The definition of Balance of Payments states:
The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
<h3>What is
Balance of Payments ?</h3>
The balance of payments is a tool in international trade that demonstrates the financial transaction made by a particular country with foreign countries. Its most often includes export, import and transfer payments.
Theoretically, it should be zero as a country's assets should equal the liabilities. However, in practice, that is not always the case, as the country's debits and credits can create a discrepancy in the balance of payments, which creates a surplus or deficit.
A favorable balance of payment means that a country exports exceed imports. B.O.P records economic transactions of goods and services as well as other payments such as international aid, capital flow, and international remittances. A Favorable or positive balance of payment means that the aggregate of country foreign inflow exceeds outflows.
Thus, we can say that above definition state Balance of Payments.
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Answer:
Option C 16.36% is correct.
Explanation:
We can find the growth using the following growth formula:
g = (Earning per share today / Earning per share n years ago)^(1/5) - 1
EPS of this year is $3.2 per share and 5 ago was $1.5 per share.
So by putting values we have:
g = (3.2 / 1.5) ^(1/5) - 1 = 16.36%
The right option is C.
Answer:
d.9.34%
Explanation:
The formula for the weighted average cost of capital is provided below as a starting point for solving this question:
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
weight of equity=1-debt %=1-50%=50%
weight of debt=50%
cost of equity=13.6%
after-tax cost of debt=7.8%*(1-35%)
after-tax cost of debt=5.07%
WACC=(50%*13.6%)+(50%*5.07%)
WACC=9.34%
The discount rate is computed based on the target or preferred capital structure
Answer:
The answer is:
1. 18%
2. $216
Explanation:
1. Contribution margin ratio = contribution margin ÷ sales
Where contribution per unit = selling price per unit minus variable cost per unit OR sales minus total variable cost
= $317,000 - $259,940
=$57,060.
Therefore, contribution margin ratio is: $57,060 ÷ $317,000
= 0.18 or 18%
2. The estimated change in the company’s net operating income if it can increase total sales by $1,200 is: change in total sales x contribution margin ratio.
$1,200 x 18%
=$216.
Answer:
It means, "forcing producers to factor into their production costs the cost of the externalities created in the production of their output."
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