Brazil used the free float exchange rate method from 1999. Discuss the motives of Brazil's move and its implications on the country's economy after the change.

Q: Based on the preceding information, your calculations, and your assumptions, which of the following ...

A: The following are the statements that will be included: (B) Cute camel woodcraft firm's ability to m...

Q: Find the Present Value of the Cash Flow 1 and, using this and the previous information, calculate th...

A: The value of money changes over time. For example, the value of $1000 today will not be the same as ...

Q: Regarding the trade-off theory, a firm would reach its optimal capital structure if the tax savings ...

A: Capital Structure is the break-up of total amount of funds raised by entity to finance its operation...

Q: Balance sheet Assets (in KD) Liabilities (in KD) Cash 53627 Accounts payable 80000 Accounts receivab...

A: Solution:- Current ratio measures the liquidity of the company ie. the ratio of current assets to cu...

Q: Consider the following cash flows: Year Cash Flow 0 –$ 34,000 1 13,600 2...

A: Year Cash flow 0 -34000 1 13600 2 18100 3 11000

Q: Let's say we invested $1000 split into two accounts, one that pays 2% interest, another that pays 5%...

A: Here we want to find out how much amount is invested in two different accounts. One is having intere...

Q: Financial leverage will shareholders' expected return and. shareholders' risk. O increase; do nothin...

A: Financial leverage is the use of debt to acquire the new assets. This is done due to expected increa...

Q: Analyze the following accounts and satisfy the requirements given below. Accounts payable Accrued ex...

A: Fist we need to prepare balance sheet for calculation of requirements. The balance sheet equation is...

Q: Problem 1 : You are given the following information: The price of a 6% coupon bond maturing in 6 mon...

A: Since you have posted a question with multiple sub-parts , we will solve first three sub-parts for y...

Q: Wade Ellis buys a new car for $16,759.78. He puts 10% down and obtains a simple interest amortized l...

A: Cost of Car is $16,759.78 Down payment is 10% Interest rate is 11.5% Time period is 4 years To Find:...

Q: Assume you put $400 per month into a retirement account for 14 years, and the account has an APR of ...

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...

Q: What part of P2,000 is P 800?

A: Concept  Percentage is number or ratio expressed as fraction of 100. Percentage can be calculated by...

Q: You are planning to retire in 25 years time. Immediately after your retirement, you wish to go for a...

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Q: 3. The Corporation's net operating income last year was P103,000; its interest expense was P17,000; ...

A: Times-Interest Earned Ratio refers to the ratio which measures the ability of the company in meeting...

Q: Individual Assessment 1.a: Simple Ordinary Annuity Directions: Calculate the future value of #1, 2, ...

A: Future value includes the deposits made and the interest accumulated and present value includes the ...

Q: You own an engineering firm and your company has an after tax MARR of 15%. Your company pays 35% cor...

A: IRR is the internal rate of return generated by the project. MARR is the minimum acceptable rate of ...

Q: Balance sheet Liabilities (in KD) Assets (in KD) 80000 20000 Accounts payable Cash Accrued expenses ...

A: The question is related to Ratio Analysis. The Inventory Turnover Ratio is calculated with the help ...

Q: found three investment choices for a one-year deposit: 9.4% APR compounded monthly, 9.4% APR compoun...

A: Effective interest is the interest after considering the impact of compounding on the interest and i...

Q: A project has initial costs of $1,000 and subsequent cash inflows of $700, 200, 200 and 200. The com...

A: Since you have posted a question with multiple sub parts, we will be solving first 3 sub parts for y...

Q: If Rochelle obtained a business loan of $205,000.00 at 4.67% compounded semi-annually, how much shou...

A: Business loan = $205,000.00 Interest Rate = 4.67% compounded semi-annually Time Period = 30 Years  

Q: 3. If banks heeded Shakespeare's admonition “Neither a borrower nor a lender be", what would happen ...

A: If banks had noted Shakespeare's rebuke, the circular flow of the economy will become much smaller. ...

Q: What is the future value of $1,540 invested for 5 years at 5% interest compounded monthly? Round you...

A: Future Value of investment is calculated as: = Principal * ( 1 + rate of interest per period) ^ numb...

Q: Latimore Constructions Corp has the following capital situation: Debt: The firm issued 10,000 25 yea...

A: As per the guideline, in the case of multipart questions, we are allowed to answer only the first 3 ...

Q: Correlations change over time. Assets more strongly positively correlated wh market crashes, and les...

A: A portfolio is a collection of financial assets such as stocks, bonds, commodities, cash and cash eq...

Q: What is the price of a bond that has a time to maturity of 4 years, a coupon rate of 3.3%, and a fac...

A:   Cash Flow at the time of maturity = $1000 Interest (Annuity) annually = ($1000 * 3.3%) = $33 ...

Q: At what rate will you invest your money if you want it to tripple?     10%     20%     30%     c...

A: For identifying the rate of interest at which money is to be invested, following informations are re...

Q: Choose from the two machines which is more economical: Machine B 14000 P2,000 2,400 Machine A First ...

A: You have asked to specifically calculate part c.     Concept . Present worth cost method. In this me...

Q: Convert the following cash flows to a uniform payment series, where n=3 starting at year 3 and i=3%....

A: The value of same amount of money will be different at various point of time. This is because, the v...

Q: el, and September futures are trading at $5.66 per bushel. What approximate purchase price per bushe...

A: The goal of using futures as part of a hedging strategy is to reduce the risk of losing money owing ...

Q: Discuss and evaluate the use of the payback period as an investment criterion.

A: Payback Period: It refers to the period in which a project or an investment recovers its initial cos...

Q: Suppose a stock has a β of 0.5. The stock pays no dividends, and is trading at $100. The market has ...

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first...

Q: Assume oat forward prices over the next 3 years are $2.30, $2.40, and $2.33, respectively. Effective...

A: We can calculate the 3-year swap price by using the interest rates and forward price for the 3 years...

Q: McCabe Corporation is expected to pay the following dividends over the next four years: $15, $11, $9...

A: Answer - Formula for Share Price P0 = D0 (1+g) / [R-g]= D1 / [R-g]Price at P4 -= D5 / [R-g]= (2.95x1...

Q: What does empirical evidence suggest about the distribution of gains from mergers? Shareholders of t...

A: Gain from merger can be calculated by analyzing the change in the total equity value of company betw...

Q: As Financial Manager what would be your decision on assets and investment matters to meet profit max...

A: Profit maximization is considered as a goal of financial management. It aims at getting higher profi...

Q: Shirley Trembley buys a house for $186,200. She puts 20% down and obtains a simple interest amortize...

A: An amortized loan is one in which the borrower is required to make regular, scheduled payments that ...

Q: You borrow $5000 now and agree to pay this whole amount back in three payments: Payment 1. SX in 3 m...

A: The value of a certain amount of money at current time will not be the same as value of same amount ...

Q: pleased to see that you have been given a 5.62% raise this year. However, you read on the Wall Stree...

A: Purchasing power is the ability to buy the goods with given money but inflation is one important fac...

Q: what is the bond rate of return over the year?

A: Bond Rate of Return: It refers to the gain or loss of a security/investment for a certain period. I...

Q: e has its choice between long-term debt and eq

A: In business we need finance but there are different method of finance each method have cost and adva...

Q: Describe the widely used currency derivatives.

A: Currency Derivatives: These are the contracts that generate their value from their underlying asset...

Q: Gregorio bought a car with funds borrowed from a commercial bank. He intends to repay the note with ...

A: Par value (FV) = P750,000 Discount rate (r) = 12% Period (d) = 270 days

Q: A $ 25, 000, 5% bond payable semi-annually is purchased seven years before maturity. Calculate the p...

A: Solution:- Bonds are the securities issued by the corporations and governments, under which the corp...

Q: What was your total loss on this investment

A: Margin: It refers to the amount borrowed from the broker for purchasing a security/investment. It i...

Q: Incremental Analysis A1 A2 -$1,000 -$5,000 1 $2,000 $7,000 IRR 100% 40% PW(10%) $818 $1,364 R-122 (R...

A: Since you have posted a multiple question therefore, we will be solving the first question only. How...

Q: present worth of the following cash flows based on an interest rate of 7.23% per year, compounded an...

A: Present value of cash is the discounted value of cash flow today considering the interest and period...

Q: Ql: you put $2500 in account bank , this bank gives interest 6.5% for the first 3 months of saving, ...

A: Since you have posted a multiple question so we will be solving the first question only. However, if...

Q: International Fabric, Inc. must decide which type of fabric cutting machines it will use - Machine A...

A: we will find the equated annual cost of both machinery A and B and will select the machinery which h...

Q: Find the ordinary interest using: a) Ordinary time b) Exact time c) Find the Exact Interest using ex...

A: The amount paid to an investor for the invested fund is called interest. It is the compensation paid...

Q: As a Businessman and Entrepreneur, which do you think is more important between Return On Asset (ROA...

A: ROA is the return on assets and ROI is the return on investment.

Exchange Rate Risk

It is the possibility that the value of a currency will fluctuate in the future. In the wake of globalization, business establishments have increasingly ventured into international markets. The volume of international trade has prospered excellently in the near past and is expected to be more affluent in the future. The use of exchange-traded derivative financial instruments has been multi-folded to provide for the requirements of various MNCs and offshore potential investors. Most banks and financial institutions have helped integrate the global economies. Our Government has introduced some bold and extreme measures to fulfil the purpose behind the fiscal, industrial, and monetary policies. The enactment of GST is a huge step towards streamlining the taxation system of the country. Owing to Covid-19, this aspect of corporate risk management has become critical.