1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ivanshal [37]
3 years ago
10

Suppose that Denver Financial Co. expects the exchange rate of the New Zealand dollar (NZ$) to appreciate from its current level

of 0.5 to 0.55 in 30 days. Denver Financial seeks to capitalize on this potential opportunity. Suppose that Denver Financial begins by borrowing $30,000,000 and converting it to New Zealand dollars (NZ$). The following table shows the short-term interest rates (annualized) in the interbank market.
Currency Lending Rate Borrowing rate
(Adjusted for 30-day period) (Adjusted for 30-day period)
U.S. Dollars 6.62% 7.10%
New Zealand Dollars (NZ$) 6.38% 6.86%
Suppose that Denver Financial takes its NZ$60,000,000.00 and invests it. Denver Financial can earn a 0.0053 percent return after 30-days. Hint: Assume 360 days in a year At the end of 30-days, Denver Financial will have a total of NZ:___________(New Zealand dollars) from the investment.
a. $54287100
b. $42223300
c. $60319000
d. $48255200
Business
1 answer:
Scrat [10]3 years ago
3 0

Answer:

c. $60319000

Explanation:

My actual calculation was not exactly that number, it was NZ$60,318,000, but it is the closest option. You calculate it by multiplying the present value x (1 + interest rate) = $60,000,000 x (1 + 0.0053) = $60,000,000 x 1.0053 = $60,318,000

The question only asks to calculate the interest in NZ$, not to convert them to US$.

You might be interested in
When auditors wish to issue an unmodied opinion but highlight that the entity changed its method of accounting forsoftware devel
love history [14]

Answer:

c. An emphasis-of-matter paragraph

Explanation:

Based on the information provided within the question it can be said that they would most appropriately identify the change in accounting in an emphasis-of-matter paragraph. This is a paragraph that illustrates the importance of the disclosed information or changes in the financial report, and that it is essential to the user's understanding of the report.

6 0
3 years ago
Can someone please help me with this
Alik [6]

Answer:

deferred revenue

Explanation:

Deferred revenue refers to payments received in advance for services which have not yet been performed or goods which have not yet been delivered.

6 0
3 years ago
Joan, is a jewelry designer who had created a unique new jewelry piece called a neacklet. It can be either a necklace or a brace
patriot [66]

Answer and explanation:

In Joan's case, a general partnership will provide her control over her business that will be shared with the older gentleman who owns a jewelry store. Profits would be distributed evenly regardless of the contribution of each partner in the business. However, the older gentleman has offered Joan the chance of purchasing his share later on which would provide her the total control of the business and the patent of her creation.

The other option Joan has available is purchasing a franchise. This will allow Joan to avoid the initial costs of introducing her products to the market and the risks of not having enough consumers since her brand name is new. Though she will lose access to the patent of her creation and periodically Joan will need to pay NewJewelry a fee for using its name.

Therefore, <em>as Joan prefers to have control over her designs, it would be more convenient for her to choose the general partnership.</em>

6 0
3 years ago
What would be the net effect of the government increasing the taxes by $10 billion at the same time that it decreased spending b
vazorg [7]

Answer:

a

Explanation:

4 0
2 years ago
What is an expenses?
Lelu [443]

Answer:

It’s like the price or the cost

Explanation:

5 0
2 years ago
Read 2 more answers
Other questions:
  • Adding up all of the income in an economy in a given year is one approach to calculating which of the following?
    9·2 answers
  • What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? Interest is
    6·1 answer
  • Wait a little while and the fruit will fall into your hand meaning
    13·1 answer
  • Problem 4-6 (Algo) Income statement presentation; Discontinued operations; EPS [LO4-1, 4-3, 4-4, 4-5] Rembrandt Paint Company ha
    5·1 answer
  • Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and
    14·1 answer
  • Rosalie owns 50% of the outstanding stock of Salmon Corporation. In a qualifying stock redemption, Salmon distributes $80,000 to
    13·1 answer
  • A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $12,000 indica
    15·1 answer
  • You find that a firm has a total debt ratio of 0. 63. what is the equity multiplier for this firm?
    5·1 answer
  • Keeping an open mind and seeing potential good in others are behaviors considered in this element of dialogue
    12·1 answer
  • During which period does the fed appear to be most anti-inflation? explain your answer.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!