Banks offer higher interest rates on eurocurrency deposits than on deposits made in the home currency because eurocurrency deposits lack government regulations.
Banks in this situation since they aren't ran by government regulations are able to give interest rates how they feel necessary. They aren't in a typical binding agreement most are that say what they can and can't do, they are ran freely but that also brings on disadvantages as well. One of the main disadvantages is that the bank could fail because they have unregulated funds.
Answer:
.a. import sweaters from Britain and export machinery to Britain.
Explanation:
A lower opportunity cost of manufacturing a particular goods means that a country uses fewer inputs in production compared to other nations. The country can produce more quantities of the product using similar factors of production. A lower opportunity cost in manufacturing will make a country's output cheaper compared to when that product is manufactured in other nations.
Varying production costs form the basis of international trade. A County imports commodities that are produced cheaply elsewhere and exports the goods it can manufacture at a lower cost. The united states can produce machinery at a lower cost than Britain. Britain will be prudent to import machinery from the united states rather than produce. Britain produces sweaters using fewer inputs that the US. The US will find importing sweaters from Britain more economical compared to manufacturing.
D1 = $ 1.25
P0 = $ 27.50
g = 5 % = 0.05
F = 6 % = 0.06
Cost of equity, re = D1/ {P0 x (1- F)} + g
= $ 1.25 / {$ 27.50 x (1- 0.06)} + 0.05
= $ 1.25 / ($ 27.50 x 0.94) + 0.05
= $ 1.25 / 25.85 + 0.05
= 0.048356 + 0.05
= 0.098356 or 9.84 %
Answer:
Provided in Explanation
Explanation:
This is a very general question however I’ll try to answer it to the best of my knowledge.
If I use my own assumptions then these will be the Projections:
Selling Price $79.99 Selling Price $69.99
Cost of Sales/unit $40.00 Cost of Sales/unit $40.00
Expenses/unit $15.00 Expenses/unit $15.00
Demand @ $79.99 1000 Demand @ $69.99 1200
Sales $79,990.00 Sales $83,988.00
Cost of Sales $40,000.00 Cost of Sales $48,000.00
Expenses $15,000.00 Expenses $18,000.00
Profit $24,990.00 Profit $17,988.00
The final decision however relies on the Price Elasticity of the Product. If the Product is Price elastic then lowering the Price will lead to a significant rise in Demand. However if the Product is Price inelastic then lowering the Price will not lead to a significant rise in Demand and thus profit margins will be lowered. If the Product is Price inelastic then it is better to increase prices in order to gain more profits. In the case of Unit Elasticity the change in Demand will be at the same proportion as price change so it won’t be of any use to change the Price.
Answer:
A) Sell short 100 ABC at 69.45 Stop
Explanation:
When an order is placed below the market (OBLOSS - Open Buy Limits Open Sell Stops) it will be adjusted on the specialist's book for distributions on ex date. This open sell stop order = $70 - $0.55 (dividend) = $69.45
So the adjusted order will be: Sell short 100 ABC at 69.45 stop.
