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Serhud [2]
3 years ago
11

Assume the current U.S. dollar-yen spot rate is 125¥/$. Further, the current nominal 180-day rate of return in Japan is 3% and 4

% in the United States. What is the approximate forward exchange rate for 180 days?
Business
1 answer:
statuscvo [17]3 years ago
6 0

Answer:

124.39Y/$

Explanation:

Calculation to determine the approximate forward exchange rate for 180 days

Using this formula

Forward exchange rate/spot exchange rate = [(1+rh)/(1+rf)]*r

Where,

rh = periodic interest rate in the home currency

rf = periodic interest rate in the foreign currency

r=Spot rate

Forward exchange rate= [1+3%*180/360]/[1+4%*180/360]*125¥/$.

Forward exchange rate = 1.015/1.02* 125¥/$

Forward exchange rate= 124.39Y/$

Therefore the approximate forward exchange rate for 180 days is 124.39Y/$

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Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000
user100 [1]

Answer:

Results are below.

Explanation:

<u>Giving the following information: </u>

Selling price per unit= 1,560,000 / 60,000= $26

Unitary variable cost= 900,000 / 60,000= $15

Fixed costs= $500,000.

<u>First, the income statement without the changes:</u>

Sales= 1,560,000

Total varaible cost= (900,000)

Contribution margin= 660,000

Total fixed costs= (500,000)

Net operating income= 160,000

<u>Now, with the changes:</u>

Unitary variable cost= (15*0.8)= 12

Selling price= 26 - 1.5= $24.5

Sales in units= 60,000*1.05= 63,000

Fixed costs= 500,000 + 100,000= $600,000

Sales= 24.5*63,000= 1,543,500

Total variable cost= (12*63,000)= (756,000)

Total contribution margin= 787,500

Fixed costs= (600,000)

Net operating income= 187,500

3 0
3 years ago
The town of Sanford, Maine, decided to auction off a plot of land owned by the town. The town advertised that it would accept bi
rodikova [14]

Answer:

The answer is: Both parties could win, depending if there were other conditions established for the auction.

Explanation:

Usually when an auction is carried out there are conditions established beforehand by the auctioneer that must be fulfilled in order for the sale to be completed.

In this case, since we don´t know what other conditions the town of Sanford included in the auction, if any other condition at all, we can´t conclude which party could win the lawsuit. For instance if a reserve was required but Arthur and Arlene didn´t do the reserve deposit, then they will obviously lose. The same happens with other established conditions like a minimum price set, etc. But if no other condition established, then Arthur and Arlene could win.

5 0
3 years ago
Consumers are limited in the total utility that they can gain from buying products because they have limited
Cloud [144]

Answer: income i think

Explanation:

6 0
3 years ago
Sometimes conflict can be healthy critically discuss the statement​
Ad libitum [116K]

Answer:

Yeah that's right, sometimes conflict can be healthy and have good effect on us like:

awareness, presence of mind, being alert and strong and changing your life into better one's. Conflicts help you to develop oj how you see the world as where you live. It helps us to become strong and intelligent everyday.

7 0
3 years ago
The accounts receivable turnover is computed by dividing
Vika [28.1K]

Answer: The accounts receivable turnover is computed using the formula below: Net credit sales divided by Average accounts receivable

Explanation: The accounts receivable turnover ratio is a measure used to quantify a company's effectiveness in managing its receivables collections or amount owed by clients. The following steps are involved in calculating the accounts receivables turnover:

  • Get the accounts receivable at the beginning and end of the desired periods and divide by 2 to get the average, which is the denominator in the formula above.
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High accounts receivable turnover ratio means the company's collection process is highly effective while the low ratio signifies the opposite.

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