Answer:
Conversion ratio will be 20 shares
Explanation:
We have given bond value = $1000 per bond
Conversion price = $50
We have to find the conversion ratio
Conversion ratio is the ratio of bond value per bond to the conversion price
So conversion ratio will be equal to 
So conversion ratio will be 20 shares
So option (D) will be correct answer
<span>the real exchange rate is greater than one and arbitrageurs could profit by buying oranges in Morocco and selling them in the U.S.</span>
Answer:
3%
Explanation:
Data provided as per the question
Nominal interest rate = 100%
Inflation rate = 7%
The computation of the real interest rate is shown below:-
Real interest rate = Nominal interest rate - Inflation rate
= 10% - 7%
= 3%
Therefore, for computing the real interest rate we simply deduct the inflation rate from the nominal interest rate.
Answer:
TRUE
Explanation:
The integration of countries from the same region into a trade bloc has the purpose of free movement of goods and services among lower-priced member countries. This is because from integration, countries give up tariffs and customs barriers, allowing products to be marketed to everyone at a lower cost, aiming at the common good. If countries use the same currency, the benefits of integration are even greater as they eliminate currency conversion costs.An example of this type of integration is the European Union, where products move freely between member countries and are sold in the same currency, the euro.
Flow to Equity (FTE) is the approach to capital budgeting that discounts the after-tax cash flow from a project going to the equity holders of a levered firm.
An alternative capital budgeting strategy is the flow to equity (FTE) or free cash flow approach. The FTE approach merely requires that equity capital be discounted at the cost of the cash flows from the project to the equity holders of the leveraged firm. The amount of cash that a company's equity shareholders have access to after all costs, reinvestment, and debt repayment is taken into account is known as flow to equity. Free Cash Flow to Equity (FCFE) is calculated as Net Income - (Capital Expenditures - Depreciation) - (Change in Non-cash Working Capital) - (Change in Non-cash Equity) + (New Debt Issued - Debt Repayments) This is the cash flow that can be used to repurchase stock or pay dividends.
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