If interest rate parity prevails, what is the return from a hedged foreign currency investment?
What will be an ideal response?
Answer: A hedged foreign currency investment sells the known foreign currency return in the forward market at the time of the investment. This eliminates exposure to foreign exchange risk, but it also eliminates possible gains from appreciation of the foreign currency. By interest rate parity, we know that the domestic currency return from the hedged foreign currency investment is just the domestic currency money market return.
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The Johnson company has a current ratio of 1.45 . The company has just sold $600,000 worth of merchandise on credit. What will the current ratio be after the sales on credit?
a. greater than 1.45 b. 1.45 c. less than 1.45 d. unable to determine without more information
Which of the following is most similar to Pinterest?
A. LinkedIn B. Instagram C. YouTube D. Tumblr
Grisham Products Inc manufactures engines for small scooters. On September 30, the company had 1,050 engines in inventory. The company's policy is to maintain an ending inventory equal to 15% of next month's sales. Each engine manufactured requires 20 minutes of assembly and inspecting time at a cost of $1.50 per minute. Grisham applies overhead to engines at a rate of $2.50 per direct labor
minute. The company expects the following sales activity for the fourth quarter of the year: October 7,000 units November 14,750 units December 28,900 units What is the projected applied manufacturing overhead cost for November? A) $408,125 B) $843,625 C) $631,375 D) $737,500
Restatement of Torts provides suggested rules related to civil actions
Indicate whether the statement is true or false