South Korea-based LG will open a new $1.2bn battery factory in Bekasi, Indonesia, in collaboration with the state-owned Indonesia Battery Corporation
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5- South Korea-based LG will open a new $1.2bn battery factory in Bekasi, Indonesia, in collaboration with the state-owned Indonesia Battery Corporation (Source: Investment Monitor). Discuss how the host country (Indonesia) can benefit from this FDI.
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- D6) Suppose there are perfect capital markets with taxes. Investors expect a company to have $120 earnings before interest and taxes in one year. This company has a 25% tax rate, $100 market value of debt, and 20 shares outstanding. This company’s net working capital, depreciation expense, and capital expenditures are all expected to be zero in perpetuity. Investors expect this company to have the same earnings before interest and taxes, market value of debt, tax rate, and number of shares outstanding in perpetuity. The firm’s unlevered cost of equity is 8% and its cost of debt is 5%. Based on this information, what amount would you expect this company’s share price to be closest to? $5 $20 $40 $80 $100 $200 $4001. Choose all of the correct items that you think companies would consider when choosing a MARR for a particular project: Group of answer choices A. Their cost of borrowing money from a bank B. Their cost that their financial team thinks they can issue new bonds C. The prevaling rates of return of their competitors stock D. The relative risk of this particular project 2. Procter and Gamble reports a large number of financial metrics including ratios like Return on Equity, and Gross Margin, and many others. What are some reasons that they report these metrics? (Mark all that are correct) Group of answer choices A. They want to have a way of comparing their performance against their competitors . B. They want to see if their total sales went up, but their costs went up even more so their profitability decreased C. They want to see before COVID and after COVID financial ratios to see what impact it had on their finances D. They want to determine if they are meeting their goals for…17.7 Rotana Construction, Inc., has operated for the last 21 years in a northern U.S. state where the state income tax on corporate revenue is 6% per year. Rotana pays an average federal tax of 23% and reports taxable income of $7 million. Because of pressing labor cost increases, liability insurance premium increases, and other cost increases, the president wants to move to another state to reduce the total tax burden. The new state may have to be willing to offer tax allowances or an interest-free grant for the first couple of years in order to attract the company. You are an engineer with the company and are asked to do the following. (a) Determine the effective tax rate for Rotana. (b) Estimate the state tax rate that would be necessary to reduce the overall effective tax rate by 10% per year. (c) Determine what the new state would have to do financially for Rotana to move there and to reduce its effective tax rate to 22% per year.
- 9- Which of the following factors will lower down someone’s disposable income? a. More depreciation b. High personal taxes c. Low intermediate consumption d. More savingsWhat impact does the market for intangible property such as stocks and bonds have on the market for real estate? Why would a real estate investor pay attention to what is happening in these markets? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Q1. The Laundromat Corporation is considering opening another coin-operated laundry in a city. It has estimated that opening the laundry would involve an initial cost of $100,000 and would generate a net cash flow of $32,000 in each of the following five years, with no salvage value for the equipment and no recovery of operating expenses at the end of the five years. The corporation estimates that it would have to pay a rate of 12% on its bonds and that it would face a marginal income tax rate of 40%. The interest on government securities is 10%. During the current year, the corporation expects to pay a dividend of $20 on each share of its common stock, which sells for 10 times current earnings. Management and outside analysts expects the growth rate of earnings and dividends of the corporation to be 7% per year. The return on the average stock of all firms in the market is 14%, and the estimated beta coefficient () for the common stock of the corporation is 1.25. The corporation…
- Calculate the net present value (NPV) before tax of investment A: a factory. Base your calculation on the following information: The investment cost is paid in full in quarter 0, and the cost of the factory is 100000. The factory has a lifetime of 20 quarters (5 years) and the value of the factory at the end of quarter 20 is 0 Only Basic jetpacks should be manufactured at the factory throughout its lifetime. There is no investment in research to streamline production or material consumption. Suppose the quarterly demand in the market is constant and given at P = 228 - 0.007 * Q, where P is price and Q is the number of jetpacks in demand. There are 5 competitors in the market (including you), and all sell the same number of jetpacks each quarter at the price of 193 each. You produce as much as you sell. The costs associated with the quarterly production at the factory are given at K = 158 * Q + 20000, where 158 * Q is direct labor cost and materials, and 20000 is quarterly maintenance…Definition of economic costs Edison lives in Detroit and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Edison does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.Prominent Sdn Bhd produces furniture at several factories. Its Seberang Prai factoryproduces office chairs. Management aims to increase production in the coming year to 800units per month. Therefore, management is exploring two production strategies for thecoming year. The first strategy is to continue operations with the existing machine, MachineA, and the second strategy is to rent a new machine, Machine B, to produce the office chairs.The monthly rental of Machine B is RM14,000. Machine B takes half an hour to produce oneoffice chair. However, it requires a more skilled labour force with an hourly rate of RM30 perhour.Comparatively, continuing to use Machine A means that costs will remain the same. MachineA is 5 years old and is operating below capacity. The hourly labour rate is RM20 and thematerials required for each unit is RM30. Each office chair is assembled within an hour. Eachunit of the finished office chair is sold for RM120.The fixed monthly running costs of thefactory is…
- Window Help G Paraphrasing... aD ASSIgnment G how can you... lestion 8 of 20 rent Attempt in Progress Additional information for 2021: heridan Company has these comparative balance sheet data: Net income was $32, 000. Sales on account were $ 457,000. Sales returns and allowances amoun Cost of goods sold was $328, 600. Net cash provided by operating activities was $56, 000. Capital expenditures were $30, 000, and cash dividends were $25, 000. Compute the following ratios at December 31, 2021: (Use 365 days for calcu 52.7.) (a) Current ratio :1 (b) Accounts receivable turnover times (c) Average collection period days (d) Inventory turnover times (e) Days in inventory days SHERIDANCOMPANY Balance Sheets December 31 \table[[, 2021, 2020], [Cash, $32, 000, S30,0009. Which statement is incorrect?I. An increase in the general price index means that the purchasing power of money’ has decrease.II. A decrease in the general price index means that the purchasing power of money’ has increase. 10. Which statement is correct?I. Intangible assets cannot be treated as having an indefinite useful life.II. Intangible assets with a finite useful life shall be measured at cost and tested annually for impairmentYou are considering a purchase of UnderDog Inc.’s stock, currently available on the NYSE for $105 a share. You have calculated that for this investment the required rate of return is 11.3% and the past dividends were growing in accordance with the GDP growth. The economy is expected to grow 2.0% in the foreseeable future. The latest dividend was $10 per share. 2) What if the GDP growth suddenly increased to 3%?