Consider the situation of firm A and firm B. The current exchange rate is $1.50/€. Firm A is a U.S. MNC and wants to borrow €40 million for 2 years. Firm B is a French MNC and wants to borrow $60 million for 2 years. Their borrowing opportunities are as shown; both firms have AAA credit ratings. $ €A$7% €6%B$8% €5%If firm A could use the forward exchange markets to redenominate a 2-year $60m 7 percent USD loan into a 2-year euro denominated loan, what would be the interest rate?
What will be an ideal response?
The IRR on a €40m loan with payments of €2,747,663.55 and €41,214,953.27 is 5 percent.
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Which of the following is most likely to result in front-end disparate impact job discrimination?
a. A company puts a notice into a job announcement that the job is very physically demanding and those without very good physical health should not apply. b. A company decides to weed out many of the applications it has by eliminating those under and over a certain age. c. A company decides to fill a new position by asking current employees to make personal referrals. d. A religious institution decides not to consider applicants who do not have a professed commitment to that specific religion.
Use graphical special effects ___________________
a. to create a sense of professionalism b. only for emphasis c. to display your graphics skills d. to gain audience reaction
A machine with a cost of $130,000 and accumulated depreciation of $85,000 is sold for $50,000 cash. The amount that should be reported in the operating activities section reported under the direct method is:
A. $45,000. B. $50,000. C. $35,000. D. $5,000. E. $0.
Medical services and assisted living care are examples of
A. services an aging population will increase the demand for. B. household maintenance activities that people increasingly pay others to perform. C. the ability of empowerment to create tangible service products. D. the price elasticity effect on services demand. E. services shifted abroad because costs are lower in developing countries.