The general relationship between spot and forward exchange rates is specified by a concept called interest rate parity. it specifies that investors should expect to earn same return in all countries after adjusting for risk. the relationship is expressed in the following equation: both the forward and spot rates are expressed in terms of the amount of home currency received per unit of foreign currency. your overall return will be higher than the investment's stated return if the currency in which your investment is denominated appreciates relative to your home currency. on the other hand, your overall return will be lower if the foreign currency you receive -select-decreases in value. if this relationship doesn't hold, currency traders will buy and sell currencies engaging in arbitrage until the relationship does hold. quantitative problem: assume that interest rate parity holds. in the spot market 1 japanese yen = $0.005, while in the 180-day forward market 1 japanese yen = $0.0052. 180-day risk-free securities yield 1.35% in japan. what is the yield on 180-day risk-free securities in the united states? round your answer to 2 decimal places. do not round intermediate calculations. %.

Use this image to answer the following question. when the economy is operating at point b, the us congress is most likely to follow

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

What part of the rational model of decision-making does the former business executive “elliott” have a problem completing?