Business, 08.03.2021 20:00 kactus

Advisors, an international pension fund manager, uses the concepts of purchasing power parity(PPP) and the International Fisher Effect (IFE) to forecast spot exchange rates. Omni gathers the financial information as follows: Base price level 100
Current U. S. price level 105
Current South African price level 111
Base rand spot exchange rate $0.175
Current rand spot exchange rate $0.158
Expected annual U. S. inflation 7%
Expected annual South African inflation 5%
Expected U. S. one-year interest rate 10%
Expected South African one-year interest rate 8%

Required:
Calculate the following exchange rates (ZAR and USD refer to the South African rand and U. S. dollar, respectively)

a. The current ZAR spot rate in USD that would been forecast by PPP.
b. Using the IFE, the expected ZAR spot rate in USD one year from now.
c. Using PPP, the expected ZAR spot rate in USD four years from now.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:10, KadaLearns

Universal containers(us) has an integration with its accounting system that creates tens of thousands of orders inside salesforce in a nightly batch. us wants to add automation that can attempt to match leads and contacts to these orders using the email address field on the insert. us is concerned about the performance of the automation with a large data volume. which tool should uc use to automate this process?

Answers: 1

continue

Business, 22.06.2019 19:20, cathydaves

Bcorporation, a merchandising company, reported the following results for october: sales $ 490,000 cost of goods sold (all variable) $ 169,700 total variable selling expense $ 24,200 total fixed selling expense $ 21,700 total variable administrative expense $ 13,200 total fixed administrative expense $ 33,600 the contribution margin for october is:

Answers: 1

continue

Business, 22.06.2019 21:50, preguntassimples

Assume that (i) setups need to be completed first; (ii) a setup can only start once the batch has arrived at the resource, and (iii) all flow units of a batch need to be processed at a resource before any of the units of the batch can be moved to the next resource. process step 1 molding 2 painting 3 dressing setup time 15 min. 30 min. no setup processing time 0.25 min./unit 0.15 min./unit 0.30 min./unit which batch size would minimize inventory without decreasing the process capacity?

Answers: 1

continue

Business, 23.06.2019 02:20, J3ak06

Kubin company’s relevant range of production is 18,000 to 22,000 units. when it produces and sells 20,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 4.00 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 5.00 fixed selling expense $ 3.50 fixed administrative expense $ 2.50 sales commissions $ 1.00 variable administrative expense $ 0.50 required: 1. for financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. for financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. for financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. for financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?

Answers: 1

continue

You know the right answer?

Advisors, an international pension fund manager, uses the concepts of purchasing power parity(PPP) a...