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Leno4ka
11 hours ago
8

Suppose that the one-year interest rate is 3.0 percent in the United States, the spot exchange rate between euro and dollar is $

1.20/€, and the 9-month futures contracts trade at $1.18/€. What is the no-arbitrage interest rate in Eurozone, implied by these numbers?
Business
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Over a six-month period in 2007, the price of corn increased by almost 70% as a result of increased demand for ethanol biofuel.
arsen [3447]

Response:

a. Due to the rise in corn prices, the supply of corn would grow. Simultaneously, the acreage allocated for corn farming would expand.

b. The primary factor behind the change in corn production acreage is:

A. The increased price indicates to suppliers that corn is becoming more valuable.

Clarification:

As corn is essential for producing ethanol biofuel, the demand and supply for corn rise to keep pace with the climbing prices. Suppliers, for their part, respond by increasing production through the use of a larger amount of land dedicated to corn cultivation. This depicts the usual interaction of market forces that influence market equilibrium.

6 0
2 months ago
Runnin' Wild Family Fun Center bought new go-karts for its recreation facility. The useful life is 6 years. The go-karts had a t
arsen [3447]

Answer:

The payback period is approximately;

B). 3.00

Explanation:

Step 1: Identify the total expense of the go-kart

Using the formula;

Total cost = purchase cost + annual depreciation × number of years

where;

purchase cost = $5,100

assume annual depreciation = 0

the years to recoup = n

Inserting values, we get;

Total cost = 5,100 + (0 × n) = 5,100

Step 2: Total cash inflows

Total cash inflows = (1,700 × n) = 1,700n

Step 3: Determine the payback duration

Setting total expense equal to total cash inflow

5,100 = 1,700n

n = 5,100/1,700

n = 3

The payback timeframe in years is therefore approximately 3 years

3 0
2 months ago
A leader high in initiating structure is most likely to​ ________.
Mariulka [3825]

A leader characterized by high initiating structure is likely to engage in the following behaviors;

<span>·         </span>Regarding deadlines, the leader will most probably stress the importance of adhering to these timelines

<span>·         </span>The leader is expected to hold their employees accountable for maintaining specific performance standards

7 0
2 months ago
Winn Corp. currently sells 9,820 motor homes per year at $45,500 each, and 3,680 luxury motor coaches per year at $89,700 each.
harina [3808]

Response::

$33,795,900

Rationale::

To determine sales from the new product line, ascertain the synergy from estimates provided by consultants and additionally account for any erosion.

1. Sales from the new product line = 3,758 campers at $14,750 each = $55,430,500

2. Synergy = 250 units at $45,500 each = $11,375,000 growth in sales

3. Erosion = 368 units each at $89,700 = $33,009,600 loss in sales

Thus, incremental sales are calculated as follows:

Net Sales = Sales from new line + Synergy - Erosion

Final incremental sales = 55,430,500 + 11,375,000 - 33,009,600 =

$33,795,900

6 0
2 months ago
Read 2 more answers
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