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DerKrebs [107]
10 months ago
7

A firm based in mexico has found its growth is restricted by the limited liquidity of the mexican capital market. what are the f

irm’s options in this situation?
Business
1 answer:
Ronch [10]10 months ago
5 0

The searching companies can work for equity or debt loans in order to raise money on global capital markets. The debt of a foreign institution, lender, and other debt suppliers is also an option to raise money in the capital market. As equity loans include the sale of equity to investors, the issue of bonds is part of debt loans. Capital costs are usually less than in the domestic market and the company can even borrow money from the bank. And enterprises need to be very careful to take into account the risk of adverse exchange rates because, if the peso is to be depreciated, they should be aware of the cost of acquiring the currency needed to repay a foreign exchange loan.

Moreover, foreign equity, floating foreign or Eurobonds offerings, or borrowing on the Euro currency markets may be considered by the Mexican firm. The euro currency market would then certainly provide the company with additional funding at a lower rate domestically. And if the peso decreases in the next 2 years, the company has to repay the credit in a different currency unless the company can use the future market. The value of euro currency loans would definitely be reduced.

We can recognize that the use of both foreign and euro bonds has the same disadvantages as the bonds have to be repaid in an anti-peso currency. The international bond market has important points that are worth considering, given the fewer regulations, disclosure requirements, and fiscal implications if the currency risk can be properly analyzed and minimized. Since the foreign equity market requires no payment to its stockholders and also has the greatest independence from its actions, it is perhaps the most attractive for the company. So, if the hesitations are to be overcome, investors will likely have loan strong growth prospects.

Learn more about loans here

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Distinguish between the short run and the long run. In the short​ run, ______. In the long​ run, ______.
kenny6666 [7]

Answer:

B. the quantity of only one factor of production is​ fixed; the quantities of all factors of production can be varied

Explanation:

  • As in the short run a firm can have a conceptual fixed time, while the other factors are variable in amount as the foxed costs have no impacts on the short run but may tend to have an impact on the form longer run that could potentially increase the output that could be increased by increasing the number of variable costs.
  • Thus, in short, the form is in a monopolistically competitive market hence the quantity of at least one input is fixed.
5 0
2 years ago
The Economic Research Service of the U.S. Department of Agriculture provides information on topics from how many dairies there a
balandron [24]

Answer:

external secondary data

Explanation:

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This type of data is very useful because it can help us to reduce the costs of a marketing research or other types of studies. A lot of information can be found on the internet, but you must try to use only the information that comes from reliable sources.

5 0
3 years ago
Which of the following borrowing options would cost her the least? Credit card. Personal loan at bank. Student loan. Payday loan
nika2105 [10]

Answer:

Explanation:

The student loan is set up to have a very low interest rate. They are mostly in the 2 to 3 % range if you qualify. The worst is a payday loan. Those have double digit rates associated with them.

5 0
1 year ago
The crossover point is that production quantity where: _________
Vanyuwa [196]

The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.

<h3>What is crossover point?</h3>

Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."

When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.

Thus, option D is correct.

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All options are missing firm the question-

a. variable costs of one process equal the variable costs of another process.

b. fixed costs of a process are equal to its variable costs.

c. total costs equal total revenues for a process.

d. total costs for one process equal total costs for another process.

e. the process no longer loses money.

4 0
2 years ago
During the year Waterway reported net sales of $951000. The company had accounts receivable of $75500 at the beginning of the ye
Nookie1986 [14]

Answer:

37.9 days

Explanation:

Given that,

Net sales = $951,000

Beginning accounts receivables = $75,500

Ending accounts receivables = $122,000

Average accounts receivables:

= (Beginning accounts receivables + Ending accounts receivables) ÷ 2

= ($75,500 + $122,000) ÷ 2

= $98,750

Accounts Receivable Turnover:

= Net sales ÷ Average accounts receivables

= $951,000 ÷ $98,750

= 9.63

Average collection period:

= 365 days ÷ Accounts Receivable Turnover

= 365 days ÷ 9.63

= 37.9 days

4 0
3 years ago
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