1. Suppose the exchange rate between Indonesian rupian and USD is given as IDR 14285/USD. One-year Treasury bill rate in Jakarta is 5% in Indonesia and 3.5% in New York. Expected inflation rate is 2.5% in the U.S. If Fisher effect holds, what will be the expoected inflation rate in Indonesia?

A. 3.99%

B. 0.98%

C. 2.50%

D. 3.50%

2. What is the expected constant growth rate of dividends for a stock currently priced at $50, that is expected to pay a dividend of $5 next year, and has a required return of 20%?

A) 13% B) 10% C) 11% D) 12% E) none of the above

3. To be effective, marketers must deliver all of the following EXCEPT:

a. superior customer perceived value

b. industry best specification

c. solutions to customers problems

d. satisfaction of customers wants and needs

e. customer responsive service to support the company's product