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denis-greek [22]
3 years ago
10

Assume that you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the h

omes using mostly borrowed funds from local banks. Your subsidiary purchases all of its materials from Hong Kong and pays Hong Kong dollar. The Hong Kong dollar is tied to the U.S. dollar. Your subsidiary borrowed funds from the U.S. parent, and must pay the parent $100,000 in interest each month. Australia has just raised its interest rate in order to boost the value of its currency (Australian dollar). The subsidiary’s cost of purchasing materials measured in Australian dollar will ____________. A. increase B. decrease C. not change
Business
1 answer:
Nat2105 [25]3 years ago
4 0

Answer:

B. decrease

Explanation:

The subsidiary's cost of purchasing materials measured in Australian dollar will decrease. The subsidiary in Australia sells mobile homes. It borrows funds from local bank and purchases material from Hong Kong and pays Hong Kong in HK$ which is tied to US dollar. So when Australian dollar appreciates against the Hong Kong dollar, it will appreciate against US dollar as the Hong Kong dollar is tied to US dollar. The subsidiary will pay decreased cost of purchasing material due to appreciations of A$ by increasing interest rate in Australia.  

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The preemptive right is important to shareholders because it a. protects bondholders, and thus enables the firm to issue debt wi
Rom4ik [11]

Answer:

b. protects the current shareholders against a dilution of their ownership interests.

Explanation:

Shares are ownership interests that are owned by business owners and measures the degree to which an individual has a stake in a company.

Preemtive right occurs when a shareholder has a right to purchase a particular portion of newly issued shares.

For example if an individual has 40,000 shares and additional 250,000 shares are issued, he can have the right to purchase an additional 30,000 of the new shares.

The preemtive right prevents dilution of ownership interests by ensuring old stockholders have a stake in newly issued shares.

7 0
3 years ago
On the summer solstice in june, the sun will be directly above ____________ and all locations north of ___________ will experien
svetlana [45]
<span>The summer solstice is the day of the year when the sun is the farthest north, over the Tropic of Cancer, 23.44 degrees (or 23 degrees 26 minutes) north of the equator. On that day, all locations north of the Arctic Circle experience 24 hours of daylight.</span>
3 0
3 years ago
Tony, a production manager at Brighton Biometrics, needs to measure the performance of 10 subordinates. He writes their names on
prisoha [69]

Answer:

Alternation ranking method.

Explanation:

Tony, a production manager at Brighton Biometrics, needs to measure the performance of 10 subordinates. He writes their names on a paper and circles Paula's name as the best-performing employee of the group. He then circles Erma's name as the worst employee of the group. He rates the remaining employees as second best, second worst, and so on. In the context of methods of performance measurement, Tony is using the alternation ranking method.

This method basically ranks employees from the very best to the worst based on a particular trait. Choosing the highest down to the lowest until every one of them are ranked.

6 0
3 years ago
Why would a party with numerous issues agree to focus on the single issue of inflation?
Bond [772]
I believe that the answer to the question provided above is that by agreeing on single issue of inflation is due to the need to have one . For the sense of having singularity for the group.
Hope my answer would be a great help for you.    If you have more questions feel free to ask here at Brainly.
5 0
3 years ago
Priscilla owns 500 shares of Deltona stock. It is January 1, 2016, and the company recently issued a statement that it will pay
kotykmax [81]

Answer:

Priscilla's homemade dividend per share be in 2017 will be $3.585

Explanation:

In order to calculate what will be Priscilla's homemade dividend per share be in 2017 we would have to use the following formula:

homemade dividend=(Dividend in 2016×(1+Required rate))+Dividend in 2017

homemade dividend=($1×(1+8.5%))+$2.50

homemade dividend=$1.085+$2.50=$3.585

Priscilla's homemade dividend per share be in 2017 will be $3.585

7 0
3 years ago
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