According to the Bureau of Economic Analysis (BEA), a greenfield investment is a project “where foreign investors establish a new business or expand an existing business on U.S. soil.”
Answer:
7.83%
Explanation:
This is calculated by using the Gordon growth model (GGM) formula as follows: P = d / (r - g) ……………………………………… (1)
Where;
P = market price of the stock = $24.09
d = next year annual dividend = $1.26 r = cost of equity = ?
g = dividend growth rate = 2.6%, or 0.026
Substituting the values into equation and solve for r, we have:
24.09 = 1.26 / (r - 0.026)
24.09 (r - 0.026) = 1.26
24.09r - 0.62634 = 1.26
24.09r = 1.26 + 0.62634
24.09r = 1.88634
r = 1.88634 / 24.09
r = 0.0783038605230386, or 7.83038605230386%
Rounding to 2 decimal places. we have:
r = 7.83%
Therefore, the correct option is 7.83 percent.
Answer:
Cost advantage.
Explanation:
In this scenario, Sweetmeats Inc., a deli, produces its own grains, such as corn, wheat, rice, and oats. The employees create different types of breads without having to buy the grains from other sources. This has helped them sell their bread items to customers at much lower prices than other neighboring delis. This scenario best illustrates a cost advantage.
Cost advantage can be defined as the factors, benefits or edge which an organization has to produce its goods and services at a cheaper rate and better quality, over its competitors or rivals in the same industry. Some of these factors include availability of raw materials, branding, skillful workforce, intellectual property, quality distribution channels, favorable location, great customer services, superior technology, etc.
Answer:
The amount credited to common stock upon conversion of the bonds is $101000
Explanation:
When the bond was issued there would been a debit of $102000($100000*$102/$100) to cash account and credit of $102000 to liabilities split into $100000 bonds payable and $2000 bond premium.
However, on conversion to common stock with premium of $1000 outstanding in the books,the amount to be credited into common stock account is the issue value less outstanding premium.
The amount credited to common stock=$102000-$1000=$101000
This can be shown with entries below:
Dr Bond payable $100000
Dr Bond premium $1000
Cr Common stock $101000
HERE IS/ARE THE FULL QUESTION(S):
The small island nation of Kaboom is a simple economy with no government, no taxes, and no imports or exports. Kaboomers (citizens of Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption (independent of Y) is zero, so consumption (C) is MPC times Upper YMPC×Y.
The following data are estimates for the island of Kaboom:
bullet• Real GNP (Y): 422 million Kaboomian dollars
bullet• Planned investment spending (I):225 million Kaboomian dollars
You are asked by the business editor of the Explosive Times, the local newspaper, to predict the economic events of the next few months.
Based on the data given, you predict inventories will DECREASE and the level of real GNP will INCREASE.
Things will stop changing when SAVINGS EQUAL INVESTMENT.
Kaboom's economy will reach equilibrium when its real GNP = 563 MILLION Kaboomian dollars
