Complete the Horizontal Analysis for the Comparative Income Statement

question 27

Multiple Choice

Complete the horizontal analysis for the comparative income statement. Round to the nearest tenth of a percent.
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• A)13.9%, -140.0%, 14.2%, -7.8%, 47.8%, -118.7%, 48.7%
• B)17.9%, -40.0%, 18.1%, -1.9%, 60.1%, 37.5%, 62.0%
• C)-17.9%, 40.0%, -18.1%, 1.9%, -60.1%, -37.5%, -62.0%
• D)15.2%, -66.7%, 15.4%, -2.0%, 37.5%, 27.3%, 38.3%

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Definitions:

Forward Exchange Rate

The rate agreed upon for exchanging one currency for another at a future date.

Spot Exchange Rate

The immediate rate at which one can purchase or sell currency for on-the-spot delivery.

London Interbank Offer Rate

LIBOR; a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

Covered Interest Arbitrage

A trading strategy in which an investor uses a forward contract to hedge against exchange rate fluctuations, exploiting the interest rate differentials between two countries.