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NISA [10]
3 years ago
8

PURCHASING POWER PARITY In the spot market, 19.1 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc costs $15 in t

he United States. If purchasing power parity (PPP) holds, what should be the price of the same disc in Mexico
Business
1 answer:
LiRa [457]3 years ago
8 0

Answer: $286.50

Explanation:

Purchasing Power Parity (PPP) posits that prices are the same across countries given the rate of exchange between the currencies of the countries in question.

1 USD = 19.1 Mexican pesos.

Compact disc in Mexico would cost;

= 19.1 * 15

= $286.50

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The accounting process of ensuring accuracy and completeness includes Journalizing transactions timely using ledgers and journals, closing entries, create a trial balance, make adjusting entries, create adjusting trial balance and prepare the four basic financial statements (balance sheet, income statement, changes in net assets/equity and cash flows). Note, adjusting entries are not necessary but reversals are a must in this process. This statement is:________.

A. True

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3 years ago
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Given the following exchange rates, which of the multiple-choice choices represents a potentially profitable intermarket arbitra
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¥114.96/€

Explanation:

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In the given question, if you reverse all three exchange rates by calculating 1/rate (change yendollar into dollaryen and so forth), the choice that represents the required opportunity is ¥114.96/€

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3 years ago
It is most accurate to say that successful niche marketing relies on a firm's ________ and its ________.
Neporo4naja [7]

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<h3>What is a marketing niche?</h3>

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4 years ago
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Total revenues   $299,000

<u>Total expenses  ($192,000)</u>

EBIT                      $107,000

<u>Income taxes       ($33,200)</u>

Net income           $73,800

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Accounts receivables $33,200

Merchandise inventory $95,700

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