28.) Which of the following will most likely result in an increase in discretion

Question

28.) Which of the following will most likely result in an increase in discretionary funding needed?

Select one:

a. The company's dividend payout ratio increases.

b. The company's assets are only operating at 50% of capacity.

c. The company pays its accounts payable in 50 days, up from 45 days.

d. The company's profit margin increases.

30.) You purchased 3,000,000 Indian rupees in London at an exchange rate of 54.86 to the dollar and simultaneously sold the rupees in Bahrain at an exchange rate of 55.12 to the dollar. What is the name for such a transaction?

Select one:

a. exchange rate hedging

b. arbitrage

c. currency swapping

d. trend trading

Explanation / Answer

28- Which of the following will most likely result in an increase in discretionary funding needed?

a. The company's dividend payout ratio increases.because if dividend payout ratio increases additional discretionary funds would be required

30- You purchased 3,000,000 Indian rupees in London at an exchange rate of 54.86 to the dollar and simultaneously sold the rupees in Bahrain at an exchange rate of 55.12 to the dollar. What is the name for such a transaction?

b. arbitrage because, buying from london where exchange rate is low and sell at Bahrain where exchange rate high to get the benefit of price difference.

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.