Solution:
Given ,
1 Year interest rates in Europe = 4 %
1 Year interest rates in the U.S. = 2 %
You are translating $200,000 and spending $200,000 in French
Current spot rate of the euro = $1.20
a. (2%-4%)/(1+4%)=(S - 1.20) / 1.20
S= $1.1769 one year Euro rate
b. ( $1 / 1.20 )( 1 + 4% )* 1.12 = $.9707 return of -2.93% (loss)
c. ( $1 / 1.20) ( 1 + 4%)* 1.31 = $1.1353 return of 13.53% (gain)
d . ($1 / 1.20) ( 1 + 4%) *S = $1 (1+2%) ;
S=$1.1769
A spot rate of over $1.17697 (this is the same in part A) would be effective.
Based on general value propositions, the Hawks are providing greater value with a more for the same strategy.
<h3>What are value proposition strategies?</h3>
A value proposition is known to be a portion of a firm's overall marketing strategy.
This statement is one that act to convinces a potential consumer that one specific product or service the firm offers will give more value than other similar offerings of that kind.
Learn more about strategy from
brainly.com/question/24769299
Answer
The answer and procedures of the exercise are attached in the following 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:
Dr Service cost 245,000
Cr Interest 166,400
Cr Cash 411,400
Dr Plan assets - pension 411,400
Cr Service cost 245,000
Cr Interest 166,400
Explanation:
Preparation of the journal entries to record annual pension expense for the enterprise fund of Amherst City
Since we are Assuming that the plan investments was $184,300 while the service cost component is the sum of $245,000, and interest on the pension liability is the sum of $166,400 for the year this means the Journal entries to record annual pension expense for the enterprise fund of Amherst City will be:
Dr Service cost 245,000
Cr Interest 166,400
Cr Cash 411,400
(245,000+166,400)
Dr Plan assets - pension 411,400
(245,000+166,400)
Cr Service cost 245,000
Cr Interest 166,400
