answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maurinko [17]
2 years ago
13

Assume a U.S.-based MNC is borrowing Romanian leu (ROL) at an interest rate of 8% for one year. Also assume that the spot rate o

f the leu is $.00012 and the one-year forward rate of the leu is $.00010. The expected spot rate of the leu one-year from now is $.00011.What is the effective financing rate for the MNC assuming it borrows leu on an uncovered basis?
a) 10%
b) –10%
c) –1%
d) 1%
e)None of the above
Business
1 answer:
gregori [183]2 years ago
4 0

Answer:

c. -1

Explanation:

Base on the scenario been described in the question, we can use the following method to solve the given problem

Solution:

Depreciation of leu: .00010/.00011 – 1

Depreciation of leu = -9.09%

Effective financing rate: (1.08) x [1 + (-9.09%)] – 1 = -1.82%.28.

You might be interested in
Beverly Hills started a paper route on January 1. Every three months, she deposits $550 in her bank account, which earns 8 perce
aleksandrvk [35]

Answer:

Total amount= $12,558.68

Explanation:

Giving the following information:

Every three months, she deposits $550 in her bank account, which earns 8 percent annually but is compounded quarterly Four years later, she used the entire balance in her bank account to invest in an investment at 7 percent annually.

First, we need to calculate the total accumulated money after four years with the following formula.

FV= {A*[(1+i)^n-1]}/i

A= deposit= 550

N= 16

i=0.08/4= 0.02

FV= {550*[(1.02^16)-1]}/0.02= 10,251.61

Now, we calculate the second investment:

FV= PV*(1+i)^n= 10,251.62*(1.07^3)= $12,558.68

6 0
2 years ago
Roles of three employees in the Agriculture, Food, and Natural Resources cluster are given in this chart. Which best describes t
dsp73

What are the options?

5 0
2 years ago
Read 2 more answers
Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just compl
Anni [7]

Answer:

      Cost                                     Debit             Credit  

Work in Process inventory        $574,000  

Manufacturing overhead           $163,000  

Wages payable/Cash                                      $737,000

5 0
2 years ago
If Casio were to buy out all other calculator manufacturers, what consumer right would be at stake?
RSB [31]

Answer:

A.The right to choose

Explanation:

If Casio buys out all other calculator manufacturers, Casio would become a monopoly. Only Casio calculators would be available in the market and consumers can only buy Casio calculators.

The right to choose would be affected by this decision.

I hope my answer helps you

3 0
2 years ago
You are working closely with an experienced associate. He insists on completing a task a certain way, but you know there is a mo
Airida [17]
I will be most likely to approach him later, when I know that he will give me a listening ear and politely explain to him the more efficient method to completing the task. Try to counter his approach on the spot is what I’ll least likely do because that could come off as being rude.
3 0
2 years ago
Other questions:
  • A firm determines its profit by subtracting______ from _____ .
    10·2 answers
  • Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $31,920
    8·1 answer
  • Chocolotto, a chocolate manufacturer, displays a brown dot in a brown square symbol, instead of a green dot in a green square sy
    7·1 answer
  • Return to Problem Navigation Morgan Company uses the perpetual inventory system and the gross method of recording sales discount
    14·1 answer
  • ichael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State Colle
    11·1 answer
  • Vegetarian Delights has been experiencing declining market conditions for its specialty foods division. Management decided to te
    13·1 answer
  • On February 2, 2016, the Farmer Corporation issued 9,000 shares of no-par stock for $17 per share. Within two hours of the issue
    6·1 answer
  • Assume that political instability around the world causes American business firms to decrease business investment signaling the
    6·1 answer
  • Oriole Tire Co. just paid an annual dividend of $1.70 on its common shares. If Oriole is expected to increase its annual dividen
    12·1 answer
  • The following transactions are for Marin Company. 1. On December 3, Marin Company sold $492,200 of merchandise to Cullumber Co.,
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!