ABZ Co. expects that the pound will depreciate from $1.75 to $1.71 in one year. It has no money to invest, but it could borrow money to invest. A bank allows the company to borrow either 1 million dollars or 1 million pounds for one year. It can borrow dollars at 7% or British pounds at 5% for one year. It can invest in a risk-free dollar deposit at 6% for one year or a risk-free British deposit at 4% for one year. Determine th expected profit or loss (in dollars) if ABZ Co. pursues a strategy to capitalize on the expected depreciation of the pound.
Answers: 3
Business, 22.06.2019 11:10
Your team has identified the risks on the project and determined their risk score. the team is in the midst of determining what strategies to put in place should the risks occur. after some discussion, the team members have determined that the risk of losing their network administrator is a risk they'll just deal with if and when it occurs. although they think it's a possibility and the impact would be significant, they've decided to simply deal with it after the fact. which of the following is true regarding this question? a. this is a positive response strategy.b. this is a negative response strategy.c. this is a response strategy for either positive or negative risk known as contingency planning.d. this is a response strategy for either positive or negative risks known as passive acceptance.
Answers: 2
Business, 22.06.2019 20:20
Precision aviation had a profit margin of 6.25%, a total assets turnover of 1.5, and an equity multiplier of 1.8. what was the firm's roe? a. 15.23%b. 16.03%c. 16.88%d. 17.72%e. 18.60%
Answers: 2
Business, 22.06.2019 23:40
Gif the federal reserve did not regulate fiscal policy, monitor banks and provide services for banks, what would most likely be the economic conditions to transact business in the u.s.? the economy would primarily be based on a barter system rather than a fiat system. there would be no discrimination in lending by local banks. the economy would be less efficient and transactions most likely more costly.
Answers: 1
ABZ Co. expects that the pound will depreciate from $1.75 to $1.71 in one year. It has no money to i...
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