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julia-pushkina [17]
2 years ago
9

On August 8th the​ three-month risk-free rate of interest in the United States was 3.75 percent and it was 3.00 percent in Japan

. If the spot exchange rate were ​$0.010798​/yen​, what would you expect the forward exchange rate to​ be?

Business
1 answer:
weeeeeb [17]2 years ago
6 0

Answer:

The answer is 0.01082

Explanation:

The formula for forward exchange rate is:

F = S x 1+rd/1+rf

where F is the forward exchange rate

S is the spot exchange rate(0.010798)

rd is the foreign currency interest rate(3% or 0.03)

rf is the domestic interest rate(3.75% or 0.0375

Month is 3 months(90days) and total number of days in a year is 360days.

Find find the attached file for calculation

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A company’s unit costs based on 100000 units are: Variable costs $75 Fixed costs 30 The normal unit sales price per unit is $165
Simora [160]

Answer:

$81,000

Explanation:

The computation of the incremental profit (loss) from accepting the order is shown below:

Contribution per unit = $165 - $75

= $90

Now

Loss on contribution for giving up regular sales  is

= $4,100 × 90

= $369,000

Now Incremental contribution for special order is

= ($135 - $75) × 7,500

= $450,000

So,  

Incremental profit is

= $450,000 - $369,000

= $81,000

3 0
3 years ago
. Imagine that you are buying a new computer and comparing different brands and prices. List and describe two nonprice competiti
Luba_88 [7]

Popularity and warranty

5 0
3 years ago
A goal programming problem had two goals (with no priorities assigned). Goal number 1 was to achieve a profit of $2,400 and goal
topjm [15]

Answer:

100

Explanation:

Goal programming is an optimization technique that allows for multiple, normally conflicting objectives and then attempts to solve each goal sequentially to a satisfactory level. In goal programming, differential variables are being used.

Since the goal programming problem had two goals. Goal number 1 was to achieve a profit of $2,400 and goal number 2 was to have no idle time for workers in the factory. The optimal solution to this problem resulted in a profit of $2,300 and no idle time

This means that goal number 2 was achieved since the optimal solution resulted in no idle time. But goal number 1 was not achieved because a profit of $2300 was achieved in the solution instead of $2400.

Therefore, the value for the objective function for this goal programming problem = 2400 - 2300 = 100

7 0
3 years ago
Fyodor, a manager of the research and development team of an organization, challenges his subordinates to "think outside the box
nexus9112 [7]

Answer: mental models.

Explanation: A mental model is an explanation of someone's thought process about how something works in the real world and learning a new mental model gives you a new way to see the world. Furthermore, It’s represent the surrounding world, the relationships between its several parts and an individual intuitive perception about his or her own acts and their consequences.

4 0
3 years ago
The common stock of Jensen Shipping has an expected return of 16.2 percent. The return on the market is 11.2 percent, the inflat
tankabanditka [31]

Answer: 1.66

Explanation:

Based on the information given in the question, the beta of the stock will be calculated as follows:

Expected return = 16.2%

Market return = 11.2%

Inflation rate = 3.1%

Risk-free rate of return = 3.6%

We should note that:

Expected return = risk-free rate + Beta × (market rate- risk-free rate)

Therefore,

16.2% = 3.6% + Beta × (11.2% - 3.6%)

16.2% = 3.6% + Beta × 7.6%

16.2% - 3.6% = Beta × 7.6%

12.6% = Beta × 7.6%

Beta = 12.6% / 7.6%

Beta = 1.66

4 0
2 years ago
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