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VMariaS [17]
3 years ago
6

If one-year nominal interest rate in the U.S. is 3%, while the one-year nominal interest rate in Australia is 5%. The spot rate

of the Australian dollar is $.96. Interest Parity is held. You will need 5 million Australian dollars in one year. Today, you purchase a one-year forward contract in Australian dollars. How many U.S. dollars will you need in one year to fulfill your forward contract?
Business
1 answer:
Mariana [72]3 years ago
3 0

Answer:

to get 5,00,000 australian dollar at the forward rate we are goign to need 4,704,000 US dollars

Explanation:

spot x (1 + (US rate - Australia rate) x time)

0.96 x (1+(0.03-0.05)x1 year) =

0.96 x 0.98 = 0.9408 forward exchange rate

$5,000,000 Australian Dollar * 0.9408 = 4,704,000 US dollars

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2 years ago
The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
Anna [14]

Answer:

Net present Value (NPV)

Explanation:

The net present value (NPV) is one of the tools used in business for appraising the desirability or otherwise of projects or investments. It compares the present value (PV) of cash inflows with the present value of cash outflows over a period of time. It is the difference between the present value of the future cash inflows from an investment and the amount of initial capital outlay that gives either profit or loss.

7 0
3 years ago
what percentage of the total variation in candy bar sales is explained by prices? a. 88.54% b. 48.19% c. 78.39% d. 100%
MaRussiya [10]

Answer:

The correct option is c. 78.39%.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation to the answer is now given as follows:

In regression model, R-squared (R^2) is the statistical measure that shows the percentage of the total variation a dependent variable that is explained by an independent variable(s).

From the question, the candy bar sales is the dependent variable while the Price is the independent variable.

Therefore, the R^2 is calculated using the RSQ function in the Microsoft excel.

Note: See the attached excel file for the calculation of the R^2 using the RSQ function.

For the data in the excel, the R^2 is calculated by simply typing =RSQ(C3:C8,B3:B8) anywhere in the attached excel file. This gives 0.7839. Converting this to a percentage gives 78.39%.

Therefore, percentage of the total variation in candy bar sales explained by prices is 78.39%. The correct option is c. 78.39%.

Download xlsx
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> xlsx </span>
<span class="sg-text sg-text--link sg-text--bold sg-text--link-disabled sg-text--blue-dark"> pdf </span>
4 0
3 years ago
A company allowed its employees to take a half hour lunch break. However, the break was uncompensated, and the employees were no
hoa [83]

Answer:

FLSA rules establish that only short coffee breaks (between 5 to 20 minutes) should be compensated as work time. Meal periods that last at least 30 minutes are not compensable work time.

If maintenance workers are recalled earlier, that time counts as work time because they are performing their normal work tasks.  

8 0
4 years ago
If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be
Musya8 [376]

Answer:

C. the price effect would become a more significant consideration for each firm that makes automobiles.

Explanation:

The situation above is highly related to the topic about "supply" and "demand." If the nations of <em>Germany</em>,<em> Japan</em> and <em>the U.S.A</em>. prohibits the international trade in automobiles, this will result to a<u> surplus of automobile goods within the country.</u> Since these automobiles were meant to be sold abroad, the prohibition will<em> lower its international demand.</em> Such increase in supply will have a significant effect on the price of the automobiles. This is the reason why each firm should have to consider the situation's effect on the price of the automobiles and related goods.

So, this explains the answer.

4 0
4 years ago
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