Answer: E. the firms should manage the working capital accounts of their foreign subsidiaries the same as the foreign firms in the countries where their subsidiaries are located manage their working capital accounts
Explanation:
The options include:
a. the management of their working capital accounts is not at all similar to the management of working capital accounts in purely domestic firms.
b. their decisions regarding the management of their working capital accounts are concerned with short-run survival only because the firms don't know how long they will be able to operate in the foreign countries before the host governments expropriate their properties.
c. their decisions regarding the management of their working capital accounts often significantly affect their abilities to survive in the long-run.
d. the management of their working capital accounts is much simpler than in purely domestic firms.
e. the firms should manage the working capital accounts of their foreign subsidiaries the same as the foreign firms in the countries where their subsidiaries are located manage their working capital accounts.
A multinational corporation is an organization that produces goods or renders services in different countries apart from its home country.
Due to the different languages, political environment, culture, and different economic conditions, it is necessary for the corporation to manage the working capital accounts of their foreign subsidiaries the same as the foreign firms in the countries where their subsidiaries are located manage their working capital accounts. This is to ensure that there is uniformity across all level and to cut away discrepancies that might ensure. Even though a multinational corporation is situated in different countries, their goals must always align together.
Answer:
(a) = 57.14
(b) Shown below
Explanation:
According to the scenario, computation of the given data are as follow:-
Expected Rate of Return(R) = 12%
Growth Rate(g) = 5%
P2 = Div. Per Share × (1+g) ÷ (R-g)
P2 = 4 × 1.05 ÷ (0.12 - 0.05) = 60
One Year Stock’s Expected Price = Div. Per Share ÷ (1+R)t + P2 / (1+R)t
a). Expected price (P1) = 4 ÷ (1+0.12)1 + 60 ÷ (1+0.12)1
= 3.57 + 53.57
= 57.14
b).
One Year Dividend (P0) = 2 ÷ (0+0.12) + 4 ÷ (1+0.12)2 + 60÷(1+0.12)2
= 1.79 + 3.19 + 47.83
= 52.81
Dividend Yield Plus Capital Appreciation= Share Dividend in One Year ÷ Current Price Per Share
= 2 ÷ 52.81 = 0.0379 or 3.79%
Capital Gain = ( P1 - P0 ) ÷ P0
= ( 57.14 - 52.81) ÷ 52.81
= 0.0820 or 8.20%
Total = Dividend Yield Plus Capital Appreciation + Capital Gain
= 3.79% + 8.20%
= 11.99% or 12%
Answer:
. d. shows the relationship between the unemployment rate and the size of the negative GDP gap.
Explanation:
Okun's law examines the relationship between unemployment rate and the gross national product of the US.
When unemployment falls by 1%, GNP rises by 3%
I hope my answer helps you
Answer:
237 units
Explanation:
Budgeted Production = Sales Prediction in May + 25% of June Sales - Ending Finished Goods inventory in April
Budgeted Production = ?
Sales Prediction in May = 232 units
25% of June Sales = 25% of 360 units = 90 units
Ending Finished Goods inventory in April = 85 units
Budgeted Production = 232 units + 90 units - 85 units
Budgeted Production = 237 units
Budgeted Production for May = 237 units.