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.
Answer:
$54.95 interest income
Explanation:
We look int othe legal tables to recognize income in this type of annuities considering the age of each participant
Table VI - Ordinary Joint Life and Last Survivor Annuities; Two Lives - Expected Return Multiples
multiplier at cross 75 / 70 : 18.8
we take the annual income of 700 x 12 = 8,400
and multiply by the 18.8 = 157,920
now we solve for part of capital and interest:
145,530/157,920 = 0.92154 = 92.15%
principal returns are 92.15% while interest the remaining 7.85%
700 x 7.85% interest = $54.95 interest income
Answer: Monetarist
Explanation:
The monetarist theory is a theory which believes that the changes in the supply of money is the most important factor in the growth of an economy.
In this concept, economic stability can be fostered through targeting the money supply. The theory assume that the fluctuations in both the investment and consumption expenditure, which are s a result of the fluctuations in growth rate of the quantity of money, are the main source of fluctuations in aggregate demand.
Answer:
You question is missing some data.so i am adding a sample question matching the above conditions.i hope it will help.
You have just taken out a $15,000 car loan with a 8% APR compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go towards the interest? (Dont round intermediate steps to six decimal places)
Round answers to nearest cent
Explanation:
Please find attached file for complete answer solution and explanation of same question.
Answer:
Explanation:
Given
For ABC
rE = 15%
rD = 7.5%
D/E = 3/7
rE = rA + (rA-rD)*(D/E)
15 = rA + (rA-7.5)*(3/7)
105 = 7rA + 3rA - 22.5
10rA = 127.5
Hence,
rA = 12.75%
Now,
Weighted average cost of capital is the rate of return required from the firm. Irrespective of its capital structure.
WACC = (D/V)* rD + (E/V)*rE
Since, D/E = 2/7
So, D/V = D/(D+E) = 3/10
SImilary, E/V = 7/10
Hence,
WACC = (3/10)*7.5 + (7/10)*15
= 12.75%
c
Since this is perfect capital market and firms are competitors with different capital structure.
According to MM proposition the Asset return and WACC of two identical firms with different capital structure are same
Hence
rA of XYZ = 12.75%
d
similarly as question c
WACC of XYZ = 12.75%
E AND F is solved in the attached below