Answer:
The correct answer is c. reduces; reduce.
Explanation:
Economic exposure is a type of exposure to exchange rate risk caused by the effect of unexpected currency fluctuations on a company's cash flows, foreign investment, and future earnings.
Economic exposure, also known as operating exposure, can have a substantial impact on a company's market value, as it has far-reaching effects and is long-term in nature. Companies can protect themselves against unexpected currency fluctuations by investing in currency markets (FX).
Unlike transaction exposure and conversion exposure (the other two types of currency exposure), economic exposure is difficult to measure accurately and therefore difficult to hedge. Economic exposure is also relatively difficult to hedge because it faces unexpected changes in exchange rates, unlike expected changes in exchange rates, which form the basis of companies' budget forecasts.
Answer:
The amount of income tax expense that Southeast would report in its income statement for continuing operations is $ 18,750,000.
Explanation:
According to the details we the company had a Pretax earnings of $ 65 million and include there is an income of discontinued operation of $ 10 million, hence Total taxable income= $ 65 million +$ 10 million= $ 75 million.
The Income tax rate is 25%
Hence, the Income tax expense is Total taxable income × the Income tax rate
Income tax expense= $ 75 million× 25%
Income tax expense= $ 18,750,000
Correct answer choice is:
D. All of the above.
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Explanation:
For anyone seeking to finance a home, the volume of your average lease return is a fundamental concern. The value of your monthly mortgage will change your estimates for the period of your mortgage cycle, which may extend decades into the eternity. While each circumstance is distinct, these three circumstances will play a fundamental purpose in restricting the volume of your average debt installment.
1. The extended the duration of your debt, the lower the average cyclical return.
2. A framed rate never varies, any undertaking how much the demand varies over the course of your mortgage. Changeable rates are influenced by fluctuations in the exchange and will vary.
3. The greater the dimension of your down payment, the lower your average debt adjustment will be.
Answer:
D. Consumption by $80 billion.
Explanation:
Marginal propensity to Save = 1 / MPS
= 1 / 0.2
= 5
= $20 billion × 5
= $100 billion
= $100 - $20
= $80 billion
Therefore, a $20 billion rise in investment spending will increase consumption by $80 billion.