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
madam [21]
3 years ago
10

You are evaluating investments in U.S. equities and Mexican equities. Your stock analysts anticipate that U.S. equities will app

reciate 9% over the next year. Mexican equities are expected to rise by 15%. Your foreign exchange analyst expects the exchange rate for Mexican pesos, MP, to change from $0.14286/MP to $0.142015/MP. In U.S. dollar terms, what rate of return do you expect to earn on your Mexican equity investment
Business
1 answer:
Advocard [28]3 years ago
3 0

Answer:

14.32%

Explanation:

We have the investment sum of 100 dollars

We convert to mexican pesos

100x0.14286

= 700 MP

700 mexican pesos invested on equities gets 25% return

Redeemable amount after a year = 700 x (1+15%)

= 805

After a year money gotten back in dollars

805 x 0.142015

= 114.32 dollars

Net return = 114.32 - 100 = 14.32

Expressed in percent = 14.32%

You might be interested in
Suppose three engineers come to you with a plan for a disruptive, yet-to-be developed software program that seems compelling. Th
Vitek1552 [10]

Answer:

Explanation:

The Proposed bargain or deal is supportive of the business visionaries instead of the financial backer(investor) since all the capital is coming from the financial backer and the investor will be receiving just only 25% for the bargain or deal while he faces all the challenges posed or loss of capital. The business visionaries are not placing in any of their own personal capital but only their idea. They likewise have a bigger say in the administration of the business and the financial backer has no power over the choice since he conveys just 25% votes. Consequently, it's not a good bargain or deal for the financial backer considering the risk-reward ratio.

The counter-offer will include raising a proposed equity percent rate to half  (i.e 50%). In addition to that, the financial backer needs to demand another seat on the board with the goal that they have equivalent authority over the administration and its choices. The most reduced the financial backer can go down is equity of 40% stake.

8 0
3 years ago
Casey Communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. Thi
SVEN [57.7K]

Answer:

The company's current ratio increased.

Explanation:

What would happen to this company is that the company's current ratio would increase. The current ratio refers to a ratio that measures the company's capacity to fulfill its short-term obligations, usually within a year. Therefore, this can also be considered a liquidity ratio. The way in which it does it is by comparing the company's current assets to its current liabilities. The current ration in this case would increase due to the fact that the company used the money to pay off some of its short-term notes payable.

8 0
3 years ago
nder the general transfer pricing rule with excess capacity, the opportunity cost would be equal: Multiple Choice zero. the dire
Thepotemich [5.8K]

Answer:

ZERO.

Explanation:

A transfer price normally is used to determine the cost to charge another division, subsidiary, or holding company for services rendered. It is said that transfer prices are priced based on the going market price for that good or service. Transfer pricing can also be applied to intellectual property such as research, patents, and royalties.

However, companies at times can also use (or misuse) this practice by altering their taxable income, thus reducing their overall taxes. The transfer pricing mechanism is a way that companies can shift tax liabilities to low-cost tax jurisdictions.

3 0
3 years ago
Read 2 more answers
In Poland's free-market, Felix Siemienas is making a fortune in cold cuts. Prices are much higher than formerly. Siemienas says,
rjkz [21]

The correct answer would be, The Law of Demand.

Prices are much higher than formerly. Siemienas says, 'Yes my prices are high, if nobody buys, i bring my prices down. This is the market rule'. This rule best describes The Law of Demand.

Explanation:

In the field of economics, there are two basic concepts of Demand and Supply.

According to The Law of Demand, When the price of the good or service increases, the demand for that product or service decreases, and if price of the good or service decreases, the demand for that product or service increases, keeping all other factors constant.

So this is what Siemienas says that if the demand for his product will decrease, he will decrease the price of the product in order to maintain the sales of his company.

Learn more about The Law of Demand at:

brainly.com/question/1222851

#LearnWithBrainly

3 0
3 years ago
Identify the steps to conducting a simulation in the correct order. (1 point) state the problem or question, state the assumptio
NeTakaya

<span>Simulation is an imitation of a situation or a chance behavior that accurately reflects the situation under consideration. </span>

<span>Steps in  conducting a simulation in the correct order (first choice)</span>

• State the problem or question

• State the assumptions,

<span>• Assign  digits to represent outcomes,
• Simulate many repetitions
• State your conclusions</span>

6 0
2 years ago
Other questions:
  • Which of the following elements of a process most directly impacts or affects process capabilities? Multiple Choice Activities I
    15·1 answer
  • Caribbean Tours’ total payroll for the month of January was $600,000. The following withholdings, fringe benefits, and payroll t
    7·1 answer
  • 4. What does In-Private (or Incognito) browsing do?
    11·2 answers
  • The fact that a family would spend a lot more time researching the market before buying a new car than it would in the decision
    10·1 answer
  • When you are shopping for a loan, the __________ is the important rate to compare.
    13·1 answer
  • Joseph lost $5,000 after engaging in a work-from-home scam. What action should he take to seek retribution?
    6·1 answer
  • if i open a contract near market closing then close the contract next day does that count as day trade
    6·2 answers
  • The Financials section of the Business Model Template consists of three boxes. The boxes are titled ________.
    6·1 answer
  • In an attempt to increase sales during a lagging economy, Marvel has expanded its movie offerings to stimulate sales in its curr
    15·1 answer
  • When a license has been revoked what is the soonest the licensee can apply to the state to become a real estate licensee again?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!