That export prices always increases and import prices always fall ensure that a. all of the choices b. the distributional impact of trade is true also for the long-run c. is a reason why trade is resisted by workers in capital-abundant countries d. is a reason why trade is always welcomed by consumers e. none of the above
Q: How much should she request from a lender whose discount rate is 9%.
A: Simple interest method is a method of computing interest on borrowed amount where interest is…
Q: Marble Cohst uction estimates that itS WACC IS 11% if equity comes from retained earnings. However,…
A: Answer - The Projects are independent here,given the set of projects that should be accepted should…
Q: The value of anything can be determined if you know the amount and timing of related: Net…
A: Cashflow helps to calculate Income statement. From income statement, we can calculate Earnings…
Q: Sainsbury is financed by both debt and equity. calculate the weighted average cost of capital (WACC)…
A: To specify:Calculation of weighted average cost of capital
Q: A stock is expected to pay a dividend of $1.00 at the end of the year (i.e., D1 = $1.00), and it…
A: FORMULA Stock's expected price 4 years from today = D5/(i-g) Where D5 - Dividend after 5 years from…
Q: Question 8 Question 11 A firm with a 14 percent WACC is evaluating two projects for this year's…
A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…
A: Formula PVA = m*[1-(1+r)-n*t]/r Where PVA - Present value of annuity m - Annual deposit amount i.e.…
Q: A payday loan provides short-term loans ranging from $250 to $2,000. Assume the cost of the loan is…
A: Short term loan: Short-term loans are borrowed funds used to fulfill immediate liquidity demands,…
Q: San Diego Enterprises is planning to invest in a five-year project costing $270,000. The project is…
A: Payback period is the amount of time required to recover initial investment. It can be calculated…
Q: After-tax cost of capital 8% Tax rate 28% Assume depreciation is calculated on a straight-line…
A: Net present value is the difference between Present Value of cash Inflows and Initial Investment…
Q: On June 1, 2019, Leni Company acquired a 5-year, 10%, P1,000,000 face value bonds for P920,000. The…
A: Financial instruments can be equity, debt, or derivatives. They can be measured at fair value or…
Q: Q7: TFS stock is currently trading at $17.25 per share. In 4 months it will either rise by 24.00% or…
A: Pay off and profit of put option Put option provides the right to its holder to sell stock at the…
Q: The is the better choice because the IRR for the change from is percent, which is the MARR. (Round…
A: IRR stands for Internal rate of return refers to the rate of interest at which the sum of all cash…
Q: 3. You are saving for retirement. To live comfortably, you decide that you will need $2.5 million by…
A: Annuity payment concept could be leveraged for an accumulation of the desired corpus during the…
Q: Doja Products placed a new machine into production 3 years ago. It had an installed cost of…
A: Book value calculated after deducting the depreciation value over particular period of time.…
Q: a. If the firm does nothing that will leave the key financial variables unchanged, the value of the…
A: Dividend discount model refers to a stock valuation model which is used by the company for…
Q: D3) What is the fundamental difference between a solution strategy to determine efficient…
A: A portfolio is a collection of financial investments such as stocks, bonds, commodities, cash and…
Q: Question B1 "If I use the after-tax cost of debt for my project analysis then I should use the after…
A: Borrowing costs are the effective interest rates that a company pays on its debt, such as bonds and…
Q: A mortgage of $161000 is to be repaid by making payments of $1191 at the end of each month. if…
A: We need to use NPER formula in excel to calculate term of mortgage. The formula is…
Q: The Closing the Gaps initiative by the Texas Higher Education Coordinating Board established the…
A: The yearly rate of increases can be computed as the compounded annual growth rate (CAGR).
Q: A loan of X pesos will be paid in 48 equal monthly payments, starting 6 months from the release of…
A: Loan – X Monthly payment – P 5782 Interest rate – 18% p.a. c.m. or 18/12 = 1.5% p.m. Time – 48…
Q: 3. Calculating Dollar Returns You purchased 250 shares of a particular stock at the beginning of the…
A: Return means additional amount received from the invested amount during the investment period. The…
Q: Torch Industries can issue perpetual preferred stock at a price of $72.00 a share. The stock would…
A: FORMULA Cost of preferred stock = Annual dividend/Stock price Where Annual dividend = $7.00…
Q: This can occur when a selection among mutually exclusive alternatives is based wrongly on…
A: Answer- Ranking errors can occur when a selection among mutually exclusive alternatives is based…
Q: 6. Celeste Company provided the following transactions, among others, for the current year. Sold…
A: Factoring can be defined as the financial service offered by a factoring company which tends to…
Q: Given the following, determine the
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: If you have $1,000,000 but you have to use it in the next 6 months. SPOT RATE 1S =30.50-31 B 6MTH…
A: Spot and Forward Rates: The spot rate is the exchange rate that is currently prevailing for a…
Q: Product A Product B Initial cost $750,000 $650,000 Expected life 5 years 5 years Scrap value…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: How is the securities markets affect our daily lives.
A: Security market is referred as the component of the wide financial market, where the securities can…
Q: The Bob's company is considering some new equipment for its bookstores. The project details are as…
A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…
Q: Discuss the strengths and weakness of the Newer Innovative health financing mechanisms
A: Innovative financing can enable private investors to participate in health more quickly and bring…
Q: Kinston Industries just announced that it will cut its dividend from $3.00 to $2.00 and use the…
A: Answer - Step 1 - Calculation of Cost of Equity - Stock Price = Dividend / (Cost of Equity -…
Q: 1. Differentiate stocks from bonds; and stockholders from bondholders.
A: Since you have posted a question with multiple questions, we will solve the first one for you. If…
Q: Cash flow Asset End of Year Amount Appropriate required return $ 7,000 7,000 7,000 A 1 9% 3 В 1…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: You buy 100 shares of stock for $50 per share. The stock pays a dividend of $2 per share per year.…
A: Formula; Percentage return = [D + (P1 - P0)] / P0 Where; D = Annual dividend i.e. $2 P1 = Sell price…
Q: b. $ 864
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: According to the housing recommendations from this book of the family has a gross annual income of…
A: Given, Meaning of mortgage loan:- It is that type of a loan which is secured and which helps to get…
Q: You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price…
A: In order to decide spectrometer is purchase or not, we need to calculate NPV of spectrometer. NPV is…
Q: Discount P 9,000 for 9 months at a discount rate of 8%.
A: Since, Present value = Future value/(1+periodic interest rate) ^n
Q: margin requirement
A: Margin requirement refers to the amount of cash or securities that an investor should deposit as…
Q: FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity…
A: Given, FCOJ, Inc. Number of shares outstanding 7000 Price per share 44 Total debt 30%…
Q: A certain nominal annual interest rate has an effective rate of 19.722% when compounded…
A: In order to convert, periodically compounded rate to a continuously compounded rate we use LN…
Q: The operating activities section of the Statement of Cash Flows includes everything except:
A: The operating activities section of the Statement of Cash Flows includes everything except: Ans :…
Q: John already has $55,600 today in his savings account earning 5.5% compounded semiannually. The…
A: Here,
Q: a) What is the size of each quarterly payment? b) What is the outstanding principal at the end of…
A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…
Q: The interest rate for the first five years of a $28,000 mortgage loan was 3.35% compounded…
A: Given, Meaning of mortgage loan:- It is a loan which is secured and helps to avail the funds where…
Q: Q: Buffett seeks to invest in companies that Select one: a. Have little or no long-term debt Ob.…
A: An investment is referred as an asset, which invest or acquire for building the wealth as well as…
Q: What is the rate of return on an investment of $10,606 if the company will receive $2,000 each year…
A: The rate of return on an investment is the ratio of profits earned on an investment made by the…
Q: Jino sold his house. In addition to cash, he took a mortgage on the house. The mortgage will be paid…
A: C = Monthly payment i.e. P12,345 r = Monthly interest rate i.e. 0.01 n = Monthly period i.e. 120 (10…
Q: 6c A large profitable corporation is considering a capital investment of $50.000. The equipment has…
A: Tax for year 2 will be calculated on net income. Tax for year 2 =(Annual gross…
Step by step
Solved in 2 steps
- Which of the following is not a reason for U.S. firms operating in foreign markets? A.Better economic and political environment (in the U.S.) B.Less expensive labor C.Tax incentives D. To achieve international diversificationSuppose America experiences a negative balance on goods and services (imports higher than exports.) If the exchange rate decreases, then a . imports will be expensive. b . goods and services balance will remain unchanged. c . deficit on goods and services will be reduced d . deficit on goods and services will increase e . None of the answers is correctWhich of the following best represents the primary economic and financial benefit to the U.S. from NAFTA? It led to increased tariffs on U.S. exports to Canada and Mexico. U.S. consumers had access to a wider variety of products. It resulted in the relocation of major U.S. corporations to Europe. The U.S. benefited from low-price manufacturing, low-priced labor, and reduced shipping and logistics costs.
- According to the hecksher-ohlin model, when trade opens A. income is redistributed between countries but not within each country b. the abundant factor gains relative to the scarce factor in each country C. the scarce factor gains relative to the abundant factor in each countryWhich of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.Which one of the following is likely discouraging foreign direct investmen (FDI) in one country? A. The foreign firm would produce a good which is currently not available in the host country. B. The foreign firm intends to partner with the local firms of the host country. C. The foreign firm's products are similar with the local firms of the host country. D. The foreign firm is able to compete in the market of the host country. Clear my choice
- The complexity posed by differences in the cultural, political, legal, and economic environments creates a so-called “liability of foreignness.” This idea holds that foreign companies, because of their poorer familiarity with local conditions, incur additional costs. In theory, the liability of foreignness makes IB activity too expensive. In practice, companies offset this liability by capitalizing on their unique advantages as well as selecting the mode of international business that best reflects their resource profile and risk tolerance--Always in the effort toward minimizing the intrinsic higher costs of international operations. The higher costs of international operations, executives point out, are driven by things as varied as the cost of legally establishing businesses, real estate costs, customs duties, and translation costs. Managing these costs is complicated by the report that _53_______%___ of global CEOs are concerned about the impact of __bribery and…Which of the following is the correct option: The Leontief study testing the Heckscher-Ohlin theory showed that... a) The US exported capital-intensive goods and imported labour-intensive goods.b) The US exported labour-intensive goods and imported labour-intensive goods.c) Even though the US was a capital abundant nation, it exported labour intensive goods.d) The US was a capital abundant nation and therefore, exported capital intensive goods.Boseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations. Which one of the following is not a true statement regarding foreign direct investment from the host country’s perspective? a.Significant financial inflows always result from engaging in foreign direct investment. b.Foreign direct investment can create new jobs and can generate tax revenues for governments c.A concern of the local governments in host countries is the lack of corporate social responsibility d.There is the potential for exploitation of human labor within certain countries e.These investments may take the form of plants, buildings, or inventories
- Your company located in the US imports raw materials from Europe. If the European Central Bank announces to lower the Euro exchange rate, what impact do you expect to see in your business? A. Your company will pay higher US dollar costs to import from Europe. B. Your company will pay lower US dollar costs to import from Europe. C. The Euro exchange rate doesn't have any impact on your company. D. It should reduce your competitiveness in your home market.. What is globalization? What modes of international business are used by firms that want to globalize? Briefly describe each method. 1. What is the difference between a monochronic and a polychronic culture? How do such cultural differences affect business practices for international firms? 2. What is gross national income? How is it calculated? Illustrate your answer with a specific example. 1. What are the disadvantages of import restrictions in regard to creating domestic employment opportunities? 2. What is value chain configuration? Briefly list and discuss the factors that influence value chain configuration. 1. What is the relationship between a company's international market and its production location decisions? How do firms benefit from the use of scanning techniques when making location decisions? 2. Explain how franchising agreements differ from licensing agreements. 1. Compare push and pull promotional strategies in the context of international business.…The imposition of a tariff on imports by a small nation leads to a. An outward (towards the axis of its export good) rotation of its offer curve but the same post-tariff world price of the import good.b. An inward (away from the axis of its export good) rotation of its offer curve and a higher post-tariff world price of the import good.c. An outward (towards the axis of its export good) rotation of its offer curve and a higher post-tariff world price of the import good.d. An inward (away from the axis of its export good) rotation of its offer curve and a lower post-tariff world price of the import good.