Answer:
The budgeted $ amount is $13,680.88
Explanation:
The purchasing power parity formula gives us an idea what an exchange spot rate would be in future period using the below formula:
Future spot rate=current spot rate*(1+US inflation)/(1+French inflation)
current spot rate=$1.3620
US inflation rate is 2.50%
French inflation is 3.50%
Future spot rate=$1.3620*(1+2.5%)/(1+3.5%)
future spot rate=$1.3488
The weekly cost of vacation would also be adjusted for inflation rate in France as follows:
Adjusted price=9800*(1+3.5%)=10143
Hence the cost of the one week rental would be 10143 multiplied by the future spot exchange rate of 1.3488 i.e $ 13,680.88 (10143*1.3488)
Answer:
0.68
Explanation:
A portfolio consists of an investment of $7,500
The amount of common stock is 20
The portfolio beta is 0.65
Suppose one of the stock in the portfolio is sold with a beta of 1.0 for $7,500
The proceeds realized is then used to purchase another stock with a beta of 1.50
The first step is the to calculate the change in beta
Change in beta= 1.50-1
= 0.5
The next step is to divide the change in beta by the number of common stock
= 0.5/20
= 0.025
Therefore, the new beta can be calculated as follows
= 0.65+0.025
= 0.68
Hence the new portfolio's beta is 0.68
Answer:
B. Sell government securities to prevent the expansion of the money supply.
Explanation:
- The federal reserve can expand the money supply by modifying the money supply and refers to the amounts of the finds the banks must hold against the deposits and thus by allowing the reserves needs the banks are able to load more money and increases the supply in the economy. Thus by selling the securities the banks can control the supply and interest rates and is called an open market.
D) By reducing expenses you increase margins which means there is more money available for stockholders
Answer:
I don't know
Explanation:
Prepare a narrated PowerPoint presentation that will highlight the following items.
a. Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project
b. Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project.
c. The following capital budgeting results for the project:
1. Net present value
2. Internal rate of return
3. Discounted payback period.
