Answer:
Explanation:
Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)
rh - periodic interest rate in the home currency
rf - periodic interest rate in the foreign currency
Forward/90 = [1+1%*180/360]/[1+2%*180/360]
Forward = 1.005/1.01 * 90 = 89.55
Forward rate is 89.55 yen/$
Answer:
It distorts relative prices, causing a misallocation of resources.
Explanation: Inflation is an economic term used to describe a situation in a country's market when there is a sudden rise in commodities sold in the market. Inflation can be as a result of an increase in demand of commodities sold in the market.
It has a negative effect, when the prices are distorted and the purchasing power is not properly allocated to the buyers.
Answer:
-3 million dollars
Explanation:
we have EVA = economic value added
to ge the EVA, we use this formula :
(operating return on the assets - cost of the total capital) multiplied by the total assets
total assets = 100 million
operating return = 12 percent
cost of capital = 15 percent
the EVA = 12% - 15% * 100000000
= -0.03 * 100000000
= -3,000,000 dollars
b. The loss of the value of the shareholder is happening even though the firm is earning ROI that is more than the average firm in the industry.
Answer:
social loafing
Explanation:
Social loafing refers to a psychological phenomenon where people who participate in teams will not try their best in order to achieve the team's goals because he/she believes that other team members will do it, and they will either solve the problem or perform the required task. That way they will benefit from other people's work.
This is not something that only happens in businesses, we all have a classmate that doesn't participate in group assignments because he/she knows that the others will complete it and everyone will be graded equally based on the group's performance.
2 million dollars
SLE is Exposure Factor * asset value
Exposure factor is an estimate of the impact of the risk divided by value of asset (2mil/10 mil = .2)
.2* 10,000,000= $2,000,000
