Answer:
The Hi-Stakes Company
a. If the direct exchange rate increases, the dollar strengthens relative to the other currency.
b. If the indirect exchange rate increases, the dollar also strengthens relative to the other currency.
Explanation:
When the exchange rate increases, it means that more of the other currency is required in order to embark on importing and exporting transactions. However, the increases will weaken the ability of the importing currency to afford the dollar-based goods, which have then being made more expensive.
Answer: $23.63 million
Explanation:
First and foremost, we can calculate the quarterly common stockholder dividend which will be:
= $0.25 × 1 Million
= $0.25 million
Then, the annual dividend to the common stockholders will be:
= $0.25 million × 4
= $1 million
The quarterly preferred stockholder dividend will be calculated as:
= $0.50 × 0.50 Million
= $0.25 million
We would then multiply $0.25 million by 4 to get the annual dividend attributable to the preferred stockholders which will be:
= $0.25 million × 4
= $1 Million
Total Dividend would then be:
= Annual dividend to common stockholders + Annual dividend to preferred stockholder
= $1 Million + $1 Million
= $2 Million
The value of the retained earnings balance at the end of the year will then be:
= Retained Earnings at the beginning of the year + Net Income – Dividend
= $23.45 + $2.18 - $2.00
= $23.63 million
Hyundai's success has been attributed to their AGGRESSIVE GOAL SETTING. The articles that review the success of the Hyundai company believed that the success of the company is due to many factors which include: internal transfer of experienced staff, focusing on localized production, the codification of previous experience and aggressive goal setting.
Answer: $197,600
Explanation: Don Co is making a sale to Cologne GmbH and on the date of the transaction there is an exchange rate called the spot rate. Don Co will record in its books the value of the transaction on the set date at the spot rate which is:
200,000 euros @ .988
= $197,600
on the date of the settlement of the debt by Cologne GmbH, the spot rate is also considered which will be 200,[email protected] .995 = $199,000
Note that on the payment date, the exchange rate has gone up and now Don Co has a higher receivable value that what is in its book.
the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.
I'm going with false. Let me know.