What is the importance of cost allocation

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Reference no: EM131814021

1. Assume that $10,000 bond paying 12 percent interest is currently selling at 104. What is the current selling price of the bond in dollars? What is the current yield of this bond?

2. Hans Stern is a manager of a McDonald’s in Germany and he is interested in the indirect quote for U.S. dollars and euros. The direct quote of the euro per dollar is 1.75 euro/ $1. What is the indirect quote?

3. What is the importance of cost allocation and why all managers need to understand?

Reference no: EM131814021

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