A strong currency occurs when the value of a country's currency has risen to a level against another currency that is near historically high exchange rates. This means that a currency is worth more relative to other currencies. Because most currencies are floating, their values vary according to market trends. When one unit of currency trades for more units of another, it is said to be a strong currency. The advantage of this is, travelers are able to go abroad while spending less of their money, also it makes exports more expensive in other countries.
Answer:
<em>For Year 2 and Year 1 the revenue to assets ratio is: </em>
<em>a. Year 2, 9.52; Year 1, 6.90</em>
Explanation:
<em>Year 2 Sales were equivalent to:-</em>
= 5,000,000 / (450,000 + 650,000) / 2 ]
= 9.52
<em>Year 1 Sales were equals to:-</em>
= 3,500,000 / [(565,000 + 450,000) / 2 ]
= 6,90
Answer:
Dollar profit/loss= $4.6
Holding period of return = 9.68%
Explanation:
Janet bought a share of stock for $47.50
Dividend paid is $0.72
The stock was sold later at $51.38
The first step is to calculate the dollar profit/loss
= stock after a year - cost of stock + dividend paid
= $51.38 - $47.50- $0.72
= $4.6
The holding period return can be calculated as follows
= dollar profit/loss ÷ purchasing price of stock
= 4.6/47.50
= 0.0968×100
= 9.68 %
Answer:
0.63; rises
Explanation:
The computation of the price elasticity of demand using the mid point formula which is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded would be
= Q2 - Q1
= 650 units - 590 units
= 60 units
And, average of quantity demanded is
= (650 units + 590 units) ÷ 2
= 620 units
Change in price would be
= P2 - P1
= $1.75 - $1.50
= $0.25
And, average of price is
= ($1.75 + $1.50) ÷ 2
= 1.625
So, after solving this, the price elasticity is 0.63
Since the price of good X rises from $1.50 to $1.75, so the total revenue rises