Answer:
The company can file antidumping case against the leading foreign rivals. The probability of winning the case is only high when there is cash deposits near to zero in the country and balance of payment is negative.
Explanation:
There can be a law suit files against the foreign rivals but the company will have to bear lawyers fee for this. There is a threat to employment of labor in the home country as most of the goods are imported so factories in the home country will be moved towards shut down because consumers will be buying imported goods which are offered at low price.
Answer:
Explanation:
a.Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)
=150,000/1.12+210,000/1.12^2+360,000/1.12^3
=557580.18
NPV=Present value of inflows-Present value of outflows
=557580.18-460,000
=$97580.18(Approx)=Value of factory
b.Hence since net present value is positive;factory is a good investment
(Yes)
0.08x+0.085 (10000-x)=842.50
Solve for x
X= 1500 invested at 8%
10000-1500=8,500 at 8.5%
Answer:
b. The stock price will not change, because the market had already incorporated the information about the FDA approval announcement in the stock price.
Explanation:
If the markets are strong form efficient, it means the consensus of the market related to future impact of FDA approval on earnings would be correct, the stock price of today correctly estimates the future earnings, and therefore the stock price would not change when the earnings are released.
Answer:
The price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price. Elasticities can be usefully divided into five broad categories: perfectly elastic, elastic, perfectly inelastic, inelastic, and unitary.
Explanation:
