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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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Explanation:

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Probability of placing it with a smaller publisher(ps) = 0.8 for selling(ss) = 30,000 copies

Therefore,

Expected value (Economics) = pm × sm + pm(ps × ss)

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3 years ago
Alpha Co. has cost of goods sold of $77 million, net income of $9.6 million, sales of $120 million, and total assets of $150 mil
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Answer:

64.17% and 8%

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The computation of the percentage is shown below:

For the cost of goods sold, the percentage would be

= (Cost of goods sold ÷ Sales) × 100

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3 years ago
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D. Helps managers to act rapidly and with autonomy

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