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mariarad [96]
3 years ago
11

Chamonix Chateau Rentals. You are planning a ski vacation to Mt. Blanc in Chamonix, France, one year from now. You are negotiati

ng the rental of a chateau. The chateau's owner wishes to preserve his real income against both inflation and exchange rate changes, and so the present weekly rent of 9,800 (Christmas season) will be adjusted upward or downward for any change in the French cost of living between now and then. You are basing your budgeting on purchasing power parity (PPP). French inflation is expected to average 3.5% for the coming year, while US. dollar inflation is expected to be-2596.The current spot rate is $1.3620 What should you budget as the U.S. dollar cost of the 1-week rental?
a. Spot exchange rate (S/) $1.3620

b. Expected US inflation for coming year | 2.500%

c. Expected French inflation for coming year | 3.500%

d. Current chateau nominal weekly rent (E) 9,800.00
Business
1 answer:
nata0808 [166]3 years ago
7 0

Answer:

The budgeted $ amount is  $13,680.88  

Explanation:

The purchasing power parity formula gives us an idea what an exchange spot rate would be in future period using the below formula:

Future spot rate=current spot rate*(1+US inflation)/(1+French inflation)

current spot rate=$1.3620

US inflation rate is 2.50%

French inflation is 3.50%

Future spot rate=$1.3620*(1+2.5%)/(1+3.5%)

future spot rate=$1.3488

The weekly cost of vacation would also be adjusted for inflation rate in France as follows:

Adjusted price=9800*(1+3.5%)=10143

Hence the cost of the one week rental would be 10143  multiplied by the future spot exchange rate of 1.3488 i.e $ 13,680.88   (10143*1.3488)

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Answer:

The market price of an unrestricted share of the same stock.

Explanation:

Restricted stock units (RSU) are defined as a type of compensation in shares that an employer will give to an employee.

Usually certain conditions or performance should be met before the employee gets this benefit. For example staying with the company for a number of years.

A vesting plan of distribution schedule is used to allocate the shares.

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Kansas Enterprises purchased equipment for $72,500 on January 1, 2021. The equipment is expected to have a five-year service lif
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Answer:

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Explanation:

Kansas Enterprises

Formula for Depreciation expenses

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a. The computation of the weighted average number of shares is shown in the attachment below:

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