. b. have a large m
Anestetic [448]

Answer: d. have customers who operate in many different parts of the country

Explanation: When checks are to be collected from customers of a business that are spread over a wide geographical area, a lockbox plan is employed in order to speed up the collection of checks. It involves the customers dropping their checks in the lock boxes rather than mailing it to the business thus, the use of lockboxes help reduce mail float.

8 0
2 years ago
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near ter
Zina [86]

Answer:

<u>PV = 2,464,749.47</u>

Explanation:

Perptuities = ammount/ (rate - growth)

175,000/(0.097-0.038) = $2,966,101.695

This value is two years from the present day.

Notice:<em> "it will be received two years from today"</em>

<em>So we need to adjusted to bring it to present</em>

<em>\frac{Principal}{(1 + rate)^{time} } = PV</em>

\frac{2,966,101.695}{(1 + 0.097)^{2} } = PV

<u>PV = 2,464,749.47</u>

5 0
2 years ago
Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows:
slavikrds [6]

Answer:

Wildcat, Inc.

WILDCAT, INC. Cash Budget (in millions)

                                                  Q1           Q2          Q3          Q4

Beginning cash balance         $78.00    $115.90   $48.45   $83.40

Net cash inflow                         37.90      -67.45     34.95      71.05

Ending cash balance             $115.90    $48.45    $83.40 $154.45

Minimum cash balance          -40.00     -40.00     -40.00   -40.00

Cumulative surplus (deficit)  $75.90      $8.45    $43.40  $114.45

Explanation:

a) Data and Calculations:

                                 Q1      Q2      Q3      Q4     Q1

Sales (in millions) $165   $185  $205  $235   $180

Accounts receivable at beginning of the year = $71 million

Collection period = 45 days = 50% in each quarter and 50% in the next

Purchases for the quarter = 45% of next quarter's forecast sales

Payment period = 36 days

Wages, taxes, etc. = 20% of sales

                                      Q1          Q2        Q3        Q4         Q1

Sales (in millions)        $165       $185    $205       $235     $180

Cash collections:

50% quarter of sales             82.50    92.50    102.50     117.50

50% next quarter                   71.00     82.50    92.50    102.50

Total cash collections          153.50    175.00   195.00   220.00

Purchases                              83.25     92.25  105.75   81.00

Cash Payments:

80% month of purchase      66.60     73.80   84.60   64.80

20% following purchase                     16.65    18.45     21.15

Total purchases payments 66.60     90.45  103.05  85.95

Wages, taxe, etc.                 33           37          41        47

Interest and dividends        16            16          16        16

Capital outlay                                     99

Total cash disbursements 115.60   242.45   160.05  148.95

Net cash inflow                   37.90   -67.45      34.95    71.05

Cash, beginning = $78 million

Desired minimum balance = $40 million

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2 years ago
What is the money that remains after taxes and other deductions are taken out called?
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Net income. The total amount of pay received is the gross income, while the net income is the remaining amount after taxes and deductions are removed.

6 0
2 years ago
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A firm must choose among three alternative ways to compensate its salaried employees. It can pay them at the end of each week, a
Murrr4er [49]
I believe the answer is B
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