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nikklg [1K]
3 years ago
14

Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. inte

rest rate. Given this information, we know that investors expect ________.
Group of answer choices:
O the pound to depreciate.
O the pound to appreciate.
O the dollar-pound exchange rate to remain fixed.
O the U.S. interest rate to fall.
Business
1 answer:
Andrei [34K]3 years ago
7 0

Answer:

Assume that the uncovered interest parity condition holds. Also assume that the U.S. interest rate is greater than the U.K. interest rate. Given this information, we know that investors expect the pound to appreciate.

Explanation:

Considering the assumption that the uncovered interest parity condition holds and also that the interest rate in the U.S is greater than the U.K interest rate.

The above assumptions imply that there will be a depreciation in the dollar and an appreciation in the pound.

Therefore, investors would expect the pound to appreciate.

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Generally, revenue from sales should be recognized at a point when
qaws [65]

Answer:

D. none of these answer choices are correct.

Explanation:

The principle of revenue recognition occurs when the revenue is realized or earned either cash is received or not and it also serves the accounting accrual basis. Realizable also means that the buyer gets the product but the payment is made afterward.

In this, it does not depend on cash transactions.  

Hence, the option D is correct

3 0
3 years ago
A limited liability company is best thought of as a cross between a partnership and a:
8_murik_8 [283]

An LLC is a cross between a partnership and a corporation, because you have the flexibility of a partnership but more of the legal and financial protections that a corporation has.

7 0
3 years ago
Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, what is the change in
Strike441 [17]

Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.

Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs

Change in Value of firm

=Net Effect of Debt Financing

=Present Value of Interest Tax Shield (financial distress costs ignored)

= DebtValue * Cost of Debt * Tax Rate Interest Rate

= $1,000 * 10% * 20% 10%

=$200,

corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.

Learn more about tax rate here: brainly.com/question/25791968

#SPJ4

3 0
2 years ago
Which statements are true of a white dwarf?
Snezhnost [94]

Answer:

- it is the result of the core collapse of a low-mass star that sheds its outer layers.

-it cools down to become a black dwarf.

Explanation:

because its right, alright.

(PLATO)

8 0
3 years ago
Read 2 more answers
Choose the most accurate​ statement: If these projects are mutually exclusive​, which project should be chosen by the CEO of the
serg [7]

Answer:

Project A is the better option than Project B.

Explanation:

The NPV of the project will decide which is the option with greater value to shareholders. As we can see that the NPV of Project A at 10% cost of capital is greater than the NPV of Project B at the same 10% cost of capital. So the best option here is Project A as is more in value than project B. Hence the CEO must select Project A.

3 0
3 years ago
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