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Maurinko [17]
3 years ago
13

Assume a U.S.-based MNC is borrowing Romanian leu (ROL) at an interest rate of 8% for one year. Also assume that the spot rate o

f the leu is $.00012 and the one-year forward rate of the leu is $.00010. The expected spot rate of the leu one-year from now is $.00011.What is the effective financing rate for the MNC assuming it borrows leu on an uncovered basis?
a) 10%
b) –10%
c) –1%
d) 1%
e)None of the above
Business
1 answer:
gregori [183]3 years ago
4 0

Answer:

c. -1

Explanation:

Base on the scenario been described in the question, we can use the following method to solve the given problem

Solution:

Depreciation of leu: .00010/.00011 – 1

Depreciation of leu = -9.09%

Effective financing rate: (1.08) x [1 + (-9.09%)] – 1 = -1.82%.28.

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Jenn wants to move to a place where she can stat her own coffee shop and use a bus train or subway to get to work everyday. Whic
lozanna [386]
<h2>Answer</h2>

Mixed Economic System

<h3>Explanation</h3>

Jenn wants the concept of private ownership when it comes down to establishing her own coffee shop and this therefore results in call for rights to ownership. On the other hand, she looks forth to availing various subsidized facilities such as that offered in the bus and subway network. The combination of both economic systems can be found in the Mixed Economic Structure.

5 0
3 years ago
Current GAAP requires the allocation of total share-based compensation cost to expense on a straight-line basis over the vesting
Lisa [10]

Answer:

The correct answer is True.

Explanation:

Cost allocations move costs and revenues between cost types, cost centers and cost objects. You can define as many assignments as you need. Each assignment consists of:

- An origin assignment.

- One or more assignment destinations.

The allocation source establishes what costs should be allocated, and the allocation destinations determine where the costs should be allocated. For example, an origin of allocation may be the costs of the type of cost Electricity and Heating. Assign all electricity and heating costs to three cost centers: Workshop, Production and Sales. These cost centers are the allocation destinations.  

For each assignment source, you can define an assignment level, a validity period and a variant as a group identifier. You can use a batch job to define filters to select assignment definitions and then run cost assignments automatically.

4 0
3 years ago
The economic situation of Rutenia is characterized by the following facts: GDP. Strong economic growth, of about 4%. Unemploymen
True [87]

Answer:

See below

Explanation:

Although a great GDP of 4% gives the impression of a strong economy, as is the case here, the inflation rate is much higher than desired. So, economic policies need to be reviewed in order to determine where the problem lies and what steps can be taken to remedy this situation.

3 0
4 years ago
Northern Gas recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percen
MAXImum [283]

Answer:

14.6%

Explanation:

we can use the Gordon growth  model to determine the market rate of return (or required rate of return for this stock or similar ones):

current stock price = dividend / (required rate of return - growth rate)

  • current stock price = $26.91
  • growth rate = 3.8%
  • dividend in 1 year = $2.80 x 1.038 = $2.9064

$26.91 = $2.9064 / (RRR - 3.8%)

RRR - 3.8% = $2.9064 / $26.91 = 10.8%

RRR = 10.8% + 3.8% = 14.6%

7 0
3 years ago
Read 2 more answers
Q2. Why is the biotech industry a global industry?
CaHeK987 [17]
I can help with question two, but not question three. 
The answer to question two is that biotech companies are part of the global industry from day one. Because capital is global, diseases know no borders, people are mobile, and you can get science anywhere in the world, there is an immediate competition with all other bioscience companies in the world.  
In other words, when you start a biotech company in the US, you are immediately competing with biotech companies in Japan, the UK, etc. because you're all competing for the same capital, the same consumers, the same pharmacies, etc. 
My best guess for question three is just that regulations are always important for global businesses (or really any business in general) as they protect both the businesses, the employees, and the consumers. In the case of biotech businesses, they protect people from false advertising of the benefits of products for example. 
Hope this helps!
6 0
3 years ago
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