Answer: $1.53776
Explanation:
Using the interest rate parity formula :
Forward currency exchange rate (F) = 1.50
SPOT rate (S) =?
Interest rate on domestic currency (Id) = 1%
Interest rate on foreign currency (If) = 1.5%
SPOT RATE(S) is given by;
S = F × (1 + If) ÷ (1 + Id)
S = 1.50 ×(1 + 0.015) ÷ (1 + 0.01)
S = (1.50 × 1.015) ÷1.01
S = 1.5225 × 1.01
S = $1.537725
Answer:
$14,800
Explanation:
Rosie's has 1,300 shares outstanding at a market price of $10
Sandy's had 2,000 shares outstanding at a market price of $23
The incremental value of the acquisition is $1,800
Therefore, the value of Rosie's to Sandy's can be calculated as follows
=( 1,300×$10)+$1,800
= $13,000+$1,800
=$14,800
Hence the value of Rosie's to Sandy's is $14,800
Answer:
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
Explanation:
The coefficient of variation is a statistical model which is also used to determine the volatility per unit of a factor. In terms of a stock, the coefficient of variation calculates the volatility of its return. It is calculated by dividing the stock's standard deviation, which is a measure of risk, by the stock's mean return or expected return.
CV = SD / r
Where,
- CV is coefficient of variation
- SD is standard deviation
- r is expected return
The CV of a stock tells us the risk per unit of return. The higher the CV, the riskier the stock and vice versa.
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
Answer:
A business transaction is a financial transaction between two or more parties that involves the exchange of goods, money, or services. Business transactions can be as simple as a cash purchase or as complex as a long-term service contract .
Explanation:
