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Gre4nikov [31]
3 years ago
14

Suppose you observe a spot exchange rate of $1.0500/€. If interest rates are 5% APR in the U.S. and 3% APR in the euro zone, wha

t is the no-arbitrage 1-year forward rate? Multiple Choice €1.0300/$ $1.0300/€ €1.0704/$ $1.0704/€
Business
1 answer:
Kitty [74]3 years ago
7 0

Answer:

Forward rate= Spot rate * (1+ US interest rate)/(1+Euro interest rate)

= 1.05*1.05/1.03

Forward rate= $1.0704/€

Explanation:

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Suppose you have two credit cards. The first has a balance of $410 and a credit limit of $1,000. The second has a balance of $51
Afina-wow [57]
You are using $410 + $510 = $920 out of a possible $1000 + $1000 = $2000

Therefore your credit utilization is \frac{920}{2000} =.46

That is, 46%
3 0
3 years ago
Read 2 more answers
Use the following information to determine the break-even point in sales dollars: Unit sales 50,000 Units Dollar sales $ 500,000
Keith_Richards [23]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Unit sales 50,000

Units Dollar sales $ 500,000

Fixed costs $ 204,000

Variable costs $ 187,500

First, we need to calculate the unitary selling price and variable cost:

Unitary Selling price= 500,000/50,000= $10

Unitary variable cost= 187,500/50,000= $3.75

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 204,000/ [(10 - 3.75)/10]= $326,400

6 0
3 years ago
The​ after-tax cost of debt is higher than the​ before-tax cost of debt. True or False
olasank [31]

Answer:

False

Explanation:

The after cost of debt is always lower than the before tax cost of debt. For example, a company borrows $1,000,000 and pays 7% interest per year. This results in $70,000 in interest expense before taxes = $1,000,000 x 7% = $70,000.

The after tax cost of the debt = $1,000,000 x 7% x (1 - tax rate) = $1,000,000 x 7% x (1 - 21%) = $1,000,000 x 7% x 0.79 = $55,300

5 0
3 years ago
Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair.
bogdanovich [222]

Answer:

The company should increase the number of units she is producing

Explanation:

Since the elasticity of demand for the product is greater than one (1.4), it means the demand for the new drug is elastic, meaning the demand for the new drug is sensitive to price – the higher the price, the lower the quantity demanded and the vice-versa. So the pharmaceutical company should be careful of charging higher than the other competitors.

What the company needs to do to increase its revenue is to produce large quantity of the drug in order to earn higher and gain larger market share and probably economies of scale.

For example, If the company produces 400 units of the drug at $2, the revenue will be $800.

To increase the revenue, the company needs to increase its production.

For example, the increases the production to 500 units at the prevailing price of $2, therefore, the revenue will be $1000

8 0
3 years ago
Sephora is a large cosmetic retailer offering customers the opportunity to shop in their independently operated stores, smaller
Helga [31]

Answer:

Omnichannel Distribution

Explanation:

Omnichannel Distribution -

It is the method adapted by the company which opens the options for the customers to purchase several products from various stores whether to be online or offline availability , is known as omnichannel distribution .

Hence , it is widely used sales method , to increase the profit of the company , by attracting customers from offline as well as from the online platform , and tries to make it available even in the smallest stores .

Hence , the example of Omnichannel Distribution is depicted in the question .

7 0
3 years ago
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