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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%

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Executive summary:

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The common denominator for decisions on service processes is _______, but for manufacturing processes it is _______
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The common denominator for decisions on service processes is customer contact while but for manufacturing processes, it is product variety.

<h3>What is a common denominator?</h3>

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<em>brainly.com/question/542317</em>

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Highway 55 Studios has budgeted the following amounts for its next fiscal​ year: Total fixed expenses $ 1 comma 980 comma 000 Se
faust18 [17]

Answer:

Contribution per unit = Selling price - Unit variable cost

                                     = $70 - $10 = $60

Break-even sales in units = <u>Fixed cost</u>

                                             Contribution per unit

                                         = <u>$1,980,000</u>

                                                   $60

                                        = 33,000 units

If fixed cost reduced by $49,500, new fixed cost will be $1.930,500

33,000     = <u>$1,930,500</u>

                      $70 - VC

33,000(70 - VC) = $1,930,500

2,310,000 - 33,000VC  = $1,930,500

2,310,000 - $1,930,500 = 33,000VC                                          

379,500  = 33,000VC

<u>379,500</u>  = VC

33,000

VC = $11.50

Increase in variable expenses per unit

= $11.50 - $10 = $1.50

Explanation:

In this case, we need to determine the break-even point in units, which is fixed cost divided by variable expenses per unit. If total fixed expenses reduced by $49,500, the new total fixed expenses will be $1,930,500. Then, we will equate the break-even point in units to the new fixed cost divided by contribution per unit, which is selling price minus variable expenses per unit. Since break-even point in units, new fixed cost and selling price were known with the exception of variable cost, variable cost becomes the subject of the formula. The old variable expenses will be deducted from the new variable expenses so as to obtain increase in variable expenses per unit.

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