Assume that the international fisher effect (ife) holds between the u. s. and the u. k. the u. s. inflation is expected to be 5%, while british inflation is expected to be 3%. the interest rates offered on pounds are 7% and u. s. interest rates are 7%. what does this say about real interest rates expected by british investors? real interest rates expected by british investors are equal to the interest rates expected by u. s. investors. real interest rates expected by british investors are 2 percentage points lower than the real interest rates expected by u. s. investors. real interest rates expected by british investors are 2 percentage points above the real interest rates expected by u. s. investors. ife doesn't hold in this case because the u. s. inflation is higher than the british inflation, but the interest rates offered in both countries are equal.

Ummit record company is negotiating with two banks for a $157,000 loan. fidelity bank requires a compensating balance of 24 percent, discounts the loan, and wants to be paid back in four quarterly payments. southwest bank requires a compensating balance of 12 percent, does not discount the loan, but wants to be paid back in 12 monthly installments. the stated rate for both banks is 9 percent. compensating balances will be subtracted from the $157,000 in determining the available funds in part a. a-1. calculate the effective interest rate for fidelity bank and southwest bank. (do not round intermediate calculations. input your answers as a percent rounded to 2 decimal places.) a-2. which loan should summit accept? southwest bank fidelity bank b. recompute the effective cost of interest, assuming that summit ordinarily maintains $37,680 at each bank in deposits that will serve as compensating balances

The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000

How has apple been able to sustain its competitive advantage in the smartphone industry? a. by reducing its network effects b. by targeting its new products and services toward laggards c. by driving the price for the end user to zero d. by regularly introducing incremental improvements in its products