If an Australian Investor Buys 2500 IBM Shares at a Price

question 92

Multiple Choice

If an Australian investor buys 2500 IBM shares at a price of USD 50 per share when the exchange rate is AUD/USD0.8, what is the investor's AUD cost of this investment?

• A)125 000 AUD
• B)100 000 AUD
• C)156 250 AUD
• D)150 000 AUD
• E)None of these.

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Definitions:

Refurbished Computer Equipment

Equipment that has been returned to the manufacturer or vendor, repaired if necessary, tested, and then sold again, often at a lower price.

BCG Business Portfolio

A strategic planning tool developed by the Boston Consulting Group that classifies a company's business units or products into four categories (Stars, Question Marks, Cash Cows, Dogs) based on market growth and market share.

Information Technology

The use of computers, storage, networking, and other physical devices and infrastructure to create, process, store, secure, and exchange all forms of electronic data.

Subsidiaries

Subsidiaries are companies that are owned or controlled by another larger company, known as the parent company, which often holds more than half of the subsidiary's stock.