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White raven [17]
2 years ago
6

In 1974, the price level for Pacifica was 100, the price level for Atlantica was also 100, and in the foreign exchange market 1

Pacifica pound was equal to 1 Atlantica mark. In 2003, the price level in Pacifica had risen to 280 and the price level in Atlantica had risen to 360. a. According to PPP, what should the pound-mark exchange rate be in 2003
Business
1 answer:
blsea [12.9K]2 years ago
6 0

Answer: 0.78 pound mark exchange rate

Explanation:

The Purchasing power parity (PPP) is typically used to make comparison between the currencies of different countries' currencies and also used in comparing their standards of living.

According to PPP, the pound-mark exchange rate in 2003 will be calculated as:

= 280/360

= 0.78

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Branford has one share of stock and one bond. The total value of the two securities is $1,200. The bond has a YTM of 10.2%, a co
riadik2000 [5.3K]

Answer:

The price of the stock is expected to be $188.16 in 1 year.

Explanation:

This can be determined as follows:

Current price of the stock = Expected next dividend / Expected return = $24.87 / 15.2% = $163.62

Expected stock price in 1 year = Current price of the stock * (100% + Expected return)^Number of year = $163.62 * (100% + 15.2%)^1 = $188.16

Therefore, the price of the stock is expected to be $188.16 in 1 year.

8 0
3 years ago
Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an example of why t
Alla [95]

Answer:

The best example I can think of that would integrate all of these concepts is when a business is looking to finance some sort of project and they are seeking financing either through the issuance of bonds or a loan from a bank. Some of the concepts would be important to both parties, while others would be more important to one than the other.

Cash Flow

This would be important to both parties. The business, to make sure they have enough cash flow to pay for the financing. And the financiers, for the same reason.

Ratio Analysis

This would be important to both parties for the same reason as above. Especially the "current ratio" (current assets / current liabilities) and the "working capital" ratio (current assets - current liabilities).

Financial Statements

This would be of most importance to the financiers. They would want to see the total picture of a company's financial strength.

Time Value of Money

This would be of most importance to the company itself. They would want to know if the project was worth the total amount they would be paying on the bonds or the loan

5 0
3 years ago
Before entering a passing lane, be sure to check for good _____________________ to ensure that you will not lose control of your
zhannawk [14.2K]
 Before entering a passing lane, be sure to check for good  Road Traction <span>to ensure that you will not lose control of your vehicle during the passing maneuver. You can check a good traction by trying to hit the brake earlier in the road and see how fast it accelerates down.</span>
7 0
3 years ago
Read 2 more answers
The Boxwood Company sells blankets for $ 32.00 each. The following was taken from the inventory records during May. The company
nika2105 [10]

Answer:

(C) $94.00

Explanation:

The computation of the cost of goods sold for the sale of May 20 is shown below:

= Remaining units × cost price + remaining units × cost price

= 4 units × $15 + 2 units × $17

= $60 + $34

= $94

The 4 units come from May 1 and May 10 i.e 9 units - 5 units = 4 units

And on May 20, the 6 units were sold out of which 4 units were sold at price of $15 and rest 2 units were sold at a price of $17

8 0
3 years ago
Taussig Snow Removal's cost formula for its vehicle operating cost is $1,880 per month plus $394 per snow-day. For the month of
arsen [322]

Answer:

$394 U

Explanation:

Calculation for the activity variance for vehicle operating cost in February would be

First step is to calculate the Flexible budget

Flexible budget= $1,880 + ($394 × 14)

Flexible budget=$7,396

Second step is to calculate the Planning budget

Planning budget= $1,880 + ($394 × 13)

Planning budget=$7,002

Last step is to calculate the activity variance for vehicle operating cost in Februar

Activity variance=Flexible budget $7,396-Planning budget $7,002

Activity variance=$394 U

Therefore The activity variance for vehicle operating cost in February would be closest to $394 U.

3 0
3 years ago
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