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3 years ago

If a company from Country A decides to sell merchandise to a company from Country B, then the company from Country A ________.

Business

1 answer:

Marizza181 [45]3 years ago

4 0

Answer: C) can denominate the sale in either currency and use the foreign exchange market to convert currency

Explanation:

The options to the question are:

A) will denominate the sale in its own currency since it is too hard to convert foreign currency

B) will denominate the sale in the currency of the buyer since it is too hard for them toconvert foreign currency

C) can denominate the sale in either currency and use the foreign exchange market to convert currency

D) can use the OTC market to convert receipts in the future and the exchange markets to convert receipts in the spot market.

Since the company from Country A I the one selling merchandise to the company from Country B, it means that the company from Country A can denominate the sale in either currency and use the foreign exchange market to convert currency.

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Straight-Line Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is expec

Ket [755]

Answer:

Annual depreciation= $7,996

Explanation:

Giving the following information:

Purchase price= $42,000

Useful life= 5 years

Salvage value= $2,020

To calculate the annual depreciation under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (42,000 - 2,020) / 5

Annual depreciation= $7,996

5 0

3 years ago

The market capitalization treasure on the stock of flex steel company is 12%. the expected ROE is 13% and the expected EPS are 3

VLD [36.1K]

Answer:

a. ROE (r) = 13% = 0.13

EPS = $3.60

Expected dividend (D1) = 50% x $3.60 = $1.80

Plowback ratio (b) = 50% = 0.50

Cost of equity (ke) = 12% = 0.12

Growth rate = r x b

Growth rate = 0.13 x 0.50 = 0.065

Po= D1/Ke-g

Po = $1.80/0.12-0.065

Po = $1.80/0.055

Po = $32.73

P/E ratio = Current market price per share

Earnings per share

P/E ratio = $32.73

$3.60

P/E ratio = 9.09

b. ER(S) = Rf + β(Rm - Rf)

ER(S) = 5 + 1.2(13 - 5)

ER(S) = 5 + 9.6

ER(S) = 14.6%

Explanation:

In the first part of the question, there is need to calculate the expected dividend, which is dividend pay-our ratio of 50% multiplied by earnings per share. We also need to calculate the growth rate, which is plowback ratio multiplied by ROE. Then, we will calculate the current market price, which equals expected dividend divided by the difference between return on stock (Ke) and growth rate. Finally, the price-earnings ratio is calculated as current market price per share divided by earnings per share.

In the second part of the question, Cost of equity (return on stock) is a function of risk-free rate plus beta multiplied by market risk-premium. Market risk premium is market return minus risk-free rate.

8 0

4 years ago

For each transaction:

stira [4]

Answer:

Elegant Lawns

a. Analysis of transactions using the accounting equation:

1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000

2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500

3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000

4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000

b. Journal Entries:

Date Account Titles Debit Credit

1. May 15, Assets: Cash $7,000

Assets: Equipment $3,000

Equity: Common stock $10,000

May 21, Assets: Office supplies $500

Liabilities: Accounts Payable $500

3. May 25, Assets: Cash $4,000

Equity: Service Revenue $4,000

4. May 30, Assets: Cash $1,000

Equity: Service Revenue $1,000

c. T-accounts:

Cash

Date Account Titles Debit Credit

1. May 15 Common stock $7,000

3. May 25, Service revenue 4,000

4. May 30, Service revenue 1,000

Equipment

Date Account Titles Debit Credit

1. May 15 Common stock $3,000

Office Supplies

Date Account Titles Debit Credit

2. May 21, Accounts Payable $500

Common Stock

Date Account Titles Debit Credit

1. May 15 Cash $7,000

1. May 15 Equipment 3,000

Accounts Payable

Date Account Titles Debit Credit

2. May 21, Office supplies $500

Service Revenue

Date Account Titles Debit Credit

3. May 25, Cash $4,000

4. May 30, Cash 1,000

Explanation:

a) Data and Analysis with Accounting Equation:

1. May 15, Assets Cash $7,000 Equipment $3,000 Equity: Common stock $10,000

2. May 21, Assets: Office supplies $500 Liabilities: Accounts Payable $500

3. May 25, Assets: Cash $4,000 Equity: Service Revenue $4,000

4. May 30, Assets: Cash $1,000 Equity: Service Revenue $1,000

8 0

3 years ago

An existing client in her late 20s comes to the RR's office with her boyfriend. The couple are not married but they want to open

oee [108]

Answer:

1. As the RR, you should start acquiring all of the information needed to open the account from each joint owner.

2. Prior to purchasing the desired mutual fund, you should sit down with both joint owners and discuss the various risks associated with the investment.

Explanation:

In this situation, the RR must get all the relevant and important information that concerns opening the account and should also tell them the risks involved investing in such fund.

The RR should not just refuse to open the account because of risk he is not responsible for discussing what it means to open a JTWROS account.

Instead The RR has it as a duty to explain the implications of the JTWROS account to the client and her boyfriend

8 0

3 years ago

Which of these savings/investing options has the highest risk

Pavlova-9 [17]

Answer:

STOCKS

Explanation:

US government bond is a government security, therefore the government print more money to pay those who invest in it.

In addition bondholders are creditors of a corporation.

Stockholders, are part owners of a company. In case of bankruptcy, bondholders are given priority.

Savings accounts are protected by the Federal Deposit Insurance Corporation (FDIC) provisions.

Money market accounts are a safe investment because they are insured by the FDIC.

Therefore the investment option that has the highest risk is stocks.

7 0

4 years ago