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4 years ago

Foreign exchange risk arises when:

Business

1 answer:

ivolga24 [154]4 years ago

6 0

Answer:

Business transactions are denominated in foreign currencies.

Explanation:

Foreign exchange can be referred to as the exchange of one country's currency for another currency. The exchange of these currencies occurs in an exchange market known as forex market.

Foreign exchange risk is a financial risk in which changes in the exchange rate may result in the loss of investment value or huge financial breakdown.

The most effective approach to preventing foreign exchange risks is for organizations to make and receive all forms of payment in their own currency.

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Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When re

aleksandrvk [35]

Answer:

$2,600 in the Accounts Receivable Dr./Sales Cr. column and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.

Explanation:

If we assume that Maxie's Game World uses a perpetual inventory system, the appropriate journal entries should be:

Date XXX, merchandise sold on credit to client YYY, terms 1/10, n/30

Dr Accounts receivable 2,600

Cr Sales revenue 2,600

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3 years ago

Tennis rackets can be purchased for $60 each from an outside vendor. it costs the manufacturer $80 a piece to produce them, of w

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The rest of your question:

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The answer:
Relevant cost to make and Buy.</span>

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3 years ago

You invest in a mutual fund that charges a 3% front-end load, 2% total annual fees, and a 3% back-end load, which decreases .5%

Phoenix [80]

Answer

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Explanation

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3 years ago

GHI Co. is planning to pay a dividend of $3.20 in the next year and expects to grow the dividend at a constant rate of 4% per ye

maria [59]

Answer:

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Explanation:

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.

So if an asset (e.g a stock) promises some cash flows in the future, those cash flows need to be brought to their present values and then be added to arrive at the value of the asset.

This model is based on the concept of the time of money. The idea that $1 today is not the same as $1 tommorow. The $1 of today is worth more than that of tomorrow; and because of the opportunity to earn interest. So to determine the worth of a future cash flow, we compute its worth today- its present value.

The Present Value of a future cash flow is the amount that needs to be invested today at a particular rate of return to equal the same cash flow in the future. Present value means the value in year 0 or now

The process of calculating the present value of a future sum is called discounting. So to calculate the stock price in this question, we shall discount the future dividends using the required rate of return and then add them together.

Applying this model, the price of the stock

P =D (1+g)/(r-g)

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3 years ago

An increase in interest rates affects aggregate demand by A. shifting the aggregate demand curve to the left, reducing real GDP

Sergio039 [100]

Answer: B. shifting the aggregate demand curve to the right, increasing real GDP and lowering the price level.

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3 years ago