Answer:
c. News has no effect on stock prices.
Explanation:
A foreign exchange market can be defined as a type of market where the currency of a country is converted to that of another country. For example, the conversion of the United States of America dollars into naira, rands, yen, pounds, euros, etc., at the foreign exchange market.
Efficient market school is the market school which argues that forward exchange rates do the best possible job for forecasting future spot exchange rates, so investing in exchange rate forecasting services would be a waste of time because it is impossible to have a consistent alpha generation on a risk adjusted excess returns basis as market prices are only affected by new informations.
The efficient market school also known as the efficient market hypothesis (EMH) is a hypothesis which states that, asset (share) prices reflect all information and it is very much impossible to consistently beat the market. Also, forward exchange rates are exchange rates controlling foreign exchange transactions at a specific future date or time.
According to the efficient market hypothesis, News has an effect on
the prices at which a stock is sold because it affects demand and supply.
Answer:
The translation adjustment is a function of the foreign subsidiary's net assets.
Answer:
16.59%
Explanation:
We are given the present value of the bonds, their future value and the time, we need to calculate the rate:
FV = PV (1 + rate)ⁿ
- FV = 100,000
- PV = 999.38
- n = 30
100,000 = 999.38 (1 + rate)³⁰
(1 + rate)³⁰ = 100,000 / 999.38 = 100.062
1 + rate = ³⁰√100.062 = 1.1659
rate = 1.1659 - 1 = 0.1659 or 16.59%
Answer:
Cash (Dr.) $21,200
Common Stock (Cr.) $21,200
Cash (Dr.) $4,500
Services to client (Cr.) $4,500
Cash (Dr.) $11,200
Unearned Revenue (Cr.) $11,200
Cash (Dr.) $5,900
Accounts Receivable (Cr.) $5,900
Cash (Dr.) $11,000
Notes Payable (Cr.) $11,000
Explanation:
Adams services may record these transactions as journal entries. The transactions may have some changes after they are recorded then adjusting entries will be prepared to reflect the correct effect of transaction on business activities.
