Suppose that the us dollar interest rate and the swiss franc interest rate are the same, 5 percent per year, but that there is a risk premium of 1 percent associated with holding swiss franc rather than us dollars over the year. (a) what is the relationship (in percentage terms) between the current equilibrium dollar/franc exchange rate and its expected future level? (b) if the expected future exchange rate is $1.12 per franc, what is the equilibrium dollar/franc (spot) exchange rate? now suppose that the expected future exchange rate, $1.12 us per franc, remains constant as swiss's interest rate rises to 10 percent per year. (c) if the us interest rate also remains constant, what is the new equilibrium dollar/franc exchange rate?

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i. e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant. a. the division's basic earning power ratio is above the average of other firms in its industry. b. the division's total assets turnover ratio is below the average for other firms in its industry. c. the division's debt ratio is above the average for other firms in the industry. d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.