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Sliva [168]
3 years ago
9

Suppose that Canada and Australia are the only two countries in the world. Suppose also that in Australia, an acre of land can p

roduce 75 tons of apples or 60 bushels of oranges, while in Canada, an acre of land can produce 60 tons of apples or 150 bushels of oranges. Which of the following statements are true? (Select all that apply) ? A. Canada has an absolute advantage in the production of apples because it has higher productivity in apples.B. Canada has an absolute advantage in the production of oranges because it has higher productivity in oranges. C. Australia has an absolute advantage in the production of apples because it has higher productivity in apples. D. Australia has an absolute advantage in the production of oranges because it has higher productivity in oranges.
Business
1 answer:
ankoles [38]3 years ago
7 0

Answer:

B. Canada has an absolute advantage in the production of oranges because it has higher productivity in oranges. C. Australia has an absolute advantage in the production of apples because it has higher productivity in apples.

Explanation:

A country has absolute advantage when it produces greater quantity of a product at the same cost when compared to another country.

Australia produces more apples; 75 tons when compared to 60 tons produced by Canada.

Canada produces more oranges; 150 bushels when compared to 60 bushels produced by Australia.

Australia has an absolute advantage in the production of Apples and Canada has an absolute advantage in the production of oranges.

I hope my answer helps you.

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One way in which philanthropy can be made strategic is to
Sever21 [200]

Answer:

d. Eliminate contributions to inefficient non-profit organizations

Explanation:

Other listed options are valuable to the question on strategic philanthropy except that on the need to eliminate contributions to inefficient non-profit organizations. No philanthropist would want to offer support to non-profit organizations that are unproductive and inefficient.  

5 0
3 years ago
What should be the price of a stock with a beta of 0.7 that just paid a dividend of $1.25 that is expected to grow at 4% if the
Montano1993 [528]

Answer: $32.05

Explanation:

Beta = 0.7

Dividend = $1.25

Growth rate = 4%

Risk free rate = 3%

Market return = 10%

Since, Required return = risk free rate + beta × (market rate - risk free rate)

We will then slot in the values and.this will be:

= 3% + 0.7 × (10% - 3%)

= 3% + (0.7 × 7%)

= 3% + 4.9%

=7.9%

The price of the stock will then be:

= D1/(Required return-Growth rate)

=1.25 / (0.079 - 0.04)

= 1.25 / 0.039

= $32.05

4 0
3 years ago
Understanding opportunity cost before you started applying for college, a job recruiter offered you a full-time cashier position
natta225 [31]

Answer: You decide to go to college probably because<em><u>"You value a year of college at more than $56,000"</u></em>

<em><u>Opportunity costs are the benefits an respective individual, leaves while determining to pick one alternative over another. </u></em>

So, you will attend college if you perceive value of attending college more than  ($22,000 + $34,000)= $56,000

3 0
3 years ago
The firm's tax rate is 34 percent. The firm's pre-tax cost of debt is 8 percent; the firm's debt-to-equity ratio is 3; the risk-
MAVERICK [17]

Answer:

WACC = 0.08085  or  8.085% rounded off to 8.09%

Option c is the correct answer.

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure that can contain one or more of the following components, namely debt, preferred stock and common equity. The formula to calculate the WACC is as follows,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • D, P and E represents debt, preferred stock and common equity respectively
  • r represents the cost of each component

We first need to calculate the weight of each stock. We know the basic accounting equation is,

Assets = Debt + Equity

We know the debt to equity ratio is 3. Then total assets will be,

Assets = 3 + 1

Assets = 4

Using the CAPM equation, we can calculate the cost of equity.

r = risk free rate  +  Beta  *  Market risk premium

r = 0.03  +  1.5  *  0.09

r = 0.165  or  16.5%

WACC = 3/4  *  0.08  *  (1 - 0.34)  +  1/4  *  0.165

WACC = 0.08085  or  8.085% rounded off to 8.09%

4 0
3 years ago
A partner withdraws from a partnership by selling her interest to another person who currently is not associated with the firm.
spin [16.1K]

Answer: Option A

Explanation: The given case relates to the problem of dissolution of partnership and not the dissolution of firm.

In case of dissolution of partnership only the existing agreement among the partners ceases to exist due to leaving or joining of new partners and a new agreement takes place among the existing partners.

In such a case, the account balance of the partner remains same. It changes in case of dissolution of firm.

Hence the correct option is A.

3 0
3 years ago
Read 2 more answers
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