1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Musya8 [376]
2 years ago
5

Assume the U.S. interest rate is 7.5 percent, the New Zealand interest rate is 6.5 percent, the spot rate of the NZ$ is $.52, an

d the one-year forward rate of the NZ$ is $.50. At the end of the year, the spot rate is $.48. Based on this information, what is the effective financing rate for a U.S. firm that takes out a one-year, uncovered NZ$ loan?
Business
1 answer:
dlinn [17]2 years ago
6 0

Answer:

about −1.7%

Explanation:

% change in pound

=$0.48-$0.52/0.52

=-0.04/0.52

=-7.7%

Effective financing rate =

(1 + 6.5%)[1 + (−7.7%)] − 1

= about −1.7%

Therefore the effective financing rate for a U.S. firm that takes out a one-year, uncovered NZ$ loan is about -1.7%

You might be interested in
Home Works Referral Network is a premier home service referral network of dependable, highly skilled home improvement profession
Hatshy [7]

Answer:

The correct answer is D. code of ethics.

Explanation:

A code of ethics serves to regulate the actions of a professional, to protect organizations and their members; In this way, the behavior standards of people within a company or organization are established. In this case, the domicile company requires a code of ethics so that the personnel do not disclose company information, honestly carry out the work, take responsibility for the obligations assigned to them during their professional activity.

4 0
2 years ago
If the financial statements include an income statement and a balance sheet but exclude the statement of cash flows, the auditor
USPshnik [31]

Answer:

The auditor should issue a qualified report for the departure from generally accepted accounting principles.

Explanation:

A qualified opinion can be understood as the statement given by an auditor in conjunction with a corporation's audited financial statements in an auditor's report. It was an auditor's judgement that implies a firm's earnings reporting was restricted in scope or that there was a substantial fault with the implementation of generally accepted accounting standards (GAAP)—but hardly one that was widespread.

3 0
2 years ago
You do an internet search and the results list includes the Web site www.FDIC.gov. This information is?
MAVERICK [17]
The answer is b
Hope I got it right
7 0
3 years ago
Read 2 more answers
A difference between the static budget and the flexible budget is called the ________. a. total variance. b. volume variance. c.
Sphinxa [80]

Answer:

b. volume variance.

Explanation:

Volume variance can be defined as the difference between the static budget and the flexible budget.

It mainly occurs as a result of the difference between the actual volume and the budgeted volume derived from the static budget.

5 0
3 years ago
PLEASE HELP ME!
Lelu [443]
I think the best answer would be D. Understand her costumer value<span />
3 0
3 years ago
Read 2 more answers
Other questions:
  • A recent study in your reading suggested that ______ spend 13% more than an average customer and refer business equal to 45% of
    12·1 answer
  • On April 1, Griffith Publishing Company received $33,480 from Santa Fe, Inc. for 36-month subscriptions to several different mag
    6·1 answer
  • Which of the following is a benefit of content marketing? Select one: a. You reach more buyers at a lower cost. b. You essential
    11·1 answer
  • Which of the following items is a want? Question 1 options:
    8·2 answers
  • The following information is available for Blossom Company:
    8·1 answer
  • Complete the following statement. The purpose of the closing process is to reset _________ (temporary/permanent) account balance
    11·2 answers
  • Which statement on MRP explosion is BEST? Group of answer choices It calculates the total number of subassemblies, components, a
    7·1 answer
  • Cola Inc. Soda Co. Fiscal Year Ended: 2015 2014 2013 2015 2014 2013 Net Sales $ 39,819 $ 35,690 $ 36,444 $ 62,438 $ 47,932 $ 47,
    12·1 answer
  • To keep high inflation from eroding the value of money, monetary authorities in the United States: A. create token money that is
    7·1 answer
  • Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!