Answer:
$1 = 122.84 Hungarian Forint
Explanation:
<em>The purchasing power parity theory states the future spot rate and and he current spot exchange rate between two currencies can be linked to the relative inflation rate between the two currencies. This also known as the law of one price.
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The model is given as follows:
S = So× (1+Fc)/(1+Fh)
Fc - inflation rate in Hungary - 6.9%
Fh- Inflation rate in the US- 2.8%
S- Future spot rate- ?
So- Current spot rate-188.13
Expected exchange rate one year from now
118.13× (1.069)/(1.028)
=122.8414
= 122.84 Hungarian Forint
$1 = 122.84 Hungarian Forint
Answer: D) economies of scale.
Explanation:
Economies of scale refers to when an entity is able to reduce its total costs as quantities of the good causing the costs increase.
Financial Intermediaries such as Commercial banks, Mutual funds, Investment banks etcetera have a lot of funds available for trade which they use to execute large trades. As a result, the costs on average are lower or them per transaction as opposed to traders executing with lower volumes. For example, when purchasing shares they will be able to negotiate better fees with stockbrokers because they are buying a lot of shares as opposed a single buyer trading.
Answer:
The day the property was contributed.
Explanation:
A holding period refers to the time period an asset or investment is held by a business or an investor, or the period between when the asset is bought and when it is sold.
The character or type of an asset contributed to a partnership in exchange for a capital and profits interest determines the beginning of the partner’s holding period as follows:
1. If the capital asset or property contributed by the partner has been used in a trade or business just before it is contributed to the partnership, the holding period of the partner for the partnership interest will include the holding period of the capital asset or property contributed.
2. If the capital asset or property contributed by the partner is exchanged for money, capital or other property, the beginning of the holding period of the partner in the day of acquisition of the interest, i.e., the day the property was contributed.
Since the question states that the property is contributed to a partnership in exchange for a capital and profits interest, rule number 2 above therefore applies. That is, the partner’s holding period begin for the partnership interest the day the property was contributed.
True because they need more staff in order to run their corporation and will be able to afford them.
Answer:
the contribution margin per unit is $5.75 per unit
Explanation:
The computation of the contribution margin per unit is shown below:
The Contribution margin per unit is
Contribution margin per unit= Contribution margin ÷ Sales units
= ($69,000 - $46,000 ) ÷ 4,000
= $5.75 per unit
Hence, the contribution margin per unit is $5.75 per unit
We simply applied the above formula so that the correct value could come
And, the same is to be considered
