All categories

2 years ago

1. Please select each piece of information needed to calculate a real exchange rate.

Business

1 answer:

Volgvan2 years ago

6 0

We are required to give the informations needed to calculate a real exchange rate.

1. Informations needed to calculate a real exchange rate are nominal exchange rate, domestic price in home currency, and foreign price in foreign currency.

Real exchange rate can be calculated with the formula:

Real exchange rate = (Nominal exchange rate × Domestic price level) ÷ foreign price level

2. A higher real exchange rate implies that the domestic currency is depreciating.

Therefore, real exchange rate depends on nominal exchange rate and price

brainly.com/question/14057806

You might be interested in

Fama’s Llamas has a WACC of 9.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.

Bezzdna [24]

Answer:

0.4766

Explanation:

Given:

WACC = 9.7%

Company’s cost of equity = 12%

Pretax cost of debt = 7.5%

Tax rate = 35%

Now,

WACC

= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight

0.04825 = 0.07125 × weight

weight = 0.6772

also,

weight = $\frac{\textup{Equity}}{\textup{Debt + Equity}}$

$\frac{\textup{1}}{\textup{weight}}$ = $\frac{\textup{Debt+equity}}{\textup{Equity}}$

$\frac{1}{0.6772}$ = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

1.4766 = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

$\frac{\textup{Debt}}{\textup{Equity}}$ = 0.4766

5 0

3 years ago

The Finnish prefer to maintain time-honored traditions and norms and view change with suspicion. Which of Hofstede’s cultural di

NeTakaya

I think it’s an Individualist society

Finland, with a score of 63 is an Individualist society. This means there is a high preference for a loosely-knit social framework in which individuals are expected to take care of themselves and their immediate families only.

8 0

2 years ago

Answer this question plz n thank you. (posted the 1st n 2nd question. gonna post 2 other ones.)

prohojiy [21]

Answer:

Confidece, and empathy.

Explanation:

Confidence to know you will do great at your job, and empathy to know how others feel about themselves!

Hope this helps! Brainliest plz!

7 0

2 years ago

Uma and edward are assigned to partner on a project, but they have never worked together before. uma texts edward, "are you avai

EastWind [94]

In a situation in which Uma and Edward are partners on a project, but they have never worked together and Uma texts Edward, "Are you available to meet at four this afternoon?" Edward replies, "yep. cu then." Uma should gently remind Edward to be more formal and better to use e-mails than texting.

4 0

3 years ago

QUESTION 11 Given the following information, calculate the equity dividend rate for this investment: first-year NOI: $18,750; be

Alja [10]

Answer: D. 2.2%

Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.

Here, before-tax cash flow = $11,440

Acquisition price = $520,000

So Equity Dividend Rate = $\frac{11440}{520000}$ X 100

Equity Dividend Rate = 2.2%

In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.

4 0

3 years ago