Which of the following statements is correct?
a. Capital stock of a foreign subsidiary is translated at the historical rate, that is, the rate prevailing on the date the subsidiary was acquired.
b. Dividends are translated at the average exchange rate for the year.
c. Retained earnings are translated at the average exchange rate for the year.
d. Assets and liabilities are translated at the historical rate prevailing when the subsidiary was acquired.
A
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Oil is selling at a spot price of $42.00 per barrel. Oil can be stored at a cost of $0.42 per barrel per month
The opportunity cost of capital is 7.2% per year (or 0.6% per month). What is the gain or loss realized by an oil refinery that floats its exposure and purchases oil on the spot market in 2 months at a price of $43.00 per barrel, instead of hedging with a forward contract? A) $0.35 gain B) $0.35 loss C) $1.00 gain D) $1.00 loss
Over ________ of the total daily volume in stocks is due to institutions initiating trades
A) 70% B) 50% C) 25% D) 90%