Answer:
The interest rate is higher in the US.
Explanation:
The forward price is calculated using the following formula,
F= S ( 1+Rd / 1+Rf)^t
where,
- F = Forward rate
- S = Spot rate
- Rd = Nominal interest rate in domestic market
- Rf = Nominal interest rate in foreign market
- t = time in years
We consider that the domestic market is the US and the domestic currency is the USD. Thus, it is a direct quote where 1 EUR = 1.3 USD
The forward price ER is more than the Sport ER only when the interest rate in domestic market is more than the interest rate in foreign market and as a result, the value of domestic currency against a foreign currency in the forward market depreciates.
We can see this by the following example,
Say Spot rate is $1.3 per 1 EUR and the interest rate in US is 10% while that in Euro zone is 5%. When we calculate the forward ER we will see that 1 EUR will buy us more USD in forward (more than 1.3 USD)
F= 1.3 * (1.1 / 1.05)^1 => $1.362 PER 1EUR
Answer:
$38,440
Explanation:
Calculation to determine How much of the proceeds, if any, is taxable to Russ
Face value of policy $74,400
Less: Cash Surrender value ($24,800)
Less: Premium paid ($11,160)
Taxable Proceeds $38,440
Therefore the taxable Proceeds are $38,440.
First, the quotation for each car model has to be obtained. The quotation must include the taxes including insurance.Then, a comparison is done taking into account the mileage and the maximum allotted budget for the other expenses which is $800.
The 10 million U.S. residents with the highest SES outlive the 10 million with the lowest SES who live in rundown areas by about <u>30</u> years.
<h3>What is socioeconomic status (SES)?</h3>
Socioeconomic status can be defined as the status of people in a society or community as based on the followings:
- Income
- Occupation
- Education
In the United State of America people who are educated and earn higher income including having the best health care tend to live longer compare to those who live in a very poor condition and has a lowest SES.
Inconclusion 10 million U.S. residents with the highest SES outlive the 10 million with the lowest SES who live in rundown areas by about <u>30</u> years.
Learn more about socioeconomic status here:brainly.com/question/3867614
Answer:
5.38 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt
where,
Cost of Equity = 9.00 % (given)
After tax Cost of Debt = 6% x (1 - 0.21) = 4.74 %
Market Value of Equity = 1/5 x $13 million = $2.6 million
Weight of Equity = $2.6 million / $11.6 million = 0.22
Weight of Debt = $9 million / $11.6 million = 0.76
therefore,
WACC = 9.00 % x 0.22 + 4.74 % x 0.76
= 5.38 %
thus
the company’s WACC is 5.38 %