Answer:
Acquisition
Explanation:
Acquisition mode of entry is a type of foreign market entry mode that offers fast, large and international expansion into a new market. This is done by a firm gaining control of another firm through the purchase of stocks or exchange of stocks. This type of strategy is usually used by multinational companies to acquire greater market power. A disadvantage of this type of entry is the high cost and integration is difficult due to different organization cultures and relationships..
Answer:
Coupon rate = 5.8%
Explanation:
The price of a bond is the present value (PV) of the future cash flows discounted at its yield.
So we will need to work back to ascertain the coupon rate
Step 1
<em>Calculate the PV of redemption value and PV of interest payments</em>
<em>PV of Redemption </em>
= 1.067^(-5) × 1000
=723.06
<em>PV of the annual interest rate</em>
= price of the bond - PV of redemption
= $964- 723.06
= 240.934
Step 2
<em>Calculate the interest payment</em>
Interest payment = PV of redemption value / annuity factor
Annuity factor =( 1 -(1+r)^(-n) )/r
<em>Annuity factor at 6.7% for 5 years</em>
Factor =( 1-1.067^(-5) )/0.067
= 4.1333
Interest payment = <em>PV of the annual interest rate</em> / Annuity factor
Interest payment=
=240.93/4.1333
=58.290
Step 3
<em>Calculate the coupon rate</em>
Coupon rate = interest payment/ par value
Coupon rate = (58.290/1000) × 100
= 5.8%
Coupon rate = 5.8%
GDP is the sum of all final goods and services produced by an economy in a given period. In calculating GDP only the final goods and services that are traded are accounted for. Thus, household services that do not generate income are not accounted for in GDP, only productive activities. Therefore, in the long run the tendency is that the GDP analyzed by this issue will decrease, because when the unemployment rate increases, fewer workers will be employed in the productive sector. These people may substitute work for leisure or household chores, but this will not count in GDP.
Answer:
C. Depreciation is a current expense of a cash outflow in the current period.
FALSE depreciation is a deferral expense it do not related t oa cash flow
Explanation:
A. The income statement is put together at a specific point in time (end of a business quarter, or business year) and so the sale could be in one period and the cash received in another period.
CORRECT income statement end at a certain date and include transaction under accrual accounting which doesn't relate to cash disbursements or collection
B. The income statement contains the set of expenses associated with the products or services sold during the current operating period, with those expenses not associated with current cash flow labeled as nonminuscash expense items
CORRECT It works with accrual accounting
D. Companies depreciate fixed assets (such as office furniture, equipment, machinery, and buildings) over an assigned time period, but the initial cash outlay for the fixed asset typically occurs at the time the asset is acquired by the firm.
CORRECT the cash disbursements occurs at time zero. Then, the accounting distributes this over several period to decrease the impact in the first period
Answer:
Stronger
Explanation:
Given that inflation affects trade flows, as the higher price of commodities have negative impacts on exports rates. Thus, all things being equal, it is expected that high inflation should cause downward pressure on the exchanger rate of Krendo.
Hence, the inflation effect will be STRONGER than the interest rate effect in influencing the exchanger rate of Krendo against the U.S. dollar.
