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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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Scheduled and unscheduled injuries are categories used to determine benefits for which type of disability income?
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Answer:

Permanent partial disability

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4 0
1 year ago
Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of t
tatuchka [14]

Answer:

Option D is correct

Expected rate of return = 18.6%

Explanation:

The expected rate of return is the proportion of average investment that is earned as income . It is calculated as follows:

Rate of return on investment = average return / Average investment

Average investment = (Initial cost + salvage value)/ 2

Average investment = 89,000 +14,000/ 2= 51500

Net income = $9,600

Expected rate of return =  9,600/51,500×  100

                               = 18.6%

6 0
3 years ago
Suppose you own a restaurant were does the revenue come from
son4ous [18]
Revenue per hour of labor
8 0
3 years ago
True or False: A tax cut is less likely to change the composition of labor demand than a government spending increase.
MA_775_DIABLO [31]

Answer:

True

Explanation:

This is the case because tax cuts and government spending are instruments that could be used in expansionary fiscal policy.

Note that reduced taxes usually have a direct impact on the disposable income of a economy not the composition of labor demand. Tax cuts leads directly to consumption and savings increase, resulting from increase in disposable income in the economy.

5 0
3 years ago
Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a
umka2103 [35]

Answer: $75

Explanation:

Using the Gordon Growth Model:

Price of stock = Next year dividend / (Required return - growth rate)

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Price of stock = 6 / 8%

= $75

7 0
3 years ago
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