You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.

Answers

Answer 1

Answer:

Answer:

Total Return = 10.45%

Explanation:

To calculate the return, we must first determine the appreciation in the value of the securities in terms of the US dollar.

The initial investment in terms of US dollar was of,

Initial Investment in USD = Investment in Pounds * Exchange rate

Initial Investment in USD = 2340 * 1.52

Initial Investment in USD = $3556.8

The current value of the investment in terms of USD is,

Current value of investment in USD = 2440 * 1.61

Current value of investment in USD = $3928.4

The formula to calculate total return is,

Total Return = (Current Value - Initial Value) / Initial Value

So, the total return based on US dollars was:

Total return = (3928.4 - 3556.8) / 3556.8

Total Return = 0.10447 or 10.447% rounded off to 10.45%

Answer 2

Answer:

Final answer:

The total return for the U.S. investor in U.S. dollars is a profit of $371.60, calculated by assessing the change in the value of British securities from 2,340 to 2,440 pounds and considering the exchange rate shift from $1.52 to $1.61 per pound.

Explanation:

The question involves calculating the total return for a U.S. investor based on the change in the value of British securities and exchange rates. The investor originally purchased British securities for 2,340 pounds at an exchange rate of $1.52 per pound. One year later, the securities are worth 2,440 pounds, and the exchange rate is $1.61 per pound. The initial U.S. dollar investment would have been 2,340 pounds × $1.52 = $3,556.80. The value of the securities in U.S. dollars after one year is now 2,440 pounds × $1.61 = $3,928.40.

This results in a profit of $3,928.40 - $3,556.80 = $371.60, which represents the investor's total return based on U.S. dollars.

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The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function

Answers

Answer:

Planning.

Explanation:

Planning involves the creation of activities aimed at achieving organisational goals. It involves specific steps and contingency plans that are implemented by management to ensure success.

In this instance, Deutsch Bank is faced with the task of planning to make its name more popular in the United States.

Promotional activities can be undertaken to publicise Deutsch Bank's association with the PGA golf tournament. This will endear golf-lovers to the bank, as one of the players in making the tournament Na success.

What are the tools of macroeconomic policy?

Answers

Answer:

° Fiscal policy

° Monetary policy

° Exchange rate policy

Explanation:

Macro economics policy are tools used by a country's government through their central bank to influence the supply of money, control interest rate in their economy which will lead to economy stability and growth. The tools are explained below. An increase in government spending will make funds available to the household and firms hence increases the volume of money supply in the economy, while a decrease in government spending will also reduce the availability of money to household and firms.

° Fiscal policy . This refers to the use of tax and government expenditure to regulate the supply of money an economy. For instance, government through its central bank uses tax cut to increase the flow of money in an economy. Also, if the government feels that the supply of money in circulation is too much, which could result in inflation, government can increase taxes to be paid by individuals, firms and businesses which in turn will reduce the availability of money.

° Monetary policy. Monetary policy refers to various tools used by the government to control the flow of money in an economy, which includes open market operation, special reserves, interest rate adjustment. For instance, the government through CBN could buy or sell government issued securities which will ultimately affect the supply of money in an economy. Also, there is usually a minimum amount of reserves which must be held by commercial banks, which ultimately affects the supply of money. An increase in reserve ratio reduces the ability of banks to lend money to their customers while and a reduction in the reserve ratio increases their ability to lend to the public hence increases money supply.

° Exchange rate policy. The value of a country's currency in relation to other country's currency is referred to as exchange rate. Exchange rate policy is used to control inflation, preserve the value of domestic currency and also to maintain a favorable external balance of payments of a country.

ameron Company uses a process cost system and the weighted average method to account for its production. The following information was available for August: units Costs Work in Process, August 1 100 $ 2,990 Work in Process, August 31 200 (A) During the month, 800 units were started into production, and $5,000 in costs were incurred. Ending inventory was 50% complete. The cost of the units transferred out would be: (Do not round your intermediate calculations.)

Answers

Answer:

Cost of Units Transferred Out: $7,548

Explanation:

Cost Units

Beginning Work in Process (WIP): $2,990 1,100

Production Started during August 800

Production Completed in August 1,700 *

Cost added to during August $5,000

Ending WIP August: 200 (50%)

*Completed: Beginning WIP Units + Started Units - Ending WIP Units = 1,100 + 800 - 200 = 1,700

Costs of the Units: Cost of beginning WIP Units + Cost Added during the Period

Cost of the Units: $2,990 + $5,000 = $7,990

Equivalent Units of Production (EUP): Completed Units + Ending WIP Units

EUP: 1,700 Units + 200 Units x 50% = 1,800 Units

Cost per Equivalent Unit: Cost of Units / EUP

Cost per EUP: $7,990 / 1,800 = $4.44

Cost of Units Transferred Out: Cost per EUP x Units Transferred Out

Cost per Units Transferred Out: $4.44 x 1,700 = $7,548

On January 1, 2016, Jacob Inc. purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. On December 31, 2017, Jacob Inc. sold the truck for $43,000. What amount of gain or loss should Jacob Inc. record on December 31, 2017? A. Gain, $22,000.
B. Gain, $5,000.
C. Loss, $3,000.
D. Loss, $18,000.

Answers

Answer:

The correct answer is B: gain $5000

Explanation:

Giving the following information:

On January 1, 2016, = commercial truck for $48,000.

straight-line depreciation method.

useful life of eight years.

residual value of $8,000.

On December 31, 2017, Jacob Inc. sold the truck for $43,000.

Depreciation expense per year= (Purchase value - residual value)/8

Depreciation expense per year= (48000-8000)/8=5000

Accumulated depreciation year 2= 5000*2= 10000

To calculate the gain or loss we need to use the following formula:

Gain/loss= price value - book value

Gain/loss= price value - (purchase price - accumulated depreciation)

Gain/loss= 43000 - (48000- 10000)= 5000 gain

_______ describes approaches that recognize differences between target markets by using individual marketing mixes.a. market segmentation
b. segmentation criteria
c. segmented marketing strategy

Answers

Answer:

Option C, Segmented marketing strategy

Explanation:

Segmented marketing strategy is a process of breaking down the targeted audience into smaller groups so that it can be easily managed. The criteria’s used for breaking down the market include – geography, behaviour, demography and Psychographic.

Hence, option C is correct

A plant asset cost $96,000 and is estimated to have a $12,000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be a. $8,040.
b. $13,500.
c. $11,812.
d. $9,190.