An increase in US. Interest rates relative to German interest rates would likely reduce the u. S. Demand for euros and increase the supply of euros for sale.
<h3>What is the impact of an increase in interest rate on a country's currency?</h3>
When the interest rate of a country's currency increases, the value of that currency increases. As a result, there would be an increase in the demand for that currency relative to other currencies.
When the US interest rates increase relative to that of Germany, the value of the dollar would increase. This would lead to an increase in the demand for the dollar and a decrease in demand for the euros.
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Answer:
B) $90,000
Explanation:
The market value of the unlevered equity can be calculated using the following formula:
Expected value = Σpx
Where:
p = the probability of each outcome
=50% in this case for both weak and strong economy.
x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.
Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)
=0.50(78,260.87)+0.50(101,739.13)
=$90,000
So the answer is B) $90,000
Answer:
TVG
Times Interest Earned Ratio (TIER) = Earnings Before Interest & Taxes divided by Interest Expense
= $300,000/$$80,000 = 3.75 times
Explanation:
a) TVG Income Statement:
Revenue $3,000,000
Cost of goods sold 2,500,000
Gross profit $500,000
Depreciation 200,000
EBIT $300,000
Interest Expense 80,000
Pre-tax Income $220,000
b) TVG's TIER shows the number of times that its earnings before interest and taxes covers the interest expense. It shows the ability of the TVG to settle its maturing debt obligations from current earnings. It is an important financial performance measure which potential investors in TVG will use to gauge the ability of TVG to meet financial obligations from the earnings it generates.
When bank charged another company's check against our account this would be included on the bank reconciliation as a addition to the balance per books.
A bank reconciliation statement summarizes banking and business activities and reconciles a company's bank accounts and its financial records. A bank reconciliation statement confirms that the payment has been processed and the cash collection has been credited to your bank account.
Withdraw an outstanding check. This will give you a reconciled bank balance. Then, use the cash balance at the end of the business to add up the interest earned and any outstanding bills. Deduct all bank charges, penalties and NSF checks.
Procedures for verifying the accuracy of both company bank statements and cash accounts. - Must be completed at the end of each month. A common cause of differences between the bank's ending balance and the cash book's ending balance.
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