The firm that will most likely favor a foreign direct
investment over exporting is when a scenario occurred of having a firm of which
has the wants in technological know-how in which is to be likely widely
disseminated by the firm.
<span>In 1932, the u.s. government imposed a two-cent tax on checks written on deposits in bank accounts. this action would be expected to increase the currency–deposit ratio and decrease the money supply. Tax are basically meant to defers the writing of checks. Hence people will be unwilling to pay tax and does not want to write check which will increase their bank balance and hence currency deposit ratio will rise and money supply will decrease in the economy.</span>
Answer:
Investment in the investee will be overstated, retained earnings will be overstated.
Explanation:
The effect on the investor’s statement of financial position is shown below:-
Because the investor owns more than 30 percent of the equity approach has to be used. This will result in overestimated investments of $8,000 which comes from $20,000 × 40 percent in investee, which will also result in overestimated retained earnings of $8,000 which comes from $20,000 × 40 percent
Answer:
the after-tax cost of debt is: 27,090
Explanation:
assuming the entire among of the consulting services is tax deductible
we can determinate the after-tax cost as:
expense x (1 - tax rate) =
43,000 x (1 - 0.37) = <em>27,090</em>
<em />
<em>the rate of return of a potential investment is not relevant for this purpose as is paying right away and not giving time to invest in a project to pay the amount next year.</em>
