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oksano4ka [1.4K]
3 years ago
12

In year T, a US citizen buys 100 shares of Sonic on the Tokyo stock exchange at 700 yens each. Suppose the exchange rate then is

$0.01 per yen. Suppose the price of the stocks falls to 600 yens each at time T +1. Nothing else changes. Compute the change in US external wealth between periods T and T +1 in dollars.
Business
1 answer:
zlopas [31]3 years ago
4 0

Answer:

Change in US external wealth between periods T and T +1 in dollars = -$100

Explanation:

Since nothing else changes, this implies that the exchange rate per yen is $0.01 in periods T and T +1. Therefore, we have:

Value shares of Sonic in period T in dollar = Number of shares of Sonic bought in period T * Price per share of Sonic in Yen in period T * Exchange rate per yen in periods T = 100 * 700 * $0.01 = $700

Value shares of Sonic in period T+1 in dollar = Number of shares of Sonic in period T+1 * Price per share of Sonic in Yen in period T+1 * Exchange rate per yen in period T+1 = 100 * 600 * $0.01 = $600

Change in US external wealth between periods T and T +1 in dollars = Value shares of Sonic in period T+1 in dollar - Value shares of Sonic in period T in dollar = $600 - $700 = -$100

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A convenience store buys 1-gallon jugs of milk for $2.99 and sells them for $4.29. What is the margin they earn on the milk?
koban [17]

Answer:

1.30

Explanation:

subtract 4.29 from 2.99

5 0
3 years ago
Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value.
MAVERICK [17]

Answer:

A. Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

B. Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

Explanation:

A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

B.Preparation of the necessary December 31 entry under the Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

7 0
3 years ago
At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value
vagabundo [1.1K]

Answer:

The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

Explanation:

This can be calculated as follows:

Interest income = Carrying value of the bond * Yield to maturity…………….. (1)

Where;

Carrying value of the bond = $13,410

Yield to maturity = 3.4%

Substituting the values into equation (1), we have:

Interest income = $13,410 * 3.4% = $455.94

Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

6 0
2 years ago
If the level of incomes rises for high-income workers but doesn't change for low-income workers, then poverty will not change an
Aloiza [94]

If the level of incomes rises for high-income workers but doesn't change for low-income workers, "then poverty will not change and inequality will rise."

<h3>What is poverty?</h3>

Lack of resources to meet necessities like food, clothing, and shelter constitutes poverty. But poverty goes far beyond simply not having enough money.

According to the World Bank, poverty is as follows:

  • Hunger is poverty.
  • Absence of shelter is poverty.
  • Being sick and unable to visit a doctor is poverty.
  • Being illiterate and lacking access to education are both aspects of poverty.
  • Living day by day and not having a job are all signs of poverty.

Some faces of poverty is also-

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  • Most of the time, people desire to get out of poverty.
  • Therefore, poverty is a call to action for both the wealthy and the poor, a call to alter the world so that more people may have access to food, shelter, education, and healthcare, as well as protection from violence and a voice in local affairs.

Therefore, rarely is there a single source of poverty. Some people don't have enough money due to a number of circumstances, including growing living costs, low salary, unemployment, and insufficient social security benefits.

To know more about factors cause poverty in low-income nations, here

brainly.com/question/1985270

#SPJ4

7 0
2 years ago
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