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Degger [83]
3 years ago
14

In September 2009 a U.S. investor chooses to invest $500,000 in German equity securities at a then current spot rate of $1.30/eu

ro. At the end of one year the spot rate is $1.35/euro.
1. Refer to Instruction, how many euros will the U.S. investor acquire with his initial $500,000 investment?
A) €650,000B) €370,370C) €500,000D) €384,6152. Refer to Instruction, at an average price of €60/share, how many shares of stock will the investor be able to purchase?A) 8333 sharesB) 6410 sharesC) 6173 sharesD) 10,833 shares3. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return before converting the stock back into dollars?A) 5.0%B) -3.0%C) -5.0%D) 3.0%
4. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return after converting the stock back into dollars?A) -1.35%B) 5.0%C) -5.0%D) -7.24%
Business
1 answer:
dimaraw [331]3 years ago
4 0

Answer:

1. Refer to Instruction, how many euros will the U.S. investor acquire with his initial $500,000 investment?

  • D) €384,615

$500,000 / $1.30 = €384,615.38

2. Refer to Instruction, at an average price of €60/share, how many shares of stock will the investor be able to purchase?

  • B) 6410 shares

€384,615 / €60 = 6,410.25

3. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return before converting the stock back into dollars?

  • C) -5.0%

(€57 - €60) / €60 = -5%

4. Refer to Instruction, at the end of the year the investor sells his stock that now has an average price per share of €57. What is the investor's average rate of return after converting the stock back into dollars?

  • A) -1.35%

[(6,410 x €57) + €15] x $1.35 = $493,269.75

($493,269.75 - $500,000) / $500,000 = -1.35%

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Answer:

d) <u>cash flow</u>

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Company uses the direct​ write-off method to account for uncollectible receivables. On April ​18, Wears wrote off a $ 6 comma 10
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Answer:

On April ​18, Wears wrote off a $ 6 comma 100 account receivable from customer W. Jalan

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Credit Accounts receivable  $6,100

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Ordinarily, When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

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Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

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According to a company's retained earning statement, it did not distribute a dividend to shareholders last year. A potential investor might draw the conclusion from this that management might be concentrating on a growth strategy.

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