- Sales Budget is mainly based on sales forecast.
- It is the starting point of master budget and helps the company to determine that how much number of units to be sold in a coming year and its selling price.
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Answer: d. Sell 210 shares and loan out the proceeds at 8 percent
Because the Firm wants to use a Debt to Equity Capital structure instead of an All Equity structure, she can lend money out at the company interest rate to NEGATE the conversion.
She can do this by selling 35% of her portfolio and loaning it out at 8%
35 % of her Portfolio would be,
= 0.35 * 600
= 210 shares
So she can sell 210 shares and loan at the proceeds at 8% to offset the Company's conversion
Increases in the price of the good measured on the horizontal axis will make the horizontal intercept *smaller in value* and make the budget line *steeper*.
One needs to pay attention
example firms based on technology will be at risk when other competitors upgrade.
Dumping is a term in economics that is used in describing a situation whereby a particular firm or country exports specific commodities to a particular foreign country at a price unit that is lower compared to the price unit that such commodity is being sold in that foreign country.
Hence, considering the situation described in the question above, the correct answer to the question is that the U.S. shrimpers are accusing the Chinese of DUMPING