Answer: Selling exports abroad at a lower price than the domestic price.
Explanation:
Dumping is a practice in international trade where the country exporting, does so at a price that is lower than the domestic price of the good being exported in the importing country.
This allows the country exporting to gain more market share but can also lead to the collapse of the domestic industry thereby allowing for an export based monopoly to form.
An example would be Japan selling electronics in the U.S. at lower rates to capture market share even though those same electronics commanded a higher price in Japan.
Answer: Jack Corp's D/E ratio is 0.67.
We follow these steps to arrive at the answer:
We begin with the DuPont Identity for Return on Equity (RoE)
Substituting the values from the question in the DuPont identity we get,
So,
Substituting the value of equity multiplier in the formula above we get,
Now,
So,
Now that we have the proportions of debt and equity to total assets, we can find the Debt Equity (D/E) ratio as follows:
Substituting the values we get,
Reduction in the price. If they do not reduce the price, then people will not buy the product, and they will be left with too many of the same products.
Answer:
$200 loss
Explanation:
Long call profit = Max [0, ($123 - $120)(100)] - $500 = -$200.
Answer:
A. Intrinsic value is 0. Time value is 1.35.
B. 1.35
C. -4.65
Explanation:
