Answer:
$1,534.372
Explanation:
The computation of the expected level of the index in one year is shown below:
= Current index level × 1 + expected rate of return on the market - expected future value of the dividend paid over the next year
= $1,433 × (1 + 8.4%) - $19
= $1,553.372 - $19
= $1,534.372
We simply applied the above formula so that the expected level of the index in one year could come
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Answer:
Answer Illustration : Opportunity Cost of producing Wine is lesser in France, Opportunity Cost of producing Sweaters is lesser in Tunisia. So, France has comparative advantage in Wine, Tunisia in Sweater.
Explanation:
Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.
Opportunity Cost of producing Sweaters & Wine in France & Tunisia are quantities of other goods (Sweaters or Tunias) sacrifised while choosing either. Sweater Opportunity Cost - Wines sacrifised, Wine Opportunity Cost - Sweaters sacrifised.
The country has a comparative advantage in a good if it can produce it with relatively less opportunity cost (in terms of other good sacrifised) than other country.
Ex : Production Possibilities
Wine Sweater Trade off (Wine :Sweater)
France 10 5 1:0.5 or 2:1
Tunisia 8 24 1:3 or 0.33:1
- France produces Wine with lesser opportunity cost (sweater sacrifised) than Tunisia [0.5 sweater < 3 sweaters] ; it has comparative advantage in Wine.
- Tunisia produces Sweater with less opportunity cost (wine sacrifised) than France [ 0.33 wine < 2 wines] ; it has comparative advantage in Tunisia
Answer:
b.sales
Explanation:
As we know that
Income statement refers to the statement in which the revenues and the expenses incurred should be recorded
While on the other hand the multiple-step income statement refer to the statement in which there are various level like gross profit, total operating expenses etc
Plus we also know that
Gross profit = Sales - cost of goods sold
Therefore the cost of merchandise should be deducted from sales so that we can find out the gross profit
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