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4 years ago

Using the data calculate the balance on current account for this economy.

Business

1 answer:

Sergio039 [100]4 years ago

7 0

Answer:

= - $1050

Explanation:

Current Account:

Balance of Trade negative -$600

Balance of Services = +$50

Net Income on Investments negative −$400

Net Transfers -$100

current account (-$600+$50−$400-$100) - $1050

Exports of Goods +$9,900

Imports of Goods - $10,500

Exports of Services +$350

Imports of Services -$300

Income Received on Investments +3,300

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When there is a full forward cover with the spot rate equal to the forward rate all of the following are true EXCEPT: A. The cu

Blababa [14]

Answer:

B. The hedge is asymmetric.

Explanation:

Hedging refers to a technique or a mechanism whereby firms and individuals aim for risk reduction, arising out of uncertain and volatile business situations, which may result into a heavy loss.

For example, an exporter entering into a forward contract to eliminate or reduce the risk of arising out of a future situation wherein, future receipts denominated in a foreign currency, receivable at a future date, may be less than same receipts receivable at current spot exchange rate as on today.

Currency hedge ratio depicts the proportion of total exposure which is covered by hedge w.r.t the total exposure itself.

Asymmetrical hedge refers to covering an exposure by an opposite position wherein the chances of earning profits are higher than the losses current position can lead to. Such an hedge would be similar to covering a call option with a put option. Asymmetrical refers to being of dissimilar or non equal size. Here, it refers to the dissimilarity between prospective profits and losses.

Under a perfect hedge, the loss position in a scenario is completely covered i.e 100% by a prospective gain in other situation, with there being negative correlation between the two scenarios such as if scenario 1 yields a profit, scenario 2 would yield a loss and vice versa.

8 0

4 years ago

Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor h

mash [69]

Answer:

variable overhead efficiency variance= $562.5 unfavorable

Explanation:

Giving the following information:

The actual production of 5,500 units

Actual direct labor hours= 11,250

Standard direct labor for 5,500 units:

Standard hours allowed 11,000 hours

First, we need to determine the variable overhead rate:

Variable overhead rate= 22,500/10,000= $2.25 per direct labor hour

Now, using the following formula we can determine the variable overhead efficiency variance:

variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

variable overhead efficiency variance= (11,000 - 11,250)*2.25

variable overhead efficiency variance= $562.5 unfavorable

3 0

3 years ago

Hughes Co. is growing quickly. Dividends are expected to grow at a rate of 22 percent for the next three years, with the growth

Oksana_A [137]

Answer: $53.94

Explanation:

Current share price is the present value of the dividends for the next 3 years and the terminal value in year 3.

Terminal value = D₄ / ( required return - growth rate)

= (2.35 * 1.22³ * 1.05) / (12 % - 5%)

= $64

D₁ = 2.35 * 1.22 = $2.867

D₂ = 2.867 * 1.22 = $‭3.49774‬

D₃ = ‭3.49774‬ * 1.22 = $‭4.2672428‬

Share price = (2.867 / (1 + 12%)) + (‭3.49774‬ / 1.12²) + (‭4.2672428‬ / 1.12³) + (64/1.12³)

= $53.94

7 0

3 years ago

J. M. Keyes put all his money in one stock, and the stock doubled in value in a matter of months. He did this three times in a r

adell [148]

Answer:

Lucky event

Explanation:

In the investments market a true measure of market efficiency is to get a track record of positive outcome from investors over time.

The lucky event problem occurs when an investor makes a profit on investment not because of how efficient a market is or by a logical procedure, but rather by chance.

In the given scenario Keyes put all his money in one stock that doubled in 3 months.

However this was not replicated among other investors who made similar vets on other stocks and lost.

This is an exams of lucky event problem in determining market efficiency.

5 0

3 years ago

Cushman Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold o

patriot [66]

Answer:

Gross profit equals $420,000

Explanation:

To get gross profit , we only discount the cost of goods sold from the Total sales

Gross profit Formula= net sales – cost of goods sold

Gross profit =$800,000- $380,000

Gross profit =$420,000

We use sales returns and allowances, sales discounts and operating expenses to get net income.

5 0

3 years ago