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liberstina [14]
3 years ago
10

The nominal exchange rate is 4 Saudi Arabian riyals, 8 Moroccan dirham, 60 Indian rupees, or .8 euros per U.S. dollar. A fast fo

od breakfast costs $5 in the U.S., 30 riyals in Saudi Arabia, 40 Moroccan dirham in Morocco, 250 Indian rupees in India, and 5 euros in France. According to these numbers, where is the real exchange rate between American and foreign goods the lowest?a. Saudi Arabia
b. Britain
c. India
d. Morocco
Business
2 answers:
ale4655 [162]3 years ago
7 0

Answer:

A) Saudi Arabia

Explanation:

The real exchange rate = nominal exchange rate x (domestic price of a breakfast / foreign price of a breakfast)

a breakfast in America = $5

a breakfast in Saudi Arabia = $7.50

a breakfast in Morocco = $5

a breakfast in India = $4.17

a breakfast in France/Britain = $6.25

real exchange rate with Saudi Arabia = $1 x ($5/$7.50) = $0.67, the riyal is over appreciated against the US dollar

real exchange rate with Morocco = $1 x ($5/$5) = $1

real exchange rate (India) = $1 x ($5/$4.17) = $1.20, the rupee is undervalued against the US dollar

real exchange rate (France/Britain) = $1.25 x ($5/$6.25) = $1

rosijanka [135]3 years ago
6 0

Answer:

b. Britain (France)

Explanation:

The nominal exchange rate is the rate at which an individual can trade the currency of his country for another country.

According to the numbers given for exchange rates, the real exchange rate between American and foreign goods is lowest with Britain.

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Nonamiya [84]

Answer:

c. wholesale prices on supplies

Explanation:

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7 0
3 years ago
If the revenue for a certain product is $9.00 each and the company sells x products, then the revenue equation is R = 9x. If the
zvonat [6]

Answer:

The company must sell 10,00 products to break even

Explanation:

If you use the approached suggested in the question,  you can solve for break even quantity by setting revenue to equal cost

R = C => 9x = 50,000 + 4x => 5x = 50,000 => x =10,000

<u>Double check: </u>

10,000 products sold as $9 would fetch $90,000 in revenue

Producing 10,000 products would incur 50,000 + 4 * 10,000 = $90,000 in total costs

=>The solution is correct

3 0
4 years ago
If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches t
AysviL [449]

Answer:

Floating cost adjustment is 3.25%

Explanation:

Flotation-adjusted cost of equity = (Expected dividend at the end of Year 1 / Net proceeds per share) + Growth rate.

Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)

Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448

Flotation-adjusted cost of equity = (2.30 / 20.448) + 0.04

= 0.1125 + 0.04

= 0.1525 i.e., 15.25 %.

Flotation cost adjustment = Flotation-adjusted cost of equity - Cost of equity without flotation adjustment.

= 15.25 % - 12 % (given in question)

= 3.25 %.

Conclusion:- Flotation cost adjustment = 3.25 %

4 0
3 years ago
Irving purchase a car for $5,000 his interest rate is 10% for the year how much will he pay in one year's time​
Anna35 [415]

Answer:

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Explanation:

The cost of the car is $5000

the interest is 10% per year

the interest paid in one year time will be

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p = $5000; r =10% or 0.1 ;and t = 1

I = $5000 x 0.1 x 1

I= $500 x 1

Interest payable in one year is $500

3 0
3 years ago
MB has been using proper workflow for her sales process by creating invoices, receiving payments, and recording deposits using t
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In conclusion, the process makes the work of employee easier and uncomplicated because its enables them adhere to a strict procedure of getting work done.

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3 0
2 years ago
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