Interest rates on the U.S. dollar are 6.5% and euro rates are 5.5%. The dollar per euro spot rate is 0.950
What is the arbitrage profit on a required 1 million euro payment if the forward rate is 0.980 dollars per euro and the exchange occurs in one year?
A) $10,000
B) $21,000
C) $28,000
D) $34,000
B
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Which of the following is true of a concentrated targeting strategy?
a. It allows a firm to serve two or more well-defined market segments simultaneously. b. It is often adopted by small firms to compete effectively with much larger firms. c. It follows a mass-market philosophy by viewing the market as one big market without any individual segments. d. It often results in cannibalization, which occurs when sales of a new product cuts into sales of an existing product.
The cost of capital is a dynamic concept and it is affected by economic and firm-specific factors such as business risk and financial risk
Indicate whether the statement is true or false