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RSB [31]
4 years ago
8

The cost of capital: a. is the price of borrowing money, which is the rate of return that borrowers must pay investors. b. tends

to be higher in an international capital market than it is in a purely domestic market. c. in a purely domestic market implies that borrowers must pay less to persuade investors to lend them their money. d. in an international market implies that borrowers wi
Business
1 answer:
notsponge [240]4 years ago
4 0

Answer:

The correct answer is option a.

Explanation:

The cost of capital is the price of borrowing capital. It is the rate of return that the borrowers have to pay. Or the investors get on their investment.

The cost of capital in a purely domestic market is higher than that in an international capital market. This is because easy availablity of capital in international market keeps the rates low.

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Chang Industries has 2,200 defective units of product that already cost $18 each to produce. A salvage company will purchase the
ipn [44]

Answer:

The $18 per unit is a:

sunk cost.

Explanation:

Chang's cost incurred per unit of $18 is a sunk cost.  A sunk cost is a cost that has already been incurred.  It does not make a difference in a future decision. This implies the Chang may decide to correct the defect or otherwise.  What decision it takes should be based on the cost and revenue that results from the next decision, and not the past decision.

8 0
3 years ago
Stryker Industries received an offer from an exporter for 27,000 units of product at $17 per unit. The acceptance of the offer w
Aloiza [94]

Answer:

$162,000

Explanation:

Income Statement - New Offer

Sales (27,000 x $17)                                           $459,000

Less Variable Costs of the offer :

Variable manufacturing costs (27,000 x $11)  ($297,000)

Net Income (Loss)                                               $162,000

therefore,

the amount of income  from the acceptance of the offer is $162,000

7 0
3 years ago
Fill in the blanks to complete the passage about the law of one price. Drag word(s) below to fill in the blank(s) in the passage
Kipish [7]

Answer:

Consider the following explanation.

Explanation:

According to the law of one price, identical goods  

sold IN DIFFERENT LOCATIONS must sell for the same  

price, except for costs associated with MOVEMENT BETWEEN LOCATIONS.

Those costs reflect TRADE BARRIERS and the cost of shipping.  

According to the law of one price, if the price of a good  

in one location does not match the price of the same good in  

a different location, sellers will increase supply  

in the location where the good is MORE EXPENSIVE  

until prices in both locations are equal.

5 0
3 years ago
Ethical Work Climate reflects the ________ of the organization and shapes the ________ of its members.
klio [65]

Answer:

E, true values, ethical decision making

Explanation:

Ethical work climate can be defined as the acceptance or inculcation of the notion of right and wrong within an organization.

In an Ethical Working climate, the true values and the decision making skills of the members of the organization are reflected.

By true values, it means that whatever the company stands for of upholds will be displayed for all to see as well as the ability to make decisions by the members of the organization.

Cheers.

3 0
3 years ago
Android Products, Inc., agreed to accept a $1,000, one-year, 10 percent note from C. Mate. On its maturity date of December 16,
arsen [322]

Answer:

                      <em>Android Products, Inc</em><em>.</em>

<em>                             </em><em>Journal Entries</em>

Date         General Journal         Debit       Credit

Dec. 16     Cash                            $1,100

                 Notes Receivable                       $1,000

                Interest Revenue                         $100

3 0
3 years ago
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