Answer:
essential for keeping a competitive global economy and lowers the prices of goods internationally
Explanation:
Trade is essential for keeping a competitive global economy and lowers the prices of goods internationally as it spurs innovation and encourages markets to become specialised. The ability to trade also allows access to goods and services that might be of higher quality and lower cost than its domestic alternative
Answer:
Option (C) is Correct.
Explanation:
There are two countries : Home country and Foreign country.
Purchasing power parity measures or compares the currencies of the two different nations by using a basket of goods approach.
It is calculated as follows:
= (cost of basket of goods in home currency) ÷ (Cost of same basket of goods in foreign country)
We know that if there is an increase in the rate of inflation in a home country then as a result there is a fall in the value of home currency. Higher inflation will lead to an increase in the prices of goods in the home country but prices remains the same in foreign country.
Answer:
Option A is correct
Explanation:
Companies often use net book value or gross cost of the asset because<u> It is consistent with how assets are reported on the balance sheet</u>
I can use Logos and Flyers And Do presentations
Answer:
The price of the stock is $100.
Explanation:
First we need to find the dividend per share.
We find that out by dividing the total dividend payment by the number of shares outstanding.
1000/100= 10
We now know that the dividend per share is $10. Because the firm expects to mantain this dividend forever and there are no chances of dividend growth we can use the formula for a perpetuity to find the price of the stock.
Price of stock = Dividend/Required rate of return
Price = 10/0.1=$100
