[Swati]

Greeting Mr John

Hope you are having a good day.

with regards to this question, while calculating the forward rate using interest rate parity why have they divided both the interest rate by 3. it at all its months then it should be 4 rather than 3.

OTC forward rate 84.00 × (1 + (0.06 + 0.0060)/3)/(1 + (0.033 – 0.0030)/3) = 85.00 approx

Pls guide

[Swati]

Thank you so much for your response.

I am sorry for posting my question in wrong forum. I assumed both the forum and ask the tutor is same.

[Swati]

Pls ignore my previous reply
there was a misunderstanding due to my internet connection
Thank you sir for your efforts….????

[Swati]

Sir, Thank you so much actually i have asked for two more question on depreciation on the same forum so can you reply on that questions also
REALLY SORRY FOR THE INCONVENIENCE.

[Swati]

Sir what is meant by Dysfunctional and how is it related to Residual Income because i got a question related to this and was yes or no
the question says
whether Residual Income avoids Dysfunctionality

[Swati]

I need help
Shop R Shop S Shop T
(‘000) (‘000) (‘000)
Sales 400 500 600
Contri 100 60 120
-(Fixed
Cost ) (60) (70) (70)
P/L 40 (10) 50

60% of the fixed costs are general company o/hs. These are apportionedto the shops on the basis of sales value. The other fixed costs are specific to each shop and are avoidable if the shop closes down
If shop S is closed down and sales of the other shops remained unchanged, what would be the revised budgeted profit for the company?

[Swati]

Sir
I got a question on Residual Income I dont understand the question and what will be the answer
It says : Residual Income of a division is described as follows :
The rate of return of the division is 10%
The assets of the division is $800000 but controlled by the head office
Other assets of $400000 controlled by the division
What is the imputed rate of interest ?

[Author]

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