Answer:
Cash flow= $64,847
Explanation:
Giving the following information:
Sellin price= $72,376
Tax rate= 25%
Book value= $43,070
<u>First, we need to calculate the gain from the sale and the tax:</u>
Gain= 72,376 - 43,070= $29,036
Tax= gain*tax rate
Tax= 29,036*0.25= $7,259
<u>Now, we can calculate the after-tax cash flow:</u>
<u></u>
Gain= 29,036
Tax= (7,259)
Book value= 43,070
Cash flow= $64,847
I would say the shareholders could disapprove of the performance of their company if it was to consistently to lose money over say several quarters with no signs of improvement or no encouragement by management that this was a temporary situation,
Answer: b. The quantity of the country's currency supplied exceeds the quantity demanded.
Explanation:
A country operating a fixed-exchange rate system would be actively trading its currency to ensure that it remains at a certain rate. If the currency is overvalued, it means that the currency is actually weak and is being propped up by the company's actions in the forex market.
A reason for the weakness would be that the supply is higher than the demand of the currency which means that, as per the rules of supply and demand, the currency is trading at a lower price, i,e., it is weak.