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Helen [10]
3 years ago
15

Assume the spot rate for the British pound currently is £.6369 per $1. Also assume the one-year forward rate is £.6421 per $1. A

risk-free asset in the U.S. is currently earning 3.2 percent. If interest rate parity holds, what rate can you earn on a one-year risk-free British security?
Business
1 answer:
inna [77]3 years ago
5 0

Answer:

4.04%

Explanation:

Using the Interest rate parity formula according to this theory the forward exchange rate of  should be equal to the spot rate multiplied by the interest rate of the domestic country divided by the interest rate of the foreign country so from this formula

F=S*(1+i)/(1+r)

we derive

(1+r)=F/S*(1+i)

1+r =0.6421/0.6369*(1.032)

1+r =1.0404

 r   = 0.0404/4.04%

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inessss [21]

Answer:

$812.20

Explanation:

Given the following bond characteristic:

Coupon rate = 12%

Market or yield rate = 15%

Years to maturity = 20 years

Face or par value = $1000

Inputting the values into a bond value calculator, the bond value output is : $812.20

This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.

6 0
3 years ago
what is budget head no.of other goods , furnishing goods , repair and maintenance , printing charges , office supplies ?​
siniylev [52]

Answer:

Budget expenditure part

B.H. No. Budget heads Annual Appropriation of Budget

22311 Office expenses 58,000

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22711 Miscellaneous expenses 11,000

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5 0
2 years ago
Utility costs that relate to current year's operations but are not paid until the following year require:______
motikmotik

Utility costs that relate to current year's operations but are not paid until the following year require:

  • a debit to Utilities Expense
  • a credit to Utilities Payable

<h3>What happens when expenses are not paid?</h3>

Expenses are meant to be paid within the accounting period that they occur and if this does not happen, then they are to be treated as current liabilities in the Balance sheet.

This means that the Utilities Expense account will be debited as is the norm but the account that will then be credited is the Utilities Payable account which is a current liability.

Options for this question:

(Select all that apply.)

  • a debit to Prepaid Expense - Utilities
  • a debit to Utilities Expense
  • no journal entry
  • a credit to Utilities Payable
  • a credit to Cash

Find out more on recording expense payables at brainly.com/question/16781277

#SPJ1

3 0
1 year ago
Which of the following represents the correct formula for calculating cost of goods manufactured?
denis23 [38]

Answer:

B) Direct materials used + direct labor + factory overhead + beginning work in process - ending work in process.

Explanation:

The formula to compute the  cost of goods manufactured is shown below:

= Direct material used + Direct labor + Manufacturing Overhead

where,

Manufacturing Overhead equal to

= Factory overhead + Beginning work-in-process - Ending work-in-process

Or we can say that

Direct material used + direct labor + factory overhead + beginning work in process - ending work in process

6 0
3 years ago
Define the mergers and acquisitions of Tesla and define what has the company gained?
Phoenix [80]
Tesla has made 6 acquisitions and 2 investments. The company has spent over $ 2.82B for the acquisitions. Tesla has invested in multiple sectors such as Energy Storage Tech, Autonomous Vehicles and more.

It confirms that Hibar and Deepscale were relatively small acquisitions for Tesla.

Deepscale appears to be mostly what some people call “acqui-hire,” and the people who join Tesla probably got a bunch of shares.

As for Maxwell, which was a $207 million acquisition, and Hibar, which had to be less than $96 million, I think those two acquisitions combined is a somewhat inexpensive way to supercharge their now obvious move into manufacturing their own battery cells.

Again, we expect to hear more about Tesla’s effort to invest heavily into its own battery cell production in the next few months.

Tesla has acquired 6 companies, including 3 in the last 5 years. A total of 2 acquisitions came from private equity firms.

Tesla’s largest acquisition to date was in 2016, when it acquired SolarCity for $2.6B. Tesla has acquired in 3 different US states, and 2 countries. The Company’s most targeted sectors include machinery (34%) and automotive (17%).

Join Mergr and gain access to Tesla’s M&A summary, the M&A summaries of companies just like it, as well as recent M&A activity in the automotive sector.

M&A SUMMARY
M&A Total Activity6
M&A Buy Activity6
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Total Countries Invested 2
M&A Buy/Sell Connections 2
M&A Advisors 1

5 0
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