Answer:
$55,931.49
Explanation:
The formula for compound interest is to be used for this question
FV = P(1+r)^n
Where:
FV = Future Value of investment
P = Principal
r = Interest rate
n = Number of years
P = $12,000
r = 8%
n = 20 years
FV = 12,000(1+8%)^20
FV = 12,000(1+.08)^20
FV = 12,000(1.08)^20
FV = 12,000(4.660957144)
FV = 55,931.48573
FV = $55,931.49 (To 2 Decimal Places)
That is, the investment $12,000 will become the sum of $55,931.49 in 20 years at 8% annual rate of return compounded annually
Answer:
2) Corporate headquarters preferences, host country/subsidiary preferences, and language skills
Explanation:
It is not easy being an expatriate and many who have been through that experience are not satisfied with it. That is why successful expatriates are considered high value assets by the corporations. Many factors are involved in the expatriate selection process including:
- the most important is the headquarters preferences since they will ultimately be the ones to decide which candidates to select
- the subsidiaries preferences since after the expatriate is selected, .he will go to work there, there is no such thing as a remote expatriate. Subsidiaries that have been operating for several years probably had previous expat experiences and they can contribute to the selection process.
- language and cultural barriers must be accounted for.
Answer: c. The cost of equity is unaffected by a change in the company's tax rate.
Explanation:
The cost of debt can be adjusted for taxes because interest payments are tax deductible. This is not the case with Equity. Equity is not tax deductible so there is not adjustment to the cost of Equity for taxes.
This means therefore, that the calculation of cost of equity will not change in any way due to the company's tax rate. For this reason, the cost of equity is usually higher than that of debt.
<u>Full question:</u>
BuyStore Inc, an online retail store, sells all of its products through its Web site, buystore.com, and through an application on cell phones. BuyStore Inc is an example of a _____.
A) brick-and-mortar firm
B) pure-play company
C) third-party broker
D) physical storefront
<u>Answer:</u>
BuyStore Inc is an example of a pure-play company
<u>Explanation:</u>
A pure-play is a company that concentrates on solely one line of business. Pure plays hold easy-to-understand cash flows and earnings and perform to the provision to a recess market. Representing a company as pure-play enables proprietors and administrators to concentrate on some of the core competencies.
Narrowing a company’s center concedes leaders to reduce confusion and to simplify the firm’s individual sales scheme. The pure-play business model enables companies to explore and develop without large investments in local locations or subsidiary offices.