Answer: interest rate parity holds
Explanation:
Covered interest arbitrage is a trading strategy that is used by an investor when the person whereby takes advantage of the differences in interest rate between two nations and invest in the currency that brings higher value.
If covered interest arbitrage opportunities do not exist, it simply means that interest rate parity holds.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
1 Pound T-bone:
Selling price ($7.95 per pound) $ 7.95
Joint costs= $3.80
Profit per pound $ 4.15
Further process:
It costs $0.55 to further process one T-bone steak.
6-ounce filet mignon and one 8-ounce New York cut.
The filet mignon can be sold for $12.00 per pound, and the New York cut can be sold for $8.80 per pound.
A) Filet mignon: $12.00 pound
1 ounce= 16 ounce
0.375= 6 ounce
Price= 0.375*12= $4.5
New York cut= $8.80 a pound
Price= 0.5*8.80= $4.4
Sales= 4.5+4.4= $8.9
Costs= 3.80 + 0.55= 4.35
Profit= $4.55
B) It is more profitable to further process the T-bone stake by $0.40.
Answer:
Multiple choices are:
18.5%
16.7%
34.6%
15.9%
The correct option is the last one,15.9%
Explanation:
The simple rate of return is the annual incremental net savings divided by the initial investment.
The annual incremental net savings is the annual savings recorded from the new process minus annual depreciation charge.
annual savings is $143,000
depreciation charge=cost of new equipment-salvage value of old equipment/useful life of the new equipment
depreciation charge=($414,000-$18,000)/6=$66,000
simple rate of return=$66,000/$414,000=15.9%
Answer and Explanation:
The computation is shown below;
a. For Warranty Expense
= Sales × Estimated Warranty Percentage%
= $4,144,400 × 0.87%%
= $36,056.28
b)
The amount that should be reported is
Opening Balance of Estimated Warranty Liability Jan. 1, 2019 $42,635
Less: Actual warranty costs in 2019 ($26,750)
Add: Warranty expense accrued in 2019 $35,056
Closing Balance of Estimated Warranty Liability Dec. 31, 2019 $50,941
Answer:
Letter b is correct. <u>Seasonal.</u>
Explanation:
Seasonal unemployment occurs when there are unemployed people at certain times of the year when the demand for a good or service is less than at other times.
This is a situation that occurs more frequently in tourist areas, such as the one mentioned in the question above, due to the fact that there is a greater demand for work in the high tourist season months.
The ideal is for workers who suffer from seasonal unemployment to seek economic adjustment in the low season months and diversify their activities during this period, to find other activities that guarantee the maintenance of income. It is also important for the government to create public employment policies so that this problem does not happen.
