The real exchange rate is 1 dollar = 2 Argentine pesos
The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:
- 1 Dollar is equivalent to 4 Argentine pesos
However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:
- 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.
In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.
Learn more in: brainly.com/question/15169469
Answer:
13.7%
Explanation:
The weight to be placed on preferred while computing the company's weighted average cost of capital (WACC) is the market value of the preferred stock divided by the market value of the company as a whole.
market of preferred stock=5,000*$26=$130,000
Market value of the company=market value of common stock+market value of preferred stock+market value of bond
common stock market value=12,000*$39=$468,000
market value of bond=$400,000*87%=$348,000
Weight of preferred stock=$130,000
/($130,000
+$468,000+$348,000)=0.137420719
=13.7%
The amount of discount that has to be included in Francis's income is 0.
<h3>How to solve for the discount amount</h3>
The amount of the discount - sales price
= 300 - 250
= $50
This is the discount when it is sold to employees
Next we solve for the gross profit as
sales price x gross profit rate
= 300 x 30%
= 90
Given the amounts that we have here we have to conclude that the amount to be included in the account is 0
Read more on what a discount is here:
brainly.com/question/9841818
#SPJ1
Answer:
It will be reported as gain.
Explanation:
If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>
It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment
