Answer:
The annualized rate of return to the Swiss investor is -7.93%.
Explanation:
This is an instance of foreign currency bond.
Using the exchange rate of $1 = 1.420, purchase price of the bond is calculated as $9,708.74 x 1.420 = 13,786.4108 Swiss Francs
Using the exchange rate of $1 = 1.324, maturity value is $10,000 x 1.324 = 13,240 Swiss Francs
Holding period is 6 months.
So, annualized rate of return is: (Maturity amount - Purchase price)/Purchase price x 12 / No of months
Annualized rate of return is: (13,240 - 13,786.4108)/13,786.4108 x 12/6 = -0.079268028.
Annualized rate of return is -7.93% approximately.
Answer:
They reveal how the author(s) interpreted the findings of their research and presented recommendations or courses of action based on those findings.
Explanation:
Answer:
$173,820
Explanation:
pretax financial income $616,000
- interest income on municipal bonds ($78,400)
+ depreciation ($67,200 - $50,400) = $16,800
+ fine for dumping hazardous materials $25,000
taxable income = $579,400
income taxes payable = $579,400 x 30% = $173,820
Fines are not tax deductible, and since depreciation for tax purposes is lower than accounting depreciation, you must add them. But since municipal bonds are not taxable, they must be subtracted.
This is called a "Sponsorship"
