- Free entry and exit
- Homogeneous product
- Large buyers and sellers
- No artificial restrictions
- No transportation costs
- Perfect knowledge of prices and technology
Answer:
the firm market to book ratio is 1.48
Explanation:
The computation of the market to book ratio is shown below:
The Market values is
= $22 million + $90 million - $50 million
= $
62 million
And, the Book values is
= $22 million + $60 million - $40 million
= $42 million
Now the firm market to book ratio is
= $62 million ÷ $42 million
= 1.48
Hence, the firm market to book ratio is 1.48
Options:
a. Investor collectivism theory
b. Rapid specialization theory
c. Investor individualism doctrine
d. Free trade doctrine
Answer: C. Investor individualism doctrine
Explanation:
Investor individualism doctrine is a doctrine that tends to show that an investors will invest or put Capital in a country that produces the product of which they are best in. In this case capital will be investigated in Moldavia since it is efficient in apparel manufacturing and to the United States of America because it is efficient in the production of computer systems.
INVESTOR WILL GENERALLY INVEST CAPITAL ON THE ECONOMIC COMPETENCE (WHAT A COUNTRY IS EFFICIENT IN PRODUCING) OF A COUNTRY.
I don't think that Pepsi was created by Coca-Cola to compete with Dr. Pepper. It was made by Pepsi to compete with Coca-Cola.
Answer:
30,500 bonds x $14 per bond = $427,000
Explanation:
Nicols Enterprises must carry the Elliot investment on its balance sheet using the fair market value of the stocks (value given by the stock market).
The reliability principle states that only transactions that can be proven have to be recorded. So how can Nichols prove that Elliott's stock is worth $18, or maybe $1,000 or even $1 million. They can´t prove any of that, that is why they have to use the fair market value.
