Beliefs about what is ethical serve as a moral compass to guide behaviors of individuals

What would be the real rates of return on the same deposit if there was a simultaneous 10% increase in all dollar prices

VMariaS [17]

Answer:

Full question is<em> </em><em>'1. Calculate the dollar rates of return from a £10,000 deposit in a London bank in a year when the interest rate on pounds is 10 percent and the $/£ exchange rate moves from $1.50/£ to $1.38/£. 2. What would be the real rates of return on the same deposit if there was a simultaneous 10% increase in all dollar prices?"</em>

1. In current period, Dollar price of deposit = £10,000 x ($1.50/£) = $15,000

After 1 year, Pound interest = £10,000 x 10% = £1,000

After 1 year, Pound value of (Deposit + Interest) = £(10,000 + 1,000) = £11,000

After 1 year, Dollar value of (D+I) = £11,000 x ($1.38/£) = $15,180

After one year, Dollar rate of return = ($15,180/$15,000) - 1

After 1 year, Dollar rate of return = 1.012 - 1

After 1 year, Dollar rate of return = 0.012

After 1 year, Dollar rate of return = 1.2%

2. As calculated above, After 1 year, Nominal Dollar rate of return = 1.2%

Note: After 1 year, Real Dollar rate of return = Nominal Dollar rate of return - Inflation Rate

Real Dollar rate of return = 1.2% - 10%

Real Dollar rate of return = -8.8%

4 0

3 years ago

A guitar manufacturer is considering eliminating its electric guitar division because its $76,000 expenses are higher than its $

stepladder [879]

Answer:

The electric guitar division should be: Kept

Explanation:

Currently it has a profit of $280 individually and After elimination it will incur a loss of $4280 which is the loss of profit of 280 and current loss of $4,000. This division should be kept because it is making enough profit to compensate all the avoidable and unavoidable expenses with making addition profit of $280, Otherwise there will be a net loss of $4,280 due to some unavoidable expenses.

Working is made in an attached MS Excel file, please find it.

Download xlsx

4 0

3 years ago

Sole proprietorships are often owned by __________.

azamat

Sole proprietorships are often owned by financial institutuins

3 0

3 years ago

DivetheBlue, a company marketing deep-sea diving equipment, charges very high prices for its products. Despite the availabili

Kaylis [27]

Answer:

DivetheBlue has earned a reputation for selling high-quality products. This exemplifies a non price position.

Explanation:

A non price positioning is a marketing strategy in which a company prices its position which is not compatible with the market based on the kind of quality, design or workmanship they are providing to the customer.

DivetheBlue also focuses on the quality of their products and price accordingly, higher than the rest of the market. They have non price positioning which has specific loyal customer base.

4 0

3 years ago

Sometimes a marketing channel is quite simple and short, perhaps running directly from a producer to the final user or consumer.

nordsb [41]

Answer:

True

Explanation:

Marketing is all about branding, and the main purpose is used to attract more customers. It is considered as the main component because it directly affects the consumers and producers. Marketing is an effective way to increase sales because marketing persons directly communicate with customers. Sometimes marketing does not require an intermediate, and marketing person directly sale the products and services to the end-user.

3 0

4 years ago