Answer:
Increases; More
Explanation:
Given that,
Current exchange rate:
$1 = 1 euro
Expected exchange rate:
$1 = 1.20 euros
The above exchange rate indicates that there is an appreciation in value of dollar and a depreciation in the value of euro. An appreciation of a dollar will lead to increase the demand for dollar because people expect that holding dollar is more profitable than euro.
With the expected exchange rate, a europian resident have to pay more for per dollar purchase in future as compared to the current exchange rate.
Answer
The answer and procedures of the exercise is attached in a image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
Accept the offer because it will generate incremental net income of $12,600
Explanation:
If Oak accepts the offer, its incremental revenue would be;
4,200 × $70 = $294,000
Its incremental cost would be ;
4,200 × $67 = $281,400
Incremental net net income for the order would be ;
$294,000 - $281,400 = $12,600. Accept the offer.
Answer:
The current market valuation given by the agent is wrong
Explanation:
The agent valuation isn't recent, as it is based on yesterday's closing price. Thus, the customer would need an updated valuation.