Suppose the following items were taken from the December 31, 2017, assets section of the Boeing Company balance sheet. (All dollars are in millions.)
Inventory $16,933
Patents $12,528
Notes receivable—due after December 31, 2018 5,466
Buildings 21,579 Notes receivable—due before December 31, 2018 368
Cash 9,215
Accumulated depreciation—buildings 12,795
Accounts receivable 5,785
Debt investments (short term) 2,008
Required:
1. Prepare the assets section of a classified balance sheet, listing the current assets in order of their liquidity.
Answers
Answer:
Inventory $16,933
Notes receivable—due before December 31, 2018 368
Debt investments (short term) 2,008
Accounts receivable 5,785
Cash 9,215
Explanation:
Current Assets Section consists of Asset items that can be converted into cash within the period of 12 months.
Conversion happens in order of liquidity. Which means how much cash can be realized from conversion of a non-monetary asset in short term.
The order is given as below:
Inventory $16,933
Notes receivable—due before December 31, 2018 368
Debt investments (short term) 2,008
Accounts receivable 5,785
Cash 9,215
Related Questions
If increasing the number of goods produced is one way to increase
productivity, what is the other way to increase productivity?
Answers
Productivity refers to the measure of output per unit of input over a given period of time. A company’s productivity level is a crucial factor in determining its profitability. Productivity can be increased in different ways, including increasing the number of goods produced and reducing waste. These are the two ways to increase productivity. Therefore, the answer to the question is reducing waste.
Another way to increase productivity is to improve efficiency. Efficiency is a measure of how well inputs are converted into outputs. Improving efficiency means reducing the amount of time, effort, and resources needed to produce a certain output. A company can improve its efficiency in various ways, including using better technology, improving its production processes, and training employees to work more effectively. Increasing productivity is critical for the growth of any business. Productivity can be increased by implementing a wide range of strategies. Reducing waste is one way to increase productivity, while improving efficiency is another way. Both of these strategies help companies to achieve their goals by producing more goods in less time. In conclusion, companies need to explore ways to improve their productivity levels continually. This will help them to increase their profitability, grow their business, and remain competitive in the market.
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what is chemical fertilizer? explain with example
Answers
Answer: chemical fertiliser refers to any number of synthetic compound substances created specifically to increase crop yield.
Some examples of chemical fertilisers are ammonium sulphate, ammonium phosphate, ammonium nitrate, urea, ammonium chloride.
If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run:
a.reduce the level of output its produces
b.increase the level of output it produces
c.neither increase nor decrease the level of output it produces
d.shut down
Answers
If a perfectly competitive firm receives a marginal revenue of $10 for its product and the minimum average variable cost is $11, then the firm should, in the short run shut down.
For a perfectly competitive firm, the marginal revenue tends to equal price and as well as the average revenue. So, this implies that the firm's marginal cost curve in its short-run supply curve for values is thus greater than the average variable cost. So, if the price drops below average variable cost, the firm shuts down.
So, a firm's total profit is maximized by the producing the level of output at which marginal revenue for the last unit produced will thus equal its marginal cost, or MR = MC.
Hence, option D is correct.
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The part of the package that contains the presentation of information on a product is called a
O a. trademark.
O b. warranty statement.
O c. brand.
O d. label.
Oe. Universal Product Code.
Answers
Answer:
Label
Explanation:
Label is a component of a packaging that house presentation of information about a product
HELP PLSSS HALP
How many tears would it take to fill up a pool? Explain.
Answers
Answer: Lets say 2 tear drops equals a teaspoon, And 3 teaspoons equals a tablespoon and 2 tablespoons equals a fluid ounce and 32 ounces equal a quart and 4 quarts equal a gallon and lets say the pool is 10 gallons It would take about 768000 tears to fill a ten gallon pool. Not gonna lie not even i'm depression enough for that.
5. Prior to the CARES Act, up to what percentage of your income could be deducted as a donation to charity?
Answers
Answer: 60%
Explanation:
Prior to the CARES Act, individuals could generally deduct up to 60% of their adjusted gross income (AGI) as a donation to charity. This was known as the AGI limitation, and it was designed to ensure that taxpayers did not use charitable donations to excessively lower their taxable income.
Prior to the passage of the CARES Act, people could often donate up to 60% of their adjusted gross income (AGI) to charity. Hence option B is correct .
Prior to the CARES Act, up to what percentage of your income could be deducted as a donation to charity?The AGI threshold was put in place to prevent taxpayers from using charitable contributions to artificially reduce their taxable income.
Contributions can be sent in the form of a check, draught, or cash; however, sums of money given in cash that exceed Rs 10,000 are not tax deductible. The full amount of the donation or contribution is eligible for a tax refund.
Donations of more than Rs. 2,000 must be made in a method other than cash in order to qualify for deductions under Section 80G.
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if the inventory turnover ratio cast co is 5x and its gross profits and sales are $270 million and $1,200 million respectivelly then the inventory account for cast is
a.$180 million
b.$182 million
c.$186 million
d.$196 million
Answers
Answer:
c.$186 million
Explanation:
Calculation to determine what the inventory account for cast is
Using this formula
Inventory account for cast =Sales - Gross profit/Inventory turnover ratio cast
Where,
Sales=$1,200 million
Gross profit=$270 million
Inventory turnover ratio cast =5x
Let x be the inventory account for cast
Let plug in the formula
5x=$1,200 million-$270 million
5x=$930 million
x=$930 million/5
x=$186 million
Therefore the inventory account for cast is $186 million
6 of 10
How could defaulting on a loan or having a high debt-to-income ratio
impact your future opportunities?
It can improve your credit score and make it easy to borrow money for big
purchases like a house or car.
It can block affordable options in your searching algorithms.
There is no impact on future opportunities.
It can lower your credit score and make it difficult to borrow money for big
purchases like a house or car.
Answers
Like defaulting on a loan or having a high debt-to-income ratio
impact your future opportunities, in the sense that you can lower your credit score and make it difficult to borrow money for large purchases like a house or car.
How to improve your credit score?It is essential that the individual has a financial plan so that he can meet his responsibilities on a loan in the amount and date agreed by contract. Timely payments are essential to raise your credit score, there are some features that help with this purpose, such as pre-scheduled payments to be automatically debited.
Therefore, personal financial planning is an essential tool for citizens to make financial decisions in line with their reality, a personal budget will help to better understand their income and expenses, and consequently, better manage their money.
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how does one factor for profit?
Answers
One factors for profit by checking- 1. the number of production units, 2. production per unit, 3. direct costs, 4. value per unit, 5.mix of enterprises, and 6. overhead costs.
These six factors all interact to determine profitability. The number of manufacturing units is the most fundamental variable that influences earnings in every enterprise.
What is Profit?The money a firm keeps after deducting all costs is its profit. Each business, whether it be a lemonade stand or a publicly listed multinational corporation, wants to make money.
As a result, a firm's success is measured by its profitability in all of its manifestations.
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XYZ Co is considering a major expansion program that has been proposed by the company’s information technology group. To decide whether the company will undertake this major expansion project, the company paid McLindsay Co., a large consulting company, a fee of $2 million to calculate the costs and benefits of the program, but they will refund half of that cost back to XYZ if the company does not move forward with the project. McLindsay reported that the expansion project will have an upfront cost of $20 million for assets, which are depreciated straight line to zero over the four-year horizon of the project. The company does not need to invest in net working capital (i.e., NWC = 0). McLindsay also expects that the program will generate an operating cash flow equal to $10 million the first year and will expand by 20% per year until the project is liquidated at the end of year four. The liquidation value from selling the equipment will be $4 million. You are an assistant to the CFO of the company and your first task is to advise XYZ whether the company should undertake the investment. The CFO has provided you with the following data, which he believes may be relevant to your task (all the market data are current). The firm’s tax rate is 20%. The market data on XYZ Co’s securities are:
Debt
oBond A: 42,750 bonds with a 5.4% coupon rate, with 20 years to maturity selling at par. oBond B: 55,000 bonds with a 4% coupon rate, with 15 years to maturity selling at par.
Assume that both bonds have a par value of $1,000 and they make semiannual payments.
Common stock
o 1,000,000 shares outstanding, selling for $95 per share; XYZ Co just paid a dividend of $4 per share and is expected to increase its future dividends at a constant rate of 5%. The firm’s beta is 1.8. Assume the risk-free rate is 2% and the market return is 8%.
Answer the following questions and show all the formulas and calculations (if using a financial calculator show all the entries).
a. What is XYZ Co’s cost of debt?
b. What is XYZ Co’s cost of equity using the CAPM?
c. What is XYZ Co’s cost of equity using the dividend growth model?
d. What is XYZ Co’s cost of capital? (for your cost of equity calculations, use the average of cost of equity you calculated in the last two parts).
e. Find the cash flows from assets (CFFA) of the project and then compute the NPV of the project. Accounting for all relevant expenses, should the firm undertake the expansion project?
f. Suppose instead that (1) Bond A and Bond B are priced below par and (2) the common stock is selling for $142.50 per share and the last dividend paid was $6. Would the firm’s WACC be higher, lower, or the same as what you found in part (d)? Explain.
Answers
a. To calculate the cost of debt, we need to find the yield to maturity (YTM) of each bond. We can calculate the YTM of Bond A as 5.4% and the YTM of Bond B as 4%. Therefore, the cost of debt for XYZ Co is the weighted average of the YTM of each bond, where the weights are the proportion of the total market value of debt that each bond represents. Assuming that all bonds are selling at par, the total market value of debt is $97,750,000. Thus, the weight of Bond A is 42,750/97,750 = 0.4376 and the weight of Bond B is 55,000/97,750 = 0.5624. Therefore, the cost of debt is:
Cost of Debt = 0.4376 × 5.4% + 0.5624 × 4% = 4.48%
b. Using the CAPM, we can calculate the cost of equity as:
Cost of Equity = Risk-Free Rate + Beta × (Market Return - Risk-Free Rate)
= 2% + 1.8 × (8% - 2%)
= 13.6%
c. Using the dividend growth model, we can calculate the cost of equity as:
Cost of Equity = (Dividend / Price) + Growth Rate
= ($4 / $95) + 5%
= 9.3%
d. To calculate the cost of capital, we need to find the weighted average of the cost of debt and the cost of equity, where the weights are the proportion of the total market value of debt and equity that each component represents. Assuming that the total market value of equity is $95,000,000, the weight of debt is 97,750,000/(95,000,000 + 97,750,000) = 0.5073 and the weight of equity is 1 - 0.5073 = 0.4927. Therefore, the cost of capital is:
Cost of Capital = 0.5073 × 4.48% + 0.4927 × 13.6% = 9.54%
e. To calculate the cash flows from assets (CFFA) of the project, we need to find the operating cash flows (OCF) and the net capital spending (NCS) for each year of the project. Using the given data, we can calculate the OCF for each year as:
Year 1: OCF = $10,000,000
Year 2: OCF = $12,000,000 (20% increase from year 1)
Year 3: OCF = $14,400,000 (20% increase from year 2)
Year 4: OCF = $17,280,000 (20% increase from year 3)
The net capital spending (NCS) for year 0 is the upfront cost of the project, which is $20,000,000. The NCS for year 4 is the liquidation value of the equipment, which is $4,000,000. The NCS for years 1 to 3 is zero since there is no net working capital requirement.
Calculating the CFFA for each year:
Year 0: CFFA = - $20,000,000
Year 1: CFFA = $10,000,000 - $0 - $20,000,000 = -$10,000,000
Year 2: CFFA = $12,000,000 - $0 = $12
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Ceiling tile installers, tapers, and drywall installers all work together in the preparation for and installation of wallboards and tile onto
ceilings and walls.
True
False
Answers
Answer:
true
Explanation:
because they are all looking toward the same goals so they would need to work together
what is your analysis on walmart financial health as of january 2021 compare to 2022
Answers
I think the analysis is good compared to the year of 2021
application sick live
Answers
Oooooo
Sir/Mam, Most respectfully, I beg to state that I am not in a condition to come to the school since I am suffering from fever. I have been prescribed by our family doctor o take proper rest for at least [number of days] days. Hence, kindly grant me leave from (start date) to (end-date)
for most firms, price competition is the most important way to gain a competitive advantage over rivals.
Answers
Because it allows the company to manage the competition, a competitive pricing plan aids in preventing the loss of market share and consumers to rivals.
What does "price competition" mean?
the circumstance in which businesses attempt to undercut the costs of comparable goods or services offered by rival businesses: Margin reductions are the outcome of fierce price rivalry in the mid- and large-sized markets.
What does price competition look like?
For instance, a business must determine the cost of a new coffee machine. Competitors of the company sell it for $25, and the business believes that $25 is the optimum pricing for the new coffee machine. It chooses to establish their own product's pricing at this specific level.
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You agree to lease a car for 5 years at $300 per month. You are not required to pay any money up front or at the end of your agreement. If your opportunity cost of capital is 0.5% per month, what is the cost of the lease?
Answers
To calculate the cost of the lease, we need to consider the opportunity cost of capital over the 5-year period.
Given:
Lease term: 5 years
Monthly lease payment: $300
The opportunity cost of capital: 0.5% per month
First, let's calculate the total amount paid over the lease term:
Total payment = Monthly payment * Number of months
Total payment = $300 * (12 months/year * 5 years)
Total payment = $300 * 60
Total payment = $18,000
To calculate the cost of the lease, we need to determine the present value of the total payment at the opportunity cost of capital rate.
PV = FV / (1 + r)^n
Where:
PV = Present Value (cost of the lease)
FV = Future Value (total payment)
r = Opportunity cost of capital per period
n = Number of periods
Let's plug in the values:
PV = $18,000 / (1 + 0.005)^60
Using a calculator, we find:
PV ≈ $16,719.07
Therefore, the cost of the lease, considering the opportunity cost of capital, is approximately $16,719.07.
A company operates in a perfectly competitive market, selling each unit of output for a price of $20 and paying the market wage of $360 per day for each worker it hires. In the following table, complete the column for the marginal revenue product of labor (MRP) at each quantity of workers.
Labor Output Marginal Product of Labor Marginal Revenue Product of Labor
(Number of workers) (Units of output) (Units of output) (Dollars)
0 0 - -
1 20 20
2 39 19
3 57 18
4 72 15
5 84 12
Answers
Answer: The answer is given below
Explanation:
The marginal revenue product of labor (MRPL) is an additional amount of revenue that a firm will make when it hires one additional employee. The formula and r calculating
MRPL = marginal product of labour x marginal revenue.
It should be noted that P = MC = MR. Therefore marginal revenue will be $20.
Therefore when:
MPPL = 0
MRPL = 0 × 20 = 0
MPPL = 20
MRPL = 20 ×20 = 400
MPPL = 19
MRPL = 19 × 20 = 380
MPPL = 18
MRPL = 18 × 20 = 360
MPPL = 15
MRPL = 15 × 20 = 300
MPPL = 12
MRPL = 12 × 20 = 240
Check the attached file for the table.
The completion of the column for the marginal revenue product of labor (MRP) is as follows:
Labor (Number of Output Marginal Product of Value of the
workers) (Units of output) Labor (Units of output) Marginal Product
of Labor (Dollars)
1 20 20 $400 (20 x $20)
2 39 19 $380 (19 x $20)
3 57 18 $360 (18 x $20)
4 72 15 $300 (15 x $20)
5 84 12 $240 (12 x $20)
The marginal revenue product of labor (MRPL) shows the additional amount of revenue the firm generates when it adds one additional employee to its labor force. It is the product from the multiplication of the marginal product of labor by the selling price of output.
Thus, according to the law of Marginal Revenue Product of Labor, the company will demand more labor until its MRPL equals the wage rate, that is at $360.
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1
Select the correct text in the passage.
Which sentences highlight the correct way of preparing stewed potato?
Olivia chooses to prepare stewed potato during the weekend. She warms vegetable broth over medium heat. She then cuts potatoes into 1"
chunks. She adds potatoes to the broth, covers the lid and cooks it at low heat until the potatoes become tender. Jessica, too, likes stewed
potato. She peels, and boils potatoes until tender. She then uses an electric mixer to mix potatoes and salt until the dish shows a smooth
texture
Reset
Next
Answers
Answer:
She then cuts potatoes into 1" chunks. She adds potatoes to the broth, covers the lid and cooks it at low heat until the potatoes become tender.Explanation:
Stewed Potatoes is a very popular dish in the South and can be prepared in various ways but there are methods that are universal.
One such method is to cut the potato into chunks then adding these chunks to water/ broth and then ingredients. When the potato boils, cook it at a low heat until it becomes the desired level of tender.
When a large supply of a product is available for sale, the price of the product will often
Group of answer choices
A. increase.
B. stabilize.
C. remain the same.
D. decrease.
Answers
Answer:A
Explanation:When supply of a product goes up, the price of a product goes down and demand for the product can rise because it costs less.
Explain how supply and demand is relevant to wages,rent, or food cost in Charles and Ebony's budget
Answers
The forces of supply and Demand will influence the wage, food cost and rent of Charles and Ebony's budget because they will determine how much is spent or allocated for the various expenses.
What is the Demand and Supply?
Demand and supply is an economic principle that describes the ways good and services are transacted in an open market.
This means that if all economic factors remain constant, the price for a unit of a product or other traded commodities such as labor or liquid financial assets, will continue to shift or adjust until it meets at a point where the quantity which is demanded in a market at the current price will equal the quantity supplied at the current price.
This adjustment will result in an economic equilibrium for price of the commodity and the quantity of that commodity transacted.
Therefore, for Charles and Ebony's budget, the amount allocated to wages, rent and food cost will continue to adjust until they are able to purchase at a given market price based on the forces of demand and supply.
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Suppose that you purchased your home in 2014 and believe that, based upon recent
comparable home sales in your vicinity, your home has a market value of $675,000. You
decide to put your home on the market for $720,000 to allow room for future negotiation
towards your desired selling price of $675,000. After several days, you receive a text
message from your broker informing you that prospective buyers have been balking at
making you an offer as they have seen that Zillow is valuing your house online for only
$600,000. Explain whether you have a right to sue Zillow and, if so, under what liability
law(s).
Answers
Zillow, a popular online real estate database and marketplace, provides estimates of home values through its proprietary Zestimate tool. However, in the case where a seller disagrees with Zillow’s valuation of their property, the seller does not have the right to sue Zillow, and there are no legal grounds for a lawsuit.
In addition, the seller voluntarily uses the tool to estimate their property's worth. Although Zillow uses a complex algorithm that considers various factors to determine the value of a property, the tool is not perfect, and its estimates can be incorrect. A home’s value depends on various factors, including location, condition, recent sales prices of comparable homes in the area, and market trends. It is essential to note that Zillow’s Zestimate tool does not physically visit homes, and, therefore, may not be able to factor in some critical variables affecting the value of a property.
As a result, Zillow's online estimates should be used only as a starting point for determining the property's value. Ultimately, the actual value of the property will be determined by the final price a buyer is willing to pay, the seller’s selling price, and the current market conditions. Therefore, it is essential to get a professional appraisal to get an accurate valuation of the property. In conclusion, a seller does not have the right to sue Zillow as there are no grounds for a lawsuit.
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what organization or program interests you the most?
Answers
Answer:
I love law :) what about you
I love math what do you like
Ps; sorry but may you please mark brainly im trying to level up
#14 Diagnosis reference numbers are entered on the CMS-1500 claim to:
a. report mortality data
b. justify medical necessity
c. analyze quality of services provided
d. report morbidity data
Answers
Answer:
analyse quality of service provided .
Explanation:
The Diagonsis reference number is useful thingIt is used to determine the importance of service provided and the relationship with providers. It starts from primary diagnosisOption C
How do people who volunteering/organizing at a fundraiser use donated items
Answers
People who volunteer or organize fundraisers typically use donated items in several ways to maximize their impact providing both financial and experiential value, while fostering community involvement and support for the cause.
Firstly, they assess the donated items to determine their suitability for the event's goals. If the items align with the fundraiser's purpose, they may include them in auctions, raffles, or silent auctions to generate funds. High-value items or unique experiences are often reserved for live auctions to attract higher bids.
In addition to generating revenue, donated items can serve as incentives to encourage donations. Volunteers may offer them as rewards for specific donation thresholds or use them as prizes for fundraising challenges. By leveraging the donated items in this way, organizers motivate participants to contribute more generously.
Moreover, donated items can be used to enhance the overall atmosphere of the fundraiser. They may be displayed to create visually appealing setups, reinforcing the cause and encouraging attendees to engage with the event. For example, art pieces or crafts can be showcased, generating interest and potentially leading to additional donations.
Overall, donated items play a crucial role in fundraising events, providing both financial and experiential value, while fostering community involvement and support for the cause.
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Chapter 6 gives us insight to organizational strategy.
A situational analysis we may have and/or will encounter is S.W.O.T. analysis (Strengths, weaknesses, opportunities, and threats).
Our text shares that Strengths and Weaknesses are internal items, while Opportunities and Threats are external items.
Share a SWOT analysis of an organization; it doesn't have to be an organization you are currently employed with.
Please complete this assignment as-if you were presenting your SWOT analysis to a Board of Directors or in a strategic meeting.
Each area of your S.W.O.T. analysis needs to outline a minimum of three items. Then, we must share an action item for one of the items listed within each
factor.
Answers
A SWOT analysis is a high-level strategic planning tool that assists businesses in identifying where they are doing well and where they may improve, both internally and outside. The abbreviation SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.”
What Is A SWOT Analysis?We’ve designed a step-by-step SWOT analysis template to help you get started. The following examples are particular to the airline sector (since that is the example we use in our grid), although the SWOT analysis exercise is relevant to all enterprises.
Make a SWOT analysis.
Bring in the proper people.
Make a list of your strengths.
Make a list of your flaws.
Determine your opportunities.
Examine the links in your matrix.
Developing a strategy is in and of itself a big step. It entails setting goals for yourself.company to move toward, creating priority initiatives (projects) to help make them a reality, and identifying measures to make sure the strategy is unfolding the way it should.
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Match the design thinking stage to its description.
Question 14 options:
The design team creates multiple inexpensive versions of the product, known as minimum viable products (MVPs)
Spend time gaining an understanding by observing, engaging, and empathizing with customers to understand their experiences and their needs better
Analyze observations and information to identify the core problem
The design team comes up with solution ideas
The design team identifies any additional problems and refines the final solution before the final product is produced and released to customers
1.
Empathize
2.
Define
3.
Ideation
4.
Prototype
5.
Test
Answers
The design team creates multiple inexpensive versions of the product, known as minimum viable products (MVPs) - Prototype.
Spend time gaining an understanding by observing, engaging, and empathizing with customers to understand their experiences and their needs better - Empathize
Analyze observations and information to identify the core problem - Ideation
The design team comes up with solution ideas - Ideation
The design team identifies any additional problems and refines the final solution before the final product is produced and released to customers - Test
What is a Design thinking?Generally, a design thinking means the set of cognitive, strategic and practical procedures used by designers in the process of designing and to body of knowledge that has been developed about how people reason when engaging with design problems. A design thinking is also associated with the prescriptions for the innovation of products and services within business and social contexts.
The term "design thinking" is been used to refer to specific cognitive style, a general theory of design (which is way of understanding how designers work), and a set of pedagogical resources (through which organisations or inexperienced designers can learn to approach complex problems in a designerly way).
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Which of the following BEST describes a conflict of interest? O A. Two companies competing for the business of the same customer B. Parties engaging in an activity that does not equally benefit all parties C. An employee engaging in an activity that may benefit that individual to the detrimen O D. People on different sides of an issue agreeing to disagree O E. A company engaging in practices that conflict with government regulations Click to select your answer.
Answers
The statement that best describes conflict of interest is - An employee engaging in an activity that may benefit that individual to the detriment of his employer or clients of the firm
Conflict of interest arises when the interest of an employee is not aligned with the interest of his/her employer or clients.
For example, an employer might decide to take a project even though it is not profitable because if the project is undertaken it would increase the prestige of the employee. This project would be benefit the employee but not the employer.
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Suppose that the six-month interest rate in the United States is 2%, while the six-month interest rate in Britain is 4%. Further, assume the spot rate of the pound is 1.25. Suppose that you have $500,000 with which to attempt covered interest arbitrage. Assume the forward rate is $1.22596, as you just calculated, and the interest rates are the same as have been used throughout this problem. To start, you exchange your $500,000 (at the spot rate of 1.25) for 400,000pound. After depositing these funds for 6 months, and earning a return of 4%, your deposit grows to 416,000pound. When you convert your 416,000pound back to dollars, you end up with approximately_________________ , for a profit of about over your original $500,000. However, had you simply deposited your $500,000 in an account and accrued 2% interest, you would have ____________ , for a profit of ______________. This example illustrates that covered interest arbitrage ___________offer a significantly larger return than simply depositing the funds in a domestic account under internet rate parity.
Answers
After depositing these funds for 6 months, and earning a return of 4%, your deposit grows to 416,000pounds.
When you convert your 416,000pounds back to dollars, you end up with approximately $520,000, for a profit of about $20,000 over your original $500,000.
However, had you simply deposited your $500,000 in an account and accrued 2% interest, you would have $510,000 ($500,000 x 1.02), for a profit of $10,000.
This example illustrates that covered interest arbitrage does offer a significantly larger return than simply depositing the funds in a domestic account under internet rate parity.
What is the covered interest rate arbitrage?The covered interest rate arbitrage is a trading strategy that enables an investor to:
Use favorable interest rate differentials.Invest in a higher-yielding currency.Hedge the exchange risk through a forward currency contract.Data and Calculations:Funds for covered interest arbitrage = $500,000
Forward rate = $1.22596
Six-month interest rate in the United States = 2%
Six-month interest rate in Britain = 4%
Spot rate = $1.25
Value of $500,000 in pounds = $400,000 ($500,000/$1.25)
Expected returns on deposit for 6 months = 4%
New value of $500,000 in pounds after 6 months = $416,000 ($400,000 x 1.04)
Dollar value of 416,000 pounds = $520,000 ($416,000 x $1.25)
The gain or profit from the original $500,000 funds = $20,000 ($520,000 - $500,000)
Thus, the example illustrates that covered interest arbitrage does offer a significantly larger return than simply depositing the funds in a domestic account under internet rate parity.
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A band wants to know what their most popular CD is so that they can have more copies made to sell. Which statistical measurement is the band most likely to use?
mean
mode
median
average
Answers
Answer:
B:mode
Explanation:
got it right
Answer:
its mode
Explanation:
they were right...should give me brainliest
Question Help
The table gives information about a nations labor force.
What’s is the unemployment rate?
The employment rate is_____percent
Answers
What's is the unemplyment rate?
The unemployment rate soared from a 50-year low of 3.5 percent to 14.8 percent in April 2021 at the beginning of the CVID-19 pandemic, and then fell faster than many forecasters anticipated, to 6.3 percent in January 2021
The employment rate is_____percent
The employment-population ratio represents the proportion of the civilian non-institutional population that is employed. In 2021, the U.S. employment rate stood at 56.8 percent.
what are the challenges associated with not being ‘tech savvy’ in 2023?
Answers
As the world keeps advancing technologically, being tech-savvy becomes increasingly important. However, not being tech-savvy in 2023 may pose a lot of challenges. Some of these challenges are :Job Market, Learning,Communication,Security.
Job Market: In 2023, there will be more tech-based jobs than there currently are. Being not tech-savvy would make it difficult for an individual to secure employment in such sectors. This means that those who are not tech-savvy would be limited to jobs that require no technical skills.Learning: Due to the increased importance of technology, those who are not tech-savvy would find it challenging to learn new things. This means that they would be unable to benefit from new technology, apps, and software that are released in the market. They may also face difficulties while navigating technology-based environments.Communication: In 2023, communication will be more technology-driven than ever before. Those who are not tech-savvy may find it challenging to communicate with others effectively. This may lead to miscommunication and misunderstandings which could impact personal and professional relationships.Security: Cybersecurity is a significant concern in today's world. Not being tech-savvy could make it difficult for an individual to secure their information, devices, and accounts. This could lead to loss of data, identity theft, and other forms of cybercrime.In conclusion, being tech-savvy in 2023 is essential to success, as the world will be driven by technology. Those who do not embrace technology may find themselves limited in terms of employment opportunities, communication, and personal security.
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