1

Assume the following information. You have $1,000,000 to invest. Current spot rate of pound = $1.30 90-day forward rate of pound

Softa [21]

Answer:

$ 1,024,000

Explanation:

Spot Rate : 1 Pound = $ 1.30

3 Months Forward Rate = $ 1.28

3 Months Deposit rate in US = 2.25%

3 Months Deposit rate in Great Britain = 4%

Total Amount of Investment = $ 1,000,000.

Step 1:

Convert $ 1,000,000 into Pounds using Spot rate (i.e., 1 Pound = $ 1.30).

We will get,

= $1000,000 ÷ 1.30

= 769230.76923 Pounds.

Step 2:

Invest 769230.76923 Pounds in great Britain for 3 months at an interest rate of 4%.

Therefore, we have an interest of 30769.23076 Pounds.

Hence, the total realizable value after 3 months:

= 769230.76923 + 30769.23076

= 800,000 Pounds

Step 3:

Convert 800,000 Pounds into Dollars using Forward rate (i.e., 1 Pound = $ 1.28).

Therefore, the total amount in Dollars:

= 800,000 Pounds × $ 1.28

= $ 1,024,000

4 0

3 years ago

Refer to the original data.

Slav-nsk [51]

Answer:

Contribution income statement - Assuming that operations are not automated.

Sales (26,000 units at $30 per unit) $780,000

Variable expenses ($409,500/ 19,500 × 26,000) ($546,000)

Contribution margin $234,000

Fixed expenses ($180,000 )

Net operating loss $54,000

Contribution income statement - Assuming that operations are automated.

Sales (26,000 units at $30 per unit) $780,000

Variable expenses ($18 × 26,000) ($468,000)

Contribution margin $312,000

Fixed expenses ($180,000 + $72,000 ) ($252,000 )

Net operating loss $60,000

Explanation:

A contribution Income Statement Shows the contribution (Sales less Variable Costs).

See the Statements for the Assumptions above.

5 0

3 years ago

As a result of moving more decision making from the periphery of the organization toward the center, typically a. the flow of r

grin007 [14]

Answer:

a. the flow of relevant information to the decision maker should be enhanced

Explanation:

Decision making is very crucial in every business institution and organisation.

Results of decisions can help to foster rapid development or hamper the progress of a company.

When moving decision making arm from the periphery to the center, communication should be restrategized.
Since the periphery arm is at the fringe, better strategies which will help to avoid road blocks through bureaucracies in an organization must be eliminated.
There should be proper flow of important information to decision makers which will help further the interest of an organisation.

7 0

3 years ago

Annie invested in a set of stocks and made $4,000 in profit. She has learned that she will have to pay taxes on the profit she h

Temka [501]

State tax is 5%, so 0,05
0,05•4000=200$

Federal tax is 25% so 0,25
0,25•4000=1000$

Total of taxes to pay =1000+200=1200$

So the real profit will be
4000-1200=3800$

The real value of Annie's profit is 3800$

8 0

3 years ago

Read 2 more answers

In 1885, first-class postage for a one-ounce letter cost $0.02. The same postage in 2015 costs $0.49. What compounded annual

geniusboy [140]

Answer:

2.49%

Explanation:

The period 't' between 2015 and 1885 is:

$t = 2015 -1885 = 130\ years$