1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
attashe74 [19]
3 years ago
11

Approximately what is the expected dollar rate of return on euro deposits if today's exchange rate is $1.18 per euro, next year'

s expected exchange rate is $1.10 per euro, and the euro interest rate is 5%?
Business
1 answer:
noname [10]3 years ago
4 0

Answer:

Dollar rate of return = 15.5%

Explanation:

<em>The expected dollar rate would be the dollar equivalent of the future value of the Euro deposit converted at the exchange rate applicable in a years tim</em>e .

The following steps would suffice

<em>Step 1: Future value of 1 Euro</em>

Future value of 1 Euro at 5% p.a = 1.05 Euro

<em>Step 2: Dollar equivalent of the Euro future value</em>

The Dollar equivalent of 1.05 Euro = 1.05× 1.10=1.155

<em>Step 3: The Dollar rate of return</em>

Dollar rate of return = Future value of deposit($)/initial deposit - 1

                                = (1.155/1) - 1 × 100

                               = 15.5%

Dollar rate of return = 15.5%

You might be interested in
Describing How to Save Workbooks
Vinil7 [7]
Save a workbook in another file format
Open the workbook you want to save.
Click File > Save As.
Under Places, pick the place where you want to save the workbook. ...
In the Save As dialog box, navigate to the location you want.
In the Save as type list, click the file format you want.
5 0
3 years ago
Simpson Sign Company based in Frostbite Falls, Minnesota has a 6-month C$100,000 contract to complete sign work in Winnipeg, Man
seraphim [82]

Answer:

A) $102,000

Explanation:

The computation of the amount used today for preparing the operating budget is shown below:

= Contract value × forward rate

= $100,000 × $1.02

= $102,000

For computing this, we consider the forward rate and the same is multiplied with the contract value so that the correct amount can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess d
IrinaK [193]

Answer:

Option (a) and (c) are correct.

Explanation:

We know that rent control is an example of price ceiling. If the price of apartments set below the equilibrium price level then there is increase in the demand for apartments. So, the demand for apartments exceeds quantity supplied at the prevailing market price.

(a) Therefore, the quality of rental housing falls because of the lower price of the apartment. As this will become less profitable for the landlords, so they are least interested in the maintenance of the apartments.

(b) This will also lead to develop black market. The landlords are trying to fool the higher authorities and rent their apartments at a higher cost because this will be done without any type of legal documentation of the apartments or results from the manipulation of the rules.

6 0
3 years ago
Invoro is a market leader in consumer electronics. If Finolo and Ethver, companies that manufacture televisions, develop the sam
Yanka [14]

Answer:

Invoro will have a resource that is valuable but no longer rare.

Explanation:

Invoro's competitive edge has been duplicated by Finolo and Ethics through their customer knowledge base and products that appeal to customers.

The resource that Invoro has is still valuable and can give the company a good market share, but it is no more rare.

5 0
3 years ago
Determine the missing amounts.Unit SellingPriceUnit VariableCostsUnit ContributionMarginContribution MarginRatio1. $650 $390 $en
tatiyna

Answer:

I tried to order the information and prepared the following table:

                                                  Product A           Product B        Product C

Unit Selling Price =                        $650                $200              <u>e)$2,300</u>

Unit Variable Costs =                    $390               <u>c)$108</u>              <u>f)$1,495</u>

Unit Contribution Margin =          <u>a)$260</u>                  $92                $805

Contribution Margin Ratio =         <u>b)40%</u>               d)<u>46%</u>                 35%

contribution margin ratio = (revenue - cogs) / revenue     or      

contribution margin ratio = contribution margin / revenue

8 0
3 years ago
Other questions:
  • On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2015, Pre
    5·1 answer
  • During 2018, Cary and Bill incurred acquisition debt on their residence of $1,300,000. They also borrowed $200,000 on a home equ
    15·1 answer
  • Irene plans to retire on January 1, 2020. She has been preparing to retire by making annual deposits, starting on January 1, 198
    13·1 answer
  • The following data reflects the number of defects produced on a assembly line at the Deerfield electronics company for the past
    10·1 answer
  • Where's the leak ma'am?
    7·2 answers
  • What is product positioning​
    15·1 answer
  • Standard Product Cost, Direct Materials Variance
    11·1 answer
  • If a monopolist is able to increase the amount of product she sells from 400 to 420 units by lowering the price of that product
    13·1 answer
  • Which of these is NOTa concern for consumers in times of inflation? a.They cannot anticipate the cost of goods and services. b.T
    15·1 answer
  • Computerized accounting systems a. Improve the timeliness of reporting b. Prevent all journalizing errors c. Are only used in me
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!