After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of direct
ors of Schenkel Enterprises. Unfortunately, you will be the only person voting for you. If the company has 650,000 shares outstanding, and the stock currently sells for $43, how much will it cost you to buy a seat if the company uses straight voting? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
1 answer:
Answer
The cost to buy seat when company uses straight voting is 13.975.043.
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Explanation
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Answer:
b. $2 billion trade surplus with country B.
Explanation:
When a country exports more than it imports, it is said that the country has a trade surplus. On the other hand, when a country imports more than it exports, it is said that the country has a trade deficit.
In this case, exports to country B are worth $10 billion which are larger than the $8 billion of imports from country B. Country A's trade surplus is given by:
Therefore, the answer is alternative b.