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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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kaheart [24]

Answer:

The correct answer is D

Explanation:

The journal entry which is to be posted on December 31, is as:

Rent receivable A/c............................Dr   $4,400

        Rent Earned A/c...............................Cr    $4,400

As the two months rent is not paid so the adjusting entry which is to be posted is that the rent receivable account is debited whereas the rent earned account is credited with the amount of two months rent. (which is $2,200 + $2,200 = $4,400).

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3 years ago
The government department responsible for laws concerning work is the_____. 1. US Department of Education
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3. US Department of Labor
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Patagonia managers look for employees who actively participate in the sport they design products for (i.e. a surfboard shaper ha
pochemuha

Answer:

job requirements or qualifications

Explanation:

Job requirements or qualifications refers to the set of skills, abilities, work experience, educational background, hobbies, etc., that the company considers are necessary for a candidate to possess in order for him/her to successfully perform the tasks related to the job opening.

In this case, Patagonia uses personal hobbies and lifestyle as part of their requirements for applying for a job, other companies might focus more on leadership skills, education, experience, but it depends on the type of product or service that the company sells.

4 0
3 years ago
This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life o
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Answer:

Annual depreaciation 2020= $2,400

Explanation:

Giving the following information:

Purchase price= $12,000

Salvage value= $2,000

Useful life= 5 years

<u>To calculate the depreciation expense under the double-declining balance, we need to use the following formula:</u>

Annual depreciation= 2*[(book value)/estimated life (years)]

2019:

Annual depreaciation= 2*[(12,000 - 2,000) / 5]

Annual depreaciation= 4,000

2020:

Annual depreaciation= 2*[(10,000 - 4,000) / 5]

Annual depreaciation= $2,400

8 0
2 years ago
Tobin Supplies Company expects sales next year to be $500,000. Inventory and accounts receivable will "increase $80,000" to acco
wel

Answer:

External funds needed = $40,000.

Explanation:

An increase in the firm's retained earnings (a component of the shareholder's equity) arises as a result of higher sales volume, thereby making the  Asset = Liability + Shareholder's Equity Equation unbalanced.

Therefore, there must be an increment in the firm's assets by an equal amount in order to re balance the equation. If there is an increase in assets by a greater magnitude than retained earnings increment, the gap is filled by external financing (which is a liability and increases the liability component of the equation).

Net income = Sales * profit margin = $500000*10% = $50000

Dividend= Net income * payout ratio = $50000*20%= $10000

Increase in retained earnings = Net income - Dividend = $(50000-10000)

                                                  = $40000

Increase in assets = $80000

External funds needed = $(80000-40000) = $40,000.

7 0
3 years ago
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