Given the information: Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit in US Line of credit in Canada 12,500,000 The spot rate for CAD (SO): 1-year forward rate for CAD (FR): 7% 5% USD 10,000,000 CAD $0.80 $0.812 What is your covered rate of return from US (Rch)? 6.575% . What is your covered rate of return from Canada (Rcf)? 5.419% If you wanted to set up a covered interest rate arbitrage, you should borrow in and invest in CAD; USD O Based on your recommended investment strategy your covered interest arbitrage profit should be: CAD 52,340 12,500,000 x 1.05 = CAD 13,125,000 10,000,000 x 1.07 = USD 10,700,000 USD 10,700,000 / 0.812 = CAD 13,177,340 13,177,340 - 13,125,000 = 52,340.

2. high-glow currently produces 1,000 bicycles per month. the following per unit data apply for sales to regular customers: direct materials $50 direct manufacturing labor 5 variable manufacturing overhead 14 fixed manufacturing overhead 10 total manufacturing costs $79 the plant is experiencing demand shortage and is considering reducing production to 800 bicycles. what is the per unit cost of producing 800 bicycles? a) $79 per unit b) $81.50 per unit c) $74 per unit d) $69 per unit

Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a

When interest is compounded continuously, the amount of money increases at a rate proportional to the amount s present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) find the amount of money accrued at the end of 3 years when $4000 is deposited in a savings account drawing 5 3 4 % annual interest compounded continuously. (round your answer to the nearest cent.) $ (b) in how many years will the initial sum deposited have doubled? (round your answer to the nearest year.) years (c) use a calculator to compare the amount obtained in part (a) with the amount s = 4000 1 + 1 4 (0.0575) 3(4) that is accrued when interest is compounded quarterly. (round your answer to the nearest cent.) s = $