Answer: $6,400
Explanation:
The expected return is simply a weighted average of the different returns given their probability of happening.
If everything was invested in Project X, there is a 70% chance of success and 30% of failure. Payoff is $10,000 if successful and $2,000 if unsuccessful:
= (70% * 10,000) + ( 30% * -2,000)
= 7,000 - 600
= $6,400
Answer: The answer is benefits of international trade
Explanation:
In the question, no specific question was asked. But I think the question is about the benefits of international trade.
International trade is a trade between one country and the other.it can also be said to be the buying and selling of goods and services across national boundaries. The following are the benefits of international trade
A higher level of material well being : international trade leads to increased standard of living among nations of the world. In the sense that, it increases output and the opportunity to acquire goods that we would otherwise have been unable to produce ourselves, it would lead to increase in national income which will in turn lead to increased in investment which will enhance the welfare of all citizens
Reducing the threat of war: international trade bring about a better understanding among nations of the world. It promotes international friendship and world peace.
Deterring monopoly : international trade helps in preventing monopoly by ensuring that goods comes from other countries of the world.
Promoting competition : international trade helps in promoting competition among nations of the world. In the sense that,countries compete for trade in order to increase their own volume of the world trade as a measure to avoid balance of payment deficit.
Gains from specialization : international trade help countries to specialize in commodities which they can best produced. It leads to increased output and employment throughout the world from which every nation can benefit.
A more efficient allocation of resources : international trade help countries to allocate their resources efficiently. In the sense that, each country will specialize in the production of those commodities in which the country has comparative cost advantage over other countries by directing their resources to those areas of comparative lower cost, world output will be increased.
Answer: B. It may help a firm achieve experience curve and location economies
Explanation: Exporting is defined as the act of conveying or sending commodities abroad or to another country, in the course of commerce. Exporting provides a distinct advantage to firms in that it helps them achieve experience curve (which posits that the more experience a business has in the production of product, the lower its costs in producing the product) and location economies (the production of a good or product under the most optimum settings that confers an added advantage in cost of productions over their competitors).
Answer : 4.34 %
Explanation: The effective interest rate a company pays on its debt obligation is called cost of debt. The cost of debt is denoted by [k]x_{d}[/tex] . As there is a tax shield available on debt interest it is generally calculated by subtracting the marginal tax rate from before tax cost of debt .
.
where,
c= coupon payment = 1000 * 6% = 60
p = current market price = $898
t= marginal tax rate
therefore :-
= 
= 4.34 %
