Answer:
Comparative Advantage
Explanation:
The assumption of Comparative Advantage theory is that there is no barrier.
It is explained in the model that if each country focuses on what it does best relatively then both countries together can produce more of each good/service using all their labor.
Then they can trade with each other and benefit. (To trade they must produce what the other need)
The factor that affect the net export of a country include:
- domestic and foreign incomes
- relative price levels
- exchange rates
- foreign trade policies etc
<h3>What is a
net export?</h3>
This refers to the the difference between the monetary value of a nation's exports and imports over a certain time period.
In conclusion, the net export is derived after the deduction of the total import from the total export in a year.
Read more about net export
<em>brainly.com/question/21205765</em>
#SPJ1
Answer:
B) Incurable
Explanation:
The convenience store is working legally in front of your house, and unless you have enough money to buy the whole business and close it, then you cannot do anything about it. That is what incurable means in real estate: the costs of improvements or corrections necessary are higher than the value that is added by the improvement or cure.
That is probably the reason why the house is so cheap and Maria can afford it.
Answer: This chart demonstrates that the marginal cost initially decreases as production increases.
Marginal Cost refers to the cost of producing an additional unit of a good. As production increases, marginal costs will initially decrease.
In the short run, factors of production like capital are fixed. Only labor is variable and varies with the number of units produced. Initially, employing more labor results in better productivity and help in decreasing the marginal costs. However, as more units of labor are employed, labor become less productive and the law of diminishing marginal returns sets in. Hence the marginal cost curve begins to rise.
Answer:
Cost of common equity=15.74%
WACC=11.91%
Explanation:
Complete Question:
Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is P0=$22.00. The last dividend was D0=$2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC?
Answer and Explanation:
First we have to calculate the cost of equity which shall be calculated as follows:
Cost of equity=D0(1+g)/P0+g
In the given question:
D0=$2.25
P0=$22.00
g=growth rate=5%
Cost of common equity=$2.25(1+5%)/$22.00+5%
=15.74%
Now we will calculate the WACC which shall be determined through following mentioned formula:
WACC=[Portion of Equity in capital structure*Cost of equity+Portion of Debt in capital structure*Post tax cost of debt]/Portion of Equity in capital structure+Portion of Debt in capital structure
WACC=[65%*15.74%+35%*(1-40%)*8%]/100%
WACC=11.91%
