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goldenfox [79]
2 years ago
4

The sf/$ 180-day forward exchange rate is sf1.30/$ and the 180 day forward premium is 8 percent. what is the outright spot excha

nge rate?
Business
2 answers:
Zepler [3.9K]2 years ago
8 0

Answer: spot exchange rate =1.30sf

Explanation:

180 day forward exchange rate =sf180 /$ or $1 = 1.30sf

180 day premium rate = 8%

forward exchange  rate = spot exchange rate x 1.08

Forward exchange rate is the exchange rate 180 days from now. We know that the forward exchange rate is calculated by taking the spot exchange rate and 8% of the spot exchange rate. This tell us that forward exchange rate of 1.30sf is equal to spot exchange rate multiplied by 1.08 (which is 1 plus 0.08). We then solve for spot exchange rate by dividing 1.30sf with 1.08 to get the spot exchange rate

1.30sf = Spot exchange rate x 1.08

spot exchange rate = 1.30sf/1.08

spot exchange rate = 1.203703704

spot exchange rate = 1.204sf

tensa zangetsu [6.8K]2 years ago
4 0

Answer:

The answer is 1.30sf.

Refer below for the explanation.

Explanation:

As per the question ,

Spot rate =1.30sf

Forward rate = spot rate×1.08.

Spot rate = 1.30/1.08

Spot rate = 1.203.

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Answer:

$5,000

Explanation:

The computation of the amount that should be reported  for net financing cash flows is shown below:

Cash flows from financing activities

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The positive amount represents the cash inflow and the negative amount represent the cash outflow and the same is to be considered

8 0
2 years ago
At a sales volume of 40,000 units, Lonnie Company's total fixed costs are $40,000 and total variable costs are $60,000. The rele
eduard

Answer:

$115,000

Explanation:

Calculation for the total expected cost

First step is to find the variable cost per unit

Variable costs per unit= 60,000/40,000

Variable costs per unit= 1.50 per unit.

Second step is to find the Total variable costs

Total variable costs =50,000 units × 1.50 per units

Total variable costs=$75,000

Last step is add the total fixed costs of the amount of $40,000 to the Total variable costs of $75,000

Total expected cost =$75,000+$40,000

Total expected cost =$115,000

Therefore the total expected cost will be $115,000

3 0
2 years ago
Cable Company reported bond interest expense of $40,000 for the current year. During the year, the balance in the premium on bon
rodikova [14]

Answer:

The amount of cash paid for intrest expense during the year was $ 41.500.

Explanation:

Cash paid for interest expense  = bond interest expense + Decrease in premium on bonds payable account

                                                     = $ 40,000 + $ 1,500

                                                     = $ 41,500

Therefore, the amount of cash paid for intrest expense during the year was $ 41.500.

8 0
2 years ago
Hal E. Burton hospital can purchase a new machine (to be placed in an undisclosed location) for $1,000,000 that will provide an
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Answer:

$153,000

Explanation:

The computation of the net present value is shown below:

= Present value of all cash inflows including salvage value after considering the discount factor - initial investment

where,

Present value  is

= Four year cash inflows × PVIFA factor for 11.5% for 4 years + (one year cash inflow + salvage value) × discount rate for 11.50% at five year

= $300,000 × 3.0696  + ($300,000 + $100,000) × 0.5803

= $920,880 + $232,120

= $1,153,000

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So, the net present value is

= $1,153,000 - $1,000,000

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4 0
2 years ago
A company either performs a service, sells inventory that it purchases from others, or manufacturers a product; it cannot serve
alina1380 [7]

Answer:

False

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In the given situation, it is mentioned that the company either performed a service, sells inventory i.e purchase from others but this is a wrong statement as it provides a service and sells its goods but not perform a service

Hence,  the given statement is false

8 0
2 years ago
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