Answer:
1 year rate 2 year from now = 12% (Approx)
Explanation:
Given:
1-year rate = 8%
2-year rate = 9%
3-year rate = 10%
Computation:
According to Pure Expectations Hypothesis,
(1 + 3-year rate)³ = (1 + 2-year rate)² (1 + 1 year rate 2 year from now)
(1.10)³ = (1 + 1.09)²(1 + 1 year rate 2 year from now)
1.331 = 1.1881 (1 + 1 year rate 2 year from now)
(1 + 1 year rate 2 year from now) = 1.12
1 year rate 2 year from now = 0.12
1 year rate 2 year from now = 12% (Approx)
They have many potential <u>Entry Modes</u> at their disposal.
<h3>What is Entry Mode?</h3>
Foreign market entrance modes in international trade are the methods through which a corporation can expand its services into a non-domestic market.
Market entrance options are classified into two types: equity and non-equity. Export and commercial agreements are examples of non-equity mechanisms. Joint ventures and totally owned subsidiaries are examples of equity models. Different entrance mechanisms differ in three key ways:
- The level of danger they pose.
- Control and dedication to the resources required.
- The promised return on investment
Therefore, Companies like my gym, which seek to do business in new markets for manufacturing and/or marketing purposes, have many potential <u>Entry Modes</u> at their disposal.
For more information on Entry Modes, refer to the given link:
brainly.com/question/17232113
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If you are planning to place an ad in a local newspaper with a size of 5 inches long by 4 columns wide and the newspaper's rate per column inch is $18, the ad will cost $360.
Solution: <span>5 inches x 4 columns = 20
20 column inch x $18 = $360</span>
Answer:
Journal entry
Explanation:
The journal entry is as follows
Cash $5,000
To other financing source - sale of capital assets $5000
(Being the sale in the general fund is recorded)
For recording this transaction we debited the cash account as it increases the asset account while credited the other financing source - sale of capital assets