When a currency depreciates, if the firm increases it foreign currency price to maintain its profits, it will ________
A) gain sales from foreign rivals
B) maintain its market share
C) lose sales to foreign rivals
D) be forced to exit the market
Answer: C
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What is the difference between a period cost and a product cost?
Yelk Garage uses time and materials pricing. It is setting prices for next year using the following information: Labor rate, including fringe benefits$50per hourAnnual labor hours 3,350hoursAnnual materials purchases$825,000 Materials purchasing, handling, and storage$41,250 Overhead for depreciation, taxes, insurance, etc.$67,000 Target profit margin for both labor and materials 20% What should Yelk set as the materials markup per dollar of materials used?
A. 35%. B. 20%. C. 25%. D. 5%. E. 30%.
Lenders recognize that by having an interest in collateral they can reduce losses if the borrowing firm defaults, ________
A) and the presence of collateral reduces the risk of default B) but the presence of collateral has no impact on the risk of default C) therefore lenders prefer to lend to customers from whom they are able to demand collateral D) therefore lenders will impose a higher interest rate on unsecured long-term borrowing
Plum Corporation acquired 80 percent of Saucy Corporation's common shares on January 1, 20X7, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Saucy Corporation. Saucy prepared the following balance sheet as of December 31, 20X8: Cash$70,000 Accounts Payable$40,000 Accounts Receivable 60,000 Bonds Payable 50,000 Inventory 80,000 Common Stock 150,000 Buildings and Equipment 400,000 Additional Paid-In Capital 50,000 Less: Accumulated Depreciation (120,000) Retained Earnings 200,000 Total Assets$490,000 Total Liabilities and Equities$490,000 On January 1, 20X9, Saucy declares a stock dividend of 9,000 shares on its $5 par value common stock. The current
market price per share of Saucy stock on January 1, 20X9, is $20.Begin with the information provided, but assume instead that Saucy declared a stock dividend of 3,000 shares on its $5 par value common stock. The investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Retained Earnings for: A. $200,000. B. $65,000. C. $185,000. D. $155,000.