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dezoksy [38]
3 years ago
8

81. The forward rate of the Swiss franc is $.50. The spot rate of the Swiss franc is $.48. The following interest rates exist: U

.S. Switzerland 360-day borrowing rate 7% 5% 360-day deposit rate 6% 4% You need to pay a sum of SF200,000 in 360 days. If you use a money market hedge, the amount of dollars you need in 360 days is: a. $101,904 b. $101,923 c. $98,769 d. $96,914 e. $92,307
Business
1 answer:
Alisiya [41]3 years ago
7 0

Answer:

invest  = $96,914

so correct option is d. $96,914

Explanation:

given data

forward rate of the Swiss franc = $.50

spot rate of the Swiss franc = $.48

pay a sum = SF200,000

solution

we know Borrow is here

Borrow = \frac{SF200000}{1.05}

Borrow = SF190,476

and

when we convert it will be

Convert SF190,476 is

Convert  = SF190,476  × $.48 = $91,428

so investment at 6 % is

Invest = 6 % of $91,428 + $91,428

invest = $5485.68 + $91,428

invest  = $96,914

so correct option is d. $96,914

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uppose you buy a bond with a coupon of 7.8 percent today for $1,080. The bond has 5 years to maturity. Assume interest payments
Mariulka [41]

Answer:

45.58%

Explanation:

Rate of return is the expected gain or loss on an investment, over a specific time period. It is derived as a percentage of the investment's original value or cost.

ROR = [CV - IV]/ IV × 100

CV is the current value of the investment (value at the end of the investment period)

IV is the initial value of the investment.

Note also, the assumption that interest payments are reinvested.

At the end of year 1, interest payment is $1,164.24

End of year 2 - $1,255.05

End of year 3 - $1,352.95

End of year 4 - $1,458.48

End of year 5 - $1,572.24

[Interest rate - 7.8%]

ROR = (1572.24 - 1080)/1080 × 100

ROR = 45.58%

5 0
3 years ago
Phone Tech, a global phone company, frequently needs to respond quickly to fast-changing consumer tastes with its smartphones. T
Elodia [21]

Answer:

The correct answer is: Organic organizational structure          

Explanation:

Organic organizations, also known as the organismic organization, is a flexible organizational structure that is capable of adapting the incorporated changes.

In such an organization, there is <u>minimum job specialization and hierarchy.</u> The workers of an organic organization have <u>no job descriptions and rigid procedures</u>. It contains <u>multi-talented workers that are capable of performing variety of tasks. </u>

Therefore, an organic organization is the most adaptive organizational structure as it can quickly adapt and respond to changes in environment.

<u>Therefore, Phone Tech is utilizing an </u><u>organic organizational structure.</u>

8 0
3 years ago
According to the law of demand, assuming Ceteris Paribus,
andrey2020 [161]
D I had this on a test and got it right
4 0
3 years ago
Read 2 more answers
A toy manufacturer has excellent sales figures for its toys in country P but inadequate figures in the neighboring country R. In
cluponka [151]

Answer: Analogy

Explanation:

The method of forecasting that this example illustrate is analogy. Forecast by analogy refers to the forecasting method which simply assumes that two different kinds of situations have identical models and therefore share the same model of behaviour.

This can be infered from the situations that once the per capita GDP is known for the country, the per capita demand for the toys can be estimated.

6 0
3 years ago
Barbara owns 40% of the stock of Cassowary Corporation (a C corporation) and 40% of the stock of Emu Corporation (an S corporati
vodomira [7]

Answer:

$ 48,000

$3,200

Explanation:

Since C corporations are separate taxable entities, Cassowary Corporation will report the operating income and tax-exempt income. An S corporation is a tax reporting entity. Therefore, Barbara will report ordinary business income of $ 48,000 and tax-exempt $ 3,200.

Reason -

Business income = 120,000×40%

                           = 120,000.\frac{40}{100}

                           = $48,000

⇒Business income = $48,000

Tax-exempt = 8,000×40%

                   = 8,000.\frac{40}{100}

                   = $3,200

⇒Tax-exempt = $3,200

7 0
2 years ago
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