Answer:
The correct answer is (B) Buy euro at $1.50/€, buy £ at €1.25/£, sell £ at $2/£
Explanation:
The dollar- euro exchange rate is quoted as $1.50 = €1.00
the dollar-pound exchange rate is quoted at $2.00 = £1.00
To calculate the actual cross rate we use; S(euro divided by pounds) = S(dollar/pounds) ÷ S(dollar/euro).
Using symbols to denote this, we have S(€/£) = S($/£) / S($/€)
S(€/£) = S(2/1) ÷ S(1.50/1)
= (2 / 1.5)
= €1.33.
Consequently, from this result we now know that the euro is undervalued with respect to pounds under the cross rate being offered by the bank. This implies that you should first buy the euro, convert to pounds, and eventually convert back to dollars, this would enable you make money as an investor.
Answer:
ummm because it is bigger
Explanation:
Answer:
Wang Company
Statement of financial position
Equity and liabilities
Issued share capital $70,000
Retained earnings $45,000
115,000
Assets
Non-Current assets
Fixed assets $22,000
Current assets
Cash in hand $93,000
$115,000
Wang company
Income statement
Net sales $88,000
Cost of sales $38,000
Gross margin $50,000
Less:admin expenses $5,000
Net Profit $45,0000
Answer:
Alternatives Airport at X Airport at Y
Buy land at X 6 -14
Buy land at Y -21 12
Buy land at X and Y -15 -2
Do nothing 0 0
probability 0.55 0.45
Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3
Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15
Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15
Payoff for doing nothing = 0
The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.
Answer:
a. support department allocations
Explanation:
These costs are known as support department allocations or service department charges. Every company tends to have these costs since this applies to any department or third party which provides the company with a service. Many times this mainly refers to manufacturing departments and production departments since both provide a service that every company needs in order to obtain their desired product.
