Answer:
The budgeted $ amount is $13,680.88
Explanation:
The purchasing power parity formula gives us an idea what an exchange spot rate would be in future period using the below formula:
Future spot rate=current spot rate*(1+US inflation)/(1+French inflation)
current spot rate=$1.3620
US inflation rate is 2.50%
French inflation is 3.50%
Future spot rate=$1.3620*(1+2.5%)/(1+3.5%)
future spot rate=$1.3488
The weekly cost of vacation would also be adjusted for inflation rate in France as follows:
Adjusted price=9800*(1+3.5%)=10143
Hence the cost of the one week rental would be 10143 multiplied by the future spot exchange rate of 1.3488 i.e $ 13,680.88 (10143*1.3488)
Answer:
14.05%
Explanation:
Given that,
Beta = 1.3
Risk-free rate (Rf) = 9.5%
Return on the Market (RM) = 13%
According to CAPM approach:
Cost of common equity (RE):
= [Rf + β (RM – Rf)]
= [9.5% + 1.3 (13% - 9.5%)]
= [9.5% + 1.3 (3.5%)]
= [0.095 + 1.3 (0.035)]
= [0.095 + 0.0455]
= 0.1405
= 14.05%
Therefore, the firm's cost of common equity is 14.05%.
Answer:
Mary is relying on <u>referral marketing</u> to identify potential customers.
Explanation:
Referral marketing is a method of spontaneously promoting a businesses products and services to new customers by word of mouth. This can happen through a variety of channels such as email, mobile, and social media.
Referral programs are formal programs that exists in some organizations instituted by employers to encourage employees to refer candidates for jobs at the company.
Referral programs benefit both the employer and the current employees. In some cases, a bonus can be earned if a referred candidate is hired.
If the U.S. government was concerned that the depreciating value of the US$ caused the Japanese government unstable, it would sell yen in the foreign exchange market. If successful the $/yen exchange rate would decline.
Explanation:
Yen that would increase market yen supply and market dollar demand, which would stabilise the dollar price. $/yen means the number of dollars for yen that may be purchased.
This value will decline as the dollar begins to appreciate.
The average Nikkei 225 fell by 7.2 percent relative to its April point at 14 May. And, in April, the yen increased to 109-110 from 112-113 to the dollar. The fall of the stock market did not cause the yen to rise for the first time. As the following chart shows, Japan's stock market downturn has been strongly influenced since 2004 by a high yen as a result of the increase in stock prices.
