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Nadusha1986 [10]
2 years ago
13

v91. If a U.S. dollar purchases 4 Argentinean pesos, and a gallon of milk costs $3 in the U.S. and 6 pesos in Argentina what is

the real exchange rate
Business
1 answer:
Alla [95]2 years ago
6 0

The real exchange rate is 1 dollar = 2 Argentine pesos

The exchange rate is an economic term to refer to the relationship between two currencies. The exchange rate establishes the proportion of value that exists between two currencies. For example:

  • 1 Dollar is equivalent to 4 Argentine pesos

However, this rate does not represent reality in some places, there may be situations in which the proportions established by the exchange rate are not faithful to reality. For example:

  • 3 Dollars or 6 Argentine pesos are used to buy 1 gallon of milk.

In this example, it is evident that in reality, the dollar is not equivalent to 4 Argentine pesos but to 2 due to the proportion of value concerning a product. Therefore, the real exchange rate is 2 Argentine pesos for every American dollar.

Learn more in: brainly.com/question/15169469

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Answer:

107,027,000 is the total book value

Explanation:

So, you would start by adding 105,027,000 to 4,000,000 that gives you 109,027,000. Then you would subtract 109,027,000 and 2,000,000 that gives you 107,027,000

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How do corporations raise money and resources to expand? Select THREE answers.
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Correct answer choices are :

A) They request a bank loan.

D) They agree to sell stocks.

E)  They issue bonds.

Explanation:

Also, interest paid on bonds is a tax-deductible business investment for the organization. The problem is that interest payments generally are made on bonds even when no profits are earned. For this reason, a smaller corporation can sometimes raise much capital by issuing bonds.

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Biden Resorts Company currently has 0.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has
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Answer:

Hence, the weighted average cost of capital is 15.87%.

Explanation:

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Amount of Debt to be raised = Weight of debt x Capital

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WACC = Weight of Debt x Cost of Debt x (1 -Tax Rate) + Weight of Equity x Cost of Equity

= 0.2857 x 13.65% x (1 - 0.3) + 0.7145 x 18.4%

= 15.87%

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