You Are Expecting a Payment of Can$150,000 Four Years from Now.The

question 50

Multiple Choice

You are expecting a payment of Can$150,000 four years from now.The risk-free rate of return is 3.9 percent in the United States and 4.6 percent in Canada.The inflation rate is 3 percent in the United States and 4.2 percent in Canada.Assume the current exchange rate is Can$1 = $.87.How much will the payment four years from now be worth in U.S.dollars?

• A)$138,887
• B)$126,909
• C)$99,300
• D)$166,184
• E)$177,285

---

Definitions:

Misconduct

Inappropriate or illegal behavior by an individual or organization, often violating ethical standards or norms.

Expert Power

The influence wielded by an individual or group owing to their expertise, skill, or knowledge.

Influence Behavior

The process of affecting or changing someone’s actions, decisions, or opinions through indirect or direct methods.

Sarbanes-Oxley 404

A provision of the Sarbanes-Oxley Act that requires publicly traded companies to have an internal control report in their annual reports, aiming to enhance the accuracy of corporate disclosures.