Eurobike, based in Germany will need TL2 mn in 2 years to pay for imports. The annual interest rate in the next 2 years is 3% in Europe and 10% in Turkey. Assume interest rate parity holds.
i. Determine the appropriate forward premium or discount on TL?
ii. Calculate the €s Eurobike will need in 2-years to make the payment, assuming spot rate of EURTL is 7?

Answers

Answer 1

i. The appropriate forward premium or discount on TL is 49%.

ii. Eurobike will need approximately €191,631.68 in 2 years to make the payment for imports, assuming a spot rate of EURTL at 7 and the calculated forward premium or discount.

i. To determine the appropriate forward premium or discount on TL, we need to consider the interest rate parity.

According to interest rate parity, the forward exchange rate should reflect the interest rate differentials between two currencies. In this case, the interest rate in Europe is 3% and in Turkey is 10%.

The formula for calculating the forward premium or discount is:

Forward premium or discount = (Foreign interest rate - Domestic interest rate) * (1 + Spot rate)

Using this formula, the forward premium or discount on TL can be calculated as follows:

Forward premium or discount = (10% - 3%) * (1 + 7) = 7 * 0.07 = 0.49 or 49%

Therefore, the appropriate forward premium or discount on TL is 49%.

ii. To calculate the amount of euros (€s) that Eurobike will need in 2 years to make the payment, we can use the forward exchange rate derived from the forward premium or discount calculated above. Assuming the spot rate of EURTL is 7, and considering the forward discount of 49%, the forward exchange rate would be:

Forward exchange rate = Spot rate * (1 + Forward premium or discount)

Forward exchange rate = 7 * (1 + 0.49) = 7 * 1.49 = 10.43

Eurobike will need TL2 million, and at the forward exchange rate of 10.43, the euro equivalent would be:

€s needed = TL amount / Forward exchange rate

€s needed = 2,000,000 / 10.43 = 191,631.68 euros

Therefore, Eurobike will need approximately €191,631.68 in 2 years to make the payment for imports, assuming a spot rate of EURTL at 7 and the calculated forward premium or discount.

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Related Questions

some customer satisfaction studies (e.g. chen et al., 2006) have found that as customer satisfaction was high, so also was what?

Answers

Some customer satisfaction studies, such as Chen et al. (2006), have found that as customer satisfaction was high, so also was customer loyalty.

Customer satisfaction is a key metric that measures how satisfied customers are with a product, service, or overall experience. Various studies, including the research conducted by Chen et al. in 2006, have consistently found a positive relationship between customer satisfaction and customer loyalty.

When customer satisfaction is high, it often leads to increased customer loyalty. Satisfied customers are more likely to repurchase products or services from the same company. This loyalty can result in repeat business, long-term customer relationships, and positive word-of-mouth referrals.

The link between customer satisfaction and loyalty can be attributed to several factors. High customer satisfaction indicates that a company has met or exceeded customer expectations, delivering a positive experience and fulfilling their needs.

This positive experience fosters trust, confidence, and emotional attachment to the brand, which in turn encourages customers to remain loyal and continue their patronage. Satisfied customers are less likely to switch to competitors, reducing customer churn and increasing customer lifetime value.

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Discuss the peculiarities of the supply side of markets within the medical care sector. Be sure to include in your discussion the role of the Hippocratic oath in the supplier’s maximization problem. Also mention what the Target Income Hypothesis is.

Answers

The medical care sector is different from other industries because the goals of those who supply health care services do not always align with the profit-maximizing objectives of suppliers in other industries.

Health care providers, for example, are required to adhere to the Hippocratic Oath, which mandates that they place the interests of their patients first. Therefore, the supply side of medical care markets is a unique example of the potential conflicts between profit-seeking behavior and the desire to do what is best for patients.

Hippocratic oath
The Hippocratic Oath is a pledge that physicians have made for thousands of years to uphold the highest standards of ethical conduct. This includes placing the interests of their patients first, and it puts them in conflict with profit-maximizing suppliers in other industries.

Target Income Hypothesis
The Target Income Hypothesis suggests that individuals will choose to work until they reach a certain income level. This is applicable to doctors and other healthcare providers who have high training and educational costs. They will work to earn a higher income to cover the costs of their investment.

Thus,
The supply side of markets within the medical care sector is unique. Health care providers, like physicians, are obligated to uphold ethical standards such as the Hippocratic Oath, which mandates that they prioritize the interests of their patients.

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What war was Eisenhower in before he was president?

Answers

Answer:

Pancho Villa Expedition World War I World War II

Explanation:

Dwight David "Ike" Eisenhower fought in the Pancho Villa Expedition, World War I, and World War II.

I hope this helps.

Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?

Answers

Answer:

Option A

Explanation:

The complete question is

Three roads lead into a stadium's parking areas. Each road has four lanes (two in each direction) with a capacity of 1,000 vehicles/lane/hour. If 10,000 vehicles are expected for a game, how long will it take for all of them to enter the parking areas?

a) 2 hours

b) 1 hour

c) 1 hour and 40 minutes

d) 90 minutes

Solution

There are four lanes.

Capacity of one lane is equal to 1,000 vehicles/lane/hour.

Let us say that each lane will provide access to equal number of vehicles

Thus, each lane will allow 10,000/4 = 2500 vehicles per hour

Time taken by 2500 vehicles on road to reach parking is equal to 2.5 hours.

The nearest answer to this option A i.e two hours

Taxes on the property buyer Tamara is purchasing are $8,200, due on December 31. If the closing is set for June 29th, using the 365-day method, how much of the taxes will be credited to the buyer? (Assume it is not a leap year and the day of closing belongs to the seller.)

Answers

Answer:

$4,044

Explanation:

Calculation for how much of the taxes will be credited to the buyer

First step is to divide the annual taxes by the numbers of days in a year

$8,200 / 365 days

= $22.466 per day

Second step

Based on the information given we were told that the Seller's ownership started from January 1- June 29 which gave us 180 days, this means that we would multiply $22.466 per day by 180 days in order to know how much of the taxes will be credited to the buyer

Hence,

Amount credit to the buyer=180 days

x 22.466

Amount credited to buyer= $4,044

Therefore the amount of the taxes that will be credited to the buyer will be $4,044

When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

Answers

When making decisions, managers are often faced with a conflict between what is beneficial for the firm in the short-term and what is beneficial for both the firm and society in the long-term.

This conflict arises because the actions that benefit the firm in the short-term may not necessarily align with the interests of society as a whole, which can lead to negative consequences for both the company and society in the long-term.

To address this conflict, a firm must adopt a long-term orientation and consider the broader social and environmental impacts of its decisions. This means looking beyond immediate financial gains and recognizing that actions taken today can have far-reaching implications for the company's reputation, customer loyalty, employee morale, and overall sustainability.

Firms that prioritize social responsibility and sustainable business practices are more likely to build strong relationships with stakeholders, including customers, employees, investors, and regulators. They are also better equipped to weather economic downturns and other disruptions, as they have diversified their risk and invested in building resilient supply chains and communities.

Ultimately, the key to addressing the conflict between short-term gains and long-term benefits is a commitment to corporate social responsibility (CSR) and sustainable business practices. By prioritizing the needs of society and the environment alongside those of shareholders, firms can create value for all stakeholders over the long-term, ensuring their continued success and impact.

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What do you mean by ECONOMIC ​

Answers

Answer:

Economics is a social science concerned with the production, distribution, and consumption of goods and services.

theg3eu3guyrgufgrgifrggiygiyrgirgigv

Answers

Answer:

I xixed3odn3dno3xnomxend4ond4imx74d diendeinxe said einxiw dueoxni3d 3id 2did 2iz

The monopolist produces an output that is __________ the perfectly competitive industry would produce.

Answers

Answer:

charge more than a firm in a competitive market. to to Monopoly Production:

a ________, which is conducted by the project manager, involves determining if the information system makes sense for the organization from an economic and operational standpoint.

Answers

A - b. Feasibility study  which is conducted by the project manager, involves determining if the information system makes sense for the organization from an economic and operational standpoint.

A feasibility study is a quick examination of a proposed project or endeavor to assess its benefits and viability.

Hence,  option B. is correct.

An example of  Feasibility study ?

A hospital, for instance, may do a feasibility study if it plans to grow, i.e., construct an addition to the structure. The research will help decide if the project should move forward. Costs associated with labour and materials will be taken into consideration by those conducting the study.

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The complete question is-

A ________,which is conducted by the project manager, involves determining if the information system makes sense for the organization from an economic and operational standpoint.

A)Tool

B)Feasibility study

C)Data flow

D)Methodology

What are the costs associated with workplace bullying? What
actions can employees and managers take to control workplace
bullying?

Answers

Workplace bullying has health, morale, team dynamics, and reputation impacts. Control it through awareness, policies, culture, leadership support and intervention.

Workplace bullying carries significant costs that affect individuals and organizations. The health impacts of bullying can lead to increased stress, anxiety, and physical health issues, resulting in higher absenteeism, reduced productivity, and healthcare costs. Bullying also erodes employee morale and engagement, contributing to decreased job satisfaction, higher turnover rates, and difficulty in attracting and retaining talent. Team dynamics and collaboration suffer as bullying disrupts relationships, hampers teamwork, and stifles innovation and cooperation.

To control workplace bullying, employees and managers can take proactive actions. Increasing awareness through education and training helps individuals recognize and address bullying behaviors. Establishing clear policies against bullying and providing confidential reporting mechanisms encourage reporting and investigation. Promoting a positive work culture based on respect, inclusivity, and open communication fosters a supportive environment. Encouraging bystander intervention and offering support services like counseling or mediation further contribute to controlling workplace bullying. By implementing these strategies, employees and managers can work together to create a healthier, more productive, and inclusive work environment.

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how the business can use creative thinking to solve the problem​

Answers

Answer:

Creative thinking helps you keep your business presence fresh. You'll be able to constantly reinvent your business in order to stay in your customers' awareness. ... Creativity improves your leadership skills. Being an effective leader means being creative in your approach and problem-solving.

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Read this excerpt describing the mission of the World Bank.

The World Bank is a vital source of financial and technical assistance to developing countries around the world. It is not a bank in the common sense. Instead, it plays a different but supportive role in its mission of global poverty reduction and the improvement of living standards.

It provides low-interest loans, interest-free credit, and grants to developing countries for education, health, infrastructure, communications, and many other purposes.

According to this excerpt, what is one major way in which the World Bank differs from a regular bank?

The World Bank is a source of financial assistance.
The World Bank aims to improve living standards.
The World Bank provides low-interest loans and credit.
The World Bank serves people of different income levels.

Answers

Answer:

The World Bank is a source of financial assistance.  

Explanation:

The World Bank serves people of different income levels but regular banks do that.

The World Bank aims to improve living standards, no because it is more for hep  developing countries.

The World Bank provides low-interest loans and credit but there is a better answer.

The World Bank is a source of financial assistance because it help developing countries and has easier loans and credit

The World Bank aims to improve living standards.

What is the role of the World Bank in globalization?

The WBG supports developing countries through the development of trade policy to deepen their integration into regional and global economies and increase trade performance while facilitating trade through streamlined border management and more efficient logistics

What are the important global roles that World Bank plays?

The World Bank concentrates on long-term investment projects, institution-building, and on social, environmental, and poverty issues. The IMF focuses on the functioning of the international monetary system, and on promoting sound macroeconomic policies as a precondition for sustained economic growth.

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______ are creative people who work as entrepreneurs within corporations.

Answers

Intrapreneurs are creative people who work as entrepreneurs within corporations.

Intrapreneurs are employees who work within a company and are given the freedom and resources to develop, create, and manage a project or venture of their own. Intrapreneurs, like entrepreneurs, come up with new ideas and business concepts, but they do so from within an organization rather than starting their own business.

This is often referred to as corporate entrepreneurship or internal entrepreneurship. Intrapreneurs are risk-takers who are committed to creating and developing new products or services within their organization, often using their own initiative to innovate and create something that has never been seen before.

They must be able to motivate and manage others, as well as be skilled at strategic planning and project management, in order to be successful as an intrapreneur within an organization.

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State, in brief, with reasoning, whether following statement is correct/incorrect: “One cannot be everything to everyone, but can be everything to a selected few”.

Answers

Answer:

Yes the statement is correct.

Explanation:

The statement is given by Matt Cheuvrant. In business the statement is absolutely correct that you can not satisfy the need of all the customers. A business cannot offer a product at less than its cost if a customer cannot afford it. Also an organization cannot start manufacturing a product because one customer demands it. If the company decides to satisfy all his customers by offering a large variety of products it may result in establishing in-house competition resulting in declining profits from both the products. If the company tries to give everything to every one this enhances its risk of failure resulting nothing in its own hands.

Businesses should focus on a single product and try to create a niche market. The product should be unique and its features should be extensively different from the other competitive products available in the market. This creates heavy switching cost to customers which ensures the business that customers will retain loyal to it. You can everything for few customers. They will not want to leave you because of your product specific features that are not available in the market.

How would a past history of criminal charges potentially affect a company's
ability to recruit highly talented employees?

Answers

Answer:The potential employees would view the company with less confidence because of the company’s past history

Explanation:

Answer:

The potential employees would view the company with less confidence because of the company’s past history

Explanation:

"Malika wants to study the effect of rising textbook prices on the number of books students purchase. In planning her study, she realizes there are other variables besides price that can affect this decision. To help build her model, she can:"

Answers

Answer:

Use the ceteris paribus assumption

Explanation:

By using the ceteris paribus assumption she can assume all other conditions are equal and that the number of books purchased by students and the price of the books are the only variables in the study

With the Latin phrase, ceteris paribus, meaning all other things are the same or other things considered as being equal or remain constant, it is possible to determine causation of an event by focusing on the effect of a one of the several independent variables on the dependent variable.

Who makes it legally en forcable promises in a unilateral insurancew policy]

Answers

Answer:

Unilateral Contract — a contract in which only one party makes an enforceable promise. Most insurance policies are unilateral contracts in that only the insurer makes a legally enforceable promise to pay covered claims. By contrast, the insured makes few, if any, enforceable promises to the insurer.

Explanation:

Need asap

Submit your essay on what's next for digital video in the future.

Answers

Answer:

I feel that this will all change because of all the emerging technology that is evolving in just 2018 and is still evolving today. I think that all of the desktops will become more portable an have more features while the common laptop will do the same also there will be even fewer people going out to shop at malls or clothing stores (because of online shopping) which means these local businesses will not be able to pay the rent or they will have to cut down on employment or even lower the hourly wage. This combined will snowball and be even worse by the future

Explanation:

I hope I've done a good answer, have a good day :)

Performance feedback is most effective when managers communicate tactfully and honestly with employees being appraised. stress negative performance without communicating any employee strengths. stress positive performance and downplay negative performance. deliver the feedback without providing an opportunity for employee input. Distributive justice is fairness in the treatment of all employees when decisions are implemented. fairness of the decision itself. fairness in the decision-making process. providing a justification for decisions and actions. An element of good customer service is being at work on time consistently. active in the community. responsive to your customers and their needs. a good team player. The service industry comprises about ____ of American workers. 28%40% 75% 86%

Answers

1. When managers communicate tactfully and honestly with employees being evaluated, performance feedback is most effective.

An effective performance feedback process promotes consistency in a performance review, motivates all employees to perform to their full potential, and is conducted in a fair and transparent manner. This is a continuous process that aligns employees' and managers' efforts with individual, departmental, and strategic goals.

2. Distributive justice is Fairness in the treatment of all employees when decisions are executed

When employees believe that the outcomes are equitable, they experience distributive justice. These outcomes can be either monetary or intangible, such as positive feedback. When employees believe they are being paid or treated fairly, distributive justice occurs.

3. Being responsive to your customers and their needs is an important aspect of providing good customer service.

Customer happiness is enhanced by timely, helpful communication, and superstar customer support teams go above and beyond to ensure customers know they are a priority. In addition to responding to questions and issues immediately, as in the preceding example, they provide well-informed responses that address issues.

4. Approximately 86% of American workers are employed in the service industry.

A service industry provides intangible goods or services to people and completes tasks that benefit customers, clients, businesses, or the general public.

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Finished goods ______. Multiple choice question. is the same as cost of goods manufactured consists of completed, unsold goods consists of goods that require additional processing before being sold consists of goods that have been sold to customers during the period

Answers

Finished goods consist of completed unsold goods which have not been sold to customers.

What is Finished goods?

Finished goods refer to completed goods or product that have pass through all the manufacturing process and completed they but have not be sold to the intending consumers.

They are completed processed products.

Therefore, Finished goods consist of completed unsold goods which have not been sold to customers.

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Why is it important to check your credit score?

Answers

Explanation:

Checking your credit history and credit scores can help you better understand your current credit position. Regularly checking your credit reports can help you be more aware of what lenders may see. Checking your credit reports can also help you detect any inaccurate or incomplete information.

Janelle owns a business within the hospitality and tourism industry and recently let an employee go because the employee’s lack of productivity was beginning to negatively impact the company’s profit margin. Provide a description of what this employee’s lack of productivity may have looked like and analyze potential ways that it could have impacted the profit margin. Feel free to fabricate or create a hypothetical situation.

Answers

The employee must have lacked good relationship skills with customers and clients, thereby leading to reduction in patronage.

How  poor communication and relations affect patronage

The employee that was let go was one that had difficulty getting the requests and the need of the Clients. She was sometimes rude to the customers as well.

The effect that this had on the business was massive due to the fact that the customers had to stop patronage for a while after they had laid series of complaints.

Hence the need to let the employee go so as to get a worker that is more productive and job ready for the position.

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f. Medical profession is a very sensitive profession. Do you agree? Give

Answers

Answer:

Medical profession is very sensitive and intellectual where human life is at risk. A successful effort of a doctor can save a life. Due to that, a doctor is known as 2nd God. When he attempts a major and long surgery, his endurance, hard work and mental ability spotlight his character.

Answer:

I am sry if u can't understand the handwriting

Explanation:

long ans . <3

f. Medical profession is a very sensitive profession. Do you agree? Give
f. Medical profession is a very sensitive profession. Do you agree? Give

1 point

10. In reviewing your account statement, you see a Balance Transfer Fee.

Based on the information you see in the statement, what would be the fee

if you transferred $3,000 from another credit card? *

Answers

Answer:

Find attached statement and the question which question number 10.

The correct option is C,$90

Explanation:

In the statement you would notice that the balance transfer from another credit card was $785,upon which balance transfer levy of  $23.55 was  charged(Section 7)

Intuitively, the percentage of balance transfer charge is $23.55 divided by the amount of balance transfer i.e $785

balance transfer charge(%)=$23.55/$785=3%

However, if the balance transfer were $3000,the charge is 3% of $3000 i.e $90 ($3000*3%).

The correct option then is C,$90

Miguel is vice president of marketing at xyz corp. He is disappointed to learn that the vice president of sales at xyz earns 20 percent more than he does despite the two positions having similar levels of responsibility and impact. In this example, what method is miguel using to evaluate the fairness of his pay?

Answers

Miguel holds the position of vice-president of marketing at xyz Corp. Because Miguel ended up having $35 more so than he did, he is unsatisfied.

What are the many types of marketing?

The 4 P are a "combination of strategies" that includes four crucial elements for selling a product or service product, price, place, and marketing. Businesses frequently consider the four Ps when creating plans and objectives for reach their intended audiences.

What is an effective marketing example?

In a word, it is an effort to make customers aware of a business's offers, which can include both physical goods for sale or services rendered. Advertising on television, on billboards along the highway, and in magazines are all common examples of marketing in action.

Briefing

He spends $35 × 4 = $140.

He earns $21 × 5 = $105.

His net increase is $105 -140 = -$35.

Miguel ends up with $35 less than he started with.

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Suppose you work for a bank and are responsible for determining whether you should give someone credit. Create a list of the top three questions you would
ask prospective borrowers and post them to the discussion board. Make sure to explain why you think these three questions are important in determining
whether or not a potential customer is a good credit risk.

Answers

Answer:

-How much money do you need?

-How much income do you make?

-How much debt do you have?

Explanation:

The top three questions that I would  ask prospective borrowers are:

-How much money do you need?

This question allows the lender to know the amount of money the borrower requires and this is crucial to make an evaluation with the income and debts to determine if the lender would approve the loan. For example, a borrower may need an amount that he can easily pay back with his salary.

-How much income do you make?

This question is important to the lender because it allows to find out if the borrower's income would allow him/her to make the monthly payments which decreases the risk.

-How much debt do you have?

It is important to know the amount of debt the borrower has because the higher amount of debt he/she has, it would be harder to pay the loan and evaluating this allows to decrease the risk of the borrower not paying back.

develop a list of sales tools you could use in a job interview situation. what tools could you use to demonstrate your skills and capabilities?

Answers

A list of sales tools that you could use in a job interview situation to demonstrate your skills and capabilities are Sales Portfolio,Sales Presentations,CRM Experience,Certifications and Trainings,Sales Metrics,Problem-solving Scenarios,Role-play Exercise.


1. Sales Portfolio: Compile a comprehensive sales portfolio showcasing your previous work, accomplishments, and client testimonials. This can help demonstrate your sales skills and capabilities.
2. Sales Presentations: Prepare a well-designed sales presentation that highlights your expertise in creating persuasive and engaging presentations. This can serve as a visual aid during your interview.
3. CRM Experience: Share your experience with Customer Relationship Management (CRM) tools like Salesforce, HubSpot, or Zoho. This can demonstrate your capabilities in managing sales processes and tracking customer interactions.
4. Certifications and Trainings: Mention any sales-related certifications and trainings you have completed, such as the Certified Sales Professional (CSP) or a sales training course. This will show your dedication to improving your sales skills.
5. Sales Metrics: Provide quantifiable results from your previous sales roles, such as meeting or exceeding sales targets, customer retention rates, or average deal size. These metrics will illustrate your sales capabilities.
6. Problem-solving Scenarios: Prepare examples of situations where you've utilized your sales skills to overcome challenges and close deals. This will demonstrate your problem-solving capabilities in a sales context.
7. Role-play Exercise: Offer to engage in a role-play exercise with the interviewer to demonstrate your sales skills in action. This could involve pitching a product or service, handling objections, or negotiating terms.
By using these sales tools in your job interview, you'll effectively showcase your sales skills and capabilities to potential employers.

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how long is the grace period for plus loans

Answers

Answer:

ummmmmm I'm not quite sure

Donald Trump wanted to pull us out of the WTO because he thought China was cheating. Would you stay in or leave?

Answers

Answer: I hate Trump and would make him eat tortilla chip vertically :/

Explanation:

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