a bank purchases a six-month $2 million eurodollar deposit at an interest rate of 7.0 percent per year. it invests the funds in a six-month swedish krona bond paying 7.9 percent per year. the current spot rate of u.s. dollars for swedish krona is $0.1750/skr. a. the six-month forward rate on the swedish krona is being quoted at $0.1810/skr. what is the net spread earned for six months on this investment if the bank covers its foreign exchange exposure using the forward market? b. at what forward rate will the spread be only 1 percent per year?

Answers

Answer 1

a) The net spread earned for six months on this investment is $37,350.

b) The forward rate that will result in a spread of only 1% per year is $0.1762/skr.

a) To calculate the net spread earned for six months, we first need to convert the $2 million eurodollar deposit into Swedish krona (SEK) using the current spot rate.

$2 million x 0.1750/skr = SEK 3,500,000

The bank invests the SEK 3,500,000 in a six-month Swedish krona bond paying 7.9% per year. The interest earned over six months is:

SEK 3,500,000 x 0.079 x (6/12) = SEK 138,250

To cover its foreign exchange exposure, the bank enters into a forward contract to sell SEK 3,500,000 in six months at the forward rate of $0.1810/skr.

The amount received in U.S. dollars from the forward contract is:

SEK 3,500,000 x $0.1810/skr = $632,350

The net spread earned is the difference between the interest earned and the forward contract amount in U.S. dollars:

$632,350 - $2,000,000 x 0.07 x (6/12) = $37,350

b) To calculate the forward rate that will result in a spread of only 1% per year, we can use the formula:

Forward rate = spot rate x (1 + domestic interest rate)/(1 + foreign interest rate)

We know that the domestic interest rate is 7.0% per year, and we want a spread of 1% per year, so the foreign interest rate should be:

Foreign interest rate = domestic interest rate - spread

Foreign interest rate = 7.0% - 1.0% = 6.0% per year

Plugging in the values, we get:

Forward rate = $0.1750/skr x (1 + 0.07/2)/(1 + 0.06/2)

Forward rate = $0.1750/skr x 1.035/1.03

Forward rate = $0.1762/skr

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Related Questions

How many products does your company have in the first three years of the MikesBikes simulation?

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The number of products a company has in the first three years of the MikesBikes simulation will depend on various factors, including the company's strategy, market demand, and competition.

In the MikesBikes simulation, companies have the option to develop and produce multiple products, each with its own unique features and price points.

Companies can choose to focus on producing a limited number of high-quality, premium products or a larger number of lower-priced, mass-market products.

Factors such as market demand, competition, and production capacity can also impact the number of products a company chooses to produce. Some companies may choose to introduce new products or discontinue existing ones based on changes in market trends or consumer preferences.

Overall, the number of products a company has in the first three years of the MikesBikes simulation will depend on various factors, including the company's strategy, market demand, and competition.

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Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them.

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The concept you are describing is known as centralizing responsibility, which refers to assigning a single person to manage the related tasks of ordering merchandise, receiving goods, and making payments. This centralized approach streamlines the process and can improve efficiency, accountability, and communication within the organization.


On the one hand, having one person in charge of these activities can streamline the process and reduce the risk of miscommunications or mistakes. It can also make it easier to track inventory levels and ensure that the business is always well-stocked with the necessary products.

Overall, whether having one person responsible for these activities is a good idea depends on the specific circumstances of the business and the qualifications and trustworthiness of the individual in question. A long answer would involve examining the pros and cons in more detail and considering factors such as the size of the company, the nature of the products being ordered, and the level of oversight and control in place.

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culture comics produces historical graphic novels and retails them through local shops throughout the united states. the publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. which part of this scenario does segment d of the diagram reflect? the publisher retails its novels through local shops. the publisher maintains an in-house staff of editors. the printer imports ink and printing equipment. consumers pay sales tax on purchases of novels.

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Although its printer uses locally recycled paper, the majority of its printing supplies are imported. The portion of this scenario where customers pay sales tax on book purchases is represented in segment d of the diagram.

Segment D of the diagram refers to the taxation process that applies to consumers who purchase Culture Comics' historical graphic novels. When customers buy a book from a local shop, they have to pay sales tax on the purchase, which is collected by the retailer and forwarded to the appropriate tax authority.

Sales tax is a form of consumption tax that is levied by state and local governments in the United States. The tax rate varies depending on the jurisdiction and the type of product being sold. In the case of Culture Comics, the sales tax would be applied to the retail price of the graphic novels sold through local shops.

It's important to note that the sales tax is not directly related to the production, distribution, or printing processes of graphic novels. Instead, it's a tax that is collected by the retailer on behalf of the government. The tax revenue is then used to fund public services such as schools, roads, and public safety.

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Complete question:

Culture comics produces historical graphic novels and retails them through local shops throughout the united states. the publisher maintains an in-house staff of editors and illustrators but contracts out writing, printing, and distribution. its printer uses domestically recycled paper but imports ink and much of its printing equipment from overseas. which part of this scenario does segment d of the diagram reflect?

A - the publisher retails its novels through local shops.

B - the publisher maintains an in-house staff of editors.

C - the printer imports ink and printing equipment.

D - consumers pay sales tax on purchases of novels.

high-ranking managers who endorse and lend political support for the completion of a specific project are known as ____project .

Answers

The high-ranking managers who endorse and lend political support for the completion of a specific project are known as "project sponsors."

High-ranking managers who endorse and lend political support for the completion of a specific project are known as "sponsor" of the project. Sponsors are responsible for ensuring that the project is aligned with the organization's strategic goals, and they provide the necessary resources to complete the project. They also facilitate communication between project stakeholders and help to remove any barriers or obstacles that could hinder the project's success. The role of the sponsor is crucial in ensuring that the project is completed on time, within budget, and to the required quality standards. Without the support of the sponsor, the project may struggle to gain momentum and ultimately fail to deliver the expected outcomes.

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on january 1, 2021, m company granted 90,000 stock options to certain executives. the options are exercisable no sooner than december 31, 2023, and expire on january 1, 2027. each option can be exercised to acquire one share of $1 par common stock for $12. an option-pricing model estimates the fair value of the options to be $5 on the date of grant.if unexpected turnover in 2022 caused the company to estimate that 10% of the options would be forfeited, what amount should m recognize as compensation expense for 2022?multiple choice$30,000.$60,000.$120,000.$150,000.

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M should recognize compensation expense for the options that are expected to vest. The detailed answer is as follows:

When a company grants stock options to employees, it recognizes compensation expense over the vesting period based on the fair value of the options on the grant date. In this case, the fair value of the options is estimated to be $5 per option.

However, if the company expects that some of the options will be forfeited before they vest, it needs to adjust the compensation expense accordingly. For example, if the company expects that 10% of the options will be forfeited, it should only recognize compensation expense for 90% of the options.

To calculate the compensation expense for 2022, we need to know how many options are expected to vest in that year. Since the options are not exercisable until December 31, 2023, we can assume that all options that are not forfeited will vest on that date.

Therefore, in 2022, M should recognize compensation expense for 81,000 options (90,000 options x 90% expected vesting rate). The compensation expense is calculated as follows:

81,000 options x $5 fair value per option = $405,000

So the correct answer is $405,000, which is not one of the multiple-choice options. It appears that the options were not adjusted for expected forfeitures in the multiple-choice answers. However, if we had to choose the closest option, it would be $120,000, which is 30% of the correct answer.

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here should rhonda put the administrative expenses for her business when she prepares the financial forecasts? a. in the operating expenses section b. administrative costs are included in cost of goods sold c. in the interest expense section d. administrative costs are subtracted from amount of sales.

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Rhonda should put the administrative expenses for her business in the operating expenses section when she prepares the financial forecasts. Here option A is the correct answer.

When preparing financial forecasts for a business, it is essential to accurately categorize the various expenses to better understand the overall financial health of the business. In this scenario, Rhonda needs to determine where to put administrative expenses in her financial forecast.

Administrative expenses are the costs incurred by a business for its daily operations, such as rent, utilities, salaries, insurance, and office supplies. These expenses are separate from the cost of goods sold (COGS), which represents the direct costs associated with producing the goods or services sold by the business.

The most appropriate category for Rhonda to place administrative expenses in her financial forecast is the operating expenses section. This section includes all expenses that are necessary to run the business, such as rent, salaries, utilities, and other overhead costs. By separating administrative expenses from COGS, Rhonda can better analyze the impact of these expenses on the overall profitability of the business.

It is not correct to include administrative expenses in the COGS section since COGS only represents direct costs related to the production of goods or services. Likewise, it is not appropriate to categorize administrative expenses as interest expenses or subtract them from the amount of sales.

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in your own words, describe each phase of the business cycle. include in each description include what is happening in regards to economic growth (real gdp), the unemployment rate, and the average price level.

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The business cycle consists of four phases: expansion, peak, contraction, and trough.

During the expansion phase, the economy is growing, and there is an increase in real GDP, employment, and the average price level. In the peak phase, the economy reaches its maximum output, and the growth rate of real GDP slows down, the unemployment rate is at its lowest point, and the average price level is high.

During the contraction phase, the economy starts to slow down, real GDP growth rate declines, and the unemployment rate starts to rise. The average price level may decrease or stabilize during this phase. Finally, in the trough phase, the economy hits its lowest point, and real GDP, employment, and the average price level are at their lowest levels.

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equipment acquired on january 8 at a cost of $168,000 has an estimated useful life of 18 years, has an estimated residual value of $15,000 and is depreciated by the straight-line method. what was the book value of equipment at dec. 31 the end of the fourth year? assuming equipment was sold on april 1 of the fifth year for $125,000, journalize entries: depreciation for three months until sale date and sale of equipment.

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The straight-line method is a common method used for depreciation of assets. This method spreads the cost of the asset evenly over its useful life. In this case, the equipment acquired on January 8 has a useful life of 18 years, a cost of $168,000, and a residual value of $15,000.

To calculate the annual depreciation, we subtract the residual value from the cost and divide by the useful life:

($168,000 - $15,000) / 18 = $8,250 per year

After four years, the accumulated depreciation would be:

$8,250 x 4 = $33,000

So the book value of the equipment on December 31 of the fourth year would be:

$168,000 - $33,000 = $135,000

Assuming the equipment was sold on April 1 of the fifth year for $125,000, we need to journalize the following entries:

Depreciation for three months until the sale date:
Depreciation Expense: ($8,250 / 12) x 3 = $1,640.63
Accumulated Depreciation: $33,000 + $1,640.63 = $34,640.63

Sale of equipment:
Cash: $125,000
Accumulated Depreciation: $34,640.63
Equipment: $168,000
Gain on Sale of Equipment: $7,359.37 ($125,000 - $34,640.63 - $168,000)

In summary, the book value of equipment at the end of the fourth year was $135,000. Depreciation expense for three months until the sale date was $1,640.63, and the sale of equipment resulted in a gain of $7,359.37.
To calculate the book value of the equipment at the end of the fourth year using the straight-line method, follow these steps:

1. Determine the annual depreciation expense: ($168,000 - $15,000) / 18 years = $8,500 per year.

2. Calculate the accumulated depreciation at the end of the fourth year: 4 years * $8,500 = $34,000.

3. Calculate the book value at the end of the fourth year: $168,000 (cost) - $34,000 (accumulated depreciation) = $134,000.

For the journal entries, first record the depreciation for the first three months of the fifth year:

4. Calculate the depreciation expense for three months: $8,500 per year / 12 months * 3 months = $2,125.

5. Journalize the depreciation entry:
  Debit Depreciation Expense $2,125
  Credit Accumulated Depreciation $2,125

Next, record the sale of the equipment on April 1:

6. Calculate the updated book value at the time of sale: $134,000 - $2,125 = $131,875.

7. Determine the gain or loss on the sale: $125,000 (selling price) - $131,875 (book value) = -$6,875 (loss).

8. Journalize the sale entry:
  Debit Cash $125,000
  Debit Accumulated Depreciation $36,125 ($34,000 + $2,125)
  Debit Loss on Sale of Equipment $6,875
  Credit Equipment $168,000

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Which of the following takes place when a public official makes a decision that might result in a personal economic advantage?a. co-optationb. conflict of interestc. accessd. advocacy

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Option b: When a public official makes a choice that could lead to a personal financial advantage, there is a conflict of interest.

A conflict of interest arises when a company's or an individual's personal (or selfish) interests conflict with their job duties or responsibilities. Such conflicts arise when companies or individuals have a legitimate interest in: B. Money, status, knowledge, connections, or reputation that cast doubt on your ability to act, judge, or make decisions objectively.

In business, a conflict of interest arises when an individual's personal interests interfere with their obligations to an employer or investee company. Conflicts of interest arise when someone puts their own interests ahead of their obligations to an organization in which they have an interest, or uses their position for personal gain.

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interest on long-term debt is classified as a(n) expense. multiple choice question. nonoperating operating

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Interest on long-term debt is classified as an non-operating expense.

The term "non-operating expenses" refers to costs that aren't largely associated with continuing business operations. Non-operating expenses include loan interest, restructuring fees, stock deductions, and expenditures to resolve legal disputes, to name a few. Stakeholders can have a clearer view of the performance of the firm by documenting non-operating expenditures separately from operational expenses.

Interest payments and one-time costs for asset sales or inventory write-downs are a few of examples of non-operating expenditures. Many businesses use debt to finance their expansion. Due to their indirect connection to non-core operational operations, payments of interest on these loans are regarded as non-operating expenditures.

Option A is the correct answer.

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which of the following is recorded with a debit to interest receivable and a credit to interest revenue?

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Answer:

The amount of accrued interest for the party who is receiving payment is a credit to the interest revenue account and a debit to the interest receivable account.

one of the usual policy changes included in an international monetary fund (imf) prescription is a. temporary cartels in domestic product markets. b. changes in fiscal policy to reduce the government budget deficit through spending cuts and tax revenue increases . c. increased barriers to imports. d. decreased regulation of public sector enterprises

Answers

The usual policy changes included in an International Monetary Fund (IMF) prescription can vary (B) depending on the specific economic situation of the country in question.

However, out of the options provided, the most common policy change would be b. changes in fiscal policy to reduce the government budget deficit through spending cuts and tax revenue increases.

This is because the IMF typically focuses on addressing macroeconomic imbalances, such as high levels of government debt and budget deficits.

To address these issues, the IMF may recommend fiscal austerity measures, such as reducing government spending and increasing taxes, in order to restore fiscal sustainability.
It is less likely for the IMF to recommend a. temporary cartels in domestic product markets, as this would be seen as a distortion of market forces and would likely harm consumers.

Additionally, c. increased barriers to imports would go against the IMF's emphasis on free trade and economic integration.

Finally, d. decreased regulation of public sector enterprises would also be unlikely, as this could lead to inefficiencies and corruption.

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What is the specific market failure justification for government spending on: A. Public universities, B. Health care, C. Trash pickup, D. highways, E. Police, F. Solar energy?
Would a purely private economy produce any of these services?

Answers

Public universities: One market failure justification for government spending on public universities is the presence of positive externalities. Education provides benefits not only to the individual student but also to society as a whole, through increased productivity, innovation, and economic growth.

Because these benefits are not fully captured by the individual, they may be underprovided by the market. Government spending on public universities can help correct this market failure by increasing access to education and promoting social and economic benefits. Health care: The market failure justification for government spending on healthcare is based on the existence of information asymmetry and the potential for adverse selection. Consumers may lack the knowledge or ability to assess their own health needs and the quality of available healthcare services. This can lead to market failure, where individuals may not purchase sufficient or appropriate health care services, leading to negative outcomes. Government spending can help correct this market failure by increasing access to healthcare and promoting social welfare.Trash pickup: The market failure justification for government spending on trash pickup is related to negative externalities. Individuals may not consider the full social cost of their waste disposal choices, such as pollution and environmental damage. Government spending can help correct this market failure by providing efficient and cost-effective waste management services that minimize negative externalities.

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The government grants a patent to a pharmaceutical company protecting an experimental cancer treatment. That company is the only pharmaceutical producer allowed to manufacture and sell the treatment.
Is the market competitive?

Answers

No, the market is not competitive. When the government grants a patent to a pharmaceutical company, it gives the company a legal monopoly over the manufacture, use, and sale of the patented product for a certain period of time (usually 20 years).

During this time, the company has exclusive rights to the product, and no other company is allowed to manufacture or sell it without the patent owner's permission. In the case of experimental cancer treatment, the pharmaceutical company that holds the patent is the only company that is allowed to manufacture and sell the treatment. As a result, there is no competition in the market for this specific cancer treatment. The lack of competition means that the pharmaceutical company has a significant degree of market power, which allows it to charge higher prices for the treatment than it would in a competitive market.

Therefore, the market for experimental cancer treatment is not competitive due to the patent government grants to the pharmaceutical company.

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describe the factors associated with maintenance costs incurred by employing an enterprice resource planning

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There are several factors that are associated with maintenance costs incurred by employing an enterprise resource planning (ERP) system. Firstly, the complexity and size of the ERP system can have a significant impact on maintenance costs. The larger and more complex the system, the more resources will be required to maintain it.

Secondly, the level of customization required can also affect maintenance costs. Customization may be necessary to tailor the system to the specific needs of the organization, but this can increase maintenance costs as it requires additional support and updates. Thirdly, the age of the ERP system can also play a role in maintenance costs. As the system ages, it may become more difficult to maintain and support, leading to higher maintenance costs.

Fourthly, the level of training and expertise required to maintain the ERP system can also have an impact on maintenance costs. If specialized knowledge is required, it may be necessary to hire additional staff or outsource maintenance to a third-party provider, which can be costly. Lastly, the frequency and level of updates and upgrades required can also impact maintenance costs. As new technologies and features are introduced, it may be necessary to update the ERP system to stay current, which can be time-consuming and costly.

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when a video streaming company chooses a subscription scheme to pay for programming, which of the following statements is true? a. the outcome is socially efficient. true b. the programs selected will maximize advertising revenue. true c. the marginal cost to an additional viewer of watching the program is lower than when advertising is used to finance programming. true d. the outcome is always more socially efficient than when advertising is used to finance programming. true e. the variety of programs provided is likely to rise.

Answers

When a video streaming company chooses a subscription scheme to pay for programming the marginal cost to an additional viewer of watching the program is lower than when advertising is used to finance programming. The correct answer is option c.

It relies on revenue from subscribers rather than revenue from advertising. The cost of producing and distributing the content is spread among subscribers, and marginal cost to an additional viewer of watching the program is essentially zero. Because company has already covered its costs, adding another viewer does not incur any additional expenses. In contrast, when advertising is used to finance programming, marginal cost to an additional viewer is higher because revenue comes from advertiser. Therefore, option c is correct.

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a system in which the value of currency issued by the government is based entirely on public faith that the currency will be acceptable in trade is select one: a. a private property system. b. a fiduciary system. c. a gresham system. d. a socialistic system.

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A system in which the value of currency issued by the government is based entirely on public faith that the currency will be acceptable in trade is a fiduciary system.

The term fiduciary is an individual or organization who operates on account of a different individual or persons, putting the best interests of their clients ahead of one's own, and who is required to preserve excellent faith and trust. Becoming a fiduciary means being ethically and legally bound to do what's in the most beneficial passions of the other party.

The fiduciary might be liable for another person's general well-being (for example, a child's legal guardian), but the obligation typically involves finances—for example, managing another person's or group of people's resources. Anyone who has legal responsibility for managing someone else's money, such as a member of a charity's investment committee, is considered an investment fiduciary.

Therefore, option B is the correct answer.

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State and explain trends in modern in office management​

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Answer:

Modern office management has evolved rapidly over the past few decades due to technological advancements, globalization, and changing workforce demographics. Some of the significant trends in modern office management include:

Remote Work: With the widespread adoption of digital technology, many companies have started embracing remote work. Employees work from home or other locations outside of the traditional office setting.

Collaboration Tools: With the rise of remote work, collaboration tools such as video conferencing, project management software, and cloud-based document sharing have become increasingly important in managing remote teams.

Focus on Employee Wellness: Many companies are now prioritizing employee wellness by offering wellness programs, gym memberships, and other perks to promote work-life balance and reduce stress.

Sustainability: More and more businesses are adopting sustainable practices in office management. For example, they are reducing waste, using renewable energy, and implementing green initiatives.

Diversity and Inclusion: With a growing awareness of the importance of diversity and inclusion, many companies are actively working to create more inclusive work environments and to promote diversity in hiring and leadership.

Automation: With the increasing use of artificial intelligence and automation in the workplace, many routine tasks are now being automated. Automation allows employees to focus on higher-level tasks that require more complex skills and decision-making.

Agile Methodologies: Many companies are adopting agile methodologies in their office management. They emphasize flexibility, collaboration, and continuous improvement.

Overall, modern office management focusses on employee well-being, sustainability, diversity, and collaboration. It also relies on technology and automation to streamline processes and improve productivity.

Explanation:

a firm makes a rights offer of one new share for four old shares at an issue price of 100 (n 1:4 - 100). (a) if the market price equals 200 on the last day before the stock goes ex, what is the ex-right market price per share? (b) what is the ex-right market price per share, if the market price equals 200 and the rights offer in the previous question (n 1:4 - 100) takes place at the same time as a stock dividend of one new share for four old shares (f 1:4)? (c) what is the ex-right market price per share, if the market price is 200, the firm makes a rights offer of one new share for four old shares at an offer price of 100 (n 1:4 - 100), and the next dividend of 20 per share is reserved for old shareholders? (d) what is the ex-right market price per share, if the market price is 200, the firm makes a rights offer of one new share for four old shares at an offer price of 100 (n 1:4 - 100), old shareholders receive the next dividend of 20 per share, and new shareholders receive half the next dividend of 10 per share?

Answers

a. The ex-right market price per share is 195.

b. When a stock dividend of one new share for four old shares ex-right market price per share is 160.

c. If the next dividend of 20 per share is reserved for old shareholders the ex-right market price per share is 200.

d. When old shareholders receive the next dividend of 20 per share, and new shareholders receive half the next dividend of 10 per share the ex-right market price per share is 201.6.

a. The ex-right market price per share can be calculated as follows:

Total value of old shares = 4 x 200 = 800

Value of subscription right = (100/5) = 20

Total value of old shares after ex-right = (800 - 20) = 780

Ex-right market price per share = (780/4) = 195

b. When a stock dividend of one new share for four old shares is issued at the same time as the rights offer, the ex-right market price per share can be calculated as follows:

Total value of old shares = 4 x 200 = 800

Total number of shares after the stock dividend = 5

Value per share after stock dividend = (800/5) = 160

Value of subscription right = (100/5) = 20

Total value of old shares after ex-right = (4 x 160) = 640

Ex-right market price per share = (640/4) = 160

c. If the next dividend of 20 per share is reserved for old shareholders, the ex-right market price per share can be calculated as follows:

Total value of old shares = 4 x 200 = 800

Value of subscription right = (100/5) = 20

Total value of old shares after ex-right = (800 - 20) = 780

Value of next dividend per share = 20

Ex-right market price per share = [(780 + 20)/4] = 200

d. When old shareholders receive the next dividend of 20 per share, and new shareholders receive half the next dividend of 10 per share, the ex-right market price per share can be calculated as follows:

Total value of old shares = 4 x 200 = 800

Value of subscription right = (100/5) = 20

Total value of old shares after ex-right = (800 - 20) = 780

Value of next dividend per share for old shareholders = 20

Value of next dividend per share for new shareholders = 10

Value of new share after dividend = (200 - 10) = 190

Value of subscription right after dividend = (90/5) = 18

Total value of old shares after ex-right and dividend = (780 + 20) = 800

Ex-right market price per share = [(800 + 190 + 18)/5] = 201.6

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The correct question is:

A firm makes a rights offer of one new share for four old shares at an issue price of 100 (n 1:4 - 100).

(a) If the market price equals 200 on the last day before the stock goes ex, what is the ex-right market price per share?

(b) What is the ex-right market price per share, if the market price equals 200 and the rights offer in the previous question (n 1:4 - 100) takes place at the same time as a stock dividend of one new share for four old shares (f 1:4)?

(c) What is the ex-right market price per share, if the market price is 200, the firm makes a rights offer of one new share for four old shares at an offer price of 100 (n 1:4 - 100), and the next dividend of 20 per share is reserved for old shareholders?

(d) What is the ex-right market price per share, if the market price is 200, the firm makes a rights offer of one new share for four old shares at an offer price of 100 (n 1:4 - 100), old shareholders receive the next dividend of 20 per share, and new shareholders receive half the next dividend of 10 per share?

The amount that is originally borrowed or the amount that is repaid when the bond mature is due is known as ___________.

Answers

The amount that is originally borrowed or the amount that is repaid when the bond matures is known as the principal.
When a bond is issued, the issuer borrows a certain amount of money from investors, which is known as the principal or face value.

This amount is typically set at a fixed rate and is the amount that the issuer must repay when the bond matures. The principal is also the basis for calculating interest payments, which are typically made semi-annually until the bond matures. The interest payments are calculated as a percentage of the principal, which is why bonds are often referred to as fixed-income investments. In addition to the principal and interest payments, bonds may also have other features such as call provisions, which allow the issuer to redeem the bond before maturity, and sinking fund provisions, which require the issuer to set aside funds each year to repay the bond when it matures. Understanding the principal is important for investors because it helps them to calculate their potential returns and assess the risk associated with investing in a particular bond.

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A company uses a process costing system. Its Weaving Department completed and transferred out 120,000 units during the current period. The ending inventory in the Weaving Department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversation costs).
Determine the equivalent units of production for the Weaving Department for direct materials and conversion costs assuming the weighted average method.
A. 120,000; 120,000
B. 120,000; 160,000
C. 128,000; 120,000
D. 128,000; 144,000
E. 128,000; 184,000

Answers

The answer is D. 128,000 equivalent units for direct materials and 144,000 equivalent units for conversion costs.

The equivalent units of production for direct materials will be 120,000 units (completed and transferred out) plus 40,000 units (ending inventory, 20% complete) which equals 128,000 equivalent units.

For conversion costs, the equivalent units of production will be 120,000 units (completed and transferred out) plus 40,000 units (ending inventory, 60% complete) which equals 144,000 equivalent units.

Therefore, the answer is D. 128,000 equivalent units for direct materials and 144,000 equivalent units for conversion costs.

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Capitalism is an economic system in which there is:.

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Capitalism is an economic system in which there is private ownership of resources, voluntary exchange, and the profit motive.

In this system, individuals and businesses own and control the means of production and distribution, while economic decisions are driven by supply and demand. Entrepreneurs play a vital role in driving innovation and creating new goods and services. Competition among businesses ensures efficiency, and the government's primary role is to protect property rights and enforce contracts.

Overall, capitalism promotes economic growth and wealth creation by allowing individuals and businesses to freely operate in the market with minimal government interference.

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in a shipment contract, the risk passes to the buyer when the goods are properly tendered at the destination point.T/F

Answers

False.

In a shipment contract, the risk passes to the buyer when the goods are properly tendered at the destination point.

When the products are delivered to the carrier or goods forwarder at the point of origin under a shipment contract, the risk of loss or damage to the goods shifts from the seller to the buyer. This means that while the buyer bears the risk of loss or damage during transit, the seller is in charge of planning and paying for the transportation of the products to the buyer's destination. The buyer's responsibility for the goods begins once they are delivered to the carrier or freight forwarder, and the buyer assumes the risk for any loss or damage that occurs during transit. Therefore, the risk does not pass to the buyer when the goods are properly tendered at the destination point in a shipment contract.

Complete Question

In a shipment contract, the risk passes to the buyer when the goods are properly tendered at the destination point.

True or False

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Which of these ratios are the determinants of a firm's sustainable growth rate?
I. Assets-to-equity ratio
II. Profit margin
III. Retention ratio
IV. Asset turnover ratio A. I and III only
B. II and III only
C. II, III, and IV only
D. I, II, and III only
E. I, II, III, and IV
F. None of the above.

Answers

Assets-to-equity ratio, Profit margin, Retention ratio and asset turnover ratio   are the determinants of a firm's sustainable growth rate.

The sustainable growth rate (SGR) is the maximum rate of growth a company can expect without increasing to debt or equity. Businesses with high SGRs are typically successful at increasing sales, concentrating on high-margin items, and effectively managing inventories, accounts payable, and accounts receivable.

Due to new competitors entering the market, shifting economic conditions, and increased R&D, firms may find it challenging to sustain a high SGR over the long term. Sustainable growth rate may also be calculated by dividing the retention rate by the return on equity. The SGR is something that is computed on a regular basis since businesses need to keep track of their growth rates.

Therefore, option E is the correct answer.

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scenario: assets and liabilities of the banking system suppose that the required reserve ratio is 10%, and the federal reserve sells $11,000 worth of u.s. treasury bills to the banking system. if the banking system does not have any excess reserves, will be the money supply. $110,000; subtracted from $250,000; subtracted from $250,000; added to $110,000; added to

Answers

If the banking system does not have any excess reserves, will be the money supply. $250,000; subtracted from

If the required reserve ratio is 10% and the Federal Reserve sells $11,000 worth of U.S. Treasury bills to the banking system and the banking system does not have any excess reserves, then the money supply will be reduced.

The initial effect of the Federal Reserve selling Treasury bills to the banking system is to decrease the reserves of the banks by $11,000. As a result, the banks are required to reduce their deposits by $11,000 x 1/0.10 = $110,000 to maintain the required reserve ratio of 10%. This means that the money supply will be reduced by $110,000.

Therefore, the correct answer is: subtracted from $250,000.

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scenario: assets and liabilities of the banking system suppose that the required reserve ratio is 10%, and the federal reserve sells $11,000 worth of u.s. treasury bills to the banking system. if the banking system does not have any excess reserves, will be the money supply.

$110,000; subtracted from $250,000; subtracted from$250,000; added to $110,000; added to

Rashmi bought a kayak online, and after using it for a month, she went back to the site where she purchased it and submitted a product review. This is an example of ________ content.

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Rashmi bought a kayak online, and after using it for a month, she went back to the site where she purchased it and submitted a product review. This is an example of user-generated content.

User-generated content (UGC) refers to any content created by unpaid contributors or users of a platform or service. It can take many forms, including product reviews, social media posts, comments, videos, and more. UGC is often seen as a valuable source of information and a way to engage with customers or users.

In this case, Rashmi created a product review after using the kayak she purchased online. This review is an example of user-generated content, as it was created by an unpaid contributor or user of the website where the kayak was purchased. The review provides valuable information for other potential customers who may be considering purchasing a kayak, and it can also help the website to engage with its users and build a community around its products.

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bob and his sister betty are co-owners of their late parents' business. bob actively manages the business; betty supplies capital from her inheritance but does not work in the business. they squabble over the distribution of profits from the business. bob likely sees his sister as a , whereas betty views her brother as a(n) .

Answers

Bob likely sees his sister Betty as a passive investor, while Betty views her brother Bob as an employee or manager of the business.

Bob likely sees his sister Betty as a passive investor, while Betty views her brother Bob as an employee or manager of the business. As the active manager of the business, Bob likely believes that he is entitled to a larger share of the profits than his sister, who only supplies capital but does not participate in the day-to-day operations. He may feel that his efforts in managing the business are crucial to its success and that he should be compensated accordingly. On the other hand, Betty may view her investment as a significant contribution to the business and may feel entitled to an equal share of the profits, regardless of her lack of involvement in the management of the business. She may feel that her capital investment is critical to the business's growth and success and that she should be compensated accordingly. Overall, their differing roles and contributions to the business are likely to shape their perspectives on the distribution of profits, leading to potential conflicts and disagreements.

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select all that apply the calculation of a standard price per unit of direct materials includes blank . multiple select question. shipping costs purchase price of the materials allowance for unavoidable waste purchase discounts

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 The calculation of a standard price per unit of direct materials includes several factors, some of which are:

1. Purchase price of the materials: This is the cost of acquiring the raw materials from the supplier. It may include any taxes or duties that are levied on the materials.
2. Allowance for unavoidable waste: This is the amount of material that is expected to be wasted during the production process. It is added to the standard price per unit to account for this loss.
3. Purchase discounts: This is the discount that is offered by the supplier for early payment or bulk purchases. It is deducted from the purchase price to arrive at the net cost of the materials.

However, the calculation of a standard price per unit of direct materials may not include shipping costs. Shipping costs are usually considered as indirect expenses and are allocated to the products based on a predetermined rate or formula. Therefore, shipping costs may not be included in the standard price per unit of direct materials.
To summarize, the calculation of a standard price per unit of direct materials includes the purchase price of the materials, allowance for unavoidable waste, and purchase discounts, but may not include shipping costs.

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Fill in teh blank. When employees contribute to a Roth 401(k) account, they _____ allowed to deduct the contributions and they ______ taxed on distributions from the plan.

Answers

When employees contribute to a Roth 401(k) account, they are not allowed to deduct the contributions and they are not taxed on distributions from the plan.

A Roth 401(k) account is a retirement savings plan that allows employees to contribute after-tax dollars to their account. Unlike a traditional 401(k) account, contributions to a Roth 401(k) are not tax-deductible. However, the benefit of a Roth 401(k) is that all qualified distributions (distributions made after age 59 ½ and after a five-year holding period) are tax-free. This means that employees who contribute to a Roth 401(k) account will not be taxed on the money they withdraw from the account during retirement.

When employees contribute to a Roth 401(k) account, they are not allowed to deduct the contributions from their taxable income. This means that they will pay taxes on the money they contribute to the account in the year they earn it. However, the advantage of a Roth 401(k) is that all qualified distributions are tax-free. This means that employees will not have to pay taxes on the money they withdraw from the account during retirement.

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access the project management institute website and review the standards contained in the pmi member ethical standards section. how useful is the information for helping someone decide what behavior is appropriate and inappropriate?

Answers

Fairness, honesty, responsibility, and respect are all defined in the PMI Code of Ethics and Professional Conduct as they apply to the field of project management. However, it is up to each person to incorporate those values into the current project.

And you can't achieve it without having a thorough understanding of the local way of life. The best outcome is the most ethical one, and PMI's Code of Ethics and Professional Conduct applies these ideals to project management in the real world.

The Code must be followed by all PMI members, volunteers, certified individuals and candidates for certification. Project management ethics are preconceived notions of what is morally right or proper. It includes the principles of accountability, sincerity, decency, and fairness.

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