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Alja [10]
2 years ago
10

The treasurer of a major U.S. firm has $40 million to invest for three months. The interest rate in the United States is .28 per

cent per month. The interest rate in Great Britain is .32 percent per month. The spot exchange rate is £.639, and the three-month forward rate is £.642. What would be the value of the investment if the money is invested in U.S and Great Britain?
Business
1 answer:
diamong [38]2 years ago
8 0

Answer:

Check the explanation as follows.

Explanation:

a) If it is invested in US

Current= $40 million

Interest rate= 0.28% p.m

Interest for 1 month= $40 million*0.28%= $0.112 million

Interest for 3 months= $0.112*3= $0.336 million

Total value after 3 months= $40 million+$0.336 million = $40336000.

b) If it is invested in Great Britain.

Convert $40 million into Pounds= $40 million*0.639 = Pound 25.56 million

Ivest in Great Britain for 3 months @ 0.32%

Interest per month= 25.56 million*0.32% *3 = 0.245376

Total Pounds after 3 months= Pound 25.805376

Convert into $= 25.805376/0.642 = $40195289.7156

Value if invested in great britain= $40195289.7156

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Answer:

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2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.

Explanation:

A cash cow depicts the BCG matrix quadrant where there are higher returns, high market share in a low-growth market.  The cash cow requires little investment to generate high returns.  It also provides the cash for financing the other quadrants (dogs, stars, and question marks).  Basically, the BCG matrix, also known as the Growth/Share Matrix, depicts the products' growth opportunities.

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Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth
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Answer:

The  current share price is $71.05

Explanation:

P3 = D3(1 + g)/(R – g)

    = D0[(1 + g1)^3](1 + g2)/(R – g)

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7 0
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JT Inc. produces gourmet frozen dinners for the airline industry. JT has fixed costs of $200,000 and variable costs of $8 per fr
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The operating profit for this year amounts to $ 550,000

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Operating Profit is computed below as:

Operating Profit = Revenue - Expense (Fixed Cost + Variable Cost)

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