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3 years ago

15

The theory of ______ states that the prices of tradable goods, when expressed in a common currency, will tend to equalize across

countries as a result of exchange rate changes.

1 answer:

IgorLugansk [536]3 years ago

3 0

The answer is; Purchasing Power Parity.

<em>Hope this helped! :)</em>

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Which one would be correct I’m to lazy to think :)

Levart [38]

I think it’s the second one letter B

6 0

2 years ago

If a person has money invested at 9 percent and the rate of inflation is 5 percent, how much return are they actually making on

makvit [3.9K]

Answer:

1. An index determined by measuring the price of standard goods brought by urban consumers.

2. Producers raise prices to meet increased cost.

3. Demand-pull theory.

4. It rises

5. 4 percent.

Explanation:

7 0

3 years ago

Read 2 more answers

Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $74, and the book value per sha

GaryK [48]

Answer:

10.45%

Explanation:

First find the cost of equity for the company

RE = [$4.60*(1.05) / $74] + 0.05

RE = 0.1153, or 11.53%

Then find the YTM on both bond issues

P1 = $950 = $45*PVIFA(R%,48) + $1,000*PVIF(R%,48)

R = 4.767%

YTM = 4.767%×2

YTM = 9.53%

P2 = $1,080 = $50*PVIFA(R%,16) + $1,000*PVIF(R%,16)

R = 4.298%

YTM = 4.298%×2

YTM = 8.60%

Total Debt = 0.95($80,000,000) + 1.08*($60,000,000)

Total Debt = $140,800,000

Weight of D1 = 76,000,000 / 140,800,000

Weight of D1 = 0.5398

Weight of D2 = 64,800,000 / 140,800,000

Weight of D2 = 0.4602

Weighted Average after-tax cost of debt

RD = (1 – 0.35)*[(0.5398)*(0.0953) + (0.4602)(0.086)]

RD = .0592, or 5.92%

Market value of equity = 8,000,000*($74) = $592,000,000

Market value of debt = $140,800,000

Total market value of the company = $592,000,000 + 140,800,000 = $732,800,000

Weights of equity and debt

E/V = $592,000,000 / $732,800,000 = 0.8079

D/V = 1−E/V = 0.1921

WACC = 0.8079(0.1153) + 0.1921(0.0592)

WACC = 0.1045, or 10.45%

7 0

3 years ago

Davita Spencer is a manager at Half Dome Asset Management. She can generate an alpha of 2% a year up to $100 million. After that

Dmitriy789 [7]

Answer:

a. Zero

b. $200 million

c. $2 million

Explanation:

a. The investor invest regular in portfolio with the positive alpha until the portfolio size has driven alpha to zero.

b. Davita return 2% of $100 million = $2 million

1% fee \times X million total under management.

Than, X = $200 million

c. $200 million \times 1% fee given = $2 million

6 0

2 years ago

Which of the following statements is CORRECT?

Talja [164]

Answer:

Which of the following statements is CORRECT?

a. Operating income is derived from the firm's regular core business. Operating income is calculated as Revenues less Operating costs. Operating costs do not include interest or taxes.

Explanation:

Operating income is an accounting figure that measures the amount of profit realized from a business's operations, after deducting operating expenses such as wages, depreciation, and cost of goods sold (COGS).

8 0

3 years ago