Answer:
the six month euro interest rate is 1.36%
Explanation:
Spot exchange rate: 1.4 USD/ EUR
6 month forward rate: 1.3950 USD/EUR
Domestic interest rate: 1% pa
Foreign interest rate: the six month euro interest rate?
We have the formula:
Forward rates = Spot rate * (1+domestic interest rate)/(1+foreign interest rate)
⇔ 1.3950 = 1.4 *(1+1%)/(1+foreign interest rate)
⇔ 1+foreign interest rate = 1.4 *(1+1%)/1.3950
⇔foreign interest rate = 1.01362 - 1 = 0.01362
⇒ the six month euro interest rate is 1.36%
Answer: See explanation
Explanation:
The journal entry to record the purchase of raw materials is analysed below:
November:
Dr Raw materials $86000
Cr Cash or account payable $86000
It should be noted that as the raw material is increasing, the raw material account will be debited while as the cash or account payable I decreasing, it is credited.
Answer:
10.67%
Explanation:
For computing the change in ROE first we have to find out the debt and equity values which are shown below:
The debt value = Total invested capital × debt rate
= $195,000 × 37.5%
= $73,125
And, the equity value = Total assets - debt value
= $195,000 - $73,125
= $121,875
Now we apply the Return on Equity formula which is presented below:
= (Net income ÷ Total equity) × 100
The net income is $20,000 and the equity value would remain the same
So, the ratio would be = ($20,000 ÷ $121,875) × 100 = 16.41%
And if the net income raise to $33,000
Then the new ROE would be = ($33,000 ÷ $121,875) × 100 = 27.07%
So, the change in ROE
= New ROE - Old ROE
= 27.07% - $16.41%
= 10.67%
Answer:
The correct solution is "
".
Explanation:
According to the question,
Let,
For stock 1,
The number of shares to be purchased will be "
".
For stock 2,
The number of shares to be purchased will be "
".
For stock 3,
The number of shares to be purchased will be "
".
then,
The cumulative number of shares throughout stock 1 would be well over or equivalent towards the approximate amount of all the shares or stocks for the set limit.
i.e., 
Thus the correct equation is "
".
Answer:
Option C- An income tax is progressive if the percentage of income paid as taxes increases as income increases.
Explanation:
Majorly, there are three types of Tax systems; these are: Progressive, regressive and proportional.
A tax in which the tax rate increases as the taxable amount increases is known as a progressive tax.
The term "progressive" refers to the way the tax rate progresses from low to high, such that a taxpayer's average tax rate is less than the person's marginal tax rate.
Also,a progressive tax is applicable to individual taxes or to a tax system as a whole; a year, multi-year, or lifetime. It is imposed with the aim of reducing the tax incidence of people with a lower ability to pay, as such taxes shift the incidence increasingly to those with a higher ability-to-pay.
Thus, an income tax is progressive if the percentage of income paid as taxes increases as income increases.
