Answer:
59% - a)increase - b)decrease
Explanation:
First of all, we should say that the real exchange rate is calculated by multiplying the nominal exchange rate for the price index and then divide it by the price index of the other country. In another language, using this case as the example, the first nominal exchange rate is 50, as you need 50 rupees to buy 1 dollar. So to calculate the real exchange rate you need to multiply 50 by 100 (the price index of USA) and then divide it by 100 (the price index of India). Note that both price indexes are 100, just a coincidence for making easier the question. Result: 50.
Then we calculate the next real exchange rate: multiply 60 (the new nominal exchange rate) by 106 (the new US price index) and divide by 80 (the new India price index). This throws a result of 79,5. We see a 29,5 increase, and 29,5 represents 59% of 50 (the initial real exchange rate).
Then both questions is more common sense than the reading of the results we just calculated. For example, nominal exchange rate changed from 50 to 60, so the people in India will now have to collect 10 more rupees to buy the same dollar. Let's suppose a pair of shoes in USA costs 40 dollars. Before, Indians needed 2000 rupees to buy it. Now they will need 2400 rupees... it will be more expensive. Plus, the prices of USA had gone up 6%, which means the pair of shoes will now cost 42,4 dollars... even more expensive! As products in USA are more expensive, we can expect that India's consumption of American goods will decrease (law of demand).
With the American consumption of Indian goods happens the opposite, the goods in India became cheaper (price index has fallen), and for the Americans, the same dollars they had will buy more rupees when the exchange rate changed to 60.
Answer:
Cost of Goods Sold is = $697213.44
Explanation:
given data
depreciation expenses = $28,900
sales = $755,000
retained earnings = $10,200
paid interest = $6,200
dividends = $5,000
tax rate = 33 percent
solution
first we get here EBIT that is express as here
EBIT = Earnings for equity holders + Tax + Interest ...............1
Earnings for equity holders = Dividend Paid + retained earnings
Earnings for equity holders = $5,000 + $10,200 = $15200
here Tax is =
× 33 = 7486.56
so here EBIT = $15200 + $7486.56 + $6,200
EBIT = $28886.56
so Cost of Goods Sold is = sales - depreciation - EBIT ..................2
Cost of Goods Sold is = $755,000 - $28,900 - $28886.56
Cost of Goods Sold is = $697213.44
Answer:
$2,610
Explanation:
Calculation for how much money you must borrow.
Using this formula
Amount to be borrowed =( Purchased shares* Per share price*(Initial margin requirement percentage)
Let plug in the formula
Amount to be borrowed= 150 shares*$60 per shares *(1-0.71)
Amount to be borrowed=$9,000*(0.29)
Amount to be borrowed=$2,610
Therefore how much money you must borrow will be $2,610
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Low gross domestic product