1) A bottle of German wine costs $21 euros in Berlin

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1) A bottle of German wine costs $21 euros in Berlin. According to the purchasing power parity theory, what would the bottle sell for in New York if it costs the New York company $1.25 per bottle to transport the wine to the United States? Assume the exchange rate is $1.32 per euro.

Select one:

a. $27.22

b. $39.50

c. $40.54

d. $28.97

2.) All of the following are examples of sources of discretionary financing EXCEPT

Select one:

a. trade credit.

b. common stock.

c. bank loans.

d. notes payable.