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bulgar [2K]
1 year ago
11

________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising contro

l over the firm's assets.
Business
1 answer:
max2010maxim [7]1 year ago
7 0

________ is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.

Expropriation

What is expropriation ?

Expropriation is when a government seizes privately owned property against the owners' will, presumably so that it can be used for the general welfare of the populace. Properties are most frequently taken in the United States in order to construct roads, trains, airports, or other infrastructure projects. Since the Fifth Amendment of the Constitution prohibits the expropriation of private property "for public use without just compensation," the property owner must be compensated for the seizure.

So, Expropriation is the risk that the host government will take specific steps that prevent the foreign affiliate from exercising control over the firm's assets.

Learn more about Expropriation here:

brainly.com/question/24657899

#SPJ4

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The Internal Rate of Return (IRR) represents which of the following: Multiple Choice The discount rate that must be lower than t
zmey [24]

Answer:

The discount rate that makes the net present value equal to zero.

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

It is the discount rate that makes the net present value equal to zero.

I hope my answer helps you

8 0
3 years ago
RuthAnn is 28 years old and is retiring at the age of 65. When she retires, she estimates that she will need an annual income of
inessss [21]

Answer:

Yes

Explanation:

From her current age of 28 to her retirement age of 65, RuthAnn has (65 - 28 =) 37 more years to work.

If she saves 11% of her annual income of $36,278.13 into a 401(k), she will be setting aside (11% * 36,278.13 =) $3,990.59 into the 401(k) account annually.

At 7.1% compounding rate, in 37 years, RuthAnn would have set aside an amount estimated by the future value of an annuity formula.

FV = \frac{A(1+r)^{n} - 1}{r}

where FV is the future value, the amount that would have been set aside,

A = is the annual savings,

r = is the compounding rate, and

n = is the number of years.

Therefore, the total amount that would be saved up after 37 years =

FV = \frac{3,990.59(1+0.071)^{37} - 1}{0.071}

= (3,990.59 * 11.6535)/0.071

= $654,990.31.

By spending $32,523 annually from an account earning 7.1% compound interest rate for 30 years, the present value of the total amount needed by RuthAnn today that will be sufficient for her retirement spending can be estimated using the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

= PV = \frac{32,523(1 - (1.071)^{-30}}{0.071}

= (32523 * 0.8723)/0.071

= $399,574.83.

Since the amount saved up ($654,990.31) is more than the total amount required for RuthAnn's retirement ($399,574.83), RuthAnn has more than sufficient to meet her Retirement goal.

Specifically, the amount she has saved up can support a maximum annual spending which can be estimated from the present value of an annuity formula.

PV = \frac{A(1 - (1+r)^{-n}}{r}

where PV = the amount saved up, $654,990.31,

A = the annual spending which we are estimating,

r = the 7.1% compound interest rate,

n = the number of years to retirement.

654,990.31 = \frac{A(1 - (1.071)^{-30}}{0.071}

= 654,990.31 = (A * 0.8723)/0.071

= A = 654,990.31/0.8723 * 0.071

= A = 53,312.29

Thus, the amount saved up can support a maximum retirement spending of $53,312.29, which is higher than the $32,523 annual income needed by RuthAnn for her retirement.

6 0
3 years ago
Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?
Vsevolod [243]

According to economic principles, as prices fall, quantity demanded goes up.

What is equilibrium price?

The market price at which the amount of goods supplied and the amount of goods sought are equal is referred to as the "equilibrium price."

The demand and supply model's reasoning is straightforward. For instance, when sugar prices are lower, the market's demand is automatically increased.

Excess demand is depicted in the graph. The price is less than the equilibrium price, as shown by p2 on the graph, since as the price decreases, the quantity demanded increases.

As a result, option (a) As prices fall, quantity demanded goes up is correct.

Learn more about on equilibrium price, here:  

brainly.com/question/13458865

#SPJ1

6 0
2 years ago
When incorporating, a business a. may incorporate in any state it chooses. b. must incorporate in the state in which it does the
finlep [7]

Answer:

B. may incorporate in any state it chooses.

Explanation:

3 0
3 years ago
Which of the following statements is CORRECT? a. Because of tax effects, an increase in the risk-free rate will have a greater e
Anastaziya [24]

Answer: I found the complete Question: Which of the following statements is CORRECT?

a. Because of tax effects, an increase in the risk-free rate will have a greater effect on  the after-tax cost of debt than on the cost of common stock as measured by the  CAPM.

b. If a company's beta increases, this will increase the cost of equity used to calculate  the WACC, but only if the company does not have enough reinvested earnings to  take care of its equity financing and hence must issue new stock.

c. When calculating the cost of preferred stock, companies must adjust for taxes,  because dividends paid on preferred stock are deductible by the paying  corporation.

d. Higher flotation costs reduce investors' expected returns, and that leads to a  reduction in a company's WACC.

e. When calculating the cost of debt, a company needs to adjust for taxes, because  interest payments are deductible by the paying corporation.

And the correct answer is "e. When calculating the cost of debt, a company needs to adjust for taxes, because  interest payments are deductible by the paying corporation.".

When calculating the cost of debt issuance, the company, in addition to taking into account the issuance costs, must calculate the cost adjusted for taxes because interest payments are deductible for debt issuing companies.

4 0
3 years ago
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